The word ‘dropshipping’ might have crossed your axis somehow —either on the quest to own a personal business or as a booming trend. This new business model promises enormous profit when you sell a product online at little or no cost for you. Is this true, or just hype? Let's learn how to make money dropshipping in 2023 and everything you need to know.
What Is Dropshipping?
To put it simply, dropshipping is an online retailing business model that allows one to sell directly to customers without keeping product stocks. Dropshipping is an order fulfillment method where a business does not need to keep products in stock; instead, the bulk of the job is on the wholesaler/manufacturer, who is in charge of storing, packaging, and shipping the goods directly to the end user.
The seller just purchases inventory from— the wholesaler, who then – fulfills the order. Dropshipping eliminates the need for a warehouse/store, running costs, and even capital to start the business.
Pros And Cons Of The Business
Before we get to how to make money dropshipping, let’s talk about the upsides and limitations of this business model.
- Low cost: This goes without saying that dropshipping is one of the safest E-commerce businesses you can invest in. It requires little or no capital to start up. You only have to pay for the product at the very point of sale, when you get order from your end customer.
- Flexibility: Dropshipping makes it easy for you to run your business from anywhere literally. It is also easy to switch to a new, more lucrative product at any time, and you have all the time in the world to invest in other activities to grow your business.
- A wide array of products: There is no limit to your product listing. You can market or sell any number of products on your website or page and not worry about keeping any stock.
- Easier to scale: You do not have to worry about demand increasing as it comes at no additional cost. Everything is taken care of by the supplier/manufacturer – maybe just an additional charge for customer support and nothing else.
- It costs little to start a dropshipping business, but it comes at the cost of a low-profit margin – because you are buying a single unit from the supplier, not as a wholesaler, so the price is higher.
- You will have little or no control over the business as the supplier manages the bulk of the transaction, i.e, logistics, and packaging. The delivery happens at the supplier's schedule, which also determines how the packaging and shipping is done.
- There are less chances to build your brand, as many other dropshippers may sell the same products.
Can You Make Money Dropshipping In 2023
Some time ago, there was a rave online about dropshipping and quitting your 9-5 jobs. The question everyone was asking was can you make money dropshipping? Is it a pyramid scheme?
The dropshipping industry is worth over $15 billion. It requires grit, strategy, and intelligent thinking to navigate this thriving competitive industry. The question should be, ‘how much money can you make with dropshipping?
How To Make Money Dropshipping
Now that we have answered the question ‘ can you make money from dropshipping’, we can dig in on how to make money dropshipping, explore how to set up your store, and garner the attention of potential customers. Let’s go!
Decide On Your Niche
This is the first step to starting your dropshipping business. Choosing the right niche can make or mar your business. Are you going for fashion items? Gadgets? Home supplies? There are a few things to consider. Preferably, you will want to go for areas with higher profit margins and a broader market audience. The secret is finding a niche that is not rampant yet relevant and stands out.
Find Your Dropship Suppliers
Kudos on picking a niche, but that is just one step – now you have to find the perfect supplier because the supplier practically carries the business on their shoulders.
Working with the right people is key to guaranteeing your business's success. Find a supplier who aligns with your goals and contract. Also, put into consideration product quality and profit margins. Check out reviews online about suppliers before entering a binding agreement.
Choose The Products You Want To Sale
A thousand and one new products flood the market daily, and not all are sellable. Deciding on the products to sell demands product research to evaluate the right pick for you. Naturally, the right pick will be products with higher demands and global reach. You don’t want to put up uninteresting products, do you? Look out for trending products and analyze your competition.
Set Up Your Store
Setting up your is where the fun action begins! The first impression, they say, is everything. It sets the right precedent for a good user experience, and you must ensure it is flawless. You must design a storefront that makes the customers' buying experience as seamless as possible. A beautiful interface that clearly shows the product with its description is vital. Make sure you upload attractive pictures.
Creating Your Website
You can do this yourself or get someone to create the website. This step demands a little startup money. Find a reliable domain host that is popular, so it is easy for you to find plugins and apps that match. It will help you to make your store efficient and engaging enough to boost sales. WordPress is one of the most popular sites that allows you to customize your site and has plugins like Woocommerce for your store. Another popular option is to go with Shopify ecommerce platform. Avoid unnecessary clutter on the website.
An online marketplace is a great startup point, especially if you want to save costs and time. A marketplace is an eCommerce site where customers find sellers, connect, and purchase goods. It is effortless to set up with more engagement and traffic. Amazon and Etsy are perfect examples of a marketplaces with excellent customer service and fast shipping service. You can also run an eCommerce marketplace and platform concurrently by integrating it.
An Ecommerce Platform
After setting up a marketplace store, you can take it further and register on an eCommerce platform. Shopify and Wix are one of the most popular and budget-friendly platforms. They provide the necessary resources to analyze your sales, stocks, and growth. In addition, Shopify even has an automatic brand name generator.
Develop A Marketing Strategy
Getting your marketing strategy right will spike your conversion rate. Depending on your niche and budget, you can try marketing methods like:
- Advertising on social media
- PPC campaigns with Google adwords
- Influencer marketing: just make sure their followers are your target customers.
- Content marketing writing your own blog
- SEO to generate organic traffic to your website and make it easier for potential customers to find you in search engines.
Ways You Can Add Value For The Customer And Increase Your Dropshipping Profits
Everyone wants a low-risk business that can generate extra income, hence, more and more people are looking to make money dropshipping. As a result, the market is a little saturated. To stand out and increase your dropshipping profits, take a look at these steps:
Build Clear Brand And Identity
You must have a clear brand identity and voice to distinguish your business from the multitude. Define your brand value and create some product differentiation – this might not be easy as a drop shipper. But you can get suppliers, like Helloprint Create & Sell who offer customized products to fit your brand - here branded dropshipping steps in with print-on-demand model. More insights on dropshipping and print on demand differences in this article. To garner insight that will help you develop your brand optimization, you must conduct deep-dive research to discover more about your niche and the demographic market.
Offer Excellent User Experience
It is a no-brainer that a happy customer is a returning customer, also one that goes on to spread the gospel of your business. Avoid unnecessary protocol, and ensure that products are well labeled. Customers want a simplified process where they get just to pick out a product and then pay for it with just a click of a button. An excellent user experience is one in which the customer is happy and satisfied at the end of the transaction.
Make Sure Your Customer Support Is Working Correctly
To make money dropshipping, you have to ensure that the customer gets all the value – you do this by providing top-notch customer support.
With all the free time this business model provides, you can afford to invest extra time into supporting and attending to your customers' needs.
How Much Money Can You Make Dropshipping
The question of ‘how much money can you make with dropshipping’ is broad and cannot be pinned down to a specific figure. Dropshipping profits depend on different market factors. Dropshippers can make between 30% and 40% gross profit margin from each sale. But the gain decreases a little when you minus the cost of hosting the website, or ecommerce platform subscription and marketing. However, dropshippers with high-margin profit products and big sales volumes can always make a lot more.
The Costs To Expect
It’s hard to predict the exact cost of a dropshipping business; however, the price is next to nothing compared to the brick-and-mortar business model. Here is a little breakdown of what to expect:
- An online store subscription or hosting if you run custom website costs less than $50, or you can opt for the free version with limited offers.
- Test order: The amount varies depending on the product and shipping cost.
- Marketing: The cost of advertising your product can change from time to time. It’s good to test various channels to understand most efficient ones and plan in advance which amount spent on marketing keeps you earning not loosing money.
About Branded Dropshipping
With the market saturation in dropshipping, the struggle to stand out amongst a sea of other online stores is real – Branded dropshipping to the rescue! It creates a brand out of your online store with your product label.
Branded dropshipping solves one of the problems of regular dropshipping – the inability to build your own brand identity. Dropshippers can purchase unbranded premade products or so called blank or white label products from suppliers who privately customize the product with branded artwork, logo, etc to go with the theme brand of the retailer. And this is called Print-on-demand dropshipping. Read our complete step-by-step guide on print on demand and start running your own branded dropshipping business today.
Start You Print On Demand Dropshipping Journey Right Now With Helloprint Create & Sell
At this point, you’re only a click away from starting your print-on-demand dropshipping journey. If you’ve been looking for a way to make extra bucks with your graphic design skills or you just love creating things and wish to see your design on products, then this might just be for you.
With Helloprint Create & Sell, you can easily customize your designs on ou white label products and sell them online. We specialize in branded print-on-demand dropshipping, empowering you with various solutions to run an e-commerce business without any hassle. We will print, pack and ship products globally for you. With print hubs in 18 countries and smart pricing algorithms we can guarantee best prices for white label products, sustainable options and fastest shipping speeds. Choose one of our free integrations and get started.
Starting an online dropshipping business can seem quite daunting, with these questions running through your head like ‘can you make money from dropshipping?’ ‘How much money can you make with dropshipping?’ This guide already gives you a clear picture of what to expect and what is possible.
Frequently Asked Questions
Can You Make Money Dropshipping?
The answer is ‘YES’. Although the profit margin might not be as high as expected. It takes a good strategy and evaluation to make money dropshipping.
How Much Money Can You Make Dropshipping?
There is no limit to how much money you can make dropshipping; you can make anywhere from $100 - $100,000 per month.
How To Make Money Dropshipping?
To make money dropshipping – you have to decide your niche, get a supplier and invest in setting up an online store. Then commit to marketing your product and improvement.
How can we help you?
Helloprint Create & Sell is a part of Helloprint. We build wold's leading and most sustainable marketplace for customised printed products.
Passionate about print business, we help entrepreneurs and businesses to turn their ideas into printed products and grow own brands online.
- Design custom products
- Sell online without stock
- Reach customers globally
- Enjoy FREE integrations