May 25, 2018
eCommerce ventures require capital investments - plain and simple. But dropshipping products is a great way to get started in eCommerce with minimal capital and without being tied down by inventory. Learning the eCommerce process through dropshipping products will allow you to start your own brand or company more successfully and it can be done on a shoestring budget. On this episode of Marketing For eCommerce, I explain why dropshipping is not a long-term business solution, the different types of dropshipping, and the major steps behind successfully dropshipping products. Check it out!
Dropshipping occurs when you, the seller, does not hold physical inventory. Someone else produces and ships the product, and you simply market and close the sales. There are 3 main types of dropshipping: marketplace, overseas manufacturer, and relationship. The first 2 typically aren’t long-term business solutions, but the third is a scalable model that will be featured on future episodes of Marketing For eCommerce.
Marketplace dropshipping involves selling a product on Shopify or through sales funnels. For example, you would get paid for the product at $30 and place the order on Amazon for $20. Amazon (or another marketplace platform) ships out the item and you keep the $10 margin. This model works because many people don’t want to price shop, they just want to purchase a product quickly and efficiently. Overseas manufacturer dropshipping follows the same idea - finding low-cost, high-demand products and selling them at a profit - but products originate from overseas. To hear all about the differences between these 2 methods of dropshipping products, don’t miss this episode.
Utilizing overseas manufacturers works best in passionate niche markets. If you understand a niche market that’s full of passionate fans who are willing to spend, you can make dropshipping products work well. Essentially, you want to build a committed fan base of interested potential buyers. These interested potential buyers will read the content you publish, follow your social platforms, and engage with one another. Life is about living passionately, and dropshipping products allows you to be a part of those niche markets in a fun and profitable way.
After you’ve identified your niche market and sourced your products, you have to begin building your fan base. This is achieved through crafting robust social platforms and utilizing specialized search engines like Pinterest. You then need to nurture your followers and turn them into sales leads by sharing engaging content and communicating with them.
From there, create a sales event that converts these leads into customers. Add items to your online store, create sales funnels, and upsell customers once they’re in your funnel. You’ll also want to spend time refining your upselling strategies in order to increase your average order value. Areas of eCommerce business such as order fulfillment and customer support will become second-nature as you become more experienced in dropshipping products. Understand this process in full detail by listening to this episode of Marketing For eCommerce - your business will thank you!
While dropshipping products is one of the best ways to get started in eCommerce, it is NOT a long-term business solution for most people. After your perfect the online selling process, you may feel inclined to transfer your dropshipping business audience into your own brand or product - and that’s okay! Dropshipping products will teach you how to utilize Facebook ads, refine your customer support tactics, create sales funnels, and nurture sales leads. It’s a great way to get started in eCommerce and turn your theory knowledge into profitable practice. I explain the process in full detail on this episode of Marketing For eCommerce. Be sure to listen!
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