If you spend a fair amount of time on the internet, then you’ve probably seen an advertisement about dropshipping. With many self-proclaimed mentors online, it can be hard to separate the facts from the myths.
Dropshipping involves the process of selling items that are sold initially or supplied by a third party store, manufacturer or company. When one receives an order, he /she can then ship it directly from the supplier to the customer without physically handling the product itself. Basically, one just needs to connect the supplier with the customer.
To start and grow a successful dropshipping business, you need to follow the following steps:
1. Select a niche – It is imperative to be clear about the kinds of goods that you want to sell. This will also help you build a sustainable brand and compete within your niche category.
2. Website – With many services such as shopify.com, and wix.com, you can easily set up a website for displaying your goods to customers. This is easy to do cause most of these online services do not require prior coding knowledge to create a gorgeous website.
3. Dropshipping Platform – Depending on where your customer based is, you’ll then need to select the dropshipping platform that suits your needs. Be sure to check the reviews of the suppliers within the platform, delivery time and quality of products you wish to sell. Aliexpress, Alibaba, and spocket are good supplier platform examples.
4. Marketing – Marketing is crucial if you want your products to sell. From Social media Ads such as Facebook and Instagram to Youtube Ads, you should develop a strategy of reaching your customers, which will, in turn, help you increase sales.
5. Understand the process – Before starting, ensure that you and anyone else on your team fully understand your business model so you can provide better services to customers. You should also always monitor the quality of goods sold to customers regularly to avoid building a poor reputation.
Here are the 7 debunked myths about dropshipping:
Myth 1: Dropshipping is unethical
This is a popular myth among online sellers. According to quora, dropshipping is very ethical as long as the store owner ensures that the customer is informed and knows what to expect; especially when it comes to the estimated time of arrival, warranty and refund policy. As a seller, it’s essential to select a business model that you are comfortable with and whether or not it will involve running a warehouse for storing the goods.
Although dropshipping does not involve storing goods, you should take steps to ensure the quality of the products shipped to your customers is excellent. The easiest way to do this is by placing orders anonymously to your supplier so you can get random samples and know precisely what your customer will be receiving.
Dropshipping remains to be one of the most effective ways to build business capital quickly since it helps eliminate the time and cost involved in logistics and storage, giving you more time to concentrate on quality control and customer service.
Myth 2: Dropshipping isn’t long term
A business model does not dictate whether or not you become successful. Although not every dropshipping store has gone to make millions of dollars, there are still many longterm success stories when it comes to dropshipping. If you are
willing to work hard and do your homework to find the best products and suppliers, you can always succeed as a drop shipper.
There are many dropshipping stores that have gone past the 1-year mark and are still growing and expanding across niches. According to entrepreneur.com, here are some of the things you need to do to ensure that you start and build a successful dropshipping business:
→ When selecting a niche, focus on higher-priced products with low shipping
fees, especially when starting. You should also check the demand of the niche you want to sell using tools like Keyword planner by Google. → You should also perform competitor research focusing on the product and
niche you want to sell.
Myth 3: Dropshipping can only be done from china
If you haven’t been leaving under a rock; then you must have heard about the China-USA trade war led by President Trump and all the tariffs that affect the cheap china prices we all know and love. This increase of prices of imported goods affects the profit margins of sellers, making it more or equally profitable dropshipping products from the USA; especially when you factor in things like shipping time, and quality control. Many experts also believe that this trend may escalate as countries like Taiwan enter the fray.
According to scmp.com, the next tariffs in the USA-China trade war could affect goods exported from Taiwan and hence make it harder for dropshippers in the USA to sell Taiwan goods with decent profit margins.
Myth 4: Dropshipping stores can’t be sold
Ever heard of Flippa.com? The facts are as long as your company has an excellent financial track record over several months or years, then many investors will be interested in buying the business. I personally sold over 3 stores on flippa.com at a good profit margin to willing investors who are looking to develop and grow
their portfolio. Apart from flippa, you can also sell your dropshipping store on other platforms including:
→ website Closers→ Store Coach→ Alpine Business Brokers→ Exchange Marketplace → Digital Point Forum → and Empire Flippers
Here is what you should be looking for to determine the best site to sell your website or store at.
→ Buyer engagement: the more people visit and place bids on items, the more
likely your website will sell at a profit. → Security: it is imperative to ensure that you are satisfied with the security of
the site you wish to place your store listing on; especially when it comes to payment receipt after the deal is completed.
Myth 5: Dropshipping is easy
Another common myth among sellers is that starting a profitable dropshipping business is easy. This couldn’t be far from the truth! There is a vast difference between starting a dropshipping business and making it profitable. Because dropshipping business has a low bar of entry, you need to have a well-designed store, knowledge of the product, & marketing experience to make money with dropshipping.
According to entrepreneur.com, you need also to track all the analytics data about your customers, so you can tell what strategy works best for your niche. This includes using google analytics traffic, facebook conversion pixel data, and other similar tools. Bing also offers sellers and other website owners an analytics
tool that can help them track the kind of traffic they are receiving on their website.
Is dropshipping worth it?
YES! Dropshipping can be very profitable if you are willing to work hard and put in the time. You mustn’t aim for fast profits going into it, especially if you really want to build a sustainable brand. There are a lot of success stories from people who have tried dropshipping on the internet. You should, however, remember that there is not a one size fits all strategy, always work to determine what approach works for your niche and product selection.
Where can I find usa suppliers?
There are many USA wholesale and retail suppliers for dropshipping: here are the top 6 dropshipping suppliers in the USA.
1. Amazon 2. eBay 3. Doba 4. Salehoo 5. Aliexpress 6. Chinabrands.com The store you ultimately pick will depend on the niche you are looking to sell and the product price. To succeed, you should spend enough time on product and niche research to ensure that you are adding and marketing profitable products on your store. Remember to also do competitor research for each niche as a whole and specific products.
Is Aliexpress legit?
YES! Aliexpress is owned and run by Alibaba – which is one of the biggest trading channels on the internet. Most products sold online (including ones sold on amazon) are sourced from suppliers found via alibaba.com. You should also remember that regardless of where you are ordering your products from, you should always request a sample to test the quality of the product before marketing it to customers on your store.
What Common Mistakes Should I Avoid As A New Dropshipper?
1. Poor customer service As a dropshipper, customer service is everything. Poor customer service can result in your business tanking. If you are not good at customer service, then try hiring a virtual assistant online to help you handle issues raised by customers.
2. Order cancellation issues According to intelligencenode.com, to avoid bad reviews from customers, you should always make sure that any cancelled order is refunded in full and the vendor also confirms that the order has been cancelled and won’t be shipped to the customer.
3. Shipping Issues Shipped items can sometimes be damaged, or lost on the way. If a customer does not receive his/her order on time, you need to be able to offer them a quick solution and not make things worse. This can include things like providing a refund or even sending a new item their way.