An effective dropshipping strategy is a task you can´t miss when you start dropshipping.
Dropshipping is a skyrocketing retail business where you practically act as a middle man between the customer and retailer. In essence, the seller receives the client’s order and transfers their shipment information to the actual store. The most important feature about dropshipping is that the seller doesn’t keep an inventory. Not having a physical stock means no warehouse costs. The seller makes a profit by trading the product or service at a higher price. The main disadvantage is that the seller doesn’t control the merchandises’ quality, inventory, storage, and shipping conditions.
The global pandemic hit many industries, but shipping-based companies seem to thrive – that’s where you can profit as well. With a firm dropshipping strategy in place, you too can develop a profitable supply chain management firm. Let’s dig right in!
Research the market
The first step of the dropshipping strategy and every business is to research and understand the market. You’ll need to surf around and understand two things:
1. Your consumer’s needs and expectations. Knowing your potential client gives you knowledge on what’s trendy and how to fulfill the demand.
2. Your competitor’s strategy, suppliers, and price range. All this information is going to allow you to create a superior business plan and become competitive yourself.
Google Trends is a terrific place to start to see what’s popular in different countries. Alternatively, you can manually search for trending products online. As a rule of thumb, fitness equipment, tech gadgets, beauty products, game products, fashion items, and jewelry are among the most popular goods out there.
Search for your niche
In the beginning, it’s wise to choose a familiar niche – something that interests you. For instance, it’s risky to sell car parts if you don’t even have a driver’s license. Sure, it’s not impossible, but there’s a greater chance you’ll make mistakes. Instead, choose something that not only you have experience with but that you enjoy. This way, you’ll motivate yourself to keep going.
Another valuable point to consider is the profit rates. Ask yourself if the item you’re selling is profitable enough. Is the effort worth it? Selling toothpicks is different than selling gold watches. Sometimes, selling a 5$ item takes the same time and energy as selling a $1000 product.
Finding a trusted supplier
A staggering 84% of eCommerce vendors say finding the right supplier is key to starting a profitable dropshipping business. Research online and make a list of the top contenders. When searching for suppliers, ask yourself the following questions:
- What kind of products or services do they sell?
- Where does the supplier have physical stores and warehouses?
- Are they capable of shipping worldwide?
- How long does the shipment take? Is it free?
- Is the supplier fit for a novice or experienced dropshipper?
- Is it a free dropshipping supplier? It influences your dropshipping profit margins.
Create a marketing plan
After setting the foundation of your business, it’s time to devise the marketing strategy. That means creating a professional website or store on the marketplace, build your brand identity, a logo, ad campaigns on social media, etc.
Start by devising an attractive website with a clean UX (User Interface). Having a blog also helps improve user engagement and allows you to make your brand voice heard. Professional essay writers can help you with your blog. Besides, focus on SEO (Search Engine Optimization) to increase search engine visibility.
Also, make sure that visitors quickly understand what you’re offering. For instance, a fashion website should immediately point to its clothing section, and so on.
Next, it’s time to let people know you’re ready for business. It’s best to focus on the most prominent market players such as Google, Facebook, Instagram, TikTok, and similar. Use Google Ads and Google Analytics to get the best bang for your buck. Facebook Ads’ the next door you should knock on after Google.
Focus on customer service
Remember, you’re the intermediator between the buyer and seller. You must bring added value to be successful. On top of making sure the transaction goes smoothly, you’ll have to concentrate on customer service. Be ready to deal with problems involving the shipment, product quantity/quality, and, as a consequence, product returns.
Anticipate and set protocols in place to deal with unsatisfied customers. How are you going to deal with an unsatisfied client? Imagine you’re selling backpacks for students. What’s your plan to address a missing parcel? Companies that don’t sell products but services should pay even more attention to customer service. An accounting firm or a custom essay service can’t just apologize for a written error; they must compensate for the mistake somehow. It’s vital to prepare for the worst, even if you’re expecting the best.
Dropshipping can be a very profitable business. The current global situation is ripe for shipment-related industries. An effective dropshipping strategy involves researching the market and finding the right niche. The most important thing is to find trusted suppliers that will deliver on their promises and are easy to reach. Creating a solid marketing strategy is just as crucial as having top-notch customer service.
John Peterson is an awarded journalist and essay writer with four years of experience. He’s also a regular contributor for a newspaper in London. John is also very fond of fitness and enjoys a good workout after writing about international affairs. Don’t hesitate to reach him on his Facebook page.