Starting a Dropshipping Business – Is it Profitable?
Though the history of dropshipping dates back to the 1960s, this term became popular in 2006 with the success of AliExpress, which shipped products for Chinese online stores. Many entrepreneurs jumped on the bandwagon and made profits by launching their stores. They patronized AliExpress as its prices were low.
Dropshipping then evolved into a profitable online commerce business and proven e-
commerce companies have made good use of this business model. This leads us to the
question, “Can you make good profits if you launch a dropshipping store in 2021?” Let us find out.
What is Dropshipping and Why People Do It?
For the uninitiated, dropshipping companies help to ship the products ordered on e-
commerce stores. The online shop only needs to accept the order but need not store the
items. They can use the services of the dropshipping supplier for product packaging and
delivery to the customer.
So, why are people interested in the dropshipping business?
Dropshipping can be a lucrative venture if it is done right. So, you can make good
profits. It is ideal for digital nomads who are seeking to start their venture. All they need is a reliable internet connection to communicate with customers and suppliers.
Is Dropshipping Alive in 2021? Or Saturated?
Stats provided by Google Trends show that in 2021 there is an increase in the number of
people searching for the term “dropshipping” both in the US and worldwide. But it is also partly true that dropshipping is saturated because it is so easy to open a store.
Many internet dropshipping gurus hawk this business model as a simple and lucrative one that enables entrepreneurs to make thousands of dollars per month. This has motivated plenty of wannabe drop shippers to take the plunge. However, many of these companies’ quality is questionable, and for this reason, they may not be profitable.
4 Things That Can Make Your Dropshipping Business Profitable in 2021
Here are some of the ways to help you increase the visibility of your dropshipping business in 2021.
1. Choose Your Niche Wisely
As HyperSKU suggested, a lot of dropshipping businesses fail because they lack
uniqueness. These stores simply sell available products. They may use generic
descriptions and images for the products which fail to attract customers. Therefore, you should select a specific niche that makes your dropshipping product discoverable and helps you emerge as a specialist.
2. Be Unique
While there are thousands of dropshipping businesses, it is crucial to stay unique to
get to people’s notice. How can you do this?
- Use exclusive product images
- Do not simply copy the product descriptions provided by other suppliers. Make them different. If needed, hire a good copywriter
- Create a trustworthy and professional website
- Video marketing is vital for drop shippers as videos can boost organic traffic
by up to 157%. Add videos to the product pages to keep the audience
For instance, if your competitor provides tees in black and white colors, you can
offer a wide range of colors. This brings you to customers’ notice and helps to stand
3. Keep Your Customers First
Quality customer service is essential in the dropshipping business. Choose your
customers’ needs and preferences over your profits. You can provide faster delivery,
respond to their queries immediately, and provide them satisfaction with the
products for the price they pay. This enables you to retain customers and make
them returning often.
Alternatively, you can always ask your customers to rate and review your services.
This boosts credibility and attracts more users. Moreover, you can reward your
loyal customers with discounts, offers, referrals, and other loyalty programs.
4. Go a Level Up than Your Competitors
Searchengineland states that 88% of users said they trust internet reviews as
much as recommendations by their contacts. 72% of consumers said positive
reviews increased their trust in a business. Therefore, feature positive feedback
about your services on your site to improve customer trust.
You can provide superior product choices, more payment options, faster delivery
options, and more to beat the competition. For instance, if your competitor uses a
dropshipping service that delivers a product in four weeks, you must try to provide
the same in lesser time.
Is Dropshipping Worth It In 2021?
We would say yes! It has incredible earning potentials without worrying about stocking products. Thus, you can scale it as much as you want.
But remember, a lot of people are hopping in the dropshipping business. So, that calls for increasing competition. The only way you can come out as profitable is by putting your sweat and blood into it, i.e., your time and efforts.
With that said, you can give dropshipping a try, and yes, it is worth investing in. Simply
consider the things we discussed earlier in this article and step towards a profitable
dropshipping business. Build it and market it the right way. The success is all yours!
This article has been published in accordance with Socilanomics’ disclosure policy.