Is Dropshipping Still Profitable in 2019?
Dropshipping is a lucrative venture for most entrepreneurs. It is estimated that by 2022, dropshipping will hit the $2.5 trillion mark globally. But even though dropshipping is a boon for online entrepreneurs, one nagging thought lingers in our minds. Is dropshipping still a profitable venture in 2019?
Yes. You can reap big with dropshipping even after 2019. But you will only gain the rewards if you do it right.
What is Dropshipping?
Drop shipping is a retail business model. You sell a third party’s merchandise to a customer via your online store. As the merchant, you don’t handle the shipment or inspect the product. A dropshipping company operates with zero product inventory, don’t own a physical warehouse to stock their products and shipping of the product the third party’s responsibility- either a wholesaler or a manufacturer.
How does Drop Shipping Work?
Let’s get into the behind the scenes on the action that precedes the client receiving his/her order.
A customer orders a product on your online store. You direct the order to your supplier. The wholesaler approves payment and credits your bank account. voila, the wholesaler automatically boxes and ships the order to the customer’s door front.
Tips for Growing a Profitable Drop Shipping Business in 2019
All those businesses that don’t survive the first few murky months or years have one thing in common. They don’t treat their businesses as a real business. They treat it like a money minting machine.
Most of these drop shippers making it big out here don’t tell you of the time, commitment, effort and a rock solid strategy they invested in their successful businesses. Are you thinking of joining the e-commerce space? These crucial ingredients of success can make or break your new business venture.
Adding Value sets you above your competition
What makes you stand out from other online stores? Do you have a winning ace? Or are you another drop shipper selling clothes online. You are in a competitive race with a sea of “me too” stores selling similar products. To build a successful brand, you need to bring more than the items you’re selling to the table.
Invest in market research. Who is your ideal client? What are they struggling with? How can you make their lives better? Share insights, solutions, recommendations, and information uniquely. You want to drive traffic to your site and establish a relationship with your customers.
Outstanding customer service unlocks your success
Are you looking to cash in big and fast with dropshipping? If yes, you’re headed for a heartbreak. In dropshipping like every other business, the customer is king. Focus on providing quality customer support. Genuinely solve your customers’ problems. You attract returns and referrals.
According to a 2018 serial switcher’s report by New Voice Media, poor customer support rips businesses of more than $75 million each year. And with the recent spike in social media use, it’s never been easy to drag your reputation to the mud. Drop shipping can get messy from refunds to product returns by pissed customers. You can’t afford to lose your cool.
Branding sustains you in business
All dead and near dead dropshipping stores are bound by one string: they don’t niche down. When you focus on selling anything to anyone, you lose everything. If you want to survive in the e-commerce jungle, you need a brand. Niche down and choose a name that mirrors your niche.
Specialize, and you will succeed. Create your own competitive space. What is your unique selling point? You don’t want to be the next merchant selling body shapers online. You’re focused on selling male-friendly body shapers to the modern man who has zero time for exercise.
Your website is the face of your business.
Are you thinking of setting up an online drop shipping store? Check out this list of best dropshipping builders to help you create your site up and running in no time. Your website is the voice of your business. Your content such as your posts, snapshots and videos should drive quality traffic to your site. Your website should have an easy to use interface, modern look and easy to navigate. The design and features should be user-friendly.
Marketing and SEO are the vehicles of success
As a beginner merchant, you are invisible to your ideal client. You are like a gem yet to be discovered. One of the greatest sources of frustration for many beginners is getting traffic to trickle into their website.
Marketing and outreach are the lifeblood of your business. Outsourcing is a struggle especially if you’re running on a limited budget. It is crucial that you horn your SEO, marketing and blogging skills during the first 6-12 months of your venture. Dedicate 75% of your time to your marketing and SEO initiatives during the first 4-6 months.
A long term vision keeps you striving for success.
Rome wasn’t built in a day. And like any other businesses you need a high dose of patience and commitment to see results. In fact with drop shipping, it will take you close to a year before you hit average full-time income.
The first few months will knock you off. You will hit a roadblock, doubt yourself and second guess your decisions. It is perfectly reasonable to feel overwhelmed. A trick to make the road less bumpy: mentally prepare yourself and get committed. When you know the price you have to pay for your success, you will be patient with the process. Having a clear goal in mind will fuel your efforts in getting successful.
Dropshipping is a profitable venture. You have zero worries on setting up a physical store, managing product inventory is out of your control, and you don’t produce or ship any products. This mainstream online income venture is attractive to most people. The competition is rife. Your success will depend highly on your commitment and strategy. Do your market research to find suitable options. Develop a rock-solid strategy and don’t get bogged down with decision paralysis. Start now irrespective of your fears and uncertainty.