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Do you want to start an online business based on dropshipping? 5 factors to consider

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Would you like to start your own business, but without the obligation to invest a lot of start-up capital? Then dropshipping might be for you!

In case of dropshipping is a new concept for you, here is a short description:

Keeps in a nutshell dropshipping in that products are delivered directly from a third party (supplier) to your customers. The profit you make comes from the difference between your cost price of the product including shipping costs and the price at which you sell it. What makes dropshipping one of the most convenient ways to do business is that you don't have to bear any warehouse costs: you don't need stock yourself because the products are shipped directly from the supplier to your customers.

Thanks to the ever-increasing increase in e-commerce activity around the world, dropshipping has become one of the most successful ways of doing business and the dropshipping industry continues to make huge profits every year.

If you also want to start a dropshipping business, it is good to keep these factors in mind to become successful.

Don't limit your product choices to the runners on the marketplaces such as Amazon or Bol

A common mistake newcomers to the dropshipping industry make is limiting their product choices to only the best-selling products on platforms and marketplaces such as Amazon, Bo.com, and eBay. You then immediately have to deal with cutthroat competition, against which a newcomer can hardly survive.

The key to making good profits, and ultimately growing, is to avoid choosing products or niches that already have a concentrated seller base. If you only focus on the best selling products, you will find it very difficult to compete with the many other sellers who sell the exact same thing, and often offer lower prices too. With so much competition in the market for that particular product, it's only natural that these sellers will also have competitive prices with each other.

To successfully compete against such companies on such marketplaces, your prices often need to be as low as theirs or even lower. Now large incumbents can afford to maintain low prices because the size of their operations and sales volumes are large enough to cover any losses in other areas. But for someone who is just starting out (and as such doesn't have a solid customer base yet), it's not possible to break even and you could even take losses. Your business will not be viable in the long run and you will eventually be driven off the market. What a waste of all your precious efforts?

In an online business where profit margins are already quite narrow, a much better option for a newly established startup would be to select products that show promise but don't yet have a large number of sellers so you can make money online. to earn. You can of course get inspiration for a niche from Amazon, Bol.com or eBay, but it is better not to consider selling the exact same product.

Good and fair prices to attract customers

Customers today are becoming more and more aware and aware, especially when it comes to online shopping and the prices. They scour the internet for the best deals and only make a purchase after detailed research of their own.

Therefore, the first thing people do when they buy things online is to compare prices between different sellers. And why wouldn't they? Everyone wants a good deal, right? It only makes sense that people would want to use their hard-earned money to buy things at the best possible price.

You may wonder how difficult it will be for you to look for such products that are cheaper to purchase and have a greater profit margin. There are several options that can help you with this process. From doing keyword research, using Google Trends to tools such as FindNiche which analyzes a large database of products, niches and stores into niche advice.

Take into account: weight, size, shipping country

When choosing the products for your dropshipping business, it is wise to consider factors such as the weight, size and shipping country of the product when making the final decision. These details may seem insignificant at first, but seasoned sellers can understand why such details can have a significant effect on how well or poorly your dropshipping business will ultimately perform.

To keep your shipping costs as low as possible and thus lower the final prices for end customers, you should try to choose products that are lightweight, compact and shipped from a country that you can be sure of efficient and fast shipping. Also take into account any customs and clearance processes and associated costs. This ensures that your shipping costs and shipping time are minimized, making the overall process more efficient and cost-effective.

Use social media platforms to your advantage

In today's social media world, social media platforms such as Facebook, Instagram and LinkedIn have become important tools in the business arsenal. Social media is an essential means of achieving growth. Businesses have come to realize the importance of using this powerful tool in the best possible way.

Especially for a business that is based entirely online, as is often the case with dropshipping companies, it is paramount that you pay extra attention to maintaining and continuously improving your social media pages. Try to maintain an active profile on the social media platforms your target customer base is likely to be active on. Don't forget to post engaging content on these pages to keep your audience interested.

The benefits of maintaining a strong online presence are countless. Social media provides you with an effective platform to communicate with your existing customers and reach new potential customers. Market your business the right way and you'll soon see the difference in your sales.

Use social media platforms to your advantage, including in your online business based on dropshipping
Use social media platforms to your advantage, including in your online business based on dropshipping (fig.)

While anyone can create a social media page, the real challenge lies in maintaining it in a way that attracts and engages your target customer base. The key is to know your target audience and market your brand in a way that will attract them. Social media is also a great way to share positive customer feedback with potential buyers, basically generating positive word of mouth.

Another benefit of using social media is that you can also use it to conduct surveys and polls on what new products customers would like to see on your website and page.

An important benefit of social media in terms of product search is that you can get an idea of most viral products through community trends. You can also keep an eye on your competitors for their products that also get them the most engagement.

Effective search through interesting dropshipping tools

Choosing which products to sell via dropshipping can be a daunting task. Fortunately, today there are certain tools available that can help us decide which products are the best possible choice for a new online business based on dropshipping. Not only that, but they can also help us keep track of inventories and prices, allowing us to make informed decisions about product choices. Such tools will help improve your company's research and marketing efforts, while also saving you a lot of time and money. Sounds like a total win, right?

If you have the means, we recommend that you consider investing in a paid tool like Pexda or ShopGenius. These tools will help you on your way. With a wide variety of sources of information, it becomes easier for you to direct your online business, only you have to pay for these tools. pay tools.

So if you're on a budget for the time being, you can still reap the benefits mentioned above by using free data analysis tools such as Google Trends. It is one of the best free tools out there that will help you find the niches with the best sales volumes and overall potential while also providing valuable insights regarding the competition in different niches.

The FindNiche tool we already mentioned also has free capabilities. This tool is specially developed for dropshippers to find winning products and niches. It allows you to find many niches and products exactly based on your selected criteria. Another interesting option is to look at the Oberlo tool with which you can realize both niches and integrations with webshop platforms such as WordPress + Woocommerce and Shopify.

We hope this article has provided you with value and helped you explore ways to find winning products. Good luck with the start of a great online business!

Sources ao AliDropship (link), Find Niche (link), Oberlo (link), Shift4Shop (link)


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