Dropshipping is a business model in which ecommerce entrepreneurs sell products without having to carry any inventory. When a store owner receives an order from a customer, they simply contact the supplier, who will then ship the products directly to the customer’s doorsteps. Dropshipping apps like Oberlo let you add products from various suppliers into your shop to fuel your product offering.
Dropshipping is the perfect business model for new ecommerce entrepreneurs. It’s simple to set up and manage, and it doesn’t require a large up-front investment. You can also run your dropshipping business in your spare time – you don’t need to quit your job to start a successful store. Plus, there are several dropshipping tips you can apply to drive traffic to your store.
However, while dropshipping is straightforward, it’s not easy. Many new entrepreneurs make mistakes when they start dropshipping, which often leads to them quitting before they’ve even really gotten started. If you want 2021 to be the year you launch your successful dropshipping business, avoid these seven common mistakes:
Not spend enough time on market research: One of the most important things you need to do before launching your store is market research. You need to ensure that there’s actually demand for the products you want to sell. The best way to do this is by using Google Trends. This free tool lets you see how popular certain keywords are over time. If you see that the interest for a keyword (for example “men’s shoes”) has been steadily increasing over the past few months or years, it’s likely that there’s good demand for products in that niche.
Additionally, don’t just research general keywords related to your niche – be specific. For example, if you want to sell men’s shoes, research keywords like “best men’s shoes for plantar fasciitis” or “most comfortable men’s dress shoes”. By targeting specific long-tail keywords like these, you can tap into low-competition niches and get an edge over your competitors who are selling more general products.
Not having a niche focus: When starting out with dropshipping, many entrepreneurs make the mistake of trying to sell everything under the sun instead of focusing on a specific niche. This approach almost always fails because it leads to low margins and high competition – two things that are deadly for any ecommerce business.
It’s much better to focus on selling a small selection of high-quality products that are closely related instead of trying to offer everything under one roof. Not only will this make it easier for you to stand out from the competition, but it will also be much easier for you to drive targeted traffic (i.e., people who are actually interested in what you sell) to your store with targeted ads and social media posts.
To find a profitable niche focus for your store, start by brainstorming ideas using Google Trends and Amazon Bestsellers lists as mentioned above. Once you have some ideas, use Oberlo Verify – our product availability checker –to see which of those products are available on Oberlo and would be suitable for dropshipping..