6 Steps to Building a Successful Online Dropshipping
With dropshipping being a profitable venture, it warrants a lot of interest, especially for new or small businesses. The opportunity to start a business with limited funds is inviting and one explored mainly by younger generations, millennials and gen-Z.
However, successful businesses must properly utilise this method by learning which products are most profitable and every technique that will help you market your store efficiently. To compete at the same level as some well-known retail brands and to get the exposure you need, hard work and dedication are required.
Here are the six steps that will help guide you in building a successful online dropshipping business.
Step 1: Identify a gap in the market or a niche
- It is essential to focus your efforts into one market; you don't want to be spread thin across multiple different sectors. Ideally, identify a gap in the market as these will be the most profitable, and there will be less competition. It is important to be genuinely interested in the niche you select as this will have a massive impact on your motivation and the effort you put into your business. Consider these points carefully:
Aim high: When it comes to profits, it is always important to be realistic but always aim high when selecting your niche. Think about will sector will make a higher profit.
Low shipping costs are essential: Search for a supplier that sell the products you are looking for with low shipping costs. Shipping costs are significant to customers and can be the decider in whether they buy from you or not. Therefore, it is essential to do your research and find the best possible fit for your brand.
Choose products that target impulse buyers: The ultimate marketing aim is to have a high conversion rate, where people are returning to your website. To drive website traffic and purchases, it is vital to feature products that will trigger impulse buyers to buy something right there and then.
Custom packaging: Packaging and branding are essential for creating a successful business. Therefore, choose items that you can brand as your own.
- Once you have selected your market and the products you wish to sell, it is important to do a complete analysis of that current market to identify your competition, target audience and external influences. As a retail business, you will always be competing with someone, so it is essential to do your research on who they are, what they sell and what makes you different from them. As soon as you do this, you can identify your unique selling point and building your marketing strategy around this information.
- The supplier you choose will profoundly impact the business, positively or negatively. This step should take time and patience to find the best supplier for your business, and you should have no doubts about the supplier you decide to go with. Usually, dropshipping suppliers are overseas, so strong communication should at the top of the requirements.
Ask as many questions as possible and leave no stone unturned, it will help you identify which suppliers can meet your supply and production capabilities and which ones can't. There is no such thing as too much research when it comes to choosing your supplier as this will be the backbone of your business.
- Use a website like Shopify, or any other websites support drop shipping models. They can help you create a website to get your business going without any need for the website building experience. As a start-up company, it is always cost-effective to use websites that make them for you and then as your company expands, expand the capabilities of your website with it.
Step 5: Devise Customer acquisition plan
- Customers are the fuel to your fire. Without customers, your business won't survive. Therefore, it is extremely important to devise a plan to steadily gain these customers. The best way to attract attention to your website is by starting a Facebook ad campaign. This will help you dangle your business right in front of your customer's faces whilst generating revenue from the word go.
But, building a successful business is a marathon, not a sprint. So, think of marketing techniques that will work in the long-term. These could include search engine optimisation or email marketing.
Step 6: Analyse and optimise
- Once your business is up and running, and your marketing strategies are in full swing, you should track your analytics to see what is working and what is not working. Always adapt your strategies to reflect your analytics.