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How To Build A Successful Dropshipping Business
Reading Time: 7 minutes

When you think about it for a second, starting a successful business online is the dream of many budding entrepreneurs out there in the world today. It has undoubtedly been my dream ever since I got hooked on the internet growing up. 

There are hundreds of things to do online to earn some extra cash such as freelance writing, website design and development, trading… even setting up a new E-commerce company and working your way up to becoming the next Jeff Bezos is still a possible feat. The list is endless, and many entrepreneurs now earn thousands (if not millions) of dollars monthly from what was once a side hustle. 

According to a survey, consumers in the United States spent about $601.75 billion online with U.S. merchants in 2019 alone. That’s a lot of money and if you’re thinking about joining in on the party, you’ve made one hell of a great decision. Over the years, one area that has received increased attention in the E-commerce industry is dropshipping. 

Up until now, you might have come across that word several times on the internet and you still have no idea what it entails or how it’s done. Well, starting a dropshipping business in the United States is an extremely popular business venture for millennials and new entrepreneurs who can’t afford the full costs of maintaining a physical store and large inventory at the moment. 

As a dropshipper, you decide your choice of products, set your own product prices, market your own brand the way you want, and you don’t have to bother with shipping costs… easy, peasy, lemon, squeezy. So if you’ve searched for a detailed dropshipping guide for beginners, then your search stops here. You’ve come to the right place for help. 

Here’s How To Build A Successful Dropshipping Business

While it might require a small amount of money to set up, dropshipping requires a lot of work to get it up and running. We’ve mapped out all of the steps involved in making your ecommerce dropshipping dream a reality. 

best niche dropshipping

1. Choose Your Niche

Think of starting an ecommerce dropshipping business as deciding to play sports. You can love being an athlete, pumping your muscles and being superfit, but because one athlete can’t play all 8,000 sporting events in the world today, eventually, you’re going to have to decide which sport to play.

The same applies to dropshipping, and the importance of specialization in ecommerce can’t be overemphasized. In fact, some of the most successful dropshipping businesses I’ve encountered chose to specialize in a specific niche.

Choosing a particular niche to grow your dropshipping business could be the one thing that sets your brand apart from the crowd, the thing that makes you stand out. Think about it for a second.

Why sell just shoes when you can sell shoes explicitly designed for hikers and athletes? Why sell just T-shirts when you can specialize in selling Anime-branded T-shirts and hoodies? The beauty of specialization is that people think it narrows your consumer base and costs you valuable customers.

However, having a more targeted demographic makes your advertising campaigns a lot more successful. Choosing a niche allows you to focus on better marketing and will enable you to communicate with your customers more efficiently. As they commonly say, “Everyone is not your customer. If everyone is your customer, then no one is.”

I know choosing a niche can be overwhelming, but here are some tips to help you decide what your niche should be.

    • Choose a product that’s appealing to the buyer in both price and quality.
    • Also, choose a product that’s cheaper for the supplier to ship. If shipping costs are expensive, total costs go high, and buyers are likely to flee.
    • There must be demand for the products in your niche. You can be certain about this by doing a little research, finding out commonly searched items online, and ensuring that your customers can’t quickly obtain these products just down the street.

Read more about: Best Dropshipping Products

Research Your Competitors

2. Research Your Competitors

If there’s one thing High school, College, Sports and Business have in common, it’s competition. You have this life-long dream of starting an online ecommerce dropshipping business to sell kitchenware and household products. Now before you dive into that niche, you have to pull off a classic Sherlock Holmes investigation and learn everything you need to know about your competition. 

To carry out good competitors’ research, it’s important to search for your niche on already established ecommerce websites like Amazon, Walmart, eBay and some Shopify stores. Is there too much competition in the niche you’ve chosen? Is there too little competition in that niche? Both cases have their pros and cons, so you must find a balance. 

If the competition is too small, then it’s either you just discovered a gold mine or the niche isn’t profitable, and nobody wants anything to do with it. If there’s too much competition, it’s a good sign that with the right marketing and investments, you can carve out a space for your brand. 

Even in a saturated market, you can rise to the challenge by studying and learning from your competitors’ successful marketing strategies. Using analytical tools such as Ahref or Semrush to analyze their website traffic, what keywords they rank for, and how to best optimize your own website will help you grow in your niche. 

My advice, research products that have higher demand because that translates to an increased potential for you to succeed.

3. Get Yourself a Reliable Supplier

Because dropshipping is a unique type of ecommerce business, the majority of the heavy lifting from manufacturing to packaging, and then dispatching the product from the warehouse to the customers is handled by the vendors.

Therefore, the supplier plays a huge role in determining how successful your business will be. Forming an alliance with the right supplier is a crucial step in setting up a successful dropshipping business. While it may seem like most of the dropshipping suppliers are located overseas, American dropshippers can find US-based dropshipping suppliers and enticing dropshipping products to include in their ecommerce store. 

If you have any questions about finding dropshipping suppliers in the USA, send us an email and we’ll be glad to help.

For many successful dropshipping businesses, Shop1 has been one of the most reliable places to find trustworthy dropshipping suppliers. Shop1 has the most extensive catalog of American dropshipping suppliers you’ll find on the internet today who are ready to work with you to transform your ideas into reality.

Communication is key when dealing with dropshipping suppliers, and it’s important that you thrash out the little things from getting crystal clear photos of the products to pricing, descriptions, and their production capabilities.

Read more about: Dropshipping Suppliers USA

4. Set Up an e-commerce Store

Once everything is set, the next big step is designing a beautiful ecommerce store to host all your products. The good news is that Shop1 can help you easily build an e-commerce dropshipping store with little website development and coding experience. You can also choose to hire an experienced web developer to create your beautiful ecommerce store. 

Remember, this is where you really have to bring it on, because you might not have a physical store or warehouse, but this is the part of your business that has to appeal to your customers visually. 

While building your e-commerce dropshipping store, it’s important to pay attention to Search Engine Optimization (SEO). If done correctly, SEO can be a significant source of search engine traffic to your website helping you generate sales for free.

5. Market Your Website With All Your Energy

Once you have customized your store with high-quality product images and set up product descriptions and prices, it’s time to open up your store to the public. Just like when that new fancy restaurant down the street opened up its doors to the public for the first time, they put up ads everywhere to create awareness. 

Marketing and driving traffic is the essential key component of your business that determines how successful your ecommerce dropshipping store becomes. There’s no point in opening a fancy restaurant if nobody knows it exists. To effectively market your business, you can take advantage of SEO, guest posting and Social media advertising. If you’re looking to take advantage of SEO, popular SEO resources you can take advantage of include Moz, SearchEngineLand, SEOBook, and Distilled. 

Running paid social media campaigns is another great way to pull traffic to your ecommerce dropshipping store. Because you’re a new entrepreneur, you can advertise effectively on a budget using Facebook advertising, Instagram, twitter, Pinterest, LinkedIn or Influencer marketing. 

With social media advertising, you can create captivating ad titles with beautiful images and videos that will pull traffic to your store. You also have a platform where you can create a community of loyal customers, interact with them and turn them into regular buyers. 

Social media influencers are really popular people on Instagram, Twitter or Facebook who have millions of followers. A single creative endorsement from any one of them could increase your brand popularity.

Dropship Data Analytics

6. Let Data Analytics Guide You

Now that everything is up and running, watch and learn what works best and what doesn’t. With the help of integrated web analytics tools like Google analytics, sales and engagement monitoring systems, and advertising campaign performance reports, you can easily monitor your business performance. This will help you optimize your strategies to improve your sales and make more profit.

There you have it, six (6) steps to building a successful dropshipping business. They say data don’t lie and numbers rule the universe. Studies show that there will be over 2.14 billion online store buyers worldwide by 2021. 

Without any doubt, ecommerce dropshipping will continue to be a profitable venture in the future and with these detailed step-by-step instructions, anyone can learn how to dropship. Don’t hesitate to share your thoughts and opinions in the comments below. To find out reliable American dropshipping suppliers, kindly send us an email at support@shop1.com.

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