How to Build a Successful Dropshipping Business? (1)

If you want to build a successful dropshipping business, you shouldn't just be hot-headed, see someone else succeed in dropshipping with a specific niche, and copy it without thinking. The result can only be a failure unless you are god lucky. Therefore, those successful dropshipping entrepreneurs must be the few who have been thoughtful and well-planned.

 

In 2022, stop making hot-headed decisions. This article will delve into how to build a successful dropshipping business and provide you with some effective ways to make your dropshipping business more successful in 2022.

 

1. Choose The Right Niche and Products

 

Choosing the right niche and products is the most important part of dropshipping. However, many people usually skip choosing a niche to choose products directly. As a result, they will not have a clear understanding of their target audience. Choosing a niche market first can provide a more precise scope for your product selection and can also help you build a preliminary consumer portrait to gain an in-depth understanding of your customers.

 

 

Four relatively profitable niches for dropshipping

 

The niche you choose determines the categories of products you will likely sell. Therefore, choosing a profitable niche market will allow you to get more sales of your dropshipping products. There are 4 relatively profitable niches for dropshipping among the most popular niches to make money online.

 

 • Fitness & Weight Loss

 

More and more people gain weight due to bad eating habits, which leads to sub-health. In order to lose excess body fat, many people spend thousands of dollars every year on fitness and weight loss. Where there is demand, there is supply. Fitness and weight loss will always be a mature niche that everyone has the chance to profit from.

 

Dropshipping niche ideas: Fitness equipment, sportswear, sneakers, accessories, etc.

 

 • Pets

 

Nearly 70% of American households own at least one pet. And the average annual basic cost of owning a dog is $1,480, according to Fortunly. With pet owners spending more than ever on pets, pet business sales are booming. There’s a huge demand for various pet products that allows you to earn a large sum of money.

 

Dropshipping niche ideas: Pet toys, pet clothing & accessories, pet furniture, pet leashes & carriers, etc.

 

 • Beauty Care

 

Women are definitely a huge consumer group in the beauty care market. Skincare, hair care, anti-aging products have a huge market. Becoming an influencer in this market can be very lucrative. It is also a profitable idea to partner with beauty care creators on Youtube and Instagram to promote your products.

 

Dropshipping niche ideas: Beauty care tools & devices, skincare products, hair care tools, etc.

 

 • Gadgets & Technology

 

In addition to technology stuff such as the latest mobile phones, computers, game consoles, etc, people also like to buy gadgets and accessories such as earphones, mobile phone cases, Bluetooth speakers, wireless chargers, etc. This can be a great niche for you if you are an electronic products lover who always knows about the latest technology.

 

Dropshipping niche ideas: Bluetooth headset, speaker, charger, phone case, earphone case, data line, creative gadgets, etc.

 

It is not recommended to choose a niche market that you are completely unfamiliar with, which will not help you to think from the perspective of your audience.

 

Three Dropshipping Store Models (Ways to Choose Products)

 

 • General Store (Grocery Store)

 

The general store model is the most common model used by dropshipping beginners. General stores usually have a wide selection of products. You can try this model when you are not sure about your niche, which means you will choose popular products from different niches to sell. You can find that the products are usually cheap in general stores. Because with so many product categories, it’s hard to build a brand and get the added value of brand awareness.

 

 • Niche Store

 

Niche stores sell products in a specific niche. For example, a women’s jewelry store sells women rings, earrings, necklaces, brooches, etc. It won’t sell women’s clothing or men’s products. This kind of store model is best for you if you have a niche that you are interested in and know well about. It is also a model suitable for you to build brand awareness in a niche. Pet products, clothing, accessories, etc. are great options for niche stores.

 

 • One-product Store

 

A one-product store only sells one single product very specifically and makes it the best. It is a difficult store model for dropshipping beginners who lack a loyal customer base. But it can be an advanced model for a general store or niche store. You can focus on the best product among the many products to make your business easier on management and more efficient on advertising. And you will have more energy to build a brand. For example, electronic devices such as massage devices are suitable for selling in one-product stores.

 

2. Create Your Customer Portrait from The Start

 

 

A consumer portrait is the image, behavior, needs, and other characteristics of your product's target audience. The basic customer information required for the customer portrait includes Age, Gender, Income, Interests, Geography, Behavior, Devices, Motivation to Purchase, etc. With this information, you can have a more clear understanding of your customer subdivisions, preferences, their active social media, reactions to your products, etc. Customer portrait will play an important role throughout your business. It helps you find the best selling points and marketing strategy.

 

Key Questions You Need to Consider:

 

 • What is the unique advantage of your product?

 

The unique advantage of your product is the key to differentiating it from your competitors. It is also a big reason why your customers choose to buy your product. You can create a unique advantage by emphasizing a certain feature of the product.

 

 • Who will buy your product? (Who are you selling your product to?)

 

Based on what you know about the niche you have chosen, you will have a preliminary judgment on who is your target audience and who will buy your products. By learning about the behavioral characteristics and psychographics of your customers, you will be more clear about your product goals and values.

 

 • Where your potential customers are active?

 

The geographic location of your customers and what social platforms they are active on are very important to your product advertising and marketing activities. Identifying customer positioning can effectively improve marketing conversions.

 

 • What problems or needs they are facing?

 

The problems and needs of customers are reflected in your customer behaviors, as well as their reactions to your products and stores, etc. Based on this information, you will get a clear direction of your whole business optimization.

 

Optimize Your Products, Store, and Marketing Strategy with Your Customer Portrait.

 

With a clear customer portrait, you will find the best products and prices to sell, the best marketing strategy with a better budget, the major promotion channels, etc. All these help to increase profitability and brand value and build long-term relationships with loyal customers.

 

You can use tools to analyze your audience more accurately and further build your customer portrait. The Audience Insights tool in Google Analytics can help you quickly create a customer portrait for free.

 

 

3. Find Dropshipping Suppliers and Start Selling

 

Choosing a reliable dropshipping supplier is another important part of dropshipping. Since it is the supplier who has control over the product quality, delivery time, and after-sales support, you need to consider multiple aspects when choosing a supplier before it ruins your dropshipping business.

 

 

Key Points When Choosing A Supplier

 

 • High-quality Products

 

To ensure that the supplier is providing quality products, it is better for you to personally check the quality of the product by purchasing a sample to ensure that your customers can receive high-quality products.

 

 • Competitive Price

 

Just like when you buy something, remember to shop around and don't be afraid to negotiate with different suppliers to make sure you get the lowest offer.

 

 • Fast Delivery Time

 

Delivery time is one of the most important aspects of customer experience. Try to choose suppliers with fast delivery time, such as European and American suppliers or professional dropshipping agents.

 

 • Responsible Customer Service & After-sales Service

 

Some individual suppliers are poor at customer support. You can communicate directly with suppliers to understand their customer service efficiency. At the same time, please choose a supplier who provides after-sales guarantees.

 

 • Brand Customization Service

 

If you have a plan for brand customization, then you should ask the supplier in advance if they provide customization services, what is the MOQ, etc.

 

What are The Differences between Dropshipping Supplier and Dropshipping Agent?

 

Individual suppliers usually only provide a few product categories, but they can basically meet the needs of dropshipping. For example, AliExpress suppliers are very suitable for purchasing samples and testing products. Platforms such as Oberlo and Spocket have many certified suppliers. But if you cooperate with multiple suppliers at the same time, it is difficult to unify your delivery time and product quality, packaging, service, etc.

 

Dropshipping agents are divided into agents with platforms and private agents without platforms. Private dropshipping agents can be understood as middlemen who help you find suppliers to cooperate with, and they are likely to charge high service fees, and no one can prove their authenticity.

 

Instead, dropshipping agents with platforms are more reliable since they have their own website and app and a real and visible customer base. This kind of dropshipping agent such as SourcinBox usually works with manufacturers and multiple shipping companies directly and helps you with unified sourcing, packaging, and shipping. They also automate your order fulfillment with app integrations as well as a professional customer service team.

 

There’s a fact that most dropshipping suppliers are not first-hand supply, they may purchase products from source manufacturers at low prices and sell them to you at higher prices. Sometimes dropshipping agent platforms can offer better prices than individual suppliers.

 

Want to learn more about how to build a successful dropshipping business?

We will continue to talk about marketing funnels and marketing automation in the next article.