There are numerous things about drop shipping that can increase your profit and improve your business. In this blog post, we will focus on the best dropshipping tips and help you improve your dropshipping skills.
1. Minimize your Workload
It is essential that you outsource as much of your work as possible and that you have the most time free possible to deal with other things. In dropshipping, the amount of listings and amount of sales will determine your profit and when dealing with a high volume, time gets eaten quite quickly.
Also, you can focus on searching for items to list that can be posted as multiple-item listings. If you do that, you will be obliged to create the listing just once and then you will have the time to engage with fulfillment and handle returns. Also, make sure that for those you set a longer durations for these eBay Listings to avoid having to re-list them
One of the biggest mistakes one can make when dealing with dropshipping is forgetting to make sure their products are all available. That is easily done when one is using a software to do that for them. However, if they are not keeping track of that, serious mistakes that are threatening to one’s account, profit and reputation can occur.
For example, a good indicator that a product will be soon out of stock is discounted prices of suppliers since often times they are trying to get rid of a product. You can usually check that in your supplier’s store and that would help you to avoid such situations.
In this business, reputation is the most important thing, and eBay will not tolerate negative reputation, so without it, you are doom to fail.
Do you know one of the main reasons why eBay has such outstanding traffic? Well, it dwells from the fact that people believe that they will find the best value for their cash. In other words, the cheapest products. This puts the typical dropshipper at a disadvantage, however, the high traffic makes up for it.
There are a few things you can do however to increase your margins. In eBay, you have the option to set a “Buy it now” listing which will ensure you are selling at a fixed price and will result in a profit. If you decide to let people big for your product, you can still set a reserve price, though the listing fees will vary.
Having so many different elements and sides of dropshipping and the business model which is being automated for you, you will possess more free time to indulge with marketing. Why marketing you may ask? Even if you are dropshipping on eBay, promoting your products the right way is essential. And if you are promoting and selling on your own website, you will need to master driving traffic to it, converting your site’s visitor’s to your email list and eventually into clients.
When it comes down to conversion, it has been found that the average conversion rate for a typical eCommerce website is about 1-2%. This means that of 100 people, you will get only 1 or 2 purchases. But to get there you first have to bring that 100 visitors! In eBay, the traffic is granted for you. All you need to have done is to have properly listed your product and chosen the one which sells the best. How can you drive visitors though?
That question in itself deserves a whole article written and possibly a whole book. Put most simply put to drive traffic you can do 2 things:
Create Engaging adds on different platforms such as Facebook
Master Search Engine Optimization
You can find countless tutorials on how to create Facebook ads. And as for SEO? Well, there are more than 200 hundred algorithms that Google takes into account when choosing where to place your website in the search engine. You can develop a blog and try to compete for different keywords. The possibilities are many. Each of these strategies has a learning curve and you will have to invest some of your time to master them.
5. Do not Underprice!
When using SmPro to dropshipp you can always keep the lowest price possible by a slight margin and our software will ensure that you won’t lose money. However, after all the idea of dropshipping is to sell profitable goods. Often times dropshippers would decrease the price of a product more than they have to and thus cut their profit. On eBay, it takes a little bit of researching your competition for certain products and deciding whether it is worth it to compete with very low margins or that time should be invested in searching for new more profitable products. However, if you are running your own website, you can totally double or triple the price since you are focused more or less on building yourself as a brand and the premium niches are usually best.
6. Look at the competition
In our world, you have to be objective. There is no room for being naive. If you think you can ignore what the competition is doing – you are dead wrong! You need to always stay ahead of what’s happening and do your best to guarantee that you know every new thing and hot niche. And why is that so important? Because it determines your profit. The people who make the most money in dropshipping are those who jump at opportunities such as new developing niches. Pay attention to what is happening, see what your competition is doing and plan ahead. You can like their social media profiles if they are running a brand. If they are eBay sellers you can have a look at their products and try to find their suppliers. Maybe a new hot product is lying somewhere on a hidden supplier’s store?
7. Make it a habbit
What do I mean by that? Well, it would be much easier for you to work on your business daily if you don’t have to think much about it. Don’t miss a day in which you work on it. Even if it’s not for that much time. The point being is that after 21 days it will become a habbit and you will efforlessly do it. On the other hand,
it is crucial that you monitor your business daily and ensure there is growth.
It sounds and looks simple and when put into practise it is not really that way. There are many things you can do to improve your productivity.
8. Timing – Dropshipping Tips
This is a more nuanced point but it is very importat. This is about the timing of your listings. It reall does matter when you list a product on sale, what time of the day and the season as well. If you list a product during peak traffic time more people will see it and therefore you will make more sales. You will have more competition but it is still something worth trying out to see wether it will work for you or not! This works best on auctions rather than normale listings but it has an effect there too. Tweaking your listing, ensuring there people “watching it” will make more people see it since this is the way eBay works. If you are dropshipping in the USA but you live somewhere else, it might not be optimal since you will be sleeping during peak traffic hours. However, you can always hire someone to tweak your listings in another time zone if you can afford it and can find a reliable person.
9. Choose Heavy Hitters – Dropshipping Tips
What I mean by this? Well, let’s take Ali express for example. You can quickly find the top selling products. All you have to do is look at the amount of orders they have received. If they are in the thousands, then that product is a beast, it has been already validated by other people so you know for sure that it will sell. Of course, don’t jump straight a head and directly list it. Make sure you also look at the reviews. Does it has positive reviews, realistic pictures, is the overall seller rating positive? If all the answers to these questions are good then once you list it you will get good results as well.
To become a truly good dropshipper, you can’t simply list a product by looking at the picture. You have to analyze the data, the amount of sales, the feedback. Do that for each product you list and you will see how in the long term this will have significant benefit to you and your business.
One thing you can do is use the AliExpress Tool. This way you will easily see reports on seller’s ratings, the amount they have been on AliExpress, how trusted they are and their shipping delivery speed.
We hope this article has been useful to you in your dropshipping endeavours. If you want to further improve your business or learn more – quickly register in SmPro and start dropshipping now, watch our tutorials and automate the whole process!