Dropshipping can be a quick and inexpensive route into the world of business. In essence, it is where you as the seller effectively function as a middleman with the goods you sell.
You do not hold the inventory, you merely promote the goods on your website, buying them from your suppliers who arrange delivery to the customer. The mark-up you charge on the cost of the supplier’s products is where you make your profit.
If you are new to the world of dropshipping here are some key points to get your business up and running and growing into a successful venture.
Decide on your niche
A key point of note is to firstly decide on what niche of the online market your dropshipping company will focus on. It pays to pick a niche that is of interest to you so that you can write product descriptions with insight and passion to attract your buyers.
For instance, if you are passionate about the electronics market and want to start selling laptops, you might want to start with the inexpensive end of the market with products such as Lenovo 4GB laptops. Products such as this have a lower unit cost then ultra-expensive gaming laptops and will thus mean that you can sell a higher volume of them.
Your market research may also highlight the rise in remote working, and therefore the demand for such laptops to act as home office computers. The key here is being knowledgeable about your niche and researching trends to see what demands are emerging in your chosen area.
A good research starting point is Google Trends, which will help you determine the demand for products in your chosen niche.
Sell fewer items at first
Whilst the idea of setting up your online shop with a vast variety of products may seem appealing, it may not be an ideal strategy. Of course, offering the customer choice is a good idea, but it makes better sense in the beginning to offer fewer products which have shown to have definite demand and a degree of longevity.
If your shop is filled with hundreds of products in the beginning, you will have created a large amount of work for yourself. Every product will need high-quality images on your store with accurate product descriptions written.
This will be a very time-consuming process. In the beginning, focus on key products that you know will sell and offer beautifully written descriptions with high-quality imagery. This will ensure that your online shop looks professional and projects the right image.
Promote your store
Promotion is a vital part of charting your progress to a profitable dropshipping business. An online store will be lost in the vastness of the internet without adequate promotion and customers will simply not know that you exist.
How you promote your business depends a lot on your budget. If your business is new and your marketing budget is minimal then writing informative and interesting blogs on a regular basis with sound knowledge of the SEO principles of content writing will generate traffic and awareness of your site.
If your marketing budget is higher you can choose to opt for paid promotions such as using Google and Facebook ads. Depending on your niche it may also make sense to sponsor specific YouTube channels of regular vloggers whose viewers fit into your target market for your products.