With the highly competitive market around, it is tough to find a profitable business. Dropshipping is one of the promising business which requires minimal investment. If you are exploring the various options and confused about the prospects of dropshipping business, this article is for you!
Dropshipping is an emerging order fulfillment method, where an online store passes the order to the third party for order shipment. The dropshipper has the freedom to list the products at their discretions and under their brand name.
How much money can a dropshipper make with a newly launched store?
The dropshipping journey is influenced by several factors, including the niche you choose, the location of your business, your suppliers, your branding strategy, etc. The product value also affects the amount of revenue you can earn from your dropshipping business.
A product which you fetch from AliExpress at $20, you can list it $40. After accounting the advertisement cost, shipment charges, and other miscellaneous expenses, you can easily earn $15 on the sale of each product. So, the costing and the pricing of your products make the difference, like other businesses. As you do not require any investment for inventory, you can expand your dropshipping business by opening more than one store.
How much to wait for the first sale to happen?
Well! If you have a new drop shipping online store, you cannot expect the surge in sales in just one month. It takes time to build a brand reputation and create awareness about any new online store. There are several promotional methods that a dropshipper should use to market their store as well as listed products. Competitive pricing policy and discount strategies attract the customers as well.
SEO is an essential tool in listing your website among the top searches. Within three months, you can expect good results varying from 10 to 40 orders a month, depending on the product niche you choose. It is interesting to know that different dropshipping owners have different income levels as there is no limit to the number of sales undertaken, overall revenue, and price markup.
Is it necessary to have previous experience in dropshipping?
No, dropshipping does not require any previous experience to become a success. There e many success stories where the dropshippers had no prior experience, and they are doing well in their businesses with simple marketing tools and techniques. Some of the success driving dropshipping strategies are:
Offering a wide variety of products: By accounting, a vast range attracts users from different walks to come and explore the products. There could be a buyer who came over to buy one stuff but end up buying different stuff from various product categories.
Introducing new products: Buyers are keen to explore new varieties. Adding ‘new arrivals’ frequently attract the customers to explore the products and make purchases. Best ‘best sellers’, there should be a separate section for ‘new arrivals,’ which should be updated in short intervals of time.
Update unpopular products with popular ones: Keep a check on the ‘hot selling’ products to replace the products which are unpopular or not in demand. As popular items have the potential to generate more sales, it also induces customers to explore your store frequently.