Top 3 Things to Do Before Starting a Dropshipping Business
In the recent years, we have witnessed growth of Amazon, Etsy, Shopify and other ecommerce platforms. And not just the big names, but small businesses can start from a scratch and earn billions from dropshipping business. Shopify development with dropshipping model is the easiest way of selling online.
Dropshipping is the most successful ecommerce business model. It isn’t new but it’s useful for small businesses. Hire Shopify developer and seek professional services.
There is an entry barrier for entrepreneurs in many markets but dropshipping in an ecommerce has exploded over the period of few years.
What is dropshipping?A popular method of selling products online without stocking them. A store does not keep the selling products rather involves a third party. When a store accepts customer order, third party connects and hence delivers the order. A low-risk way of selling products online.
According to estimates, 33% of the online ecommerce industry uses dropshipping model and it is a primary inventory model for management.
There are following things you must consider before starting a dropshipping business.
1- Find your niche / industry / product marketA niche is the segment of the market. For instance, you are selling a pair of headphones. You may have a sub niches like waterproof headphones. The more specific the niche is, the better it is for your business.
With the popularity of dropshipping rising, finding a niche has become harder because of the market saturation. New products and new niches are budding every week and the chances are limitless.
There is a misconception that you can succeed in almost any niche. This is so untrue. The niche saturated with major brands and market competitors is hard to conquer.
2- Outsmart and outsell competitionWant more profit in 2018 from your online business of dropshipping? Take these tricks up on your sleeves. Study your competition. Start from Amazon and eBay and see how many competitors are in your niche. And see what specifically they offer and where you can find your space. Analyze how do they set their product listings.
What sort of product images they use, what is the sales copy and what are their CTAs and their placement? etc. They may help in finding out unique selling points.
Read customer reviews. Take out some time and read customer reviews on top sellers’ product pages.
3- Find a dropshipping supplierFinding a reliable dropshipping supplier is the hardest part while establishing an online business. So what factors do you count? Good product quality, always keeping the product in the stock etc.
A dropshipping supplier must offer dropshipping as a service because most of them are wholesalers or manufacturers. Second, the dropshipper must have years of experience and the staff must stay in contact whenever needed in working hours. A well informed and helpful staff is a good sign about the supplier you are relying on.
Also, a supplier must not charge huge fee. If so, what’s the point of getting into dropshipping? However, asking charges for withholding the products in stock and delivering on time is legitimate.
Apart from the above features, a supplier must have good quality products and fast shipping.