Back in 2014, I was looking for online money making sites or applications all over the internet. And I came across ‘drop shipping’ few times in those searches.
Then I read a few articles with Shopify sales snapshots with thousands and a million dollars in sales. Woah !!
I was pumped with the idea of drop shipping and wanted to be a millionaire in a few months.
But I was WRONG !!!
Instead of making money, this business model took away my hard-earned money.
I had to pay more than 60$ for subscription and paid apps every month.
My biggest headache was Facebook ads. According to my product testing method, it took more than 100$ for each product.
The funniest part was I barely made any sales. When I see other people crashing with huge sales I was frustrated.
But later I understood my mistakes and how to avoid them in order to grow drop shipping business opportunities.
These are my tips which I learned from hard way but this will surely help you to grow.
And I will show you how I was able to find the most profitable products and earned the maximum profit.
1-Niche Ideas (Don’t sell meat to vegan)
Selecting a niche is the most important factor in you drop shipping journey. You may like butterflies, but do not just jump in to sell butterfly caps or mugs.
Take a few days to select your niche and do your own research.
Most Guru’s advice is “go for what you like and build a store around what you like”. But I do not agree with that.
That method can be applied if you are a blogger or vlogger. But in e-commerce, there are two important things you need to keep in mind.
To test your niche I suggest you use the Facebook audience insight tool. This tool will provide us with the most important data about our niche.
- Audience Size
This is a critical factor about the niche. Your audience should be a large one.
Eg: Let’s say you have selected a niche which has 100,000 audiences. From this audience, you might make maximum 200 sales if it’s a trendy product. What is next? Again you need to test more product to find a winner.
The issue is, with the small audience, you cannot scale the sales. Reason being you might cover all your audience by Facebook ads and there is no way you can introduce the product to others.
Here is what you need to do.
Go to Facebook audience insight tool and type your niche and see how much audience is interested in that. At least it should be few millions when you combine the big four countries.
Big Four Countries are United States, Canada, United Kingdom and Australia.
Let’s have a look at the Facebook audience insight tool by typing dogs niche in the United States.
It has 50M-60M Audience and 66% are women. Also considers the age categories in the audience.
- Audience Buying Power
When you select a niche you have to analyze the audience buying power. Your audience should have a substantial buying power and a habit of buying online.
eg: you cannot expect huge sales from third world country. Reason being the financial power of the audience is weaker than western countries.
Here is my method of checking whether my niche will make money or not.
I find competitors stores and paste that link on www.similarweb.com
Similar web is giving me plenty of data but in this case I consider where the traffic destination is. If most of the traffic is heading to PayPal, you can guess that store has sales and some of them are paying from PayPal.
Eg: let’s take jeffreestarcosmetics.com(Shopify store) to similar web.
Here’s what we can observe.
19.02% traffic destination is ?PayPal.That means they have sales and customers pays by using pay pal. And cosmetic has an audience with a strong buying power.
At the beginning of my journey, I didn’t have any knowledge about web designing. But I was eager to make money with Shopify drop shipping. Also, Shopify says you can design your own store by drag and drop. So I watched some YouTube videos and finally set up the store.
But that store was a crap. It had no logo, no quality images, and no attractive apps. Actually, the store was not optimized for the sales.
As a result was I got many visitors from Facebook ads. But my bounced rate was much higher and there were no sales at all.
I know Shopify is a designer-friendly platform. But if you are a beginner just find someone who can design it nicely and attractively. It may cost you some money but take it as an investment.
Even the color of the fonts and sizes matter for the conversions.
Nobody will pull their credit card on the crappy website. Would you?
3-Catch The Trends Before Its DIE
Can you sell Head and Shoulder Shampoo in your store?
I don’t think you can do it.
- The reason is Head & Shoulder shampoo selling in a supermarket that you are going every day. Then why do you want to buy online and wait for it.
- What’s so special about buying normal shampoo from the internet? It doesn’t give any interest. But if you see someone selling a Head and Shoulder shampoo which helps to reduce insomnia and depression…….. you might want to buy and try it!
In the e-commerce world, you cannot sell everything. Mostly you can sell a product which has some specialty in it or if it’s trending.
If you are looking to grow you drop shipping business opportunities, look for trending products that are already selling well.
Do a deep product research online, offline and use product research tools to support you. Then start testing products with a small budget.
My Advice- Product research is very crucial and it’s the secret to success. But if you take it lightly it can cost you fair amount of money.
4-Grow the Audience
You can’t do drop shipping for whole life. When you become successful in drop shipping you need to establish your own brand.
When you think about branding, you should focus on growing your audience.
Start building your social media platforms, e-mail subscribers, YouTube etc…
I highly suggest you start a YouTube Chanel around your niche.
YouTube has 1.8Billion active users today. By 2020 it is predicted to reach more than 04 billion active users.YouTube can bring you organic free traffic.
In you,r YouTube Chanel do product reviews, Niche news etc…
Don’t forget that people love to watch interesting things in YouTube.
5-Content Marketing Or Help Others Like Super Man
Are You Depending Only on Facebook Ads?
Then you are going to face a hard time in future with your business.The reason is Facebook continuously changes its algorithm and they increase their ads charges gradually.
Here is my last tip for you. This can bring you sales without any paid ads and by organic traffic.
Interesting! isn’t it?
There are hundreds of sources that can bring you organic traffic.
- SEO (Search Engine Optimization).
Most of the high-end brands are investing in SEO and affiliate and get tons of traffic to their stores. But according to my experience, Shopify does not support well for SEO.
My suggestion is to start a niche related blog with a minimum of 10-12 articles in it. Then let it reach a good rank in search engine. Then you can get completely traffic to the blog and you can send same traffic to your store by linking to the product pages.
This process looks complicated because you haven’t learn about SEO. But in my opinion, SEO is not a magic that only a few people know. I have gained tons of knowledge on wealthy affiliate training. You can invest just 19$ and get a subscription for a month and learn about SEO, Blogging, Tools and all.
The blog can be an extremely powerful tool to bring you traffic, branding and bring additional income (Google Ads) as well.
- Q and A site
There are some Q and A sites that you can dome content marketing and utilize your traffic for sales. My favorite is Quora and it’s super easy to answer the questions. When someone asks a question in your niche, give them proper answer and you can paste your blog or store link. But make sure to type a question which you’re confident with .
Same as Quora you can use Yahoo Answers, Reddit etc….
- Facebook Groups
Create a Facebook group in you niche or join with Niche related Facebook groups. Do not spam the Facebook groups by posting your store link in the groups as they will ban you. In this case, leverage your blog. Answer the questions and provide your link for further information. Through your link audience will visit your store. But don’t forget to help the members and impressed them with your answer.
If you face any challenges with FB group marketing please mention it on the comment section.
Content marketing is super powerful for conversions. Leverage it by investing your time.
I hope above tips will help you to grow your drop shipping business. Some will take time to show results but stay with that and implement them. Because one day when your competitors are struggling you will enjoy the business.
Online World is changing fast and do not be stuck with one or two platforms. Be smart and make more money.