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How To Make Money With Dropshipping - Make Money Online

 

How To Make Money With Dropshipping - Make Money Online

How To Make Money With Dropshipping - Make Money Online

Why look for a job when you can be your own boss. Pursue your own dream. Work from anywhere. But, what about the responsibilities. What of the risks, the cost of keeping inventories. When we combine them we get a simple answer, Dropshipping. 

In dropshipping, you can be an entrepreneur with the least risks. To enter the world of dropshipping we need to know more about dropshipping. 

What Is Dropshipping? 

Dropshipping is an e-commerce business model, which involves three-party 
Buyer
Seller  (You)
Supplier

Other business models have some key differences with dropshipping. The main difference is the responsibilities of the seller and supplier.  In most business models the responsibilities of the seller are 
Stock the merchandise
Keep inventory of merchandise
Deliver the purchased goods
Being responsible for the returned goods

In the case of dropshipping it’s the responsibility of the supplier. You can start your business with the least risk factor with the dropshipping business model. A risk factor is the most important when it comes to starting a business. The low-risk factor makes dropshipping a lucrative business model. 

Why Dropshipping?

Since suppliers are taking most of the risks and responsibilities, why would they sign up for dropshipping model? Well, the answer to that is pretty simple, advertising and branding. For most average businesses 7-8% of total revenue is used for advertising purposes. 

If you are trying to make your product a rising star then the percentage might be even higher. Also, the strategy of advertising defers from person to person. Including more people in advertising, will make advertising fruitful. 

The next problem is brand. Branding is very important to marketing. A company with weak brand power may find itself struggling to sell products, especially to foreign lands. For example, most people hold a negative view of Chinese company products. Using drop-shipping companies can mask branding and see good sale turnout. 

These are the reasons companies look for the dropshipping business model. There is a lot of money to make for sellers in this model with low risk. 

Let’s take look at some advantages and disadvantages of dropshipping, how to start, and key things you need to know. 



 

Advantages

Numerous niches to work with
Proven business model
No need to keep inventory
No packaging and shipping responsibility
No front up security money is needed (that doesn’t mean it’s cost-free)

Disadvantages

Dropship fees eat up profits
Not all companies allow this model
Supplier and buyer communication gaps can make you take orders when product is out of stock
Not all suppliers are up to standard 

How to start dropshipping

Dropshipping is an established business model. Many people have done dropshipping and still doing it. Courtesy to them we know more about dropshipping than ever before. Many have shared their experience of dropshipping. From their experience and research data of economists, we can say there are a few steps you need to take to start dropshipping. 

1. Find the right niche
2. Find the right drop shipper
3. Formulate marketing strategy 
4. Automate your store
5. Offer amazing customer service

1.  Find The Right Niche

There are a lot of products available in the dropshipping market. You need to find the best niche. Find a niche you are comfortable with. Do some market research. You need some niches that sell well all year around. Their sell figure may be slow but they will keep your other niches running. Do go for new trends. But try to project the product life cycle. Trendy products may go off trend before your marketing bring the sales figures you want.

When selecting a niche don’t be afraid to choose a product with high demand. A market with high competition doesn’t necessarily mean you will be out of the league from the start. Depending on the marketing style you will attract customers from a rather personal level. If the niche has good marketing value then go for it. 

2. Find The Right Drop Shipper

Before choosing to partner with a drop shipper you need to choose among the best in the market. You can directly contact the manufacturer for dropshipping. You can come to an agreement with a company whose product you will sell. This process is difficult. Not all company allows dropshipping and the ones that do may not give consistent service. 

Before choosing the niche of a drop shipper, order the product yourself. See the response time and product quality. Check the product quality yourself. If you are satisfied with yourself only then select the company. 

There is an easier way though. There are some top drop shipper and dropshipping directories available. You can try them as they give security. They have a proven track record to back their claims. 

Some of the know drop shippers are:


1. Oberlo
2. Dropship Direct
3. Salehoo

There are some questions you need to ask your drop shipper before selecting them. 


How long will the order take to be processed after and shipped, after a customer place an order? 
Different methods of shipping are available to them. 
How will take lost shipment risks? (it’s particularly important as a seller you are responsible for a delivered product)
What are the procedures for product return? Who will bear the shipping costs? What are the procedures for warranty and guaranty? 
Do they have a tracking system for products so that you and customers can check product status? 
Ask their policies and make sure your policies match theirs. 

3. Formulate marketing strategy

This is the most important part and as an entrepreneur, it’s your main responsibility. The right marketing strategy can make all the difference. The higher number of targeted customers you reach, the higher your sales figure will be. The first thing you need to figure out is the medium of marketing. You can try
Facebook
Twitter
Youtube
Pinterest
Instagram
Blog
Forums
Newspaper article/advertisement 
Google and youtube advertisement

But make sure your budget will not cross your profit margin. 

For better branding, you can rebrand the product in your name or your company name. In this way, you can stand out in the market and have leeway on the pricing. Remember, in dropshipping marketing and branding make all the difference. 

4. Automate Your Store

Technology is your best friend. Many entrepreneurs use the latest technology to automate their business. This way it saves a lot of time which you can better spend to advance your business life. 

Some of the steps you can take to automate your store is:


Processing orders: Suppliers’ stock information is vital when processing orders. Automated tools can directly connect suppliers’ inventory feeds with your store. This way you will not take an order you can’t deliver and the ordering process becomes easier. 
Customer support: AI has changed the way we used to do stuff. With bot chat, you can give your customer a feel for quick customer service. The customer service process will become more orderly and you can manage customer service with less work. 
Converting customers: With automated email and offers you can turn potential customers into customers. This will boost your sales figure and increase revenue. 

5. Offer Amazing Customer Service

Your customer service can turn your one-time customer into a regular customer. Good and helpful customer service is what makes a difference between good and bad business. Never let your customer suffer bad customer service. It can end your whole business.

Here are some tips for good customer service


Response to inquiries: Slow response time can be a mood killer. Set up a chatbot that will shorten the time needed for inquiries. But don’t leave everything to the chatbot. You will need a human presence for any queries that might go over the top for your chatbot.

Be honest: Be honest with your customers. Let them know what you can do and can’t. Don’t give false hope as it may result in a bad customer experience. 

Excellent FAQ: Write an informative FAQ for your customer. Try to answer all possible common questions. If you think you need help with it, ask for professionals. 

Be Friendly: Be kind and gentle to your customer. Make them feel you know and care for them. To be a successful business, honesty and modesty are a must. 

You can take these steps to start your own business with dropshipping. This is one of the sure ways to make money online and it’s still a valid business model. After covid recovery dropshipping will show new growth. 


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