Dropshipping for Beginners: 8 Things You Need to Know First

Is Dropshipping Actually Profitable?

So, is dropshipping profitable? It can be! But that’s not to say that it’s easy for everyone. You’ll need to put in a lot of work and research before you start your business, but if done right, dropshipping can be a great way to earn money from home.

Almost every product you imagine is being offered by a retailer in some form. Being a “merchant” online is nothing different than someone reselling fine silver 300 years ago.

The only change now is we have more tech tools at our fingertips to make the whole process way easier. That means not only is dropshipping profitable, but it has never been easier to get started!

What You Need to Know

1 – You Must Have a Niche

Once you’ve decided that dropshipping is right for your business, you will need to choose a niche. This may seem like an obvious thing to do, but many people don’t know what it means or how important it is for their success with dropshipping.

A niche refers to the specific type of product or service that your store will sell and focus on to differentiate itself from other similar businesses in the same industry. By narrowing down your audience and focusing on one particular group of consumers, you can better cater to their needs while also making sure they’re happy with what they buy from you.

Trying to sell too many items outside of a unified theme will create a ton of extra work you don’t need. Start small and highly focused.

2 – Some Products Aren’t Worth It

There are some products that just aren’t worth it. You’ll want to look at the cost of goods (COG), profit margins, and shipping costs before you start selling a product. If the COG is too high or if your profit margin isn’t enough for your business model, then you won’t make any money from it.

Other products may have licensing or copyright restrictions that can lead to legal issues down the road. You want to find a set of products that are easy to source from reliable suppliers you can easily integrate into your online store.

Always, always, always consider the shipping costs. A 200-pound car accessory is going to cost way more to ship than a custom-made book.

3 – Do the Research

Let’s say this clearly for all the online entrepreneurs in the back – you cannot succeed at dropshipping without doing the research.

Now, this doesn’t mean you need a degree in data science. It only means you must get used to some standard tools of the trade like Google Trends, Google Keyword Planner, and using Amazon to check out pricing, competition, and more.

If you cannot dig into the critical data behind consumer demand and product popularity, you run the risk of being lost in the margins. You have to separate your desires from the factual information customers are giving you through valid research.

4 – Choose Your Domain & Branding Carefully

The next thing you need to do is choose your domain name. This is the part of your store’s URL that comes after “www.” and can be anything from “mystore” to “shopifyblogger.” 

This name must be easy for customers to remember and spell, so avoid using words like “a,” “and,” or even spaces in between words (for example: mystoreandmore). Also, avoid choosing a name that’s too general. You want people looking for something specific (like designer handbags), not just any old bag they can find on Amazon Prime.

Finally, choose a domain name that’s short and sweet! More extended domains are harder for people to remember. Keep it simple!

5 – Customer Service is King

Customer service is the most essential part of any business, and it’s not just about responding to customers. It’s about knowing your customers, understanding their needs, and proactively solving their problems.

To provide good customer service, you need to be able to answer questions quickly and accurately, but if you stop there, then your business will become stagnant very quickly.

Have a solid chatbot built into your dropshipping store and engage in social media comments so you can learn more about your customers and how to improve your operations.

6 – Use SEO from the Beginning

SEO is a long-term strategy, so don’t expect to see results overnight. It will take time for your site to start ranking in search results. However, once it does, you’ll notice an increase in organic traffic and sales. This is why SEO should be one of the first things you do when launching your dropshipping business.

You want a unified approach to your SEO tactics so all your marketing, landing pages, emails, and social media presences support your overall goals. Don’t be afraid to hire someone on Upwork or Fiverr to help with this step if you are completely lost when it comes to SEO.

7 – Make Payments Simple

It’s important to have a payment processor in place that can handle all your orders, from the smallest to the largest. The best way to do this is by using a secure checkout page that accepts all major credit cards and other forms of payment, such as PayPal or Stripe.

Be sure to use a payment processor with a solid reputation for security and safety as well as services in the markets where your target consumers are shopping. The easier you make the checkout process, the better your conversion rate.

8 – Your Reputation Matters

Your reputation matters, and it can make or break your dropshipping business. It’s important to understand that good customer service is not only about resolving issues but also about being friendly and helpful when customers have questions or concerns.

A good reputation leads to repeat business, referrals, positive reviews, and brand awareness, all things that will help you grow your dropshipping business in the long run.

Bonus: Get Our Dropshipping Automation Plugin

As you consider how to get your dropshipping business off the ground. Don’t forget to automate as many of the processes as possible. This will save you time and human error issues while you focus on growing customer relationships and expanding your marketing efforts.

Our WooCommerce Dropshipping plugin allows you to quickly integrate inventory into your dropshipping store and so much more.

You’ll be able to customize your emails and invoices or even set profit margin marks to ensure you are fully optimizing your product lifestyle. Download our plugin today and make your dropshipping journey that much easier.

Conclusion

Dropshipping is a great way to get started with ecommerce, but it’s not easy. You need a lot of patience and hard work to make sure that your store is successful. Don’t be discouraged if things don’t go according to plan at first. Keep trying until you find something that works for you. That process is critical to your success!