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How to Establish Million Dollar DropShipping Business from Scratch

12 Mins read

The million dollar question is how to make $1 million with dropshipping business. Strategy is of utmost importance for dropshipping business success be it small or big. If you think earning $10 million is an over exaggeration then relax and read. Here will discuss the core of launching a million dollar dropshipping business and taking it up like a champion.

Let’s decode and discuss how to build a million dollar dropshipping business

Niche Selection

Niche Selection is key to determine how early you can achieve your goal. I’m referring to the fact that the popularity of a niche cannot be overlooked. Having a passion is nice but a niche must be a highly popular one. Don’t get discouraged by fact that a more popular niche will have more competition. I mean your goal is building a million dollar dropshipping business so there’s no room for fear.

As an aspiring businessman you must be aware about recent changes that will impact buying habits.It will help you stay in right direction while choosing the niche.

#1: Find answers to the following questions

  • What are the last 10 products you purchased online
  • Which are the most problem solving products purchased online
  • Your Favourite products that you bought online
  • What product were recently bought by your family member, friends, and colleagues bought online
  • Find products that make vacation enjoyable for us
  • What hobbies are most popular among people around the world

#2: Do the Segregation

Great, you have done the brainstorming. Now segregate niche ideas as profitable and non-profitable using below parameters

  • Is there lots of variety in products
  • It must not be a too broad niche else becomes hard to optimise for real target audience
  • Does product has some unique feature that will keep customer patient enough to wait for extended product delivery
  • Have the products reached an over-saturation level or is there still room
  • Is the product easily not available in brick and mortar store
  • Is the customer base sufficiently big
  • Product alternative available are affordable and good enuf
  • Is there any big brand that has market monopoly for the product
  • Can you price it high enough and still sell it to earn profit
  • Isn’t the product too heavy or too fragile to be shipped easily and safely
  • Are there lots of related products that can be sold as upsells? Above all, upselling will open up opportunities for repeat purchase by existing customers.

#3: Find Niche Via Amazon

Visit Amazon.com and click on a category (one that you find interesting) under the All dropdown.

amazon

Image credit: Amazon

Next, click on the search option without writing anything in the search bar. On the left side click on the subcategories to go further down into subcategories. 

amazon categories

Image credit: Amazon

Here you get a list of best seller products, top rated products, and more popular products. Click on the see more option to get a full list of such products.

amazon best one 

Image credit: Amazon

#4: Look into Local Stores

Visit all the brick and mortar stores in your city. You will find items that are common in every store. It is in your best interest to skip listing them in your dropshipping store.

Best Niches

Pets

Pets are perfect companions to erase the scarred moments left over during covid-19. A sharp rise in first time pet owners as the result of pandemic indicates rise in sale of pet related food, toys,grooming, shampoo, supplements and more.

Pet products is a promising market with not many established players in the arena but sufficient surge in demand. Hence, you have a chance to fill the void and take dropshipping business to the next level of success.

Gaming

Another excellent niche that can’t be overlooked. Think about the habit of playing long hours of video games as a side effect of pandemic. There is an obvious need for comfortable chairs that makes gaming a totally enjoyable experience. Gaming monitor and gaming desk also fall into this category.

Moreover, gaming is an engaging activity that is highly addictive. Therefore, you don’t have to worry about a decrease in demand and think of alternatives.

Smart Home Devices

All things that improve quality of life are always welcome in all geographies and by every age group. Smart home gadgets enable high energy saving and save time. Customers are also eager to buy it considering they will be the first one to experience smart technology and having customer support for devices is another good reason to go for it.

Worst Niche

Copyright Products

Yes, avoid selling products that are the first replica of branded products. Though there is very demand for those items owing to popularity and craziness among the target audience. But, high chance that you might end up with legal shackles. Please avoid it at all costs.

Popular (& Profitable) Stats for Dropshipping Business

Here are a few that can’t be overlooked anymore stats to help you enhance the strategy and achieve your goal.

  • 84% buyer prefer to seek recommendations from social media sites before making a purchase
  • Millennials on average spend around $2000 annually for online shopping.
  • Asia pacific, Latin America, and Middle East & Africa are emerging markets for ecommerce in the upcoming years
  • Consumer electronics is the most sought after niche and is the only category with growing interest among customers over the last few years.
  • 63% of buyers consider high shipping cost to be the top reason for cart abandonment. Followed by discount coupons not applying and long shipping time.
  • During the festive season conversion rate on ecommerce stores shoots to as much as 6%.
  • Majority of product views on the world’s leading ecommerce app Amazon are results of organic search.
  • Ease of checkout, product variety, payment options, discount shopping, ease of product return, purchase via app are leading factors for high level customer satisfaction.

The Pro Tip: Look for Facebook ads that are running fine for a really long time. It’s an indication about that product and niche being one of the highly popular one. Investing in such products is no doubt very profitable

Do This To Make Best Video Ads for Dropshipping Products

Video ads will always help you gain more traction than any other form but it has to be engaging enough. Above all, your aim is to earn $ 1 million then why compromise on quality that has potential to get customers hooked with your products.

engaging video ads

Lets see what all is needed to make high quality and effective videos to grab the attention.

  • Include a person (better if he looks like your target audience) show him using the product and as a result getting the problem fixed.
  • Hire a professional to create it and lessen your burden to arrange things like camera, person, script, editing, sound and more
  • A clear video background signals professionalism and is pleasing to watch. Ensure that the place for recording video is not messed up.
  • Sufficient light will help in making each part of the product look crystal clear in video. Above all, blurred images leads to distraction and customer end up leaving video in between before the message is conveyed
  • The demonstrator in the video must express his (positive) thoughts on products and tell the reason behind it. This will make it easy for people to trust
  • At the end of the video include a call to action button to get the desired action from the customer. Action verbs like shop, visit, order, learn, join, buy, download are among good choices to be used in CTA. But, introducing a sense of urgency with something like “Sign Up and Get 10% OFF” is an even better option.

Always remember that there’s ain’t an option to skip video ads if you want to do dropshipping like a pro. Because 96% customers consider it one of the most important deciding factors for product purchase. And the rest 4% are too less to help you build a million dollar dropshipping business.

Browse your competitors store and don’t forget to dig into the reviews. Reviews is where you will find the real sense. You must also be aware of and confident about your target audience.

How do I Find My Target Audience

Find your target audience is developing the customer persona. You have to collect as many details as possible.

An example of customer persona

customer persona

Let’s decode the above person details

  • Living at home means no need to pay monthly rent. Therefore, more disposable income comparatively to those paying the rent.
  • The income figure helps you decide should you pitch an expensive product or will a $5 -$15 dollar product be more suitable.
  • The area of interest reveals will your products appeal to him or not
  • Idols are super important considering product promotion on social media platforms. Your Customer is bound to look, stop and engage with pics, quotes, and any other thing related to the idols. Hence, must incorporate them to frame your social media posts.
  • The preferred social media channels in the above image are helpful in segregating worthy and not worthy platforms for ads.
  • The choice of website is important to determine the appropriate theme of your dropshipping store. Customers are highly likely to get hooked to an ecommerce store that has a look and feel very similar to that of his favourite sites.

The Pro Tip: Using keyword planner you can figure out are customers searching your brand name and what’s the other term used with it. If there is high search volume for keyword brand name + discount that means it’s the right time for giving a discount or reducing the price.

Leverage Facebook to Boost Your Dropshipping Business Sales

First decide your product and look for groups on facebook with the target audience for the product. Let me make it simple to understand with below examples

Product Facebook Group (with respective target audience)
Video game consoles Video Game and Console for Sale or Trade
Lip Gloss Silly George Lashes
Hair Extension and Wigs Hair Extensions Advice And Support
Toys and Dolls VINTAGE TOYS – BUY/SELL/TRADE

Extracting Facebook Group Members

As you have found the facebook group so extract members from the group and extract into custom audience. These members are those highly likely to watch and engage with your ads.

#1- Simply navigate to the facebook group that you want to target and copy the URL

#2 – Register on LEAD ENFORCE (online tool for creation of ideal audience) and go to dashboard. The dashboard will look like below

lead enforce dashboard

Image credit: Youtube/ElliottPrendy

#3- Add a new project by clicking on New Project and name your project. Next, choose facebook project in project type.

create project

Image credit: Youtube/ElliottPrendy

#4- Then you will get the option to extract group members. Click on Add groups and enter the URL in the required section. As you hit the search button

add the group

 

Image credit: Youtube/ElliottPrendy

#5- The facebook group will show up as added in the tool. Click on the plus icon adjacent to it and based on your requirement choose to extract the basic or full information. The extraction will last upto few hours.

customer data extraction

Image credit: Youtube/ElliottPrendy

#6- Upon completion, it will fetch you details about users (active member, total member) in the group.

target audience data

Image credit: Youtube/ElliottPrendy

For further details click on Show users button

show user information

Image credit: Youtube/ElliottPrendy

And on insights button for details like location, check ins categories, and gender 

demograhics and user sessions

Image credit: Youtube/ElliottPrendy

#6 – Now is the time to export your custom audience. Hit the export users button followed by clicking on Facebook custom audience. Next, input the name and description of the facebook audience.

facebook custom audience

#7 – Now, you will be redirected to the Facebook Audiences page. Here click on the share to enter required credentials.

facebook audience page

#8 – Congrats! Your custom audience is here. It will definitely put your Facebook Ads efforts in the right direction. The best part about extracting facebook groups is it enables laser focused targeting. Moreover, you get the opportunity to target competitors’ audience.

facebook custom audience for better insights

How To Bring Traffic on Dropshipping Store

YouTube

Start your store Youtube channel and post videos about

type of product videos

These videos will not only boost your product reach among the target audience but also fetch actionable insights required to understand customer viewpoints and expectations regarding the product. Therefore, using it product enhancement and pitching it in a more convincing manner becomes easy.

The Pro Tip: Post videos on a regular interval to let not the target audience forget you and always link your product page to it.

Work on SEO

Publish at least 150- 200 products. It will ensure sufficient content is present on the store to get it ranked at top on SERPs.

Write a compelling meta description that justifies why clicking on it will redirect to a page that is relevant to his product search. Using action verbs will make it more clickable

Sufficient, fresh, and value generating content is important to maintain your store ranking at top.Therefore, adding a blog on your store is an effective way to keep more and more traffic coming to the store. Regular posts will help you target more keywords (those used by customers to search the product) and rank for them as well.

Share Expertise on Forums

Forums like reddit and quora are awesome sites to influence buyers. Serious buyers not only browse products but are enthusiastic about knowing views from other customers. Find the niche specific communities and be active on them. Let your expertise help buyers choose the best.

The trick is to give tonnes of correct and relevant information to project yourself as an expert. Afterwards you can use it to influence customers to visit your store

The Pro Tip: Be the first one to answer the query asked related to your product. This will help your target audience perceive you as an expert on the matter

Social Media at Right Time

  • Right time refers to posting content on social media at the best time. Facebook: 9am, 1pm, 3pm Pinterest: 2pm, 9pm, 2am Instagram: 9am, 5pm, 2am Landing Page Optimisation Your marketing efforts will redirect the buyer to the landing page. IN order to engage them it is necessary to focus on the below parameters.
  • Product zoom feature for giving a close to real feel of product. It helps in better understanding the product with 360-degree view.
  • Reviews are the most reliable piece of content for customers. It must be on the page to calm customer’s curiosity about what others like them feel about the product. Above all 97 percent of customers consider it significant for product purchase.
  • Easy checkout process is the soul of the landing page. Take care of it and customer checkout experience will be hassle free always. Certain points that need to be taken care of are
    • Keep the process of reset forgotten passwords easy and short. This will ensure the customer doesn’t get stuck with password reset and forget to checkout.
    • Don’t add any extra cost (mostly shipping) right before the final click for checkout. It is a major put off and you will lose a sale after working hard on it. On the contrary, some customers might not pay a little extra but won’t be excited to visit the store for repeat purchase. Therefore, this unhealthy trick won’t work in the long run.

    Facebook Groups

    Avoid using product images that can easily blend in facebook. I mean those in blue and white won’t come off as appealing

    Attractive images attract everybody. Try attractive men and women images to target women and men respectively.

    Humbly ask for suggestions that sound natural and likely to engage the target audience. Something like below

    ask naturally

    It will help you gain insights into what’s the mindset of the target audience. Making it easy for you to modify products to boost the perceived value. Therefore, your product will easily stand out among competitors.

    Regularly participating in facebook group posts by helping other members with your experience and expertise means you build trust. Now, when you ask for help, members will provide you genuine stuff instead of ignoring you thinking of a salesperson.

    The Pro Tip: Consider adding sufficient details to your posts from which you’re expecting to extract insights. It will only make your post appear relevant.

    Some Good to Know Points To Take You A Step Closer To $1 MILLION Dropshipping Business

    • Sell useful products. They are easy to advertise and no need to over exaggerate. Hence, not making your product page sound salesy.
    • Images are key to convince for purchase, but prefer pics with plain or white background
    • Sell complementary products. These products will increase average order value of store.
    • Sell in More Quantities – Offer deals/ discount for buying more products
    • Design clutter free product pages with clear and easy to locate information (price, shipping, return)
    • Keep page load speed blazing fast (< 2 seconds) to avoid customers switching to other website,
    • Incorporate customer reviews with product photos to boost user trust in it.
    • Prefer evergreen products over products with limited life span.
    • Don’t depend only on products with limited time span.
    • Products that can’t be used alone gives opportunity to upsell.
    • Shipping on time a must have trait without which successful dropshipping business is hard nut to crack. So, please never delay it under any circumstances.
    • Take a competitive advantage by uploading video for product description. Thus,making it both easy and appealing for the customer

    What to do if…

    My products have very low profit margin

    Increase the price to a fair amount not several times of actual cost. Moreover, it will boost the perceived value of the product. The important thing to remember is that never increase the price of ordinary products.

    My PPC ads don’t fetch quality leads

    The obvious reason is ads not well optimized for attracting the target audience. Another reason could be it is not good enough optimised to get ranked for potential keywords.

    Keep an eye on competitors’ keywords with tools like SpyFu. It reveals the best performing keywords. Hence, helping you craft effective ads for a high rate of conversion.

    The Pro Tip: Optimize your ppc campaign for mobile devices. The click to call feature makes it easy for potential customers to get in contact.

    Customers ask for more products than I have in inventory

    Overselling is one of the embarrassing situations in dropshipping business. But, it can be avoided with below

    • Real time inventory sync between different selling channels to avoid confusion regarding quantity.
    • Use google trends to know the product’s high demand time duration over the last several years. Therefore, you can procure sufficient inventory beforehand to meet the upsurge in the demand.
    • Using sales records identify the frequency of products being sold during different months. Hence, you can better decide when to ask sellers for extra stocks.

    My friends ask me is dropshipping business a get-rich-quick scheme

    Tell them that’s a myth. Explaining dropshipping is more than listing products that get sold online in a matter of minutes and you keep the profit margin. It is a collective result of skills, patience, and courage to take risks. Above allThat will be enough for them to ditch the get-rich-quick notion.

    All Things Considered – Turn Determination into Million-Dollar Business

    Realistic and actionable insights with potential to turn your determination into million-dollar dropshipping business. Above all dropshipping business worked wonders for thousands of individuals who adhered to the above strategies. It ‘s the time to work to your full potential to outcompete others in the dropshipping arena.

    There ain’t any such thing like copying the formula of millionaire dropshipper to build your million dollar dropshipping business. Simple copy paste approach will never help to fulfill dreams. It needs innovation, right strategy and a winning streak that is non-stop and non-volatile.

The post How to Establish Million Dollar DropShipping Business from Scratch appeared first on CedCommerce Blog.

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