How to Make Money Off of a Dropshipping Store
You’ve heard it said dozens of ways: Making money in dropshipping can be harder than it sounds. However, you have a rock-solid business plan, you know what marketing you need to do, and you have a product that you think could shake up your retail niche. With these pieces in place (and a bit of elbow grease), you’re setting yourself up for a profitable dropshipping store that can actually bring in the big bucks.
Find A Hot Market
Naturally, the first way to make money with dropshipping is to find products that sell like hotcakes. In an ideal world, your chosen market will also coincide with your interests so you can develop a personal brand story but this isn’t always the case. Luckily, dropshipping companies work in almost every product niche so you have a strong chance of finding an industry that suits your personal tastes. The best way to find hot products? Check out the competition. By scoping out what’s popular on sites like Amazon and eBay, you’re able to see what’s selling, what isn’t, and where you should position your dropshipping store.
Other ways to find hot products are through word-of-mouth referrals from friends and family. What do you hear people talking about? What products are people excited to buy? If this method isn’t proving to be useful, check out the news. Are any products getting more mentions than others? Are there new trends and fads you can take advantage of? By asking strategic questions, you’re better able to find the right products for your store. If all else fails, you may be able to at least eliminate some potential industries from your list.
One thing to keep in mind: While you can build a business off seasonal products, it’s better to develop a product catalog that is evergreen. This means that there’s always a level of interest in your inventory which can lead to more frequent and consistent sales. You don’t have to avoid seasonal merchandise altogether but you do want a healthy balance between the two.
Pick A Strategic Partner
Choosing the right dropshipping partner can make all the difference in how your business functions. From fees to compatible e-commerce platforms, not all dropshipping businesses work the same way. Running a Shopify site that you want to leverage for e-commerce? Find a partner that offers Shopify drop shipping. Building a Wix site? Your shipper needs to be Wix compatible. Once you’ve found someone that will work with your business, you need to look at some of the finer details.
Dropshipping companies charge fees for each product shipped and these often range from $2-$5. Naturally, the higher the fees are, the more they’ll eat out of your profit margin. Before you rush out and sign up with the shipper that has the lowest handling fees, ask yourself why their prices are so low. Even better, check out their reputation online. Cheap doesn’t always mean “bad,” but it certainly can in some cases. Here’s where you want to find a balance of affordability and results. If you’re spending all of your money on shipping fees, you’re not running much of a business. On the other hand, if you’re partnering with an unreliable shipper that tanks your customer satisfaction, that can be just as bad for business.
There’s plenty of money to be made in the world of dropshipping. It all comes down to whether or not you’re speaking to an audience that’s receptive to your marketing and to your products. Sometimes, it takes a fair amount of trial and error. Luckily, dropshipping stores are relatively low-risk so all you have to do is keep on trying.