Running a business that utilizes dropshipping might not be your cup of tea; there are certain challenges involved that don’t come along with normal shipping practices. With dropshipping, you won’t actually have any of the inventory you’re selling on hand. Instead, you’ll sell the product and it will be delivered directly from the manufacturer or another source.
Even though this practice presents a new set of challenges, there are also tons of benefits to offering a dropshipping program. The main perk is that you don’t have to spend any money on your inventory, since you don’t actually need to purchase it beforehand. If you want to start utilizing dropshipping effectively, follow these 5 tips to help you along the way.
Automate as Much as Possible
Automation is your new best friend. There are tons of resources out there to automate the majority of your business tasks so that you can sit back and relax while the money rolls in. There are plenty of softwares and apps available that allow you to rake in a passive income through dropshipping, even if you have another full time job elsewhere.
Master Your Marketing First
Since a lot of the processes involved in dropshipping are automated, you’ll have plenty of time to focus on marketing efforts for promoting your online store. You won’t ever get the chance to practice dropshipping if you don’t have any traffic to your store, so focus on that before anything else.
Create a functional website, design a killer logo, focus on SEO efforts, and build relationships with your vendors. Statistics show that only about 1% of customers that visit your site actually go through with a purchase. For this reason, you should be trying to get as many customers to your ecommerce site as possible.
Offer Great Discounts and Promos
As we said, only about 1% of consumers will go through with the sale. However, this number is elevated a bit when you offer a sweet deal or limited time only promotion. Cost is a huge factor for a consumer, so do your best to offer the best price you possibly can. You should always be trying to upsell with promotions like “free shipping when you spend $50 or more” or “buy 2 get the third free.”
Find the Right Niche
Offering a product that people find useful is the main goal here. This can be the biggest challenge of all, so we recommend creating a general store first to see what items people tend to go for most. This will give you a better idea of what you should be offering to your customer. If you have an idea to sell something you’re passionate about, go with that.
Focus on Customer Service
Every smart business owner invests time, money and effort in customer service. The customer is the lifeblood of your business after all. Responding to customers in a timely manner is key, and an amazing investment is to offer an online chat option with your ecommerce store.