Dropshipping is an eCommerce business model that needs no storage, no inventory, no shipment nor any space for stocking. As a dropshipper, you focus on growing your business by selling the supplier’s product. However, you earn a commission for each sale you make. So making each sale is very important, this is why we have created a compilation of 6 ways on how to be a successful dropshipper.
Who Is A Dropshipper?
A dropshipper is someone who plays a middleman between the end customer and the supplier. However, they play the point of contact so the customer does not know that the supplier even exists. The middleman earns a margin on each product sold. Once a customer places the order, the supplier directly ships the order to the customer. Hence, instead of purchasing a whole lot of inventory, a dropshipper lists products for the supplier.
Once the supplier’s products are listed, the dropshipper targets potential prospects. Post this, the dropshippers market their listed products. If in case of any conversions by the targeted individuals, the order is sent to the supplier for further fulfillment purposes. Furthermore, the supplier ships the product to the customer, and through a courier partner delivers it at their doorstep. While the supplier receives their sale amount, the dropshipper earns the markup cost, along with the customer data.
6 Ways To Carry Out Your Dropshipping Business
Now that you have understood who is a dropshipper, let’s understand the different ways of carrying out your dropshipping business. These ways are sure to make you a successful dropshipper.
Select A Niche Market And Add Value To It
Well in this method, there are two sides to the story. One, you need to target a niche market rather than running behind popular eCommerce products. Secondly, select a product that is within your interest. You need to understand the overall aspects of the product, including things like where is it used, how it can be used, and who is your audience using this product.
The two subsets of using this method will definitely help you make the right choice. For example, You have researched a wide range of dropshipping product ideas. Once you have filtered the ideas, you are directed to the result that, clothing and apparel have a high demand. But having the least understanding and knowledge about fashion and apparel, this product doesn’t suit your interest. Also, the high demand drives you to choose this business. But here’s the catch.
Highly demanded products have high competition as well. Also, if you have low product knowledge, you are a step behind your competition. Instead, if your interest lies in a market that caters to technology-related products, well then that maybe your best pick. Not that there is no demand for it and also you are targeting a niche, which is an added bonus. Following this, you can go ahead and choose the right supplier.
Dropshipping as a business is all about adding value to the product your selling. Although you are selling a supplier’s product, your major focus is to provide insightful information to the customer. You need to provide the right solutions for a customer’s needs. Hence, selecting the right niche market along with growing the business via unique ways of marketing is one of the 7 ways of becoming a successful dropshipper.
Use SEO and Marketing Tools to Boost Dropshipping
SEO (Search Engine Optimisation) and online marketing tools help different search engines list your websites. As a dropshipper, your major concern is gaining traffic on the world wide web. 8 out of 10 small merchants face the challenge of less traffic over their website. While you may have unique products to display and may have an outstanding business idea. However, if there is no one to explore these products, well there isn’t any use for your website.
Hence, practicing SEO and other online marketing tools, once your eCommerce website is ready and running, can benefit you in the long run.
Here are some SEO methods to consider:
- Google Keyword Planner – To find the right keyword
- Yoast SEO plugin for WordPress – Increase SEO scores
- Google Search Console – Indexing
- SEMrush – Optimise and Analyse your website 360 degree
- Google Analytics – Track visitors and your website performance
- Ahref – Overview of your domain score and improvise your faults
- Screening Frog – It shows the heat map of your visitors that helps analyze their behavior
What Is Your Product Specialization?
This feature may be similar to that explained in the unique selling product method, but a little in-depth. While you have chosen a targeted niche and have a brilliant product idea to enhance your dropshipping business, well here’s where you dive deeper. Understand and tell your audience what your dropshipping business specialises in, the more your specialization is known, the more you can benefit as this helps your brand stand out.
Understand your segment well. Targeting your niche market and optimizing it via SEO and marketing tools will help achieve only a little. As a dropshipper, take for example you are selling a product that relates to sports gear. When you generalize your product categories, your audience is lost. Instead, explain which product caters to which kind of sports. You may have clothes designed just for Yoga, or maybe a type of backpack you can use while running. Or even different types of shoes catering to different sports that have different soles. The explanation can go on and on.
In the first half-year or a year after you have launched your business, you may not get the audience you have targeted for. Well, that is completely fine. As with time, your marketing and segmenting techniques will do the needful. You need to put in all your efforts in driving the right traffic to your website, thus avoiding high bounce rates and unhappy customers.
Ensure Your Customers Are Happy
Your dropshipping business is completely dependent on your supplier’s products. However, that is known only by you and your supplier. Your customer doesn’t know where they are receiving the product from, since for them you are sole point of contact. In fact, as long as the product is what they expected, they are happy. And keeping them happy is part of your role in an eCommerce dropshipping business.
You may have heard of the phrase, “Customer is king”. Well, the phrase is exactly what you have to believe. Loyal customers are the ones to boost your business growth, and hence ensuring that they have received the right product, at the right time, through the right means, and the right place is what you have to keep a track of.
As a dropshipper, it is doubtful that you receive any credits for a product. The reason being, the product has the supplier’s logo and any other informative details displayed to the consumers. However, the point of contact, i.e. you, is who will know what went wrong or what’s the best part about the product.
The industry you have chosen can be a little complicated at times. As you take the whole responsibility for any mishaps or false updates informed to your customers. You may not be at fault, however, you are the face of the product sold.
Hence, ensure that timely updates, follow-ups and correct billing information is given to the customer. Keep a check on your supplier’s proceedings and remind your existing customers about the best sellers, new additions and discounted prices.
Your Website Needs Continuous Updates
Your eCommerce website needs to be constantly updated to include new products, designs, etc. The reason being, seeing the same design for maybe 6-12 months can get a little monotonous and boring.
How can you do this? So to begin with, your website structure stays the same. Brand color and logo along with the mapping of your website also need no change. However, one way to bring a change to your website is by relating it to different festive occasions. In India, we have festivals all year round. So maybe on Christmas, you can try adding a few elements such as under a Christmas tree or Santa’s gift bag to your offer section. Or else, light up your homepage with elements of Diwali, i.e. animated firecrackers or a rocket launched to newly added items.
Also, every new category or product added, deserves a shoutout. Ensure your homepage is conveying and informing your audience about the same. Big offers and discounts on your website? Let your audience know. Embed creatives, videos, and various animated components to your website.
Keep A Track Of Your Competition
Whether you are new to the dropshipping business or are an experienced player. Competition always exists. Know them well and monitor them on a daily basis.
eCommerce as a business is all over the place and thanks to COVID-19, this sector is on a rampant boost. A consumer shopping online doesn’t need to look at the geographical location of a product or brand, he/she can purchase from any part of the world. Well, that also means that a seller can sell from any part of the world. Even with your niche market there are almost 12 million – 24 million eCommerce sites across the globe, which means the competition has definitely soared high.
While these statistics aren’t to scare you, it is important to understand that you will have to keep an eye on your competition. Keep a track of new things that have been added to their strategy, know the latest trends, and implement them before they can or even target the segment that they may have missed upon. In this away you will stay ahead of your competition and outperform their strategies by implementing it differently on your website.
Now that you know the 6 ways to be a successful dropshipper, it is time to go ahead and implement these strategies to boost your business. Execute these methods and you shall see the change. Keep in mind that as a dropshipper your major role is to focus on the growth and scalability of a business, while your supplier carries on the order fulfillment and inventory management operations.
Dash101, Your Business Partner
With Dash101 you can integrate your eCommerce website through our channel integration tool. Whether Shopify, WooCommerce, or Magento, we integrate them all. Also, a quick and efficient shipping solution is our promise. Dash101 offers free subscription, a user-friendly order creation, seamless shipping logistics service, reverse logistics, bulk shipping, COD, prepaid payment options, secured delivery service, and tracking in real-time. Happy Dropshipping!