How to cash in on drop shipping? No business model is quite perfect. The best model is always going to depend on the goals of the company, of course, your industry, and your resources. But while this is true, there are certainly some business models out there that come pretty close to being perfect. And probably the best example of all is drop-shipping. Why is drop-shipping so special? Read on to learn how to cash in on drop-shipping!
What is Drop Shipping?
With drop shipping, what you’re doing is selling a product through your own store as though it were your own item and then letting the wholesaler worry about fulfillment and delivery – as though it were an affiliate product. This has all the benefits of selling an affiliate product because you can sit back and let the orders roll in without having to do anything.
But it also has all the benefits of selling a real product as a re-seller or manufacturer – you get to keep your customers on your site and improve your brand awareness, while also selling real, useful products. The biggest difference between drop-shipping and the standard retail model is that the selling merchant doesn’t stock or own inventory. Instead, the seller purchases inventory as needed from a third party, usually a wholesaler or manufacturer, to fulfill orders.
The merchant is mainly responsible for gaining customers and processing orders in drop-shipping, meaning you’ll effectively be a middleman. Despite this, you’ll reap the lion’s share of the profit by marking up the items you sell. Can I really make money with drop-shipping? Yes, drop-shipping can be a profitable business, you can still make a profit as a drop shipping business, despite the thinner margins.
Of course, there are many drawbacks and advantages, and it’s important that we look at them before you start your own drop-shipping e-commerce business. Once you understand the pros and cons of drop-shipping, however, learning how to do so effectively will be a breeze.
How To Cash In On Drop Shipping – Create a Strong Brand
A brand is an impression a store has on its customers. Online stores make these impressions through a combination of store design, copywriting, color palettes, and imagery. In other words, imagine your store was a person you met on the street. When you have a strong brand, it means you have an ethos, a mission statement, and a style. It means when people buy from you, they’ll know what to expect, and they’ll feel more confident to do so as a result.
If you find a brand you like dealing with, then you’ll always pick them over other options. We’re attracted to what we already recognize, and that goes for online stores as well as people. So if you build a brand that feels familiar to your customers, you’ll get more sales.
Branding your business is important. That’s because there’s typically more than one drop shipper selling a given product. Good branding sets those sellers apart from one another and big-box competition. How to create a brand “name” is similar to how to create a brand “identity”.
Some companies offer a white-label service. This means they will actually allow you to put your brand on the product: printing it on a previously white label so that your customers think the item belongs to you.
Pick the Right Drop Shipping Business
There are some companies out there posing as drop shipping companies that aren’t the real deal. These companies will often buy the products from wholesalers and then drop-ship them to you! That means you’re paying an inflated price which will hurt your bottom line as well as your turnover.
What are the best drop-shipping products? The best drop-shipping products are good, niche products. Trends will come and go, and it’s tempting to ride on the coat-tails of the latest craze. Picking drop-shipping products that are unrelated, random items based on a craze is quite common. This strategy is often successful in the short term, but it can be hard to maintain high sales over time. Sometimes concentrating on a good niche and sticking to it is the best strategy.
Popular drop-shipping products tend to be either impulse buys, the kind of item you wouldn’t make a special trip to the local shop to purchase individually, but might notice and pick up at the supermarket checkout while you’re waiting to pay for everyday items.
Impulse buys are usually cheap. For more expensive purchases, we tend to do more extensive research and shop around for longer before making a decision. One thing to be careful of is companies that also sell to the public. Another warning sign is the company is asking for a recurring monthly fee. Real companies don’t do this!
Sell Quality Products
Finding products to sell in your online store can be a difficult process, especially if you’re new to e-commerce. After all, it’s critical to pack your store’s inventory with high-quality merchandise which you can sell at an affordable price point for your customers.
One of the easiest ways you can achieve this is by running your business with the drop-shipping method. When you’ve added top products to your drop-shipping store, there’s no limit to the amount of profit that you can generate.
Never sell products from your site blind! Not only will your customers be unhappy, but it can also damage your reputation and prevent them from buying from you again in the future. Always ask to see at least one example of the product first that you can check over and speak to a representative about what quality control measures they have in place to avoid problems!
Now that you've learned more about how to cash in on drop shipping, do you think it might be something for you? Comment below!