Is Dropshipping Still Viable In 2020? If So, How Much Can You Make?
The land of e-commerce is as vibrant as ever. E-commerce has taken the lead in world retail and brings in billions of dollars each year.
Now, there are plenty of e-commerce businesses out there. Everyone knows direct e-commerce businesses where brands sell directly to customers and marketplaces.
However, people often overlook another type of e-commerce business, and that’s dropshipping. If done right, dropshipping can still be very profitable, even in 2020.
There are plenty of companies out there who provide custom dropshipping website building services geared for success. Usually, Shopify is the website builder that developers prefer when building a successful dropshipping website.
It allows businesses greater control over the business and lets businesses add features without hardship. But that’s not what we want to talk about today.
What we will talk about today is how dropshipping is still viable in 2020 and how much you can earn from running a dropshipping model. So let’s start discussing how much you can make from dropshipping and how you can make your business a success!
How Much Can You Make Dropshipping?
Do you ever wonder how much dropshippers make? Or how long does it take for a dropshipping eCommerce business to make its first sale? Or how you can build a successful dropshipping business?
Well, that’s all the questions we will try to answer here today. When looking at frequently asked questions, you will always see these money related questions at the top of every eCommerce and dropshipping forums. And that’s nothing surprising given the fact that everyone wants to run a money-making business.
Now there’s no specific figure on how much you can make dropshipping. It all depends on how you set up the business and create a well-oiled business model.
However, your business can earn from a few thousand to tens of thousands a month if you do it right. So how do you make money dropshipping? Well, let’s get into that without delay.
Figuring Out The Pricing
Success is not for everyone, but there’s always a lesson in failure. If you look at any failed drop shipper, you will see that most, if not all, had product pricing issues. When you want to set up a dropshipping business, you need to figure out your products’ pricing.
It’s a given that you need to know how much to charge before you know how much you can make from dropshipping, right? Now, you are free to charge whatever you want for your products, but why will people buy things from you if you do not do it, right?
Let’s break it down a bit more so that you get what we are saying exactly. Say you are a dropshipper. You need to sign up with a dropshipping program with companies like Oberlo, AliExpress, Salehoo, or Amazon.
Now you buy a product from these companies where they sell products to dropshippers at a wholesale rate or near wholesale rate. So when you are getting a product from your supplier, you are paying a fee, but there are other costs involved before you can put up a final price.
When pricing your product, you should make sure you include additional expenses. Expenses like handling, advertising, administrative expenses, and all other expenses should be included when pricing the product.
That’s not all you need to consider; you also have to check out your competition and do extensive market research to determine how much the product is sold for.
There might be dropshippers who might be undercutting you as many will be happy with low-profit margins. So when pricing, you need to find out the retail market value of the product.
As long as you are pricing your product near the market value, you will be in a safe space. You may want to cut down your profit margins for sometime when promoting your business or conduct a specialized campaign for specific products. Still, otherwise, pricing near the market value is an excellent way to ensure success.
You may not understand the right approach for your model unless you try out different ideas to find out the right pricing fit.
Knowing Your Products Well
In our time as dropshipping website builders, we have seen plenty of Shopify, and WooCommerce dropshipping store owners fail at establishing their business.
We see it happen because the business owner chose a product or niche that they find appealing and exciting. You need to choose a selling product like hotcakes rather than go with your preference if you want to make money dropshipping.
Check out the suppliers like Oberlo, AliExpress, and Amazon to find out which products have plenty of reviews and has high sales numbers. A product like that means there are sustainable demand and market for it meaning you will quickly sell your products without much hardship.
But remember to sample the product you choose before you start selling. Often you would need to see if the product quality is up to the standards of your business or not.
Sampling the product also allows you to find out about the service of the supplier. Knowing your product and what you want to sell is a big step towards making your dropshipping store a success.
Work With The Right Programs
Working with the right dropshipping program is the only way to provide quality consistently. Working with newer or smaller suppliers than working with more than one helps to ensure your business goes uninterrupted.
Find and work with suppliers that deliver consistently, work responsibly, and provides excellent communication but never rely on one supplier.
Think long-term; even if your supplier always provides products on time, there might be one or two deliveries that might not be on time. Or what if the supplier has to shut down because of some unforeseen issue? Well, to avoid that, you should have more than one supplier for your dropshipping business.
Now we here at DropshipUSA build Shopify dropshipping websites with FBA(Fulfillment By Amazon) solutions. Meaning Amazon fulfills all the orders, ensuring a level of guarantee on product and delivery that usually doesn’t come with smaller suppliers.
So make sure you know and choose the right dropshipping program for your website. With that being said, it brings us to the end of our discussion on how much you can make on dropshipping.
Hopefully, you have a better idea now than when we started about ensuring you earn a sizable amount from your dropshipping business.
If you have any further queries, you can get in touch with us, and our dropshipping website developers will be more than willing to help you out.
With that being said, it’s about time we draw the curtains. We will come back soon with something new to talk about. Until then, See Ya!
Originally posted in: https://dropshipusa.io/blogs/news/how-much-can-you-make-dropshipping