Drop shipping: Is a supply chain management method in which the retailer does not keep goods in stock (handy or at home) but instead transfers the customer orders and shipment details to either the manufacturer, another retailer, or a wholesaler, who then ships the goods directly to the customer, or will have to pay a delivery agent to do so for him/her.
Below are the 10 steps (recommended) to help you succeed in drop shipping business.
1. Select a niche.
The niche/category you select needs to be your focused and something you are genuinely interested in.
A product range that isn’t focused will be difficult to market. If you aren’t passionate about the niche you select, you might become discouraged later on, because it takes a lot of work to successfully scale a drop shipping business. Here are some points to consider when selecting your niche:
Seek attractive profits. When you are running a drop shipping business model, your focus is on marketing and customer acquisition, so the amount of work required to sell a $20 item is essentially the same as it would be to sell a $1,500 item. Select a niche with (higher-priced products).
Low shipping costs are very important. Even though your supplier or manufacturer will handle the shipping, if the cost is too high, it will act as customer repellant. Find something that is inexpensive to ship (affordable in this recession), as this also gives you the option of offering free shipping to your customers and absorbing that cost as a business expense in order to attract more sales.
Make sure your product appeals to impulse buyers with disposable income. When you are focused on driving traffic to your website, you want to experience the highest conversion rate possible because most visitors will never return. The products you are selling should trigger impulse buys and appeal to those with the financial ability (money at hand) to make a purchase on the spot.
Make sure people are actively searching for your product. Use Google’s Keyword Planner and Trends to check some common search terms related to your potential niche. If nobody is searching for what you are planning on selling, you have to change your niche immediately before you even begin.
Create your own brand. Your drop shipping business will have more value if you can rebrand whatever it is you are selling and pass it off as your own. Look for a product or line you can white label and sell as your own brand with custom packaging and branding.
Sell something that isn’t readily available locally. Pick something your customer can’t find down the street. That way you leave then with no other option as to purchase it, because they fear that it might even go out of stock since already it;s rear..
2. Perform competition research.
Remember, you will you be competing with other drop shipping operations as well as retail giants like Walmart and Amazon.
This is where a lot of potential drop shippers go wrong, because they look for a product that has little to no competition.
Because they want to be distinctive.
There are many reasons why a product might not have a lot of competition, like high shipping costs, supplier and manufacturing issues or poor profit margins. Look for products that have competition, as it’s a sign that there is a high demand and the business model is sustainable.
3. Secure a supplier
Partnering with the wrong supplier can ruin your business, so it’s important that you don’t rush this step. (Supplier should only be needed if you also want to sale other products that are not from your source of drop shipping) Conduct proper due diligence.
Most drop shipping suppliers are located overseas, making communication extremely important, both in terms of response speed and the ability to understand each other.
If you are not 100 percent confident in the communication abilities of a potential supplier,trust, move on and continue your search.
4. Build your e-commerce website
The fastest way to launch a website that supports a drop shipping business model is to use a simple e-commerce platform like Shopify (which still needs web development experience).
Even if you have a size-able budget that would allow you to hire a web design and development company to create a custom solution, it’s a much wiser use to make. (So that your site can easily be managed and fixed if there is any future error or traffic.)
Once you are established and the revenue is coming in, then you can explore additional website customization, (Increase your hosting bandwidth,promotions,etc).
5. Create a customer acquisition plan
Having a great product and a website is great, but without customers looking to buy, you don’t have a business. There are several ways to attract potential customers, but the most effective option is to start a Facebook ad campaign.
This allows you to generate sales and revenue right from the start, which can contribute to quick scaling. Facebook allows you to place your offer directly in front of a highly targeted audience. This gives you the ability to compete with the largest brands and retailers immediately.
You also have to think long-term, so seo (search engine optimization) and email marketing should also be a focus. (Click on this link to get 1,000 email address for just 1$.
After a successful payment you will be redirected back to this page, and you will receive an email containing the list of email address you paid for.) or click here to get free emails after a 14 days trial after which you will be paying 49$ a month.
Collect emails from the start and set up automated email sequences that offer discounts and special offers. It’s an easy way to leverage your existing customer base and generate revenue without additional advertising and marketing spend.
6. Analyze and optimize
You need to track all of the data and metrics available to grow your business. This includes Google Analytics traffic and Facebook conversion pixel data, if that is your main customer acquisition channel. When you are able to track every single conversion — to know where the customer originated from and what path they took on your website that eventually led to a sale — it enables you to scale what works and eliminate what doesn’t.
You will never have a set-and-forget advertising or marketing solution. You need to constantly test new opportunities and fine-tune current campaigns, which allows you to know when to optimize or shift campaign spend. (Ask jehusblog for more details.)
This also includes sponsored post.
Paying so bloggers to write an article about your ecommerce site. Also at some points they will post articles concerning your ecommerce site for free. When you must have already gone viral.
Making a short video clip and promoting it on a platform like youtube.
This will help potential customers to even know all about your website even before visiting it.
8. Keeping track of your Source Price
This will prevent you from calling a customer to tell them am sorry. (Ask jehusblog how?)
Although it’s recommended so as to make money through traffic (site visitors)
But i won’t recommended it will your niche/category might have some products,etc that might be against google adsence policy.
When you have a blog within your eccommerce site it will also help to attract more traffic, because when visitors comes to see a photo, or to read an article they will see products of your eccommerce site.Making no.5 step: Customer acquisition plan now possible.
It will also help your articles to get indexed on google search engine.
Which will also give you an oppurtunity to get customers to buy your products.
Extra if your taking admin responsiblities do so, if your not don’t. (Ask jehusblog how?)
SOCIAL MEDIA MARKETING.
1: Facebook: (Ask jehusblog how?)
2: Twitter: (Ask jehusblog how?)
3: Instagram going viral with #tags on ig – Social media marketing(Ask jehusblog how?)
4: YouTube: (Ask jehusblog how?)
5: Affilate sites that pays: (Ask jehusblog how?)
5: Website affilate marketing (Ask jehusblog how?)
6: Email marketing. (Ask jehusblog how?)
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