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DROPSHIPPING KEY MILESTONES
So you’ve decided to launch your own dropshipping business. That’s it. You’re done going back and forth – you’re starting today. But, while this decision could change your life, it also comes with a lot of questions.
Where do I start? What should I sell? How do I find a dropshipping niche? What kind of income can I expect? And, can I succeed without any start up money?
Don’t worry. The most successful dropshippers started with the same questions and doubts. Mastering something new takes time, whether it’s playing an instrument, surfing, or dropshipping. With patience and determination, you’ll soon be a pro.
To help you, we’ve put together some tips and a list of ten key milestones for your first year in the dropshipping business. These tips are based on the experience of Nourdine, a young French dropshipper who inspired this article and whose story you will discover below. But before that, let’s have a look at some important facts about dropshipping.
4 Things to Know about Dropshipping
1. Dropshipping requires persistence
Many dropshippers set out with big ambitions and a lot of motivation expecting quick results. And that’s one of the most common beginner mistakes. You need to give yourself the time to learn, test, fail, and start over.Some people will try dropshipping for two weeks, maybe a month, and give up if they don’t generate significant sales. In the beginning – and even after several months, you will suffer several failures: whether it’s a Facebook ad that doesn’t work, a product that doesn’t attract crowds, an audience that doesn’t respond well, or a store that doesn’t generate sales.
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The possibilities for failure are endless. But the good news is that the opportunities for success are also unlimited. Don’t give up. Despite what most people think, dropshipping is not an easy business, and success won’t happen overnight. You will have to fight to succeed. And by making mistakes, you will learn a lot about your business and yourself. We recommend testing your business for a year to experience several failures and generate success and a regular stream of sales.2. Dropshippers have a ‘test and learn’ approach
There are three rules to follow to succeed as a dropshipper: test, test, and test again. There is no miracle recipe for a successful campaign. Success lies in testing, but also in analyzing and learning from your trials. When you find something works or doesn’t work, it is important to reflect on these successes or failures.Test your products in terms of quality but also in terms of interest. Be sure to test the efficiency of your dropshipping store and your advertising campaigns. Test several channels and see what works, either organically or through promotion. Test several sources of income, including dropshipping, affiliate marketing, and gig jobs. This will increase the cash you can dedicate to marketing in your first months. Test your skills. Try to work on weekdays and weekends, in a café or at home.
Test everything.
And most importantly, test yourself. Your values and resilience will be put to the test.
3. There are good and bad dropshippers
Just like with every business, there are good dropshippers and bad dropshippers. The good dropshipper has strong values and brings added value to customers with a quality product. He makes it easy to buy an item seen on a Facebook ad. A good dropshipper has a professional attitude, ethically manages his business, and sometimes creates jobs.The bad dropshipper doesn’t focus on sourcing a good product but on his profit margin. A bad dropshipper sells inferior quality items or products based on fear, such as high priced masks during the COVID-19 pandemic. He tends to over-sell, over-promise, and under-deliver.
Dropshipping is a business model that attracts criticism, and this kind of behavior hurts all dropshippers, including those operating as trustworthy ecommerce entrepreneurs. Don’t lean into bad dropshipping just to make money. Be a good dropshipper and build a relationship of trust with suppliers and customers alike. Focus on bringing added value in one or more niche markets.
4. A successful dropshipper is never complacent
Just because you manage to find success doesn’t mean it will last forever. Nourdine’s story, found below, perfectly illustrates this point. Being an entrepreneur, and especially a dropshipper, means accepting the need to reinvent yourself constantly. You may have significant, long-lasting wins, but you may also have fleeting success. This is especially true if you have products that are seasonal, like Halloween costumes or items for Christmas parties.If you manage to generate a good income thanks to a dropshipping site, that’s great! But then you should think about creating other dropshipping shops with one or more products from a different niche. It is better to have two or three profitable dropshipping stores rather than just one, to anticipate possible drops in revenue, consumer interest, or traffic. Additionally, many dropshippers also have full or part time jobs which supplements their store’s income and gives them a steady flow of cash when dropshipping slows down.
Finally, don’t expect to have a consistent salary from dropshipping. You are no longer an employee but an entrepreneur. Instead of aiming for a wage, consider sales, profit, and investment. You won’t have a perfectly regular income. You might earn $50,000 in just a few weeks and then nothing for several months. It is essential to know how to manage your money so that you don’t end up with nothing – but you should also enjoy yourself from time to time!
Launching a Dropshipping Website: 10 Key Milestones for Your First Year
1. Learn the basics
As you start, it’s vital to know the basics to avoid making beginner mistakes. Too many dropshippers start without doing their homework. This includes spending time searching for products, testing them, but also finding one or more trustworthy suppliers. To help you get started, Shopify has created a training course that teaches you the basics of dropshipping called How to Start a Dropshipping Business. And it’s easy to create a free Shopify account to access the course.2. Become digital-marketing savvy
Understanding how dropshipping works is a good start, but it is also important to master digital marketing. You need to know how to reach your audience without spending too much on advertising. A dropshipper is often self-taught, and there are lots of useful resources available for free, including tutorials on YouTube and online classes.Areas to explore include social media, influencer relations, emailing, video marketing, branding, etc. But a good marketing plan starts with a well-thought-out strategy. Before communicating, think about your target audience, their habits, and aspirations. And consider the potential of your product on the channel you have chosen.
3. Find the right products
Choosing the right products is critical. Product is the most important aspect of dropshipping. You may have a great dropshipping shop or the best marketing in the world, but you won’t be able to generate sales if your product is not adequate. The quality of the product is essential, but it should also meet a need for a specific audience.You will have to spend time on your product search to find a dropshipping niche that has potential. To do this, we recommend that you study your audience’s purchasing habits. Alternatively, look at products that work well, with tools such as Google Trends or Adspy. You can then decide to make a single-product dropshipping site or offer several products and options for sale. Make sure to test the quality of the product and the supplier before selling it online.
4. Establish relationships with suppliers
Once you’ve found products that could work, don’t hesitate to contact the supplier directly on AliExpress to create a relationship. Start by checking customer reviews and delivery options. Does the supplier offer ePacket delivery?By letting suppliers know that you are a dropshipper and interested in promoting their products, you may be able to negotiate prices, receive free samples, customize packaging, review delivery times or discover new products for your dropshipping shop. You will also be able to manage disputes better if you have established a good relationship beforehand.
5. Create a business plan
We talked about having a marketing strategy in place. But after a while, you have to look at the bigger picture. How do you see your business evolving in six months from now? In a year or two down the road? What budget do you have to manage your advertising, your CRM? How do you ensure a regular cash flow? Do you need to hire freelancers or employees?
You have chosen to become a dropshipper, which means you’re an entrepreneur. It is important to have a growth mindset, set goals, and analyze your profitability to be able to progress and scale your business. To help with that, check out our business plan template.
6. Build your site with UX in mind
While a good product is key for successful dropshipping, you also need to have a robust website. And more than that, you’ll need one that helps you achieve your goal: sell. Think in terms of UX: User Experience. Simplify the steps before buying, try to make the navigation as seamless as possible with clear and visible calls to action, such as a clear “buy” button.Many entrepreneurs spend a lot of time building their online store. But you don’t need a perfect or complex website to generate sales. So don’t let creating your homepage take up all of your time. You should spend some time on a good product description. This is what customers will focus on before making the purchase. Also, be sure to include your terms and conditions and return policy to avoid disputes.
7. Choose a payment platform
Another choice you will have to make is the payment gateway you set up on your store to accept customers’ payments. You will need to have at least one payment gateway installed to start selling. Many dropshippers use PayPal, but there are many PayPal alternatives for you to explore.To generate sales, you have to be able to invest some money. Although this may seem risky, it’s not. If you have the right ads, you will see a good return on investment. Our advice is to start small, for example investing $20 in Facebook ads. This small amount won’t bring you a lot of sales, but it will allow you to collect data on your target and evaluate how attractive your store/product is.
Then, based on this information, you can slowly increase your advertising budget. If you have spent more than 150 euros on advertising without generating any sales, you should reassess your product choice, audience, and advertising strategy. But once again, just keep testing to become a Facebook advertising and Instagram marketing expert.
9. Optimize your customer relationship management (CRM)
As the saying goes, the customer is king. Customer reviews can make or break your business. Try to build a good customer relationship from the start. Customer service can be time-consuming, and some dropshippers outsource this task. We recommend that you take some time to build your customer relationship from the start. This will help you understand customer needs and perhaps identify other business opportunities.Be clear about your product return policy, and don’t commit to unrealistic delivery times as you, not your supplier, will be held responsible. Stay transparent and close to your customers. If your customers are satisfied, they will recommend you to others and post good product reviewsonline. Finally, in case of a dispute, excellent customer service can help avoid formal complaints.
10. Fail with your first dropshipping website and start again
Finally, even if you follow all this advice, you may still fail. It’s okay, don’t give up! Your next dropshipping site might be a failure too. But eventually, you will succeed. It might be your third try that’s a success, or it might be on your tenth try that you finally find the key. But in the meantime, you will have learned so much that you won’t be able to give up. You mustn’t be afraid of failure. It makes us stronger and more resilient. The first quality of a dropshipper is relentlessness.