Dropshipping has become increasingly popular as a cost-effective ecommerce business model for entrepreneurs. It involves selling products online without having to maintain any inventory or handle any shipping responsibilities. Instead, when a customer purchases a product, you can order it directly from a third-party supplier, who then ships the item to the customer. This eliminates much of the upfront costs associated with opening a store or maintaining inventory.
In this article, we’ll provide 8 tips to help you manage and scale a successful dropshipping business. We’ll look at everything from identifying profitable products, to making sure your customers are satisfied. We’ll also provide advice on how to find the best suppliers and automate many of the tasks associated with running a dropshipping business. By the end, you should have all the information you need to start selling products online with confidence.
8 Shopify Dropshipping Tips to Scale Your Business
Now let’s get started with some tips on setting up your dropshipping business.
1. Maximizing your Average Order Value
It's hard enough to get customers to purchase from your store in the first place. So, you want to make sure that when they do decide to buy something, it’s for as much money as possible. Maximizing your Average Order Value (AOV) is one of the best ways to increase profit margins on your dropshipping store.
The best way to do this is to add post-purchase upsells to your dropshipping store. These are additional products that you suggest to customers after they have already purchased an item on your store. For example, if a customer buys a t-shirt from your store, you could offer them a discounted pair of jeans or shoes to go with it.
The reason this works so well when compared to other offer types is that customers have already made the initial purchase. So there is no risk of these upsells distracting them from completing the initial purchase. Also, they are already in a buying mindset, so they’re more likely to add extra items to their order.
The best way to set up post-purchase upsells is to use a Shopify App like AfterSell. It is the leading post purchase upsell app for the worlds top dropshippers and easily integrates with ecommerce platforms like Shopify.
2. Choose a niche with high demand and low competition
One of the most important factors to consider when starting a dropshipping store is the niche you choose to focus on. You want to choose a niche that has high demand for the products you'll be selling, but not so much competition that it's difficult to stand out.
One way to research potential niches is to use tools like Google Trends and other keyword research tools to see what products and categories are popular and have a steady level of search traffic. You can also look for gaps in the market – products or services that are in high demand but have few options available.
3. Partner with a reliable supplier
Your supplier is a crucial part of your dropshipping business – they handle the production, storage, and shipping of the products you sell. It's essential to choose a supplier that is reliable and has a good reputation, as any issues with their products or services can reflect poorly on your business.
Do your research and look for suppliers that have a track record of delivering high-quality products on time. Consider factors like the supplier's product range, shipping times, and return policies. It's also a good idea to test out their products yourself to ensure they meet your standards.
Typically, most dropshippers ship out of Chine due to the lower costs and greater range of products. Keep in mind that when sourcing from China, the shipping times can be much longer than other countries. It is worth considering suppliers in other countries like the United States if you have the profit margin to do so.
4. Create a professional and user-friendly website
Your website is often the first point of contact potential customers have with your business, so it's essential to make a good impression. Invest in a professional and user-friendly website design that is easy to navigate and reflects the branding of your business.
Consider factors like the layout, color scheme, and overall aesthetic of your website, as well as the user experience. Make sure it's easy for customers to find what they're looking for, add items to their cart, and check out.
Most dropshippers put limited effort into the design of their website, so putting in the time to making yours stand out from the competition can be a bigger advantage than you think.
5. Use high-quality product images and descriptions
The product images and descriptions on your website are crucial for convincing customers to make a purchase. Make sure to use high-quality images that clearly show the features and details of the products you're selling.
It's also essential to write clear and detailed product descriptions that accurately describe the features and benefits of the products. Use bullet points to highlight key features and consider including information about sizing, materials, and other relevant details.
You can use free AI tools like DALL-E to expand images beyond what’s in the original canvas. Or you can use tools like ChatGPT to automatically write product descriptions. This can help to make your descriptions and product images stand out from the competition, and takes much less time other more traditional methods.
6. Offer excellent customer service
Providing excellent customer service is typically an afterthought for many dropshippers. In reality, it is crucial for building trust and loyalty with your customers. Make sure to respond promptly to customer inquiries and complaints, and go the extra mile to ensure their satisfaction.
Remember, word of mouth is still one of the most powerful marketing tools, so happy customers are likely to recommend your business to their friends and family. Word of mouth can also be negative, but by the time you notice, it may be too late – so make sure to prioritize customer service. Consider offering additional services like free shipping, free returns, or a satisfaction guarantee to put customers at ease.
7. Take advantage of organic marketing methods
Organic marketing methods, like content marketing on TikTok (aka TikTok Organic), are a great way to drive traffic and sales for your dropshipping business. Develop a content strategy that focuses on providing educational content related to the products you're selling, as well as viral engaging posts that will keep people coming back.
Use social media platforms like Instagram Reels, YouTube Shorts, and TikTok to promote your products, build brand awareness, and engage with potential customers.
8. Keep track of your competitors
Keeping an eye on what your competitors are doing is a great way to stay ahead of the game and spot opportunities for growth. Monitor their pricing, product range, customer service, and other aspects of their business to get an idea of how you can set yourself apart.
Which Shopify Dropshipping Business Tips Will You Use?
Dropshipping can be a great way to start your own business without needing a lot of capital or resources. However, there are some important tips and strategies that you need to do in order to make sure you're successful. Following these 8 dropshipping tips will help you get on the right track and ensure that your business is set up for success. Good luck!