It’s common knowledge that since the pandemic, eCommerce sales have escalated. So much so that for the first time, online shopping is predicted to hit $1 trillion and $5 trillion worldwide in 2022.
That said, it’s no wonder so many entrepreneurs and those contemplating their first foray into business are considering launching an eCommerce dropshipping brand. If that sounds like you, we’ve got you covered. This article looks at how to start a dropshipping business in 2022 and hopefully profit.
But first:
What Is Dropshipping?
For the uninitiated, dropshipping is a popular eCommerce fulfillment model where the business owner (i.e., you) doesn’t physically handle the products they’re selling. Instead, they rely on third-party suppliers to manufacture/source their products, warehouse them, and ship them directly to your customers.
As such, you don’t have to store inventory or deal with the shipping and logistics side of things.
Simply put, this is how the dropshipping model works from start to finish:
- You sell products via your eCommerce store
- The customer pays you for the item(s) they want to buy from you
- Once you have your customer’s payment, you then pay your dropshipping supplier, who then fulfills the order
- Your supplier sends the items to your customer
That’s it in a nutshell!
Find Your Big Dropshipping Idea
Now we’re on the same page about what dropshipping is, let’s dig into some sage advice on how to get started:
First things first, you need to find a niche. So, rather than selling random bits and bobs, you focus on specific product categories. This makes marketing your online store and targeting customers much easier. The narrower your niche, the better. For example, instead of saying your niche is ‘fashion,’ which, of course, is incredibly broad, you could hone in on high-heeled shoes.
Identifying your store’s niche isn’t just about selling products you feel connected with. Still, it’s also about finding products that generate profit. As you research potential niches, dig into trending products. When marketed correctly, trending products will generate a quicker payoff. Ask yourself, are there many tending products in the niche you’re considering?
That said, you’ll also want to find a few steady sellers. I.e., products customers always need are crucial for ensuring consistent income.
Pro Tip: Utilize Google Trends to get a feel for the popularity of potential products over time and in the location(s) you’re looking to sell to.
Check The Competition
Before you go all in:
Find out who your competitors are, what they sell, and how they market their products. The easiest way to do this is to conduct a Google search of the products you’re thinking of selling and see which companies come out on top.
Social media can be a big help too. For example, look at Facebook and other social ads in your chosen niche, and see what levels of engagement they get.
Pro Tip: Don’t stick to one strand of competitor research; ensure your research is thorough, extensive, and ongoing, even after your launch. This goes a long way to ensuring you don’t miss out on new and trending products.
Use The Right Dropshipping Supplier Platform
Dropshipping supplier platforms like Spocket collate hundreds if not thousands of prospective dropshipping suppliers. They list their products from the convenience of one place. Partnering with a high-quality dropshipping supplier platform is imperative. If you’re unsure whether a platform will be an asset to your business, ask yourself the following:
- Does it offer insights into trending products?
- Are lots of useful integrations available? (especially one with the eCommerce platform you’re using)
- Is there a scaled pricing structure so you can upgrade as you grow your business?
- Are valuable resources, including “how-to” blogs, available?
- Are their suppliers vetted?
- Is fast and affordable shipping available from their suppliers?
It’s wise to draw up a shortlist. Then contact each to clarify the above points, focussing on shipping times, minimum order numbers, and what kind of customer support they offer.
Shipping and Returns
We’ve touched on shipping above. But, your dropshipping supplier(s) shipping operations must be watertight. The same goes for returns – which is why we’re discussing it again. After all, your customers won’t thank you if their product doesn’t arrive, arrives late, or they receive the wrong item.
That’s why it’s wise to work with dropshipping suppliers offering multiple shipping options such as speedy delivery or next-day delivery as well as more standard options. On a similar note, it’s a good idea to work with dropshipping suppliers that include a product tracking system. This will give you and your customers some much-needed peace of mind about where orders are in real-time.
As for returns, be clear on your website what your returns policy is, including how long customers have to return items. It’s important to note that your return policies should align with your supplier’s return policy. Many suppliers accept returns, but some have a no-returns policy, so it’s crucial you know what they offer and that you’re transparent with your customers.
Shipping policies are also determined by your chosen dropshipping supplier. They may offer free, international, or local shipping. Again, it’s essential to know exactly what your supplier offers to avoid any misunderstandings with your customers.
Build Your Online Store
If you don’t already have your own online store, there are a few things you need to consider:
If you don’t have any coding know-how, it’s best to go with a dedicated eCommerce platform. Typically these provide a one-stop solution for online store creation. Popular options include Shopify, Squarespace, WooCommerce, etc.
Then, use your chosen platform’s free or paid-for themes to design an eCommerce store that reflects your brand. Finally, if possible, it’s time to integrate your dropshipping supplier platform with your eCommerce platform.
Market Your Business
It’s time to get out there and start selling, so here are a few tips on promoting your business:
- Consider launching paid ads using Facebook or other social media networks. Just ensure they target your audience and don’t blow your entire marketing budget.
- Try launching retargeting ads. This is when you try to re-engage customers that have already viewed your products and online store. Tools like MailChimp, AdRoll, or Criteo can be helpful. Retargeting ads may entice customers to return to your store for a second look and, hopefully, make a purchase.
- Add valuable content like helpful blog posts to your online store. Not only does this provide customers added value, but it’s also great for boosting your SEO.
- Encourage customers to leave positive online reviews and testimonials. Remember, 93% of customers read an online review before purchasing, so these are valuable social proof!
Stay On Top Of The Data
Once you’re making sales, analyze what’s working and, more importantly, what isn’t.
Use tools like Google Analytics and Google Search Console to retrieve valuable insights into your website traffic and customer engagement.
Below we’ve listed three key metrics worth keeping an eye on:
- Audience: It’s worth noting how many visitors you have over a specific period and the number of times the user actively engages with the site (sessions). For example, suppose you have 50 users and 100 sessions. In that case, you could infer that the users visited the site twice (on average) during that period. Google Analytics will also enable you to see how many returning users you have and how many pages users interact with on your website.
- Behavior: This looks at what users do on your pages. For example, how long they spend on the page.
- Acquisition: This tells you how many individuals accessed your site via organic or paid-for ads.
Are You Ready to Start Your Dropshipping Business?
Running a successful dropshipping business is hard work. Still, it’s a rewarding venture providing you do your background research, stay on top of your competition, and keep abreast of trending dropshipping products. Most importantly, you need to establish a positive and trusting relationship with reliable dropshipping suppliers to ensure the best possible shopping experience.
If you’re interested in testing the waters, Spocket offers a free 14-day trial for you to get started on your dropshipping business.
So, there you have it – that’s our guide to starting a dropshipping business in 2022 – don’t forget to tell us how you get on in the comments box below. Good luck!
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