How to make money with dropshipping? Is it a tough question? No should be the answer as long as one ‘copes’ with patience. Dropshipping has been serving its primal module of business since the beginning of trade fares of humankind. For example, traders in the past used to buy from a second party to sell it only to the third party with temporary warehousing.
Today’s dropshipping module slogan has slightly changed from ‘trade local’ to ‘trade global’. Estimates may vary but industry experts say that around 20 to 30 percent of online traders use dropshipping as their prime module. This proves that it is a proven ‘path of trade’. You will get enough company in the segment. Even bigger retailers like Amazon use drop shipping modules in their business model.
Making money with dropshipping: A full-time business
As we have talked about its history and current affairs. Now undertaking dropshipping as a full-time business should be our main focus of discussion. So give a pat on your back and read it.
The main components of the dropshipping module circulate as:
- The vendor
- A delivery partner
Let us discuss some merits and demerits of dropshipping. The snippet shows the clear benefits and losses of the type. The portion of the description that makes it unique is discussed below.
You do NOT have to own a warehouse to keep a product as the module doesn’t require it.
You do NOT a packaging unit that irritates and consumes your valuable time and energy multiple times a day.
You need NOT pay upfront for a product that makes you very unsure of the market trends.
In short, your module provides you hassle-free and tensionless atmosphere to work. In starting a dropshipping business you avoid these kinds of issues and also avoid potential loss of your upfront investment.
Starting off as a small business
Starting off as a small business with dropshipping module does require few capabilities for a person. Let us discuss some of the capabilities:
- Product research: The individual or firm should have the capacity of doing the product research. In dropshipping scenarios, one should know what product is most viable in the market and which product has the least capacity of getting sold.
- Product listing: The listing should be done as fast as possible and with keeping the inventory in check.
- The Product keyword optimization: The product should have the least number of keywords added to the profile for better visibility.
- Product photography: The product photography should be taken care of as well to avoid copyright claims on the product.
Five best dropshipping products to sell
When talking about the best products to sell through dropshipping, the calculations can not be exact. As the calculations depend upon the weather and local conditions of the area of business, it can be rarely said that “this product is best to sell through dropshipping 12 months a year”.
Keeping the above fact in our mind let us discuss some most probable ones that may provide you some success rate.
As per reports electronics is the most sought-after category when taking a ‘bird’s eye view’. As this kind renovates itself in every three to six months of time. A new product is launched and people like to cope up with the emerging technology.
If books aren’t your niche you are lagging behind. The market has seen a rise in recent times. And books have now been moved to the second position in regulation in the market.
Thirdly: Toys and gift items
Toys and gift items are the third-largest sought-after product in the market right now. Therefore dropshipping them is much easier.
Regulating cash flow: Increasing sources of income
Every business sees its ups and downtimes. But between those curves their lies an opportunity, which should be noticed as an online seller. There are always methods to fill up the gaps between the curves. Let us go through some domains which allow us to cover the ‘gaps’ while running ‘off-season’ on the money.
Buying at wholesale price: Benefits in online business
Pre-estimating market trends are the only way you gonna make a profit while buying at wholesale price. Because buying and stocking goods at the vendor’s warehouse gonna cost you much in your pocket.
If you are a ‘prophet’ of the dropshipping domain, ‘buying at wholesale price’ is made for you. Being an astrologer at the domain fruits you very well.
As per my wisdom astrology is nothing but a chance in the game of probability. You are certain to know a happening if you look close enough or if you’re mathematical enough. However, this might be a topic of discussion on some other day. Let’s move on to the next topic of today’s discussion.
Content marketing: Writing high-quality blogs to improve your Shopify store
Sometimes bragging about your product works. The same is done and meant with this strategy.
To improve traffic on your eCommerce website you need to have blogs. And content marketing blogs are meant to increase traffic while describing your niche to a marketing level.
It is done such that the customer feels motivated enough to buy the product (content marketed) from your website.
Affiliate marketing: How to use it to make money online?
This domain provides you an opportunity of earning online with an average of $1000 (as per reports) per month. That makes a huge difference if you’re a newbie in the dropshipping business.
As per Shopify, “Affiliate marketing is an online sales tactic that lets a product owner increase sales by allowing others targeting the same audience—“affiliates”—to earn a commission by recommending the product to others. At the same time, it makes it possible for affiliates to earn money on product sales without creating products of their own.”
Henceforth, it is the apt tool that should be utilized to create an income that shall fill the gap between up and down curves in the market trends.
Increasing profit margin: Strategies
Profit margin is a major concern in dropshipping. As in this module, you don’t own any real property in the business. Instead, you just depend upon second and third-party resources.
Therefore keeping the hurdles in mind we concluded some of the best methods as following to increase profit margins.
Increasing shipping times
Increasing shipping times means, an increase in the number of listings per dropshipping account. This will tend to increase the number of orders per account.
With an increase in the number of orders, the overall profit margin increases with ease.
Facebook ads: Advertisements on social media
Facebook advertisements are meant to increase the popularity of the uniqueness of the product. As Facebook is the largest social media platform, it has got maximum possible reach that can be for a post or product for advertisement. Henceforth, it is the preferred social media platform that can be used for advertisement.
Customer Service: Keeping the tradition safe
Customer service is the method of increasing profit margin by maintaining the overall relationship health between you and customer in check. This includes:
- Offering the customer better deals than other vendors.
- Providing extra services or relative products with the primary product.
- Talking to the customer and replying to their reviews in a gentle tone, etc.
Conclusion: Running a profitable dropshipping company
Running a profitable dropshipping company ain’t a dream that can be accomplished in a fortnight. If you are thinking such, please do change your thoughts or you gonna find it boring as others say it.
Instead, you should be hustling 24*7*365 to your dreams ( if it is a seven-figure business per month). The target i.e. seven or eight-figure business a month is achievable if you follow the most accurate path to success.
Let us end our discussion with the saying, “the consistent-one wins and not only the faster-one”.