Dropshipping: What it is and how to do it (Beginner’s Guide 2022)

Dropshipping is an increasingly popular word and side profession. You aren’t dropping or shipping anything physically so don’t worry if heavy lifting isn’t for you. Almost every facet is remote so you don’t even have to leave the house.

In this guide, you’ll discover not only what dropshipping is and how to be successful at it, but you’ll find tips on starting that will save you time and headache. The actual act of starting an online shop specifically for dropshipping is easy. The real challenge comes from getting it to turn a profit.

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From Mail Order to Modern Order Fulfillment

Back in the ’60s and ’70s, mailers and catalogs for just about anything were available for the cost of a postage stamp requesting one. You would wait patiently for the catalog, pick what you wanted and, either mail it back or phone with your order and wait for it to arrive by post.

This was the advent of modern-day dropshipping essentially. Let’s look at it step by step. A customer selects their product(s) from your online shop. Doesn’t matter what it is. Your virtual checkout sends the order directly to your chosen dropshipping supplier. The dropshipping supplier prepares what was requested in the order. The order is shipped directly to your customer.

So by eliminating a storefront, employees, inventory, and most of the logistics, drop shipping has empowered anyone to be their shop online. The overhead is almost nothing and there is no need for a big warehouse. So why doesn’t everyone have an online store?

The Harder Parts

Dropshipping may seem like easy money for no effort but it’s not all honey and roses. Drop shipping is low impact and so are the margins and the profits. It’s also a low risk which means low return. Overall it is a great way to get into online money-making.

Building your dropshipping brand isn’t just about a pretty site and some cool products. It’s about engaging your client base so they feel they trust what you recommend. Then you recommend products you believe in. This isn’t a get-rich-quick operation. This is about a steady build-up of elements that create a strong online empire.

What it Takes to Succeed In Dropshipping

For the most part, a dropshipping business is mostly self-sufficient. This makes it an excellent complement to any schedule.

Where to Manage Your Time

Handling order, emails, and finding new products are the bulk of the more involved tasks. Most of these will be handled by you unless you invest in an auto emailer or some kind of virtual assistant software. Making sure you have a steady inventory will be handled on the back end of things by your supplier.

Several apps can help with tracking products and trends of what are hot sellers. There are also apps for invoicing, expense accounting, and site analytics to help you succeed.

Five Steps to Dropshipping Glory

So we’ve looked at what it takes to make a shop work but let’s go into 5 tips to get right into the path to profit.

1. Define Your Brand in Your Niche

When it comes to niche markets, dropshipping has a monopoly. To get in on it you need to figure out what product(s) or product type(s) you can believe in. Before you even start configuring your shop’s background, you need to know what you will be selling/marketing.

Let’s say you want to sell jewelry. First, do you want to have a massive online shop that displays tons of items or a more defined store with a select collection? A broad inventory online shop is good because more products generally mean more conversion but it’s easy for customers to get lost in the “virtual aisles” leading to more abandoned carts.

A More Defined Niche

The other route is going deeper into the niche. So instead of just “jewelry”, you now want to sell women’s jewelry. Then you notice using Google trends or a similar product that women’s jewelry is selling well but women’s costume jewelry is doing well. Enter the micro-niche.

Specific Market Targeting

Whether it’s vintage 1950’s Swiss-made bicycles or shiny, mint condition POGS, you can find it online. Almost always with accessible shipping to your customer’s home. This can be great as long as you use your social media presence and the blog on your shop’s site to promote your brand.

Build Your Brand With Words

Write relevant articles that potential customers will read when they come to your shop. So again, an article on the latest trends in ladies’ accessories would suit your niche perfectly. If you aren’t the savviest of typers, you can find many sites to hire writers who can get across your view on your products in a clearer fashion.

2. Picking Your Platform and Dropshipping Supplier

One option is to build your stand-alone shop with a custom URL from scratch. If you have the know-how and time, building your site from the ground up has many advantages. Not only will you pocket all of the profit (as opposed to platforms that can take sizeable cuts) but, you will also have total control over the customization and style of your shop.

Which Platform is Right for you?

Your platform matters because each one offers different methods of providing similar services. This means that for people looking to sell unique items they find locally, Etsy may be more appropriate.

Etsy is Great for Micro Niche Marketing

Etsy is also a great choice for those new to web entrepreneurship. Not only does it have very low maintenance fees, but it also allows for a broad range of goods to be sold at a low hosting charge per item. It’s also quick to set up and get going.

Shopifycation

Shopify came onto the market and hit the ground running. Sleek, well-designed shops and inventory make it a choice for seasoned sales vets and newbies alike. Phenomenal tech support and seamless checkouts make it a top choice for anyone looking to sell anything.

There is a cost of doing business after the trial expires so be forwarned. It takes money to make money with Shopify. One big way Shopify can also help you recover the cost is the automatic abandoned cart email feature.

It’s proven to have a massive conversion over just letting people go because they couldn’t figure out the checkout.

Wix has Pics

Wix has evolved since its inception but is now a fantastic choice for a budding e-commerce empire. When you go to their site, you see thousands of images to use for your store. There are plenty of formats and templates to help you easily customize your storefront. When it comes to flexible design, Wix is a clear choice.

3. Pick Your Products and Showcase Them

So now that you’ve decided women’s costume jewelry is your passion. You’re going with Etsy because you make your own pieces and are thinking bespoke fascinators would also pair nicely. Now the fun part. Showing them off.

Classic, Clean and, Basic

You can go with a standard, linear design for your shop. Take pictures of what you make with a white backdrop and try to eliminate shadow as best you can. If possible, a video of the product is best. When filming a video for a product, try to capture any important or special features.

Setting the Product Stage

Staging the product can be incredibly effective. Show the product being used or set up with a model or prop to highlight why people should buy it. Buy a nice theme for less than five dollars to really attract some attention. Never use a default theme. Take a second and write custom-tailored headings and messages so the shop doesn’t feel as though it just “offers whatever”.

Put you in Sell YOUrself

Competition is fierce for dropshipping selling and it’s you that is going to do the selling. Not that you will speak to many customers in reality. Customers become customers and not just passers-by because they find your blogs interesting. They think that pair of shades looked great on you. Not because they can’t find 100 pokemon cards for next to nothing online. So sell products you truly think are fantastic.

4. Know Your Competitor

There is a sea of competition for dropshipping sellers. Everyone has an angle and to say one shop over another is your direct competitor is impossible. Your goal to attract potential customers is to take a need or problem and make it easy for them to solve by using what you have.

Everyone Loves Convenience

No one likes to wait. The online customer is the epitome of this statement. You need to design your storefront to be accessible and quick loading to lock in those sales. Otherwise, people get listless and find someone else to buy from. Loyalty to your shop only comes from offering deals, discounts, and incentives. Most of which can be done through most platforms.

Give Them a Deal

Find what similar online stores offer and find a way to deliver it better. In any way. Whether you make something similar in your garage and sell it or use Aliexpress or a similar dropshipping service, take a hit on your first six-eight months of business. Not that you will lose money, just scale back your markup. You want clients to get it in and out fast and cheap.

5 Learn About Your Traffic and Customers

Analytics may seem like something you need coding training to comprehend but really is just measuring your site and evaluating strategies based on those measurements. Okay, still sounds intense. Luckily, there is a litany of apps and programs that can help you.

What is This Now?

OWOX BI is a free service you use once you launch your marketing campaigns and start your business. This is not something you would pick up right away. After a few months, and at least a few hundred dollars in revenue, then it is worth checking out all that it has to offer. Knowing where your current customers look and where they don’t is the key to knowing what they will buy next.

There are many different services like OWOX BI so when the time comes for fullfledged market havoc, look into different apps to help you save time and money and choose what works best for you.

Dropshipping Services

There are many dropshipping providers. It can be hard to pick from but the most popular are probably (disputedly) Oberlo, AliDropship and, Printful. All provide different services under the dropshipping umbrella.

Oberlo Performs Wonderfully

Find what similar online stores offer and find a way to deliver it better. In any way. Whether you make something similar in your garage and sell it or use Aliexpress or a similar dropshipping service, take a hit on your first six-eight months of business. Not that you will lose money, just scale back your markup. You want clients to get it in and out fast and cheap.

Alidropship Delivers

Alidropship is very versatile. You can not only import AliExpress products directly with a single click but, you can also import AliExpress reviews. This is invaluable, especially for new stores, as reviews tell people if a product can be trusted.

Printful is Branding Magic

Printful is the equivalent of having your own dropshipping clothing store and so much more. You can create custom shoes, hats, with any pattern you can upload. So much customization is easy to use and integrates with almost any platform to upload your products. Managing your designs in inventory is simple even on a mobile device.

Logic Drop on Dropshipping

Whether a dropshipping business is why you quit your day job or it’s something you’re trying as a new COVID hobby, remember to take it only as seriously as you want to. Some make it their lives work and spend every waking hour working on their stores. Others forget they have one and still make a ton of money autonomously.

When it comes to platforms, analytics, and product selection, don’t get too hung up on your choices. The rest of the world needs to know why your product and dropshipping service are worth buying from time and again. Keep your content updated, your sales screen refreshed, and enjoy starting your own dropshipping company. After all, selling neat stuff and getting paid is a ton of fun if you do it right.