E-commerce, in today’s time, is a highly resorted option for earning a good amount of money sitting at the comfort of your home. Now one such method of E-Commerce is drop-shipping. Drop-shipping is one of the E-commerce options wherein you can earn a minimum of $1000 per day. Where the step includes how to choose a product for dropshipping and marketing of the particular product.
Let’s get into the topic.
WHAT IS DROP-SHIPPING?
Drop-shipping is similar to a retail business wherein the seller does not have to maintain an in-shop inventory. Instead, the seller and the drop shipper enter into a contract wherein, the affiliate marketer (drop-shipper) will be responsible for the brand building of the product including its marketing and advertising, and if they manage to appeal to the customers through their enticing ways of marketing and they place an order, the seller will directly ship the product to the customer’s doorstep and will share a part of their profit on that particular product with the drop shipper as their payment for successfully marketing the product.
This method also helps to provide the customer with the best facilities in terms of convenience and aesthetics as the appealing online store is prepared by the drop-shipper that aims to provide a proper knowledge of the working and description of a particular product they are supposed to advertise. The customer then makes an informed decision and goes ahead to place the order for it. After receiving the order, the seller directly ships the order to the customer’s doorstep. The products are stored in fulfilment houses from wherein they are delivered and the practice of blind-shipping is followed wherein the address of the supplier is not disclosed.
The customer gets the item they wanted and the drop-shipper gets a share of the profit the seller makes by selling that product.
Thus, in the end, it is a win-win situation for all the actors involved in the process.
To provide an example, sites like- eBay are the best examples of drop-shipping businesses.
HOW TO CHOOSE PRODUCT FOR DROPSHIPPING
One of the main reasons behind the failure of the drop-shipping business by new entrepreneurs is the wrong selection of products they choose to advertise.
As a drop-shipper, it is vital that you choose a product after proper research and are absolutely sure that you would be able to market the product to the target audience.
Now you’re just in luck because this is the whole motive behind this blog, to ensure you choose just the right product for your drop-shipping venture.
We will disclose with you the secret guide to success for you to ensure that you choose just the right product for your venture.
The following method will not help in finding the suitability of the product but also the stability of its sales so that you can make a more informed decision regarding choosing the product as the basis of your venture.
STEP 1: SEARCH A NICHE OR BROAD/ TRENDING KEYWORDS
Start with an easy task of searching a niche or a broad keyword on the internet like for instance, words like fitness, baby, makeup, art, iPhone, toys, etc.
• Whatever type of product you’re interested in advertising search a broad keyword related to that.
• This will not only help you find a list of products under the same genre of products you were looking for to market but will also give you a clear picture regarding the sales of different products under the category that will further help you in choosing the right product.
Websites like merchant words can help by providing you with the search volumes of the particular keyword you search there across different e-commerce sites to help you get a clear picture regarding the demand for the particular product and whether it is suitable for you to choose it or not.
Now you should also remember to not choose an evergreen or an extremely popular product at the beginning of your venture as chances are if the product is already so popular, the market for the same will be very competitive.
STEP 2: VERIFYING THE POTENTIAL OF THE PRODUCT ON AMAZON
After you go through the process of choosing the product that you think has potential and looks promising for the drop-shipping venture you move on to the next step and that is verifying its potential on amazon.
Before we start with the process you may want to open the site jungle scout to help you thoroughly with this process.
• You open amazon, search your chosen product,
• Copy the URL of the same and paste it on jungle scout ( which is also available as a chrome extension on your PC).
• As soon as you paste and hit search on the jungle scout extension, it displays the revenue made by that product on amazon.
• To further verify the product, you search the chosen product on ‘Google trend’ which helps in verifying the potential of the product.
STEP 3: GO THROUGH CUSTOMER REVIEWS AT AMAZON TO SCHEME YOUR ADVERTISING TECHNIQUE
This step is very important as it helps you angle your marketing scheme for the product.
• You again open amazon.
• Search for the chosen product
• Choose the first product you see which has the highest ratings. • You then open the customer reviews section and go through it thoroughly so as to understand the needs of the target audience and develop a proper marketing strategy for the same.
In the end, having a proper advertising plan is a necessary step in making your drop-shipping venture a success.
Once you understand the needs of the target audience and devise a suitable advertising and brand-building strategy, your success rate automatically rises.
Step 4: Decide on a suitable price range
It is essential to decide on a suitable and competitive price range for your product.
• Never set an unrealistic price for your product. Too expensive or too cheap will never help you earn a decent commission on the product. • It is a must to set a price that is suitable for both, you and the customer.
This strategy will not only help in increasing the popularity of your store but would also cater to a wide range of buyers belonging to different backgrounds be it ultra-rich to middle-class.
ADDITIONAL TIPS TO INCREASE THE SUCCESS RATE OF YOUR DROP-SHIPPING BUSINESS
Choosing the right and product and marketing it right, although are very important they are just a small part of the big picture of your dropshipping venture’s success. These steps can ensure the smooth running of the beginning of your venture but these steps alone are not sufficient for your venture in the long run. After choosing the right product and devising the strategy to market them, you need to focus on the services of your website in general as well. The convenient the services the more appealing your site would be to the customers, in turn making your business more popular.
There are some steps you can take to ensure the smooth running of your sites like:
1. FAST DELIVERY
Imagine you’ve finally ordered this item that you had been looking for for over a month. Your excitement knows no bounds when you see “on its way” on the tracking page. Now fast forward to ten days later, the product that you had ordered still hasn’t been delivered to you. Feels quite frustrating right?
• Any customer excited about the arrival of their product can easily be frustrated if the delivery isn’t fast enough and takes longer than an average of 4-6 days. So make sure to develop a fast delivery model for your site.
• This technique will not only ensure a happy customer rating but will also in turn produce loyal customers for your venture.
2. DON’T RUN MULTIPLE STORES AT ONCE
Do not overestimate the benefits of having more than one store at a time.
• As appealing as the idea of having multiple stores sounds, it highly tampers with your efficiency and creativity overall. And these two qualities are vital for an aspiring drop-shipper.
• Investing, and managing time and resources are the most important components for an aspiring drop-shipper.
• In case you have a few different product options in mind, then prioritise, plan and then execute.
• After you successfully manage to open one store, opening another one after a few months would be a good option.
3. UNDERSTAND YOUR RETURN ON INVESTMENT (ROI)
All through your advertisement tactics for your business don’t forget to keep a good eye on your ROI
• Keep checking your ROI regularly, otherwise, you’ll end up losing money.
4. EFFICIENT AND QUICK CUSTOMER SUPPORT
This step is one of the key steps in building a relationship of trust and understanding between you and your customers.
• Make sure you notify them about any upcoming or ongoing deals ASAP! • Make sure you check your mails regularly to provide an answer to any of the queries that they might have.
• Initiate the refund process as soon as possible. Naturally, everyone gets super possessive when it comes to their hard-earned cash. So refund the amount as quickly as possible and try to keep them updated throughout the process.
• Earlier the refund process and the response time, the better the reviews your venture gets and it also gains the trust of more customers.
One thing you should bear in mind is that if you are absolutely sure about starting with your drop-shipping business, then make sure that you are physically and mentally prepared for it. The drop-shipping venture, as easy it may sound is no walk in the park. It requires a lot of patience, determination, and hard work to finally reach the level you wanted to when you first started. Drop-shipping is not only about advertising the product in the right way or even choosing the right product but it is most importantly about the brand building which requires a lot of time and patience. You need to constantly revise and strategise your plans.
Another thing that decides whether you’ll make it or break it is the decisions you take. From choosing a suitable niche you want to market to selecting your supply aspect of the platform you decide to run your ads on, make sure that you’ve done thorough research on all of these aspects before diving into any of these practices. Hence, your most reliable bet is to follow these magic steps mentioned above to earn that $5000 per month you always wanted. All the best!
FREQUENTLY ASKED QUESTIONS:
1. Is drop-shipping still profitable in 2021?
– Yes, it is. Rumours are that it is not profitable anymore, because of the growing competition. But drop shipping is a thriving E-Commerce market. If you check the statistics, this industry grows every year. Moreover, if you are good at marketing and advertising your products your business will grow for sure.
2. How much do drop shippers earn on average?
– There are drop shippers who make around hundreds of dollars every year, but if you are a budding drop shipper you can earn up to $5000 per month.
3. What are the good sites where you can set up an online dropshipping store?
– Sites like Shopify, Wix are really famous for this purpose. Choose your perfect fit.
4. Do companies like Amazon and Flipkart allow drop-shipping?
– Yes, they allow retailers and drop shippers to drop-ship items, as long as you abide by the agreement and policies.