Sunday, March 3

How to Develop 7-Figure Dropshipping Business With no Experience in 2020

Business meeting

How to Develop 7-Figure Dropshipping Business With no Experience in 2020

Dropshipping is one of the most interesting business models amongst millennials and it has proven very successful. The main cause behind the popularity of this business idea is that digital marketing skills and some basic business sense are the only necessity.

That is in contrast to most businesses that need a lot of capital. Dropshipping also minimizes costs that include rent, insurance, etc. So, how can you start this business without experience in 2020?

Choose a niche

A dropshipping business works best if you choose a particular niche and stick to it without deviating. A multifaceted business will be extremely hard to market and manage, as in the long run, you will fail to reach the objectives you set for yourself.

When choosing the niche, ensure that you are passionate about it to remain motivated and to feel a sense of accomplishment with every achievement. Ensure that the niche is very specific to monitor and manage the business’ growth.

If you are a student or graduate, your niche might be focused on the course you took up as it is a subject you better understand. However, make sure that the niche you chose is economically viable in terms of marketability, shipping costs, recommended retail price, profit, etc.

If you are still in school, working on the dropshipping business you’re considering and focusing on schoolwork can be hard. If you’re faced with that problem, ask for assignment help from the papersowl reviewnursing assignments or college reviews.

Competitive analysis

In any type of business, there will be competition between the different businesses involved in that industry. Particularly in this industry, you need to be toe to toe with the largest names in the eCommerce sector. Those names include Amazon, Walmart, JD, etc. and that competition is quite healthy for your business.

Contrary to popular belief, competition in dropshipping is something that you would like to participate in as it’s still growing in popularity in 2020. Most drop shippers usually go for products that hardly face any competition and this may be detrimental to their business.

Remember the lack of competition for that product is because of a reason. For example, a certain product may have a higher shipping cost compared to others, or people simply have no interest in it. Other causes of limited competition could be that the profit margins of that product aren’t appealing.

On the other hand, products with high competition show that there is an active market for those products. The best decision would be trading those products but maintaining a competitive edge on the competition.

Source a supplier

Sourcing a supplier is one of the most important steps of starting a dropshipping business. Getting an inefficient supplier can end your business and because of this, you need to take time before moving ahead.

Carry out thorough due diligence on all potential suppliers and determine their legitimacy. Almost all of the dropshipping companies are not local, communication is very important. Good communication includes quick response time and understanding each other and if you aren’t confident that you understand each other, it might be prudent to continue searching. If a supplier doesn’t get back to you fast, that might be a problem as time goes.

When problems like the quality of service or questions about the product arise, it will be problematic because they will respond late. The results might be indignant customers that convert to the competition and a tarnished company image.

While sourcing suppliers, ask any and all questions to ensure that you have a clear scope of the business. Also, inquire about their capabilities regarding manufacturing or production because if your business starts growing, you would like to stick with the same supplier.

Start building the online shop

Once you have determined the niche you will pursue and found the perfect supplier, the next step is creating a website. You can use a simple eCommerce website platform like Wix, Squarespace, Shopify or WooCommerce to launch the online shop as quickly as possible.

The process is quite simple because you don’t have to be a coding expert or have other tech knowledge. Rather, you need a computer, internet connection and a vision about the brand you are trying to build.

These eCommerce platforms also do some of the work for you because there are various applications that will help you increase sales. You don’t need a large budget to avail of the services of a web developer because the eCommerce platform option is more like a ready-to-use platform.

Don’t focus on the online shop only but also create a blog where you will post industry opinions and news. Ensure that the content you post is unique and authoritative to get more readers engaged, which might lead to closing more sales.

Sourcing customers

Above creating content for the blog you will create, there are other methods you can use to draw the attention of potential customers. You can use social media marketing by opening a social media page and posting regularly and running advertising campaigns appropriately. Be warned that being too “salesy” to the targeted audience won’t benefit you, rather focus on how you can add value to potential customers.

Consider other options, such as optimizing your site with a great SEO strategy to improve on the Search Engine Results Page (SERP) rankings. You may also like to keep email marketing on the scope of works you need to do for a successful sales strategy.

Sending personalized emails to the targeted audience with new offers or discounts with increase the customer base you have. There are various tools available online for SEO, Email, Social Media Marketing and other strategies that can boost the growth of the business.

Track the progress

To grow the business further, dropshipping business owners need to monitor and analyze all the metrics available. The metrics include Google Analytics, which is a free and easy-to-use method of tracking who comes to the online shop and blog. It also provides demographic information that will help direct all marketing efforts to the most buying group of people.

Google Analytics also shows how customers gained access to the business’ site, which will help you understand the most effective marketing channels.

You can use that data to reshape your marketing strategy if there is somewhere you aren’t doing well. In that way, you won’t just start the business and then forget about but it is an active commitment that needs to be constantly monitored.

Final thoughts

A dropshipping business is a great idea to explore because it requires very little capital to start up. When you source the right supplier and mix that with the best marketing strategy, the results will be satisfying for you because of the business will be profitable.

Article written by the guest writer Cynthia Cosgrove.

Leave a Reply

Your email address will not be published. Required fields are marked *