In case you’re completely unfamiliar with the concept, dropshipping enables ecommerce entrepreneurs to sell products online without carrying inventory. Different vendors or suppliers) design, manufacture, package, and ship the product out to the entrepreneur’s customers, which makes dropshipping an affordable business model.
However, before setting up a store and engaging in services of the first supplier you come across, it is vital you know the ins and outs of the business. With that in mind, we’ve shared a few dropshipping tips every ecommerce entrepreneur should read, learn from, and execute before starting their journey.
1. Work On Your Ecommerce Store
While dropshipping is a great way to cut costs and corners, by no means it’s an invitation to do the same with your ecommerce website. Visitors’ experience is what builds trust in online stores, so make sure to give a little extra thought to product images, store layout, product copy, and other essential elements. In addition, make sure your return and shipping policies are simple to understand. If you’re looking for inspiration, search for successful ecommerce websites in your industry.
2. Aim for Lightweight + Durable
Regarding the type of products to sell, you may get tempted to list just about any item as long as you can find suppliers for it and earn a decent markup. But before posting images of those motor bikes and home systems that you can’t image suppliers would be selling at such a low price, know the risks involved with shipping larger items. Logistics can be complex, and heavier items could take days to reach the customer. Hence, it is better for you to stick with durable and light items rather than fragile and large items at the beginning. Also, it’s good if the product doesn’t require much technical assistance to use.
3. Look for Opportunities to Automate
With software and apps like Oberlo, multiple aspects of your business are automated in advance. However, if you want to earn more passively or can’t give much time to marketing, knowing how to automate additional aspects of your brand will give you more freedom to work on other priorities. Fortunately, several automation tools exist to help new dropshippers scale their business. For example, ConvertKit allows you to set up drip emails as well as automate campaigns. HootSuite allows you to automate updates on social. Grammarly allows you to detect errors in product copy. And so on. Consider installing the different marketing tools that can simplify your day to day tasks.
4. Choose ePacket When You Can
As an ecommerce entrepreneur who is dropshipping, you’ll get an option to sort selected items for ‘ePacket’ shipping. Since this is the quickest, and the most affordable method, to ship, you’ll ensure that your products are reaching customers fast without draining your finances. On average, ePacket costs below $5 for most items, which enable you to generate good revenue when selling items at a market price. If you’re lucky, your ePacket delivery will arrive at the customer’s doorstep within a week.
5. Vary Dropshipping Platforms
Aside from the standard dropshipping platforms, you can expand your horizons by checking out alternative ones. One big name, for example, is AliExpress. You’ll find several AliExpress suppliers possessing accounts on Amazon and eBay. They’ll ship items faster, because they can’t risk being penalized by these giants. They’re normally working with US warehouses and partners; therefore, they offer a tracking number for USPS. USPS is internationally recognized, so you can make a good impression on your customers by providing them with this tracking number instead of a Chinese one.
6. Streamline Customer Service
It should hardly be a surprise that customer service made this list. It is perhaps your best and only opportunity to beat giants like Amazon. Get people to feel valued and respected to build a community and spur a lifetime client base. Solve their problems via live chat, be responsive on emails, and do everything else to keep them happy. As a dropshipper, it is important to let them know that you take complete responsibility of the entire buying experience, that their preferences are critical and that their satisfaction is one of your utmost priorities.
7. Focus on SEO
You may have not heard about ecommerce SEO, but it exists. Also, the concepts are the same. You’d have to use related keywords in your product copy, put alt tags on your product images, write metas for them, and do other SEO related tasks to make them rank well in Google. Also, you’ll have to build backlinks for your store, get influencers to mention your products in Instagram stories, and get shoutouts if you want to build a digital network that gets you recurring traffic for years to come. Hence, learn some SEO skills if you want to stand out amongst a sea of websites in Google’s search engine.
8. Never Underprice
Dropshipping items allow you to keep the price in check. Ideally, the costs are close to wholesale pricing, allowing you to make a profit. And the goal of any business is to make a profit. If you are selling something that costs $10, you should charge a $19.99 price for it. You need to account for the costs of marketing the business, goods, photography, and the likes. If you see other stores selling at a low price, don’t follow suit. Instead, maintain the price at market value; as long as you do this, you’ll keep making a decent profit. Other than that, see where you could increase your average order value.
Final Verdict
With low investment needed and good earning potential, dropshipping is expected to be even popular than it is now. However, entrepreneurs need to remember that a lot goes into it than just buying a domain and installing Shopify. Hopefully, the tips mentioned above will help you stay up to speed with current happenings, as well as the measures you need to take in order to be successful.