How To Make Money Dropshipping for Beginners in 2024
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Are you wondering how to make money dropshipping? E-commerce is increasingly popular, especially after the COVID pandemic forced most parts of the world to shut down.
More people shifted to online shopping, creating a market gap that dropshippers swooped in to fill. Even more attractive is its flexibility. You can work from anywhere.
A common misconception is that dropshipping is an easy way to make money. However, that’s not the case. You must invest time and effort to reap rewards, especially initially.
If you’re considering getting into this kind of business, this post is exactly what you need. I’ve thoroughly researched the subject, and in this article, I’ll guide you through the steps of establishing a dropshipping business.
You may be fascinated by dropshipping by now, but should you get into it? And most importantly, is this business model still popular in 2024? Let’s find out!
What Is Dropshipping, and How Does It Work?
Dropshipping is an e-commerce business model that allows you to work from anywhere. It’s set apart from other business models because it relieves the seller of inventory storage and shipping.
I’m sure by now you’re gripping your phone tightly, wondering how you can run an online store without storing inventory and delivering goods.
How is it a business if there are no products?
Let me explain how this works:
- You launch an e-commerce store on platforms like Etsy or Shopify. The store is online, so it doesn’t have a physical location.
- From there, you partner with manufacturers or dropshipping suppliers like Printfy, Amazon FBA, or AliExpress.
- Your chosen dropshipping company stores inventory for you, and when someone orders a product, it ships it to them.
- If you partner with a manufacturer, they’ll ship their own products. However, for companies like Amazon FBA, you’ll need to source inventory and send it to the company for storage.
The convenience of easing the burden of packaging and shipping makes dropshipping an excellent option to supplement your day job.
But what if your customers know the products weren’t from you? Will that reduce their trust and diminish the chances of subsequent purchases?
If you have the above concerns, don’t worry. Fulfillment companies will not include your business cards or information in the packaging unless you instruct them not to.
This ensures you make extra cash while maintaining a positive brand image, encouraging customers to shop more and refer others.
However, not every company accepts blind drop shipping. Therefore, comparing terms and conditions is wise before settling with one supplier.
Is It Easy To Start Dropshipping?
Dropshipping is easy to start. You only need to launch your online store, list your products, and engage with customers to make sales.
Since the business is purely online, you’re relieved of the costs associated with owning a conventional store.
Think about it: for a physical location, you’ll need to rent the space before moving in.
Furthermore, you’ll need to spend additional capital on creating a theme that aligns with your niche. You may need to repaint the walls to match your brand and install storage facilities like shelves.
That’s not the case with online stores. E-commerce platforms like Etsy let you customize your storefront for free. Plus, there are more customizable options than for physical stores.
Online selling sites may charge listing and transaction fees, but that doesn’t beat the initial capital required for traditional stores.
There’s no question about how easy it is to get into dropshipping. There are low barriers to entry, unlimited, customizable themes, and a broad audience.
However, dropshipping isn’t a get-rich-quick scheme. This is where most entrepreneurs get it wrong and give up when the business doesn’t yield the expected results quickly.
Dropshipping is highly competitive because it has lower barriers to entry and high flexibility and convenience.
There are many players, so you must stand out to make substantial income. This involves being consistent, effective marketing, and good customer service.
Things may not be easy in the beginning, but with patience, consistency, and the right strategies, you can grow your store to over $1,000 monthly.
Is Dropshipping Still Profitable in 2024?
You’d think the world would return to in-store shopping post-COVID, but that’s not the case. Many people still shop at stores, but most have adjusted to the online shopping culture.
I, too, am a victim of online shopping. There’s just something therapeutic about receiving an email stating that my order has been processed.
Why am I going on and on about my shopping spree? I want to show you that dropshipping is still profitable in 2024.
According to Statista, the dropshipping market is expected to grow to $476.1 billion by 2026 from $128.6 billion in 2020. That’s over twice it’s popularity five years ago!
You may be discouraged by the significant number of people getting into dropshipping, but rest assured, there’s enough pie for everyone.
You, too, can reap the benefits of dropshipping by employing the right strategies. It all boils down to total costs and how much profit you make.
The purpose is to find lucrative deals that yield high profit margins. Don’t just look for the cheapest suppliers; remember that pleasing the customer is the primary goal, so you don’t want to compromise quality.
Here are some ways to stand out from the competition:
- Provide unique value to your customers
- Select hot-selling products
- Be consistent
- Build your brand
- Research your niche and target audience
So, if you’re wondering whether dropshipping is still profitable in 2024, the answer is yes.
Many successful entrepreneurs make over $100,000 annually. Approach the opportunity with an open mind and do your research to establish your business.
How To Make Money Dropshipping
We’ve said nice things about drop shipping, and if you’re still reading, I’m sure it’s because you’re interested in this business idea.
But how exactly do you get into dropshipping? How can you scale your business and avoid the pitfalls associated with common myths? Let’s get right into it!
1. Choose a Profitable Niche
Like any other business venture, selecting a profitable niche is the first step to success. Delving into different niches can increase profit, but narrowing it down helps you establish your brand better.
The low barriers to entry shouldn’t entice you to try getting into everything. This may just result in confusion and a waste of time and resources.
Some common niches include:
- Fashion
- Electronics
- Beauty products
- Health and Fitness
- Pet supplies
- Travel essentials
Identify your target audience, evaluate profit margins, and determine your niche’s seasonality. You must also select a niche with growth potential, especially if you’re considering dropshipping in the long term.
It’s also essential to choose a niche you’re passionate about. Don’t just do it for the money. Selecting something you’re interested in helps maintain motivation, especially in the first stages.
2. Research
This is where most failing dropshipping businesses go wrong. Most people fail to conduct thorough research because they believe drop shipping to be a get-rich-quick scheme.
If you have his mentality, I suggest getting rid of it before things turn upside down. Expecting six figures within a month of launching your store is unrealistic.
Research is necessary because it puts things into perspective and helps you maintain realistic expectations.
Look at similar dropshipping businesses within your niche. How are they running things? What is their annual profit?
Do your due diligence to determine if your chosen niche is the best idea in the current economic conditions. Failing to research your target audience is a recipe for failure.
How can you offer your products if you don’t know who’s at the receiving end?
What does your target audience need, and how can you tailor your products to meet these needs?
Leverage Google Trends and social media to understand consumer purchasing patterns and determine how to scale your business.
3. Launch Your Online Store
After choosing a niche, crossing all your t’s, and dotting all your i’s in market research, it’s time to bring your business idea to life.
Launching an online store is easy. You can do it anywhere and anytime. You can start your website on platforms like WordPress or launch a store with e-commerce sites like Shopify and Etsy.
Hosting your store on WordPress and WooCommerce is cheaper but more challenging.
On the other hand, e-commerce platforms like Etsy charge seller fees but have numerous tools that help automate the process of running a store.
You can use pre-made templates and themes to customize your storefront to fit your niche. E-commerce platforms also integrate with social media platforms for seamless marketing and customer experience.
4. Find Winning Products
Winning products are hot-selling items that your target audience gladly purchases. Most aspiring drop-shippers get stuck at this point, and with inadequate research, you may end up with the wrong products.
So, how do you know what to sell? The first and free way is by word of mouth. What better way to find out what someone wants than by asking them?
Ask your friends, family, and neighbors in your target audience about the products they’d like introduced to the market and what existing products miss.
You can also run polls on social media platforms to reach a broader audience.
Another way to conduct product research is by analyzing your competition. Scout top dropshipping shops within your niche and determine their top-selling products.
You can also scout platforms like Amazon, Shine Commerce, and AliExpress to find hot-selling products that drop-shippers will likely sell.
Other places to find winning products include:
- Etsy
- TikTok
5. Choose a Dropshipping Supplier
There are many factors to consider when choosing a dropshipping supplier. First and foremost, they have to be reliable.
If a supplier handles shipping promptly and carefully without damaging the goods, it may encourage the buyer to make subsequent purchases.
If you’re working with a manufacturer instead of a fulfillment company, you must ensure their products are high quality.
Remember, this can make or break your brand’s reputation, so you must do everything to a high standard. The sky is the limit.
A conventional seller will choose the cheapest manufacturer to maximize profit. However, this may only work in some cases.
Cheap may be expensive in the long run. Everyone wants maximum profit, but it shouldn’t be at the expense of your brand’s reputation.
Why not go the extra mile by ordering one product from every supplier and comparing delivery times and customer service?
By now, you might be cringing at the thought of throwing money away by purchasing what you don’t need, but trust me, you don’t want to mess this up.
Instead of dwelling on the short-term satisfaction of saving a few dollars, consider the advantages of choosing a reputable and reliable supplier in the long run.
While reliability, quality, and delivery time are the most common, here are other essential factors to consider when choosing a supplier:
- Pricing plans
- Product Type
- Location
- Customer service
- Product prices
- Customization options
- Integration with your online store
Choosing a centrally placed supplier may reduce overall delivery fees in the long run.
Also, if your supplier offers numerous customization options for your product, you can access a wider audience since you can personalize items to their taste.
6. Market Your Dropshipping Store
People often assume that marketing is unnecessary for online stores, so they set up their stores and wait for clients to come.
But how can you purchase something if you don’t know it exists? If you’ve seen an ad for something exactly when you need it, you probably understand the power of marketing.
Even better is if you’ve purchased something just because you saw an exciting ad, even if you didn’t need the item.
Don’t shy away from marketing your store because you fear it may be expensive. There are many free or affordable options out there.
Furthermore, investing in effective marketing will likely boost sales in the long run. Here are some ways to put your store on the world map:
Social Media
Looking for a way to put your store on shoppers’ radar without spending a dime? If so, social media is your best chance to reach a global audience.
Start by creating accounts on Facebook, Pinterest, Instagram, and TikTok. Register the accounts with your business name to appeal to buyers.
From there, take photos and short clips of your products and upload them to the platforms. Next, engage with your audience by answering comments and messages about product inquiries.
Work with social media influencers to widen your reach and boost sales if you have some dollars to spare. Lastly, create content consistently to appeal to more customers.
Affiliate Marketing
Before you put down your phone because you think you don’t have the cash for this marketing strategy, hear me out. You don’t need to spend anything on affiliate marketing, at least not before making sales.
Affiliate marketing involves partnering with people who promote your products and earn commissions. It’s based on completed sales, so you have nothing to lose.
Commissions usually range from 5% to 30%, but you can increase for higher sales volumes. For instance, you could offer 35% for above 200 sales.
So, where can you find affiliate marketers? Simply post your affiliate program on social media and affiliate networks like ClickBank or contact bloggers.
Email Marketing
Another way to promote your dropshipping store is through email marketing. This involves growing an email list and pitching your products to potential clients.
Start by offering incentives like exclusive offers and discounts to attract potential customers and grow an email list.
From there, leverage sites like Convertkit to segment your email list according to tastes and preferences. Next, send promotional emails and cross your fingers to recruit a few buyers.
Let’s digress with this question: how do you feel about spam emails? You probably don’t open them if you’re as uninterested as I am.
In the same way, don’t spam your clients’ inboxes with unnecessary emails, as this may diminish their interest in your product and brand.
SEO
Search Engine Optimization is a common feature on the internet, influencing your products’ visibility.
Unless you hire an expert to handle SEO, this marketing strategy should be completely free.
Optimizing your store’s profile and product description for SEO involves adding relevant keywords and hashtags to help your items rank high in Google.
How does this help your brand?
When potential clients worldwide search for specific keywords related to your niche, your store or products will appear among the first search results. This may increase traffic to your store and boost sales.
7. Invest in Yourself
Every bit we’ve discussed this far about dropshipping is essential, but investing in yourself crowns it all because you’re your most valuable resource.
What does this mean exactly?
Investing in yourself means putting yourself in a position to learn something new about dropshipping, your niche, and your target audience daily.
It may involve taking online or physical classes, but that’s not the only way to improve. You can leverage free online resources to learn more about handling your business and optimizing profit.
Even keeping up with market trends alone is an effective way to improve your knowledge and keep yourself on your toes.
How does investing in yourself help your dropshipping business?
It’s like putting yourself first and ensuring you can handle and grow the business to peak performance.
It’s not only about educating yourself but also about ensuring you’re in the right mental and physical state to handle daily business affairs.
Stress and poor physical and mental health may lead to underperformance, negatively impacting your business, profits, and brand image.
Pros and Cons of Dropshipping
Here’s a summary of the pros and cons of dropshipping to help you determine if it’s the right path:
Pros:
- Dropshipping is easy to start
- The business model is location-independent
- Low startup capital
- No need to store inventory
- Free of damages associated with bulk storage
- Highly scalable
- It gives access to a broad audience
- Flexible
Cons:
- Limited customization of products
- High competition due to low barriers to entry
- Low profit margins due to high competition
- Limited control over product quality
- Low control over inventory
- Shipping may take longer
- Customer service may be time-consuming
Tips To Make Profit Dropshipping
Here are some valuable tips to remember as you embark on your dropshipping career:
Keep Things Simple
Dropshipping can get complicated, but it doesn’t have to be. By keeping things simple, you avoid unnecessary stress associated with handling this type of business.
Things can go south fast if you incorporate multiple dropshipping suppliers. Settle on one company initially unless they prove incompetent or sales increase significantly.
Having one supplier ensures smooth communication of client needs and also well-coordinated deliveries.
Another way to complicate things is by chasing perfection. While you should maintain a high standard, perfection may be beyond your reach. After all, you’re only human.
Don’t strive to create unlimited customizations of products. Too many details may overwhelm the supplier, reduce efficiency, and waste resources.
Consider focusing on the easy-to-implement options, especially as a beginner in dropshipping.
Own Your Supplier’s Mistakes
With a third-party supplier who probably handles thousands of shipments from other suppliers, you must accept that things can get messy sometimes.
Even the best suppliers are bound to make mistakes once or twice, and accepting this may save you a lot of frustration.
A supplier may forget or mix up orders. Sometimes, the goods may be damaged en route, and the client demands a refund.
So, how do you deal with this? Do you just throw in the towel and run when things get hard?
The best approach is owning your supplier’s mistakes and apologizing to the client. Once the client is calm, engage with the supplier to find the best action.
If the damaged good is their fault, respectfully ask them to pay for it or fix it.
Don’t rush to fire your supplier for one mistake, but if they continuously botch orders, then finding another company may be the best solution.
Adopt Security Practices
It’s no secret that online businesses are prone to fraud. While you can’t control this, you can set measures to prevent or mitigate their effects.
For instance, work with reputable financial companies like PayPal to facilitate payments between you and your customers and suppliers. In this case, you won’t be liable if sensitive payment information is hacked.
Another way is to use the address verification system to avoid fraudulent orders.
Respond Promptly to Chargebacks
Clients may request chargebacks when they don’t like the product, forget about their order, or if they don’t recognize your business.
You must handle these chargeback requests in time to avoid a loss of money, and you may lose your merchant account if you let them accumulate over time.
Set Up an Effective Return Policy
Laying out a return policy helps avoid frustrations in the long run. However, before drafting your policy, consider how your supplier handles theirs.
From there, integrate the two to make sure everything is clear.
Frequently Asked Questions
How Profitable is Dropshipping?
Dropshipping can be very profitable if handled with the right strategies. For instance, carefully researching your niche and target audience sets a foundation for success.
Furthermore, factors like demand, customer service, marketing strategies, and supplier reliability affect the profits of your dropshipping business.
Can You Start Dropshipping Without Money?
Yes, starting a dropshipping business without money is practical. You can do that by using free tools for market research.
From there, use a self-hosting website for your online store and employ free marketing strategies like social media and email marketing.
Is $100 Enough To Start Dropshipping?
$100 is more than enough to start a dropshipping business. Success depends more on your strategies than capital investment.
With $100, you can easily set up your store on a platform like Shopify and cover essential expenses like domain registration and web hosting.
However, the budget may increase as your dropshipping business grows.
How Long Does It Take To See Profit From Dropshipping?
Depending on your strategies, a dropshipping business may take days, weeks, or months to generate profit.
You can hasten the process by doing due diligence, seeking reputable suppliers, and effective marketing. However, keep your expectations realistic, especially as a beginner.
Is Dropshipping Worth the Hassle?
Dropshipping is worth it in the long run if you initially implement effective marketing strategies and invest ample time and effort.
While there are shortcomings, like low profit margins and high competition, you can grow your dropshipping business to over $100,000 annually with the right strategies.
Final Thoughts
I hope you now understand how to make money dropshipping as a beginner. Take time to conduct thorough research to avoid making the wrong decisions.
Also, don’t just expect customers to find you. You have to do the work! Employ marketing strategies that align with your business to make maximum profit.
Lastly, invest in yourself education-wise, mentally, and physically for optimum performance.
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