If you are ready to compete with retail giants on a limited budget, follow these pointers. While it doesn’t take much to commence a drop shipping business, it, however, requires significant amounts of dedication combined with hard work.
Select a niche
The niche you select must be focused, clear and something you are passionately interested about. Here are some tips to consider when choosing your ideal niche.
- Seek attractive profits– When operating a drop shipping business model, concentrate on marketing and customer acquisition. It is recommended to select a niche with high priced products.
- Low shipping costs are imperative– Determine something that is inexpensive to shipping costs while giving you the option to offer free shipping to customers.
- Ensure your product appeals to impulse buyers with disposable income– The products for sale should trigger impulse purchases and request to those financially sound to make immediate purchases.
- Monitor whether people are actively searching for your product– Through Google’s Keyword Planner and Trends, you can monitor everyday search items related to your niche.
- Create your brand– if you can rebrand what you are selling and pass it off as your own, it will add more value to the drop shipping business.
- Sell something not locally available– select something which the customer cannot get locally, to make you more attractive to potential customers.
Perform competition research
When competing with retail giants and worldwide brands, do not look for the products low in demand as they are so due to factors such as high shipping costs, poor margins or manufacturing issues. Instead, look for products high in order as it is a sign there is competition, and the business model is sustainable.
Secure a supplier
Conduct due diligence when securing a supplier as most drop shipping suppliers are abroad making the need for communication imperative regarding response speed and ability to clearly understand each other, if not do not settle and keep on looking.
Build your e-commerce website
The fastest and most efficient way to commence your drop shipping business model is by availing a simple e-commerce platform such as Shopify. It is not mandatory to possess a tech background to make it; moreover, it has plenty of apps which help increase sales. Once established, you can seek professional guidance to enhance website experience.
Create a customer acquisition plan
The most effective option of attracting customers is by starting a Facebook ad campaign. Facebook enables you to generate revenue sales from the start by directly placing your offer and products in front of a highly targeted audience giving you the capability to compete with the largest retailers immediately.
Analyze and optimize
It is necessary to keep track of all the data and metrics available to develop your business. This involves using Google Analytics traffic and Facebook conversion pixel data if that is your desired customer acquisition channel. This will enable you to keep track of every conversion to recognize where the customer originated from and what path allowed reaching your website. It helps to recognize what works and what doesn’t.