Many people wonder if drop shipping is a profitable way to do business on the Internet. Some have tried it with no success at all, but there is a specific road to success for this type of online business. Although there are no guarantees, this article will outline the steps taken by many successful dropshippers on the Internet.
The first step to success is in selecting the right product. This means a specialized area or niche for the product. If a product is too general, you will have too much competition. You want to be able to minimize your competition but still have a product that there is a demand for.
Once you have found this product, you will then need to search for suppliers. There may not be many suppliers for the item, but make sure that you have contact information for all that you can find. The next step is to contact the supplier by phone. Many people make the mistake of using email, but you will have greater success using the phone. You can explain directly over the phone what you want to do to sell their product. They may already have a drop shipping program in place, and if not, they may be willing to agree to one with you.
Once you have a drop shipping agreement with a company, the next step is to build a website. An eCommerce website can be created in several ways; you can do it yourself, have someone else design it for you, or use the services of a web hosting company. Many web hosting companies offer free eCommerce website creation software for their customers. Whatever you decide on, make sure that your site is not slow and has secure payment capabilities.
The next step is to research keywords. There are several good software programs to help you with this stage of affiliate marketing. You will need to know all of the top ranked words and phrases related to your product. These words and phrases can be used in articles on a blog that revolve around the product you are selling. Naturally, this blog will be sending readers directly to you eCommerce site. Along with a blog, the most important use of these words will be with AdWord advertising.
There is no substitute for Google AdWords. Once you have an account you will need to spend time learning how to get the most out of AdWord advertising. This is part of the key to success. You will need to learn how to optimize your advertising dollar. This is done by getting a high click through rate as well as converting these clicks into sales. You will have to experiment with the wording of your ads to find what works best. Keep in mind that there are other paid advertising methods that can work also, but it begins with using AdWords.
At this point you should be starting to get sales, and you will want to optimize your website for search engine traffic. Although secondary to AdWords, once your site is optimized, people will more readily find your website directly from search results.
The last step is to maintain and increase your customer base. The goal being repeat business. Although often overlooked by beginning online retailers, repeat customers are the life blood of a business. Once you have made a sale, it is important to get your customers to buy again. There are various methods that can be used to accomplish this and it depends upon what type of product you are selling that will determine which techniques work best. Once you start getting repeat business, you are on your way to success.
This path to success with drop shipping has worked for many people, but there are negative aspects to doing business as a dropshipper. The biggest negative is that you have no control over the inventory. It is possible that you can have late shipments sent to customers because the item was temporarily out of stock. You can also have problems with the packaging or address labeling being incorrect. In general, there can also be problems with quality that you are not aware of until a customer complains.
Even with the problems that can occur with drop shipping, the positives outweigh the negatives. A person can get into this business with low start-up costs. If you already have a good computer with a fast Internet connection, then all you need is an eCommerce website, web hosting, and some advertising dollars. No worries about storing inventory and no packing. You can spend most of your working day selling.