Dropshipping is nothing new, but lately, it has budding entrepreneurs talking. In 2020, the dropshipping market declared a net income of $149.4 billion. Why so big? 27% of online retailers have switched to drop shipping to form their primary fulfillment method. The reason being – it is far easier than product procurement, creation, and delivery. Below we will explore what dropshipping is, how easy it is to do, and why the industry is experiencing exponential growth.
Using Free E-Commerce Platforms
E-commerce platforms have revolutionized dropshipping – allowing the average Joe to have a piece of the pie. How? Multiple e-commerce platforms give users access to website templates, advice, and tools that make it easier to manage an ecommerce business. WIX is arguably the best platform to sell online, although there are others. With a dedicated section for dropshipping — one that gives entrepreneurs flexibility and stability to design their store — WIX has everything you need to start a dropshipping business.
Following a template is far easier than trying to create a dropshipping website from scratch, yet users still have complete control over the design and execution with free templates. Without e-commerce platforms, the success of dropshipping wouldn’t have been possible. As well as providing a template for a website, e-commerce platforms connect entrepreneurs with vetted suppliers to ensure the reliable delivery of high-quality products.
How Dropshipping Works And Why It Works So Well
Still, you can’t create a dropshipping website without first understanding how dropshipping works and why it works so well. In a nutshell, dropshipping is the process of selling products through an e-commerce website but using a third-party supplier to procure the products. You will display the products you know you can acquire through third-party sources on your website. The money made through a sale will pay a third-party supplier to package and ship the product to you. You then deliver it to the consumer.
Why does it work so well? The first thing to consider is that dropshipping won’t be an overnight success. Although it works so well, it is not as simple as advertising a product and waiting for it to sell. Success depends on what you put in, as it is with any business. There are a few things to consider if you want dropshipping to work:
Market Research Is Essential
A product won’t sell if the demand isn’t there, and like with any business, it is crucial to consider the market demand before investing. Although you won’t be investing an enormous amount of your own money, the success of your venture relies on selling products that people want.
Luckily, it is easy to identify the products that are trending. Google trends will provide you with a lot of market data, as will websites such as Amazon or eBay. If you click on the search bar on eBay, a list of trending keywords will appear, which should give you an idea of what products are trending. Failing that, there are plenty of other websites that show trending products.
A Good Supplier Is Essential
Some e-commerce platforms will provide you with a list of third-party, reliable suppliers. However, it is essential to do your own research and see if there are other options. Googling dropshipping suppliers will provide you with an endless list of suppliers to go through. Always conduct thorough research before enlisting any third-party supplier – checking for reviews and previous experiences that entrepreneurs have had. No reviews should mean a no-go!
Offer Incredible Customer Service
It is easy to forget about customer service because you’re not exactly the supplier of a product. Technically, you’re the middleman. However, customers will still search through your store and contact you with any queries. How you interact with customers will define the success of your business. E-commerce dropshipping stores are still subject to customer reviews.
How You Can Join In
Start by doing a ton of research, both into dropshipping and the niche you’d be interested in joining. Fashion, fitness, food, and beauty are all viable dropshipping ventures to explore. It is essential to consider how saturated the market already is and whether you would make an impact.
For example, there are already tons of beauty brands selling various types of eyeliner – this might not be the best product to sell. However, certain skincare products, such as skin peeling masks, are not as common – making them easier to sell.
Once you’ve found your niche, use free e-commerce platforms to dip your toe into dropshipping. There are plenty of webinars, conferences, and even structured courses that will provide you with excellent resources – should you feel you need extra support.
Industry experts estimate the dropshipping industry will be worth $557.9 billion by the end of 2025. There has never been a better time to join the industry. Experts predict the market should experience unprecedented growth because of the rise in online shopping, making dropshipping more lucrative than ever before. How do you plan on joining this exciting and flourishing industry?