Dropshipping is a new business avenue that has been gaining a lot of popularity in recent times. Several experts believe that it is a great way to earn money in 2022. With as little as 20$ in your pocket, you can start a dropshipping business; a proper business acumen is necessary, of course.However, since the profit margins are high and investment requirements are low, many pursue this profession, and the competition is cutthroat.
If you are planning to start a dropshipping business as a side hustle or as an all-time career choice, there are certain simple steps you can follow. This article will provide you with 5 easy ways to make dropshipping simpler.
1. Choose a profitable dropshipping niche
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The most preliminary but foundational step to make dropshipping simpler is choosing a profitable niche to conduct your business in. For example, MyDepot has chosen to work with home and furniture as a niche. Others might choose electronics like BlueTooth, laptops, and so on.
You can keep two factors in mind while choosing the niche- do the products interest you, and are they timeless products that will always be in demand? If the answer to both the questions is a firm yes, your business is good to go. On the other hand, if a niche is super-saturated by sellers already, it can be detrimental to choose that one for your dropshipping business.
Before finalizing a niche, make sure you thoroughly research the competition in the market. This will provide you with rich insights into the work that is already being done in that niche.
2. Find reliable and trustworthy dropship suppliers
The second way to simplify dropshipping and avoid frequent challenges is to find reliable and trustworthy dropship suppliers. Some consider this the hardest task but nevertheless a crucial one. Dropshipping businesses rely on e-commerce suppliers for plenty of reasons- keeping products in stock, ensuring superior product quality, and shipping the products promptly.
A legit supplier who is trustworthy is usually one with years of experience, does not charge exorbitant prices, provides fast shipping, and even provides referrals on request. However, keep in mind that a supplier that frequently delays orders or delivers products that have poor quality will ultimately harm your brand image, and you will stand a chance of losing valuable customers. Hence, take your time and do your research before finalizing who your suppliers will be.
3. Get your sales tax ID made
If your e-commerce integrated platform is based anywhere in the USA or Canada, you will need to register for a sales tax ID. This is also commonly known as the resale number, resale certificate, reseller’s license, or vendor’s license. This is a 6-9% tax levied on all physical goods sold to customers. Most businesses add this cost to the retail price to avoid any loss.
As a dropshipping business owner, you can easily apply for the sales tax ID by following a few simple steps. It can be done online or by simply visiting your local county clerk’s office.
4. Choose a selling platform
Most dropshipping businesses start by choosing a popular selling platform like Amazon, Shopify, or Wayfair. This is a crucial decision you have to take to ensure the success of your business. However, there are certain pros and cons while selling on online platforms. Let’s have a quick look at these.
Pros:
- Setting up an account is simple
- Popular platforms already have a customer base that will spot your products and buy them
- You stand a chance to earn more profits
Cons:
- Every sale will be charged by the dropshipping platform
- Branding, customer service, etc. will be handled by them
- You will have to partake in fierce competition on the platform
5. Implement a customer acquisition strategy
Customer acquisition strategies are effective ways to make your dropshipping simpler. It includes targeting specific audiences who frequently buy your products, interacting with them through emails and calls, advertising, and marketing your business as frequently as possible to draw more customers’ attention and not be forgotten by previous ones.
Simply put, it is the art of persuasion. You can either choose to invest money in customer acquisition strategies which is a fast path like Facebook or YouTube ads or select the slow course where you gain customers organically.
Why Choose us?
MyDepot is one such dropshipping website established in 2021 and is flourishing today, having adopted all these strategies. We like to think of ourselves as an example for businesses starting out. Remember to choose a unique niche that has demand but people have not ventured into, and keep a close track of your competitors. These are some quick and easy ways to make dropshipping simple.
