Dropshipping Is One of the Most Lucrative Side Hustles; Here's How To Ace It
Assume you buy a new phone case online. It arrives at your home securely and you are pleased with your purchase. Meanwhile, the online store generates a small profit. That seems good, right? But here's a twist: the phone case didn't come from the retailer. Instead, it was transported directly from the factory that produced it. The retailer just took your order and arranged for the factory to ship it to you.
What is dropshipping?
Dropshipping can be viewed as a convenient way to make extra money, particularly when money is tight. Essentially, it is selling something without ever handling it yourself. Instead, you delegate responsibility for finding the things, packing them, and delivering them. This someone else is known as a dropshipper. To perform dropshipping successfully, you must know a few tips and tactics, especially if you plan to sell on Amazon or other platforms. So, before you leap in, it's best to learn the ropes.
Is dropshipping profitable?
Dropshipping can actually be very profitable. Choosing the correct things to sell is critical to maintaining profitable sales. Some dropshippers have figured out a brilliant trick: they employ keyword research to identify high-quality items at low rates and then offer them at prices that still pique clients' interest while allowing for a healthy profit. One of the benefits of dropshipping, particularly for novices, is that it is not expensive to get started. You don't need a lot of money up first because you won't be buying or storing products. Instead, when someone buys from you, the order is delivered directly from the provider to the client. This means you're not stuck with a bunch of stuff that might not sell. Because of this, it's a pretty easy way to dip your toes into selling on Amazon and growing your business.
Did you know that in 2022, more than 60% of the sales on Amazon came from independent sellers? Most of these sellers were small or medium-sized businesses. They sold over 4.1 billion products around the world, bringing in an average of more than $230,000 in sales each.
How to dropship in the Amazon store
- Set up your Amazon selling account through Seller Central.
- Find a dropshipping supplier; vet them carefully for reliability and product quality.
- List your products and track orders efficiently.
- Focus on growing your sales by optimizing listings and leveraging Amazon's resources for conversions and business expansion.
Dropshipping tips for success
When deciding which products to dropship, keep in mind a few aspects that can impact your business. Here are some guidelines:
Avoid customized products: Dropshipping often involves products shipping directly from the seller. Therefore, customization choices are limited. If you value personal touches such as thank you letters or customized packaging, think about other options.
Avoid perishable goods: Products with limited shelf lives or those requiring special storage conditions, such as refrigeration, are not suitable for dropshipping. They can cause logistical issues and eventual client discontent.
Avoid dangerous materials: Products labeled as dangerous goods or hazardous materials (hazmat) might raise safety concerns and limit shipping options. It's advisable to avoid interacting with these products entirely.
By considering these factors, you can narrow down your product selection and increase your chances of dropshipping success. Handling customer order fulfillment is crucial when starting and growing an e-commerce business. We're here to help you succeed by offering strategies to increase your sales. For additional tips on selling online successfully, explore Amazon Seller University. It's a free educational platform offering tutorials, including videos like this one providing guidelines for sourcing products.