The business world today is vastly different than it was even two years ago. Today, businesses of all types, shapes, and sizes are making headway in their respective niches, adopting various business models. Dropshipping is one of them and has been a popular option for a while now.
But, what is dropshipping?
Should you start a dropshipping business?
If so, how do you make it work for you?
Well, this article will help you clear all the things. So, just dive in!
What Is Dropshipping?
Today, there are tons of dropshipping businesses on the market. Brands like HyperSKU sit at the helm of the dropshipping world.
Dropshipping refers to a business model where you essentially act as the intermediary between the supplier and the customer. You source products from a third-party supplier and deliver them to the customer, thus eliminating the need to stock products and maintain an inventory.
According to 3d cart’s statistics, approximately 23% of online sales in 2017 were fulfilled using dropshipping.
Pros & Cons Of Dropshipping
With a relatively new business model like this that has gained a lot of traction, it is vital to identify and analyze its pros and cons to determine if dropshipping is for you.
- Dropshipping businesses are more accessible to start than traditional businesses since you do not have to invest a lot of money to get things up and running. You also do not have to worry about getting business processes in places like sourcing products, staffing locations, and many more. All in all, dropshipping has a low barrier to entry.
- There is no need to manage an inventory, which happens to be one of the most important benefits of going with a business model like this. You do not have to worry about overstocking your products, doubling down on those that sell the best, seasonal sales, and so on. In other words, you are less likely to lose out on sales and deal with potential financial losses.
- You have to deal with massive competition if you decide to venture into the world of dropshipping. It is just as easy for you to start a dropshipping business as it is for anybody else, which means you have to compete with other companies that source and sell products from the same third-party suppliers that you are going to.
- Since you are essentially selling products one at a time and not in bulk, you cannot ask the suppliers for a bulk discount on the products.
How To Make Dropshipping Successful In 2021?
There are many things that you can do to stand out as a stellar dropshipping business. Here are a few:
1. Research, Research, Research
As expected, you will have to take out the time to research your market. This is vital because you need to find out:
- What your customers want and the latest market trends
- What your competitors are up to and how they are going about pricing
- Third-party suppliers to make sure you are working with legitimate suppliers
2. Stick To A Niche
Sure, you might be tempted to try your hand at every niche that suits your fancy. However, you are much better off selecting a niche that you think you will excel at. Considering there are countless dropshipping business niches, your best bet to stand out is by sticking to a niche that interests you the most, that you will do the best, making you the one-stop solution for your niche.
3. Top-Class Customer Service
One of the main things that separate the average business from the best on the market is excellent customer service. According to Microsoft, “90% of customers use customer service as a factor to decide whether or not to do business with a company”.
The last thing you want is a dissatisfied customer. So, it is your job to ensure that you not only provide your customer with a seamless checkout experience but easy, accessible, and prompt support on your website, social media handles, and email. The result of reliable customer support and service is a higher chance of getting more customers through referrals.
4. Create A Trustworthy Brand
This ties into the previous point since customer service is crucial to creating a trustworthy brand. You also need to present your brand correctly to let the customer know that it is legitimate. One of many ways to do this is through email authentication.
While dropshipping has its advantages and disadvantages, it is one of those business models here. Some of the leading platforms in the world of eCommerce use this model, and tons of upcoming businesses on the horizon will also do the same. However, the ideal way to find success with dropshipping in 2021 is to adopt suitable approaches, some of which are mentioned in this article.