The first step in starting any business, either online or offline is to gather the information of products you have to sell. Where to get all these products? Where to store them? How to make sure they will be purchased? In today’s vast market, you can research and find many possible answers to these questions. Definitely you can buy the products and store them in your inventory, or you can design your own products. But in both cases you have to take the risk. After all you can never be 100% sure that all products will generate revenue. Is there any way to eliminate that risk? Yes, there is and it is called drop shipping.
This idea has revolutionized the world of digital marketing. It is one of the fastest and easiest ways of business. It minimizes the risk and ensures immediate profit with negligible investment. If you are wondering how to make money with drop shipping business, you are at the right place. In this article we will explain all do’s and don’ts of how to make money with drop shipping business? According to surveys, twenty to thirty percent of online retailers are making money via drop shipping. Even the big retailers like amazon. It is the business model approved by world’s best entrepreneurs. Also Check out Top 10 Best Ways to Make Money Online via Internet in 2020.
What is Drop Shipping Business?
You do not have to target specific products or specific customers, when you are drop shipping. You can just start it with any niche in mind. Gone are the days when you had to rent a warehouse and store your products. Gone are the days when you had to pack the products and go to post office many times a day. And most importantly, gone are the days when you had to risk your capital. AliDropShip Plugin for WordPress & WooCommerce also helps to ease up dropshipping process.
Best Guide to Make Money with Drop Shipping Business in 2020
It is because you are working with a wholesaler or distributor, who offers these services. All of them will not be willing to attach with you, but many will be. You manage all the marketing for your business. You have to set up your website with a shopping cart. You advertise the products on social media. You will manage all the marketing to attract the customer, but the moment customer will actually place his order, drop shipper will take over the charge. You inform them about orders and pay them wholesale price for each order and they ship the products to customers. It is on the top of the wholesale price for the product and cost of shipping.
–> Customer Place Order on Your Drop Ship Store & Pay You…
–> You Will Forward Order to Drop Ship Supplier And Pay Him Whole Sale Price…
–> Drop Ship Supplier Will Ship The Product To Customer Address…
Though margins are thinner, but still you can earn profits and make money with drop shipping business. Maybe you can increase your prices to increase your profits but stay within limits allowed by market trends. For instance your product actually costs $5 from the supplier, but you can price it at $10 or $15. You will have to deduct the product advertisement cost from each product too, so you will end up with 60% to 70% profit. Increasing volume would also work. And you can always try to convince your drop shipper to charge low handling fee. Now we will explain some tips which can really help you to make money with drop shipping business.
Tips and Guide to Make Money with Drop Shipping Business via AliExpress & Shopify | WooCommerce | Opencart
1. Pick the Right Niche of Products for Drop Shipping Business
Decide your targeted products very carefully. Take help from Google Trends, Google Keyword Planner or Shoptimate. It is not too challenging to differentiate between right products and wrong products. You have to keep some simple things in mind. Expensive items can make business slow. Costly items are normally running items. To find cheap items, you can look for hot niches with plenty of accessories, like fashion, sports or smartphone accessories etc. If you are drop shipping products from other countries, you can secure your business by setting the threshold at less than 200$ per item.
Heavy items can significantly reduce the probability of good sales. No doubt, heavy items can be running items and good option for drop shipping, but they are not recommended if you are a novice drop shipper. It is because you have to maintain close professional relationship with suppliers and companies which are not possible in the very beginning. Try to select the niche which matches with your personal interests.
It will maximize your productivity. If you are marketing for some product that you have passion for, your motivation will be more than ever. You will start enjoying your job. It would not be possible if the product has no relevance with your personal life. Make sure not to start a store that targets all kinds of items, since it is very difficult to get success with multi niche stores. If you have started a niche of Fashionable Watches for Girls, please stick to that and avoid to mix any other niche products in the same store.
2. Pick the Right Suppliers
Looking for right suppliers is as important as looking for right product. Your supplier should be capable and secure you from late deliveries and low quality products. You have to look for them in right place but how on earth will you know that some place is right? Try to find the source which tells you about numerous suppliers from different locations. SaleHoo probably is the best example. It contains the data of 8,000 different suppliers from 100 different countries.
It is recommended to get in touch with multiple suppliers. Compare their inventories, prices and other details to opt for the best one. You may realize that different suppliers are better for different products. Try to consume all the resources supplied by them. Always get samples to testify the credibility of products. Of course credibility is the one thing that can boom your eCommerce business. Keep in your mind that tracking system is something customer always cares about in eCommerce. Ask your suppliers about it. You and your customer should be able to check the status of each order properly.
3. Act as a Customer
Before you start drop shipping venture, it is always recommended to go through the drop shipping process as a customer. It would help you understand customer’s perspective. Check how friendly the order-placing process is, how long it takes to ship and how the drop shipper deals with unexpected events.
You would also have the chance to test the quality of product. You can find the best product to offer your customer, because now you have better insight to his mind. Check the reviews of other customers. This would help you a lot to make money with drop shipping business.
4. Pick the Right Online Platform
There are different online selling platforms available for drop shipping business. Different platforms have their own pros and cons. Some are paid and some are unpaid. Choose the one that best suits your needs. It might depend on how much traffic you want, how much are you willing to pay etc.
Shopify is a very user-friendly platform which does not require any kind of technical knowledge. You do not necessarily need technical background. But it is paid. It charges 30$ a month which means 360$ in a year.
There are other platforms available for free but they may require technical background. Examples are Opencart and WordPress. They have only yearly hosting charges which are very low. One time development fee is also charged, if developer is assisting. You can save this cost if you develop the website on your own
5. Do not Always go for Low Price
Price is never the only decisive factor. Do not try to sell at the lowest prices, as you will never be the cheapest. Heed your marketing strategies and brand building. In any business achieving the customer’s trust is the biggest milestone.
Suppliers always try to stay price competitive, even if they have to compromise on the quality. Prices on AliExpress go down only when the quality goes down. It is totally natural to opt for lowest price product, but the price competitions always take the market down. Research thoroughly on price and quality of products and go for the quality. Customer may buy from your competitor for first, but the quality will ultimately force him to turn towards you. Never opt the supplier who comprises quality over price.
The range of price definitely depends on the product. For example if you are buying the products who are 1$ to 20$ range, you can sale them within the range of 20$ to 50$. Crossing the threshold of 50 can decrease the likability of your product. If prices are low, you can make money with drop shipping business.
6. Choose the Suppliers with Highest Positive Reviews
The ratings of sellers and products are critical to every market. Check the ratings of sellers and try to work with those with higher ratings. Navigate to given supplier page on AliExpress.com and click on the feedback tab. It will show you the data of suppliers in a table. The column of feedback score will show you the sales volume of seller which can be as high as 4000. Try to choose the seller with at least 2000 score.
7. Be Careful when it Comes to Branded Products
It is very difficult to find well-known brands on AliExpress. If you find one, it might be illegal and you should report it. Even the keywords with famous brands name like Versace are banned. Even if you see any item that has striking resemblance with some brand, you should be careful. But not necessarily all branded items on AliExpress are fake. It is always better to inquire from the brand’s franchise.
8. Consider the Responsiveness of Seller
Carefully check the response time of seller. If it is too long or he sends you meaningless broken messages you should probably not work with this supplier. Either you can make money with drop shipping business or not, it depends a lot on good sellers.
9. Look for the Best Shipment System
Always try to provide best shipment environment to your customer. It is the most common problem all e-commerce entrepreneurs have to face. To solve this, try to find best suppliers who offer best delivery options. The best platform is ePacket, which is also called AliExpress Premium Shipping. It takes around 14 business days and includes a tracking code which enables customers to find out the location of their order. Best shipment system would help you a lot to make money with drop shipping business.
Which eCommerce Platforms To Choose For AliExpress Drop Shipping Business?
There are several platforms which can be used for drop shipping business via AliExpress. Most popular of them are Shopify, WooCommerce & OpenCart. Shopify is relatively easy to use, but it comes with a monthly or yearly price for each store. While WooCommerce is a shopping cart which is based on WordPress, and Opencart is a standalone eCommerce shopping cart software. WooCommerce & Opencart can run on any web hosting and require less money to start as compared with Shopify.
Shopify takes a little edge over other two, as it requires very less technical knowledge and has a tons of apps to make your business very easy to operate. Although shopify apps cost money to buy them, but still benefits of Shopify outweigh other eCommerce platforms.
Our recommended platform to get started with Dropshipping Business is Shopify if you are a newbie and have no technical background. While if you are little experienced with technical stuff like web hosting, wordpress and opencart, we will recommend you to start with WooCommerce or Opencart.
How to use Shopify and Oberlo App for AliExpress Dropship Automation?
AliExpress is one of the very convenient wholesale market to start a drop shipping business. You can run successful AliExpress drop shipping business from anywhere in the world, and everything you need to learn is available online. After you select the right niche of product, you can import its data directly to your store, and set your own prices and markup (profit). Once you get the order, you can get the product shipped to customer directly from the inventory of your supplier.
So your first step would be to set up your online store using Shopify online store platform. It is recommended to use Oberlo app to sync your imports from AliExpress to your shopify store. It will also notify you if prices or inventories change. When the customer places his order to your store, you will send the order to your supplier so that he can ship the item to your customer.
When you will get the product order, you will need to forward that order to your supplier and clearly mention that Blindly Dropship this order and do not include any invoice or promotional material. Also do not think that people will hesitate buying from you because they do not like to wait for the long shipment time of AliExpress. People are always ready to wait if they are really interested in the product.
The biggest challenge for you would be to select the best suppliers. But you will find them with above mentioned tips. Oberlo app imports exactly same title and description, please make sure to make changes in product title and product description to make it look unique.