In order to start a successful drop shipping business, there are a few extremely crucial steps which have to be carefully planned and implemented. According to one such study conducted by Shopify, 33% of online businesses use the business strategy of drop shipping, indicating its popularity and feasibility. The first step is selecting the profitable niche. The entrepreneurs would choose markets that are in high demand with minimal competition. A study by Oberlo found that products like household items, apparel, and electronics have been among the most profitable categories in drop shipping and have presented a great range of options for new businesses.
Next, finding reliable suppliers is key to running a successful drop shipping store. Platforms like Drop shipping offer a wide variety of suppliers with different product ranges. It’s important to choose suppliers with good reputations and quick shipping times to ensure customer satisfaction. According to a report from BigCommerce, 62% of customers said that fast shipping is one of the most important factors influencing their purchasing decisions, making supplier reliability crucial.
To begin an online business, one has to choose the right e-commerce platform. Shopify, WooCommerce, and BigCommerce are some of the most used platforms utilized in drop shipping businesses. Shopify boasts over 1.7 million active stores, with a majority of them being drop shipping-based. All the above platforms provide tools needed to manage products, payments, and customer support. Prices between $29 and $299 a month for Shopify mean business owners can start low-cost and step up as their business grows.
Marketing the store is also part of ensuring success. Internet marketing methods such as social media advertisement, SEO, and influencer partnerships can generate traffic to the site. As per a report from Statista, 41% of businesses spend significant budgets on digital marketing, showing its importance. Pay-per-click ads on platforms like Facebook and Instagram cost anywhere from $0.50 to $2.00 per click, depending upon the audience and competition, and hence prove to be a flexible medium for businesses of all sizes.
Lastly, customer service is crucial to establishing a booming drop shipping business. Though the third-party suppliers send the products, having good communication with customers is the key. According to a survey conducted by Zendesk, 42% of customers look at a response time of less than 1 hour as critical. Prompt and professional replies to questions and concerns will help retain customers and build positive reviews, which are the essence for the reputation and sustenance of the store.
As Jeff Bezos, the creator of Amazon, once said, “If you double the number of experiments you do per year, you’re going to double your inventiveness.” Starting a drop shipping store may require experimenting, but with the right strategies and mindset, success is achievable.