One of the most common methods recommended to new entrepreneurs or those who are new to making money online, is dropshipping. This business model essentially has you running an online, ecommerce, website that sells products to customers without ever holding onto physical stock. Instead of you shipping the product to your customer(s), the products are shipped from your supplier’s warehouse straight to your customer, meaning you never have to worry about storing, packing, or shipping your own products. While dropshipping is often portrayed as an easy business to get into, it does take a lot of patience, determination, and testing to get it to work. Let’s take a look at how you can be successful with dropshipping in 2020.
Is the Dropshipping Market Oversaturated or Can I Still Make Money?
If you have done any research on dropshipping prior to reading this article, you’ve probably come across several resources stating that the dropshipping market is oversaturated. While there may be some particular niches that are saturated with a lot of sellers, it doesn’t mean that you cannot make significant profit with dropshipping in 2020. Short answer, if you learn how dropshipping works and do your due diligence with the niche you pick, you can definitely make money.
5 Tips to be Successful with a New Dropshipping Venture
- Stick to a Niche with One Product. One of the easiest mistakes to fall into is picking a wide selection of products to sell. This often happens because dropshipping makes it very easy to find cheaper products to market to your customers. While having a wider selection can work in some cases, it is best to stick to a niche that you can specialize in, ideally with one product to start. The reason you want to do this is that it makes it easier to know who your target audience is. A vast collection of products can make it extremely difficult to identify your ideal customer base and attract them to your website. To be successful, pick a niche, build your brand around that niche, and then stick to it with one (and as you grow - a few) product(s).
- Find How to Stand Out. If you are “just another dropshipper” then you are going to find it challenging to be competitive in the marketplace. To become unique, you must create a brand around your products that tells an engaging story. Consider revealing to your audience the “why” behind what your business is all about and include passion, emotion, and intrigue. Combine this story with your brand’s voice and your overall website design, and you’ll have a website that sells effortlessly.
- Master Paid Ads. While finding an amazing product to sell, making sure your website has a fantastic design, and ensuring your domain name fits the niche you are in are all required for success in dropshipping, you also need to master paid advertising. Without advertising, you aren’t going to get your product in front of your target audience. With this said, take time to learn how to master Facebook ads as these will drive sales to your online business.
- Have a Very Clear Vision of Your End Results. While getting in front of the masses is the general goal in order to make the sales you want, you still have to have a clear vision of the end results. How many sales do you want per month? How much income are you looking to make on an annual basis? Are you going to eventually want to expand? Having a clear vision and staying persistent with it, is what will help you find success.
- Get to Know Your Competitors. In the realm of dropshipping, there’s no doubt about it, you will have competitors. So, the best thing you can do is get to know them, see what type of ads they are running, pay attention to their ad copy, and see what products are profitable for them. By watching your competitors closely, you will be able to find areas in which they could do better and use these areas to bring in a profit for yourself.