The land of e-commerce is as vibrant as ever! E-commerce has taken the lead in world retail and brings in billions of dollars each year.
Now, there are plenty of e-commerce businesses out there. Everyone knows direct e-commerce businesses where brands sell directly to customers and marketplaces.
However, people often overlook another type of e-commerce business, and that's dropshipping. If done right, dropshipping can still be very profitable.
There are plenty of companies out there who provide custom dropshipping website building services geared for success. Usually, Shopify is the website builder that developers prefer when building a successful dropshipping website.
Want to get into dropshipping, but don't know where to start? Check out our completely FREE webinar on how to build a successful dropship business! We'll walk you through the process step-by-step. Or, you can have our expert team at DropshipUSA build a fully automated USA based dropship website for you in less than three days!
Now, let's talk about how dropshipping is still viable in 2020 and how much you can earn.
How Much Can You Make Dropshipping?
Do you ever wonder how much dropshippers make or how long it takes for a dropshipping eCommerce business to make its first sale? Or what it takes to build a successful dropshipping business?
Once you have the site, the main question is how to get users on the site and make sales. How much you make all depends on what business model you use, your marketing strategy and ad budget.
Your business can earn anywhere from a few thousand to tens of thousands a month if you do it right. So, how do you make money dropshipping? Read on to find out.
Figuring Out The Pricing
If you take a look at some failed dropship stores, you'll probably notice a few common themes. A major mistake is overpricing. When you want to set up a dropshipping business, you need to figure out the market value of your products and make sure you aren't charging too much.
It's a given that you need to know how much to charge before you know how much you can make from dropshipping, right? Now, you're free to charge whatever you want for your products, but if you overprice, consumers will know and they won't purchase.
Let's break it down a bit more. You're a dropshipper. You need to join a dropshipping program with companies like Oberlo, AliExpress, Salehoo, or Amazon.
Now, you buy from these companies that sell products to dropshippers at a wholesale or near wholesale rate. When you get a product from your supplier, you are paying a fee, but there are other costs involved before you can put up a final price.
When pricing your product, you should make sure you include additional like advertising and administrative expenses.
That's not all you need to consider; you also have to check out your competition and do extensive market research to determine how much the product is generally sold for.
As long as you are pricing your product near the market value, you can feel confident that you're not damaging your business with overpricing. You may want to cut down your profit margins occasionally for special marketing campaigns but, other than that, pricing near the market value is an excellent way to ensure success.
Knowing Your Products
In our time as dropshipping website builders, we have seen plenty of Shopify, and WooCommerce dropshipping store owners fail at establishing their business.
Sometimes this happens because the business owner chose a product or niche that they find appealing and exciting without doing research to see if other people find it appealing as well. You need to choose products that are popular and that means they won't always be your favorite products.
Check out the suppliers like Oberlo, AliExpress, and Amazon to find out which products have plenty of reviews and sales. Those products have sustainable demand, meaning you'll sell those items quickly and easily.
Depending on your source market, it can be a good idea to sample products before you begin selling them. Sampling the product lets you test your supplier's service. It can be a good way to identify flaws in the system and fix them before going live. This can have a big positive effect on your profits in the long run!
Work With The Right Programs
Working with the right dropshipping program is the only way to provide quality consistently. Find and work with suppliers that deliver consistently, work responsibly, and provide excellent communication.
Some dropshipping businesses fail because they relied on one supplier or chose unreliable suppliers. That's why, at DropshipUSA, we build Shopify dropshipping websites with FBA (Fulfillment By Amazon) solutions.
This means Amazon fulfills all the orders, ensuring a level of guarantee on product and delivery that doesn't come with most dropship suppliers! Check out our FREE webinar to learn the ins and outs of this particular model and how to use it to create your dropship business!
Now, you've got a better idea of how to make your dropship business successful. Be sure to do your research, choose the right products and suppliers and price your store correctly!