As per a report, the global dropshipping market size is estimated to reach $1,253.79 billion by 2030. Thus, through this report, we can clearly say that the global dropshipping industry is on a rise.
Now, if you are planning to start a dropshipping business and looking for steps on how to make it successful then you are at the right place. Here we have mentioned 8 steps through which you can do it.
So, let’s dive in and check the content in this article-
- How Does Dropshipping Works?
- 8 Steps To Build A Successful DropShipinng Business
- 5 Stats About Dropshipping
How Does Dropshipping Works?
Through dropshipping, you don’t have to manage or stock an inventory. Instead, you need to partner with a retailer on a commission basis and sell their products through your store.
The process usually followed in a dropshipping business is as follows-
- Step 1: You sign an agreement with a product retailer or seller.
- Step 2: Customer orders a product from your store.
- Step 3: Seller receives the order via your store and the customer receives an order confirmation.
- Step 4: Now seller ships the order to you and then you carry forward the order to the customer’s location.
*Note- The seller can directly ship the product to the customer. It depends on your contract.
8 Steps To Build A Successful DropShipinng Business
To help you create a successful dropshipping business, here we have listed 8 crucial points-
#1 Select An Appropriate Niche
The product that you are planning to sell in your store should be easy to scale and in high demand. You don’t want to strain your customer’s budget with your products, thus focus on products that are not easily available in the market and ranges from low to medium pricing.
#2 Analyze Your Competitors
Once you have decided on the product you want to deal with, the next step is to analyze your competitors. This will help you know their pain points which you can use to your advantage.
You can provide low purchase pricing upfront to your customers as compared to the competitors which will help you get more conversion rate.
#3 Develope An Eye-Cathing Website And Mobile App
To ensure that your business is reaching a wider audience a website is necessary and to ensure it’s easier for your customers to purchase products a mobile app is necessary.
Thus, you should partner with a mobile app development company that helps you create a website as well.
#4 Market Your Dropshipping Business
After your website is ready, you should start marketing your dropshipping business. You should engage in both digital as well as orthodox marketing to ensure your business reaches a higher audience.
Here are a few ways you can market your business-
- Social Media
- Email marketing
- Field marketing
- SMS marketing
- Blog posting
- Video marketing
- And so on.
#5 Provide Robust Customer Support
Customer support service is quite crucial when dealing in a dropshipping business. This helps create a sense of trust among the customers and reduces the churn rate in your store. Here are some ways by which you can provide robust customer support-
- Customer support through a knowledge base
- Online community forum
- Voice support
- Live chat support
- Support through email
- And so on.
#6 Test The Products
Before you sign a contract with your supplier, you must test their products. This will allow you to have an overview of how the product is quality-wise and check if the retailer is charging the amount as per the quality.
Following this step will help you provide better services and products to your customer which helps you scale up your business at a faster rate.
#7 Promotions & Discounts
Promotions and discounts are essential factors that help in grabbing the eyes of customers. This allows you to make more sales and scale up your revenue in your store. Some of the promotional activities that you can perform in your store are-
- Buy 1 Get 1 Free
- Buy products at $XxY and get free shipping
- Get the second product at $2 only
- And so on.
#8 Collect Customer Reviews
Last but also the most essential step in a dropshipping business. Collecting customer reviews will let you know the pain points in your business such as low-quality products, delivery delays, glitches in your website/app, bad customer support, and so on.
Once you get to know the pain points, you can change or update them accordingly. This helps you stay ahead of the competition and scale up customer experience in your store.
5 Stats About Dropshipping
- 27% (Approx) of the retailers are using dropshipping to sell their products.
- 50% more profit is gained in dropshipping business as compared to those sellers that maintain an online inventory.
- The average success rate of a dropshipping business ranges from 10% to 20%.
- 66% of dropshippers like to buy from a store that has multiple shipping options.
- 42% of online customers want their products to be delivered within 2 days of order.
We hope that through this article you were able to gain some fresh knowledge on how to build a successful dropshipping business. Here we have also mentioned 5 stats related to dropshipping business that will help you.
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