I’ve heard on several occasions, especially in these difficult times, questions like “is dropshipping dead?!”or “Is there still money to be made with dropshipping or is it a thing of the past?”. My ferm opinion is that, if you do it right, dropshipping is and will be a very lucrative and legit business and all who prophesied its ending aren’t doing it as it should be done.
Dropshipping is just another legit business model
First of all, dropshipping is just a(nother) business model. The definition of dropshipping is moving goods from the manufacturer directly to the client without going through the usual distribution channels. Dropshipping is something that hudreds of thousands of businesses are doing now, in 2020, generating billions of dollars.
Huge companies still dropship, like Wish and Wayfair and there are tens of thousand of Print on Demand (POD) out there and China based drop ship businesses doing well, because of their focus on a good customer experience and transparency.
You’re not succcessful? It’s not the business model’s fault!
Yes, dropshipping MAY BE dead to those who try to make a quick buck with it, fast and without sufficient market and product research. Dropshipping may be dead if you believe you’ll get rich over night just by trying to sell a $1 flowery nail clipper for pets from Aliexpress for $10 on an amateur-ish store filled with spelling mistakes.
When you do it the right way, and that’s what we’re trying to accomplish here, with ecomPedia, your chances of succeeding will radically improve.
- Test products to find something of value
- Build a great sales experience around it
- Focus on customer satisfaction and grow
- Build a brand around your product(s)
- Talk constantly to your clients, don’t settle for an automated “thank you for your purchase” eMail.
The term “dropship” has been dirtied by some bad players, this is true unfortunately, but it in itself is not a bad or wrong way to get started.
The market has matured. That’s bad for 97% of you, but a blessing for the hard workers
And while some of you may be put off by this maturity of the market, the 3% that work hard have a much higher satisfaction. No more crappy written ad copy, no more ads recorded with a shaky phone, no more spelling errors on your homepage. The clients are smarter than you might think.
The dropshipping maturity may be bad of 97% of people, but for the 3% who are committed it’s the best thing that ever happened. Most people can make money in a good economy, but only few can thrive and dominate in a recession. Warren Buffet and Ray Dalio made billions in the 2008 recession. When times get hard, focus on becoming better, accelerate on your learning, experiment more while being cautious.
Those that have the drive to deliver true value to the market will succeed, and those that are just in it for the “get rich quick” will fade out. This means more money for those that are willing to persevere and deliver.
To succeed you need to improve your marketing
Plenty of people are selling the same old (or new) products from Aliexpress, using the same photos, same descriptions, same headlines etc. When this happens, the only way to make money out of dropshipping is improving your marketing. You need edges over your direct competitors. I’m sure 5% of the eComm marketers are making more money than the other 95% combined.
In order to succeed, you need all of the following, and than some more:
1. Target niche specific audiences. Niche specific stores have a lot less competition and you will be able to concentrate a LOT better on the branding of your business and on the quality of the products you’re selling.
2. Have some great offers. Create smart copy, handle your customers fears, build trust. Show them how the product will solve a problem or desire of theirs.
3. Leverage Branding & Social Proof. If you were to choose between two similar products, which one would you go for? The item that nobody’s showing interest in, or the one that regularly sells out and gets positive feedback?
Get your customers and influencers to post pictures, unboxing videos, reviews and other content to all social media platforms.
4.Maximize your Customers Happiness by collecting feedback and constantly improving your products and services. Reward loyal customers with discounts and promotions. Choose suppliers with fasters shipping times.
With so many players making thousands of dollars per day with dropshipping, this industry is here to stay and provide. You just need to stay focused and constantly improve. It is no easy money or a miracle highway to becoming a billionaire. It requires a LOT of work, a moderate initial investment and it’s a constant “learn and implement” industry.