Essentially, dropshipping is a retail fulfillment method. Businesses that do not keep products in stock purchase those products from a third party once a sale has been made. The product is then shipped directly to the customer; the merchant never comes into contact with the product). Thus, the big different between dropshipping and a standard retail model is that the merchant does not stock or own inventory. A very cost effective way to do business, it’s no surprise that dropshipping continues to be more and more popular with website owners.
Consider the following key elements that will help you launch a successful dropshipping business:
Every successful dropshipping business – or really any successful business – has one thing in common: it specializes in a product or niche. Many entrepreneurs are afraid that limiting their focus to a specific customer base will hurt sales. The very opposite is true. Finding your niche allows you to communicate more effectively and stand out from your competitors.
It’s important to create a plan of how your business can add value to its customers. This is especially true of the dropshipping company, which must compete with countless other shops selling similar products. A dropshipping merchant adds value to a customer’s experience through increasing speed of deliver and offering an overall quality experience. Dropshipping also simplifies the shipping process, adding value to the products themselves.
Marketing and SEO
Strong marketing and SEO play a huge role in building a successful dropshipping company. The number one problem you’ll encounter when you launch is a lack of traffic to your site. To ensure the time spent planning and perfecting your launch doesn’t go to waste, you’ll need to invest in marketing to drive traffic to your site. This includes quality content, SEO, outreach and guest posting skills.
It’s easy to get wrapped up in the startup process and forget to think long-term. Set clear, realistic goals for your business. Having a strong business plan will help you during the most difficult first few months of launching your business venture. To avoid becoming overwhelmed, discouraged and doubtful, you’ll need to mentally prepare by adopting a long-term perspective.
Without a merchant account, your business will be unable to process ecommerce transactions. As a dropshipping company, securing a merchant account is often easier said than done. Banks and other traditional providers typically label this business type as “high-risk”. If you’re having trouble finding a provider willing to work with you, consider a high-risk processor like eMerchantBroker. These processors specialize in working with business types and industries categorized as high risk. EMB specifically offers a merchant account for dropshipping. Other services you can take advantage of are chargeback protection and prevention services and flexible business funding options.