We are currently in the most dynamic phase of the 21st century, even though the best is yet to come. One thing for sure is that the concept of a single set of skills and a 9 to 5 job will go obsolete in future. Even today, we see many people work online under work from home profiles and handle other sources of income simultaneously, such as they make money online with dropshipping business.
Diversify your income source, and learn how to Earn money with dropshipping during this time. The pandemic has pushed people to depend on multiple jobs and not a single one and opt for work-from-home online jobs to earn money. Let’s understand why dropshipping is getting popular among people wanting to earn money online.
What is Dropshipping?
Any product has seen four destinations:
To make money online with dropshipping business, understand which role it plays. Dropshipping is nothing but the retail part of this production chain. However, in this retail fulfilment method, the store doesn’t stock the product it sells. But, to earn money with dropshipping, the store buys the item its consumer demand and ships this product to the end-user. This way, the drop shipper doesn’t have to handle the product directly.
The difference? Dropshipping allows the seller to sell products without keeping a stock or inventory. Traditionally, the retailer maintains a stock, which empties on consumer demand.
How does the dropshipping business model work?
Wish to earn money with dropshipping? The good thing is that you Take an example of a lifestyle brand:
- Let’s say you have a beautiful collection of women’s bottom wear. A customer likes your product, so it placed an order of “an olive green cargo pant -XL size” on your website.
- Your site collects this order and automatically sends it to your supplier that has the product with the desired size in their store.
- Now your supplier will prepare this order.
- Within the stipulated time, the supplier will ship this product directly to your customer to the address that your website collected when the customer placed the order and paid you for it.
Make money with dropshipping by partnering with suppliers. Items like jewellery, drones, pet products, accessories, beauty and health, clothing, tech supplies etc. are widely drop-shipped through the dropshipping model. However, one needs to make sure that their profit margin is between 15%-45%, although for luxury items, it can shoot up to 100% as well. Droppingshipp isn’t an effortless task even though it requires less capital to start.
How to make money online with dropshipping Business?
Do you wish to earn money with dropshipping? Well, that’s a great plan! However, learn how to start such a business first. Follow these steps to understand more about how to kickstart a dropshipping business:
Choose a niche/ idea.
To make money with dropshipping, you cannot choose passion over profit. To make dropshipping successful, you need to pick an idea that is your passion but simultaneously offers profit.
Use uber suggests’s keyword tool, google trends, check out order volume for a product you are targeting to sell, or browse popular websites in the niche that you pick for dropshipping. A niche itself isn’t popular, rather, you must lookout for a trend within a niche. For example, cargo pants may be a popular trend in casual women’s clothing.
Research competitor’s product
Learn how competitors sell their products. Take the top 10 results of a google search. Use third-party tools, to get information about search results from different regions across the world. Learn how their ad campaigns too.
You can also check out the content of competitors, and sign up for their newsletter too. This way, you learn the kind of engagement across different platforms. Take the help of social media. Check out how their social media ads work with the engagement they witness.
Look for dependable suppliers.
It is easy to find suppliers with different dropshipping platforms. Search for your product and check out different suppliers and decide who can be your best bet. Then choose 5-6 potential suppliers. Contact all of them and ask about minimum order, shipping times, holidays, etc. After further filtering, you will arrive at a reliable list of 2-3 suppliers of your product. Place sample orders with them and check out their product and service quality to arrive at a concrete decision.
Make money with dropshipping with your business store.
There are plenty of platforms available for dropshipping such as Spocket, Ooberlo, Iimportify, and Salehoo. Choose a .com platform only with a simple website name to attract more visitors. Check for all legal requirements, and choose a suitable domain name. Sign up with that domain and pick a theme that suits both user and your product. Many platforms offer mobile apps for android and iOS users. It helps drop shippers handle their business on the go as well.
Marketing goes a long way in making your business a success
Marketing can’t wait. It is necessary to make the first and the future sales. Platforms like Instagram, Snapchat, Twitch, Youtube, Facebook, Tik Tok, and others. have a wide user base, making them apt for running ads. Influencer and affiliate marketing, getting listed in recommendations blogs, and featuring knowledgable blogs, are some other ways to boost your brand’s status. Affiliate marketing is our favourite because you earn money with dropshipping while the influencer earns more by selling your product.
The last thing to do to earn money with dropshipping is to constantly reevaluate and check which campaign is working and which one is not. Use tools like Google search console/ analytics to evaluate your traffic. With this, you are ready to kickstart your journey and make money with dropshipping.
How Do You Promote a Dropshipping Business?
Given that you are on a tight budget, you can use social media advertising, such as Facebook ads, but you must not blow hundreds of dollars in a single click. Try different ads to see their effectiveness. You can be country-specific with your ads if you have a bigger budget. Else, don’t make hefty transactions so that you can keep experimenting.
To earn money with dropshipping, you can also try retargeting an ad, which is a lot cheaper than a standard Facebook ad, and it has more chance of conversion to sales. With influencer marketing, there is a high chance that the views might not convert to sales. But, with affiliate marketing, it is up to the influencer to convince its audience to buy that product. Some sites are looking for product recommendations for a niche, and you can get your product listed too.
One can make money with dropshipping, but tough competition is inevitable. Especially when they offer products at low prices. Any supplier side issue can also occur anytime, for which your customer be caused inconvenience, and it would be a big turn off for them.
So, it is not easy to make money with dropshipping. The low capital requirement, ease of starting, no requirement of keeping an inventory, and other such features make it a business model worth the effort. But any hiccup from the supplier’s side may negatively impact your brand image.