4 Tips For Growing A Dropshipping Business

Dropshipping is a tried and tested way of setting up an ecommerce business with minimal overheads involved.

Its accessibility is its main selling point, but there’s much more to it than that, of course. So let’s unpick the inner workings of dropshipping and discuss what you can do to grow a business in this arena.

The basics

The core principles of dropshipping are similar to that of reselling, except in this case you don’t need to hold an inventory of products yourself.

Instead, you take orders from customers and fulfill them by getting goods shipped directly from either the original manufacturer, or a third party wholesaler.

Dropshipping can work in several ways, and software is the key here. Apps can link merchants to suppliers, and customer orders are channeled in this way for total efficiency and agility.

Tips for growth

Now you know the fundamentals of dropshipping, it’s time to talk about how you can achieve sustainable success with an ecommerce site of this type. So, what are the best ways to go about this?

1. Use effective dropship automation software

Rather than attempting to manually process every customer order individually, turning to an automated platform like SparkShipping may be more convenient.

Solutions in this sphere are capable of handling most of the steps involved in taking orders and arranging fulfillment without requiring human intervention.

For rapid growth when you’ve only got a small team, or when you’re running a dropshipping firm solo, having dropship automation software to hand is a must.

2. Stand out from the crowd

The dropshipping market is fairly saturated, but that doesn’t mean there’s no space for newcomers. You just have to think about how you can differentiate yourself from rivals that are selling identical products to you.

One example is ensuring that your ecommerce site itself is a better value proposition to visitors. Don’t just copy-paste item descriptions from manufacturers, but provide in-depth information and unique insights to help convince customers make a purchase.

Undercutting competitors on pricing is also an option, although this is a tricky thing to get right, and will mean that your business takes longer to generate significant profits.

3. Don’t neglect SEO

Search engine optimization is arguably the most important thing for new ecommerce sites to get right. Unless your store is getting discovered by prospects, it doesn’t matter how juicy your deals are.

Including unique content, as mentioned, is a sensible step. Search algorithms prefer to push sites with copy not found elsewhere above those that have just gone with the manufacturer’s product info and added nothing else.

Usability, page load speed and branding are also relevant if boosting organic SEO is your goal. You could even outsource this to an agency, although if your budget is tight, then a DIY approach would be the way to go for starters.

4. Pick a niche to target

Because of the availability of automation software, you might be tempted to create a dropshipping business which offers every conceivable type of product. Going for an all-encompassing audience is not a great way to get into this business; only a select few established ecommerce brands are as well positioned.

The answer is to be more specialized and focused in what you offer, even going so far as to hone in on a niche within a niche. Whether that’s activewear for globe-trotters, water bottles for working moms, or anything else, having a standout niche is sensible.

Final thoughts

Dropshipping may be popular, but that doesn’t mean it guarantees every entrepreneur success in this space. Take your time, be patient and pick your targets carefully to grow and flourish.