If you are thinking about starting a brand new online business, dropshipping is definitely one of the most profitable options to consider here. According to the report, the global dropshipping market size was valued at $102.2 billion in 2018 and projected to grow by nearly 30% in the next five years.
The growth rate is sensational and it only means one thing – there is enough room for newcomers to join the game and launch their own dropshipping companies.
But it doesn’t mean you can be careless and unprepared. On the contrary, it is critical to learn the basics of dropshipping business and follow the best practices in this niche. We will show you the key industry facts along with the four main eCommerce tips from dropshipping experts.
Dropshipping Stats and Facts You Need to Know
Unlike traditional eCommerce, dropshipping allows you to act as a middleman without keeping in touch with the actual products you’re selling.
By definition, it represents a supply chain management method in which the retailer does not keep goods in stock but instead transfers its customer’s orders and shipment details to the supplier who then ships the goods directly to the customer.
This means you can operate the whole business remotely, which is exactly what makes the system so popular among young entrepreneurs. Besides that, industry stats reveal a few more benefits of dropshipping:
- Nearly 30% of online retailers have already adopted dropshipping.
- Manufacturers who embrace dropshipping are 18% more profitable than those who rely on conventional channels since they’re not as dependent on the inventory space of retailers.
- A third of the interviewed consumers purchase products online once a week or more frequently.
But there is one more fact you need to know here - as much as 90% of all dropshipping businesses fail in the first month!
Jake Gardner, a digital marketer at the https://www.essaygeeks.co.uk, says this happens because eCommerce newbies fail to prepare for the challenge: “If you want to build a lucrative company, you better think long-term and create a sustainable dropshipping strategy.”
Tips to Help You Grow a Dropshipping Business
You can find tons of useful articles on how to launch a dropshipping business, but most authors tend to neglect a few fundamental principles. Our goal is to highlight tips that make all the difference between successful eCommerce companies and their less productive competitors. Let’s take a look!
- Pick the right niche
The first step you make on the dropshipping path is also the most important. Namely, you need to pick the right niche in order to get the business going properly. How can you do it?
The question you need to answer is this: Is there enough demand for a given portfolio of products? The greater the customer base, the higher the odds of running a profitable company. It’s like launching a custom essay service – if there are not enough students to work with, you don’t want to do this kind of work.
You need to research the market and see if there is enough market potential to engage with it. For example, fashion is the largest B2C online retail market segment and its global size is estimated at $528 billion in 2019. As such, it makes one of the most common choices in the dropshipping business.
- Test supplies well in advance
Now that you’ve chosen a perfect niche for your dropshipping company, it is time to select the best supplier. If you think this step is easy, you are so terribly wrong. It is often a challenging and time-consuming process because it’s hard to find a reliable partner who guarantees to deliver quality products consistently.
Firstly, you need to research multiple options online and see whether suppliers’ offers match your portfolio. Secondly, you should order samples from each supplier in order to test delivery and product quality.
Of course, it is important to negotiate prices that give you a substantial margin and allow you to run the business without financial interruptions. We also encourage you to discuss the issue of discounts for achieving the targeted sales quotas.
- Find a trustworthy eCommerce platform
Online retail is based on digital platforms that can automate most of the processes and help you synchronize different aspects of the business. This is why you need to find and purchase a trustworthy eCommerce platform for your dropshipping project.
The usual suspects in this area include the likes of Magento, Shopify, Big Commerce, Wix, and SquareSpace. Each of these tools comes with a whole range of excellent eCommerce functions applicable to dropshipping businesses, but we suggest choosing your platform based on several criteria:
- Functionality: Make sure that the program gives you all the functions your online store needs.
- Security: Online retail platforms have to be perfectly safe and impenetrable.
- Third-party integrations: It has to get along with the supplier’s tools and other third-party apps and programs.
- CRM: eCommerce is all about servicing customers timely and effortlessly, so make sure to find a platform with strong customer relationship management abilities.
- Scalability: If your plan is to grow the business quickly, don’t forget the issue of scalability. Your weapon of choice must support you on every step of your eCommerce journey.
- Create a sales and marketing strategy
Starting a dropshipping company is relatively simple, but how do you attract consumers and turn them into loyal clients? It’s not possible without a solid sales and marketing strategy. This is where your professional knowledge and creativity should play their roles, but we can give you a few practical recommendations:
- Offer perks like product bundles, discount coupons, free shipping, and similar.
- Create high-quality content to raise awareness. That includes infographics, videos, industry reports, blogs, and many more. If you don’t know how to do it successfully, make sure to consult with the best paper writing service such as Dissertation Today.
- Strengthen your customer service using chatbot technology.
The Bottom Line
Online retail is a profitable industry with gigantic potential for agile entrepreneurs from all over the world. However, the market quickly recognizes amateurs and professionals, so you’ll need to prepare beforehand and follow the state of the art trends in a given niche. In this post, we discussed the following:
- Key industry stats and facts
- 4 eCommerce tips coming from dropshipping experts
What is your opinion on eCommerce and dropshipping? Do you know other tricks and hacks that can improve the work of dropshipping companies? Share your ideas in the comments – we would love to see it!
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Automobile Marketing Announced On New In-Vehicle App Review Size, Share, Growth & Trends
The increasing demand for In-Car Apps drives the market size on account of the development of marketing strategy for automobile industries.
Fuel economy and potency, health and private potency, security, road safety and insurance liability square measure anticipated to furnish large in-car apps market growth avenues over the forecast amount.
Ford is probably going to launch a replacement application known as set Connect by 2016, that might begin, stop, lock and unlock with the assistance of a foreign.
what is more this app includes voice activation for smartphones that permits free emergency calls and conjointly enables the user to retrieve standing of Automobile Industry Market Structure contain that make systems like tire pressure, fuel levels, battery standing, and oil level?
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Automobile Marketing Announced On New In-Vehicle App Review Size, Share, Growth & Trends
The increasing demand for In-Car Apps drives the market size on account of the development of marketing strategy for automobile industries.
Fuel economy and potency, health and private potency, security, road safety and insurance liability square measure anticipated to furnish large in-car apps market growth avenues over the forecast amount.
Ford is probably going to launch a replacement application known as set Connect by 2016, that might begin, stop, lock and unlock with the assistance of a foreign.
what is more this app includes voice activation for smartphones that permits free emergency calls and conjointly enables the user to retrieve standing of Automobile Industry Market Structure contain that make systems like tire pressure, fuel levels, battery standing, and oil level?
The leading rival within the Marketing Ideas for Automotive Industry analysis for their more aggressive into system manipulate the business idea for services categories in more review In-Car Apps company profile of the competitive nature.
Automobile Marketing Announced On New In-Vehicle App Review Size, Share, Growth & Trends
The increasing demand for In-Car Apps drives the market size on account of the development of marketing strategy for automobile industries.
Fuel economy and potency, health and private potency, security, road safety and insurance liability square measure anticipated to furnish large in-car apps market growth avenues over the forecast amount.
Ford is probably going to launch a replacement application known as set Connect by 2016, that might begin, stop, lock and unlock with the assistance of a foreign.
what is more this app includes voice activation for smartphones that permits free emergency calls and conjointly enables the user to retrieve standing of Automobile Industry Market Structure contain that make systems like tire pressure, fuel levels, battery standing, and oil level?
The leading rival within the Marketing Ideas for Automotive Industry analysis for their more aggressive into system manipulate the business idea for services categories in more review In-Car Apps company profile of the competitive nature.
