What is Dropshipping?
Dropshipping is a business model which you can use to run your store without ever holding any inventory. Once you’ve made a sale your supplier will ship your products from their warehouse, straight to your customer’s doorstep. You’ll never need to worry about storing, packaging, or shipping your merchandise.
Why You Should Dropship
Dropshipping is a great business model for new entrepreneurs. It’s low risk, low cost, easy to start up, and can be automated.
- Low risk business: You only pay for goods sold to customers. There’s no need to buy bulk inventory to get wholesale prices as dropshipping prices are already pretty low.
- Low cost: Since most goods come from China, the cost of goods is generally rather low. Since product costs are low you can price your products at market value and run a profitable business.
- Easy to start: You’ll be able to start selling the same day you sign up. Products can be imported quickly and since you don’t won’t carry inventory you can start promoting them right away.
- Automated business: Products can be imported to your store in only a couple clicks. Orders can be processed in a couple clicks too. You can do all this and more using Oberlo.
Dropshipping Tips for New Entrepreneurs
1. Create an Amazing Offer
An important dropshipping tip is to create a compelling offer. Don’t be the store owner who fails to include sales or bundles. If none of your products are on sale people may lack the motivation to buy your product. However, if you present the right product with the right deal you’ll be more likely to convert them.
2. Avoid Underpricing Your Products
Dropshipping products from Oberlo allows you to maintain a lower product cost. The cost of goods is usually relatively close to the wholesale price, allowing you to sell products at market value and make a profit. The goal of a dropshipping business is to be profitable. If you’re selling a five dollar product, you should be charging around $19.99 for it. You need to consider the cost of goods, marketing, business expenses, and eventually hiring a team.
3. Ensure Your Website is Presentable
One of the most important dropshipping tips is to make sure your website is customer friendly. By that I mean your website shouldn’t scare off a customer. Many new store owners start marketing their stores when their home page is missing images, has placeholder text and all of their products are lumped together in one big category.
4. Monitor Your Competition
Another dropshipping tip is to like your competitors on social media. Monitor their websites and social media pages regularly. By liking their page, you’ll start receiving their product and retargeting ads. Which products do they advertise? Does that product get a lot of engagement such as comments or shares?
5. Be Seen Online and Offline
Social media is important to a dropshipping business but it is not the only channel you should be active on. Spend time researching video marketing, and be part of events where attendees are your target audience. Maybe you can identify a segment of an influencer’s audience who would benefit from a product so a partnership can be created. Be innovative about how to get in front of your audience both online and offline to get ahead of the curve.
6. Create High-Quality Custom Content
Consumers browse hundreds of website every month and get accustomed to reading the same information over and over again. If they are researching a new product to sell this can be frustrating as they may feel they are not learning enough about the product. Create custom content that contains information that is new and valuable to your consumer and you will separate yourself from the noise. This could mean updating product descriptions, writing an interesting about us page, or creating images that are high-quality, functional photos that inform customers.