Do you have no sales or website visitors? Are you sure that you advertise your products to the right people? Let’s do a target audience analysis and check this out!
Who is your target audience? Who is more likely to buy products from you?
If your answer is something like “I’m going to sell my products to everyone” or “I don’t limit myself to any groups of people”, I have some bad news for you.
If you target everyone, you target no one.
Without knowing your target audience, it will be impossible to effectively run your eCommerce business and earn lots of money.
So what is to be done?
The solution is simple: perform a detailed target audience analysis and enjoy your improved results!
And we’ll tell you how to do it right.
What is a target audience analysis?
Your target audience is a group of people who might be interested in your product or service. As a rule, these people have similar interests, they’re about the same age and of the same gender.
To define target audiences, business people usually perform a target audience analysis. In simple terms, it means investigating the behavior, preferences, interests, location, demographics and other aspects of a specific group of people.
A target audience analysis usually consists of the following aspects:
Cultural and social background
The more elements you’re taking into account when defining your target audience, the narrower it is.
For example, if you sell extremely expensive men’s suits appropriate for the red carpet, your potential buyers are most likely to be rich well-educated men living in First World countries and regularly visiting social events. As you can see, this audience is really narrow.
First, you will clearly understand who really needs your goods. Therefore, you will appeal to your potential customers more successfully.
Let’s say you sell educational books and your target audience consists of students, teachers, and academics. Although all these people are really interested in your products, you need to divide them into groups and promote your store with different pieces of content. The marketing strategies that make sense for students may not work for teachers, and vice versa.
Secondly, knowing your target audience helps you allocate your resources properly and keep within your marketing budget. This way, you will only spend your money on the right people and suitable marketing tools.
Besides that, the knowledge of your target audience lets you be more competitive and increase your conversion rate.
Challenges of target audience analysis
When starting a target market analysis, marketers often face a number of challenges.
Understanding your product
First of all, you may find out that you don’t fully understand the product you want to advertise, its features and the benefits it can provide. That’s why our team recommends choosing a dropshipping niche you feel passionate about.
Of course, you can still pick products from other niches, but in this case, make sure you truly understand them to create attractive content and ads.
Finding the balance between visitors and conversions
It’s especially important for entrepreneurs who want to attract buyers with content marketing. Valuable content can lead hundreds of visitors to your website, but not all of them will want to buy your goods. Contrariwise, if you focus your marketing efforts on people who will most likely buy the goods, you may miss a large audience of potential customers who are less likely to buy.
Here you need to find the proper balance.
Finding the most efficient channel
Another challenge for an advertiser or content marketer is to find the right channel. Should you create video content and promote it via YouTube or should you pick social media instead? Should you run ads on Pinterest or Instagram? Depending on the niche of your dropshipping store, you may want to try a number of options.
Now that the importance of knowing your target audience is obvious, let’s learn how to do a target audience analysis and understand your clients better.
1. Get familiar with your product
A target audience research should start with finding out everything you can about your product. It’s great if you already know the benefits of your offer. But if not, spare no time and money to know it better and thus better understand your audience.
Read about the product or even purchase and test one. Often, you can target not one but a few audiences with the same product. For example, posture-correcting goods are now popular not only among older people but among gamers and office workers as well.
2. Collect demographic and psychographic data
Demographic data includes a number of parameters such as gender, age, sexual orientation, religion, level of education, etc. The list can be different for different products and niches. Some data can be irrelevant while some information can become really important.
Psychographic data is more subjective and describes how audiences behave, what they like or dislike. Here you want to know the interests of your audience, their activities (hobbies) and their opinions.
3. Identify the pain points of your target audience
Another important part of a target audience analysis is identifying what bothers your potential customers, their problems and needs. These problems are called pain points, and your product is the thing that can solve them.
To answer all these questions, you can use a number of methods. You can take surveys, analyze audiences in social media (we’ll cover that later), make keyword research, visit niche forums, talk to people on Quora and Reddit, research your competitors, etc.
After gathering all the necessary data, you should be able to create a buyer persona.
4. Create a marketing persona
To find out what your potential customers look like, we recommend creating the so-called marketing (or buyer) persona. This is a representation of your ideal customer based on your suggestions and the data you collected about your existing clients.
Actually, there are 3 ways to create a marketing persona.
The first one is doing a survey of your real customers. You need to prepare a list of questions for your buyers, place it in your blog or email series, and ask your customers to answer them.
Explain to your subscribers that this information will help you make your eCommerce store better and more relevant to their needs. As a rule, most people are ready to help others, so feel free to ask them for feedback.
The second way to create a marketing persona is to do research online. We recommend thinking about the websites your potential customers may like, visit them, and read comments. People often write lots of valuable information when discussing something online, so you just need to find it and take advantage of it.
On top of that, we recommend registering on your niche related forums and blogs. This is also a great source of information.
As for the third way of creating a marketing persona, it is a bit risky. You can describe your perfect buyer on your own, using only your suggestions and relying on your intuition. However, we strongly recommend that you test your assumptions after a while because you may have a wrong idea about your potential customers.
According to statistics, the use of marketing personas makes websites and marketing campaigns up to 5 times more attractive to customers.
5. Use Google Analytics
Google Analytics is a great source of information and you definitely need to use it when doing a target audience analysis.
There are 3 key areas that we focus on when looking for people who matter to our business.
Let’s look at them.
Google Analytics can give you a clear picture of what age and gender your audience is.
This way, you will better understand who visits your website and what information is important for them. For example, if you sell clothes and your audience mainly consists of young women, you can add more articles on female fashion to your product offer.
I would also recommend trying Instagram and Pinterest because young fashionistas usually spend a lot of time there.
The Interests report in Google Analytics provides insights into visitors’ preferences, tastes, habits, hobbies, and more.
These details will help you see what topics your website visitors are interested in. Therefore, you will be able to create content that will be the most valuable for them.
Knowing where your customers are located is helpful because of 2 reasons. First, you will learn what languages your website visitors speak, and plan your marketing campaigns accordingly. Secondly, it’ll make you aware of the different cultures you are addressing.
Having this data lets you:
Understand what types of content make sense to your website visitors
Avoid information that would offend or confuse your audience
For example, it’s probably a poor decision to congratulate your customers on St. Patrick’s day if they live, let’s say, somewhere in the Commonwealth of Independent States.
6. Do a target audience analysis with Facebook Insights
With this tool, you can quickly determine the number of the people who viewed your page and see these views by:
Section (posts, videos, photos)
Age and Gender
Device (computers, mobile devices)
For example, if you see that your subscribers prefer videos to other types of content, it’s better to focus on creating videos rather than on placing photos.
What’s more, there you can see insights about your Facebook page’s followers, recommendations, previews, etc. This information will definitely come in handy if you want to meet the people who will love your business!
Target audience analysis is the key to your dropshipping business success, and it definitely should become a part of your marketing strategy. Regularly use these ways of defining your target audience and you’ll open up new horizons for your dropshipping business!
International dropshipping allows you to sell products worldwide without even leaving your home. Sounds impressive, right?
This article is going to help you find your footing in international dropshipping.
What doesn’t catch on with the customers in your country may be a profitable opportunity in another one. And you don’t need to travel to these countries to launch your business.
Dropshipping blurs the international borders. Your business is no longer tied down to your location. You can live in Uganda and sell goods to the USA or Europe. You can even travel to your heart’s content without any harm to your online business. All you need is to take your laptop with you.
Sounds too good to be true?
Believe it or not, but it’s really so. And you don’t have to work miracles to become financially independent and lead a life you’ve always dreamed of.
However, it doesn’t mean you should dive into dropshipping without planning it out. Without a plan, you’ll run up against plenty of unnecessary problems that will get you down fast.
To let you avoid this, we’ve drawn up this roadmap to international dropshipping. Take one step at a time and watch your business grow.
#1. Make the list of the countries you want to dropship to
Obviously, the first thing you should do before starting your online business is research a potential market. You need to know where your products could do the trick and bring money in.
Thanks to the tools like Google Trends, you can easily evaluate the level of demand for certain items. You just need to type your keywords in the search field and see how the interest in the product has been changing over the years.
In some countries a product can be desired by a large number of people, while in others, the level of demand will be far less.
Thus, you need to weed out the countries that don’t have any interest in the items you’re selling. Draw up the list of the most promising countries to sell your goods to. It’s going to be helpful for your further work.
#2. Size up the level of competition in your niche
In these kinds of circumstances, it’s going to be difficult and quite expensive to win over the competition. There, customers have a lot of alternatives to your store – plus, promotional campaigns on oversaturated markets cost a lot more.
However, it doesn’t necessarily mean that a high level of competition is a sign for you to back out.
Remember that the competitors’ products and promotional campaigns may not be of the highest quality. And here is where you can break into the market and come out on top!
Yet, if your common sense drops hints that the competition is too tough, then you’d better focus your effort on the countries with better conditions.
But besides this, there is one more thing to consider if you want to dropship internationally. Your suppliers should be able to deliver the products to every country you target.
Plus, your clients want to receive their packages as soon as possible. And, most certainly, they have little desire to pay extra delivery fees.
Meanwhile, it may turn out that an AliExpress seller has a free or a low-cost shipping option for one country but doesn’t have it for another. Or it could occur that the shipping to some states costs higher than the item itself. Who would like that?
Thus, you need to go to AliExpress and try to choose the suppliers who provide cheap delivery services, such as ePacket, to all your target countries.
Finally, another thing worth mentioning is the tracking code. When you pick your suppliers, make sure their shipping options include the tracking information. Tracking a delivery order helps avoid all kinds of troubles. If you can track the goods, you will have information about the status of the shipment, whether it has been delivered to the address or if it’s experiencing some delays.
In any case, with having access to the tracking of the package, you will be able to resolve any issues much more effectively.
#4. Try to find suppliers that store their products near your customers
If the order takes a large amount of time to reach its destination, you risk running into various predicaments with your customers. The most impatient and irritable of them could be a real pain in your neck and cause some serious troubles.
To keep customer anger at bay, you should work towards reducing the delivery time. The best way to achieve this is to search for the sellers on AliExpress who store their products in the countries you target or in the neighboring states.
It’s simple – the shorter the distance is, the faster the delivery.
In one of our articles, we explain how to find the suppliers with the warehouses in the USA. This way, you cut down the shipping time from 20 – 30 to 7 – 5 days.
The good news is, you can repeat the same trick with any other country you need. Some AliExpress sellers have their warehouses in various countries like the one in the pictures below.
#5. Set suitable payment gateways
You come across an item that you want to buy right on the spot without any delay. But, you can’t. The store doesn’t accept your credit card and you’ve left your cash at home.
If you don’t want your clients to feel the same way, you need to integrate suitable payment gateways in your online store.
#6. Run separate promotional campaigns for each country
Every country has its own history, culture, and traditions.
What puts people off in India could be right up your alley if you’re a US citizen. And the other way round.
While creating your advertisement, you need to consider the diversity between countries. You should have a specific approach to each country you target. Besides, if you want to get the best results from your advertisement that targets a specific country, you need to translate it into the local language.
How do people figure out if your online store is worth buying from?
From the people who have already had this experience, of course! Don’t even doubt it: your store visitors read the reviews that the previous buyers have left about your products and your customer service.
Fortunately, you can build a sound foundation for your online business right from the beginning. Even if nobody has bought anything from you yet.
As a rule, unsatisfied customers are more inclined to take their anger out on you by leaving negative feedback. If everything goes well, people just take it for granted.
If you don’t want bad rumors about your online store to run rampant on the Internet, you should provide your clients with excellent customer service.
It means that there is no room for any misunderstanding between you and the customers. If you can’t speak English or the other target languages fluently enough, there will definitely be some problems.
The key to handling this difficulty is hiring somebody who has the necessary knowledge of the language. They’re going to take care of your customer support and save your reputation. Freelance platforms like Fiverr, UpWork, Freelancer let you easily find someone who is fit for this.
#9. Additional international dropshipping features you should be aware of
If you are indeed interested in creating a dropshipping business that will target other countries, then there are a couple of additional factors you should be aware of.
Let’s go over them one by one.
The laws and regulations of the destination country
It’s no secret that every country has its own restrictions for international shipments. If you wish to run a profitable business you need to make yourself familiar with the laws and regulations of the countries you decide to target. Thus, you will avoid any unnecessary troubles with the law and keep your profits to yourself.
For example, in certain countries you are required to file information about the incoming order. If you fail to file this info, you risk facing various fees and penalties.
As you can see, the outcome can be costly for your business. So, making yourself familiar with the laws is strictly in your interests!
A poorly packaged product can be a major letdown, especially to consumers who enjoy it when the package is of high quality and represents the product in the best way. However, aiming to please your potential customers is not the only reason why you should try to create a custom package. Besides ensuring your items are delivered in the best condition, it heavily affects the shipping rates, as they will differ depending on the size and weight of the package.
For this reason, if you want your dropshipping business to look like an actual business, you should invest in the packaging to make it more presentable and memorable to your customers.
Make a creative packaging design that best reflects your brand. Moreover, try to use lightweight protective materials to ensure low shipping rates.
Return terms and conditions
Just like any other wholesale business that sells various products, make sure to get acquainted with the return policies of your dropshipping suppliers. Moreover, don’t forget to list your own return policy om your online store, to provide your customers with this information. Provide straight and clear information about the payment methods, guarantees, etc.
By getting better acquainted with the general features of international dropshipping, you better prepare yourself when you start dropshipping your goods to customers from other countries and increasing your profit margins.
Now, you’re good to go! You know the most essential things about international dropshipping and can give it a shot. If something still holds you back, feel free to leave your questions in the section below. We’re always ready to help you.
Have you ever wondered what to expect from your brand new dropshipping life? Handling daily operations in AliDropship’s self-owned stores that make hundreds of thousands of dollars annually, I am happy to share my typical day and tell you a bunch of little secrets on how to manage an online store!
How to manage an online store: the basics
When you run a dropshipping store, it’s easy to fall into the trap of being active 24/7 – like, you know, checking your inbox as soon as you are awake, handling an order return in the middle of a family dinner, staying super late to do some stuff in the store, etc.
Mobile technologies make it possible to work flexibly from any place and at any time, indeed. Unfortunately, some people think it means they should be managing an online store all day round to cover as many tasks as possible.
Rule #1 is to organize your day in a way that lets you have enough free time that is NOT dedicated to your business at all. Remember that you don’t run this business to make yourself exhausted and burnt out; quite the opposite, you launched your store to make money in an easy and enjoying way, right?
First things first
So, what’s the proper way of running an online store? My working day starts with checking my inbox.
When I look at my emails, I concentrate on the following types of letters:
Changes to orders
It happens a lot in ecommerce. A person places an order, pays for it, and then says, ‘Hey, look, I changed my mind, I still want this T-shirt, but in a different color. And a different size, too. And oh, can you also add a pair of sunglasses to my order?’…
It might seem tricky at first, but you get used to it soon. It’s really important to discover these letters in time. If you haven’t transferred the order to your AliExpress supplier yet, you can easily make the necessary changes.
And even if the order was already processed, it’s no big deal. You still can fix it by contacting the supplier directly and describing the query if you act immediately.
It’s not uncommon for buyers to change their minds completely, and that’s another part of ecommerce business management. For whatever reason, they may feel that they don’t want the item anymore, and cancel the whole order. Why not? They have the right to.
Alternatively, a refund letter can come from a customer who is tired from waiting for the delivery and thinks that the package is lost, or from a buyer who is not happy with the quality of an already received order.
In any case, these letters require my close attention and careful work that always starts with contacting the original seller on AliExpress.
Oh, here comes the most interesting part of managing your online store.
I check the tiniest details of all the PayPal and Stripe payments because, you know, stuff happens.
The thing is, payments made with the help of credit cards can sometimes turn out to be a fraud attempt. This is why I perform a very careful check to make sure that:
My buyer’s name (the name of the addressee) is the same as the name of the card holder
The country of delivery is the same as the country of the card holder’s residence
There were not more than 3 payment attempts made from different credit cards
What if the payment was successfully processed but personal details don’t match? In this case, I email this customer and ask to send their ID to make sure this purchase was legitimate. But what if there were attempts to use several different cards to process the payment and all of them were declined? I normally cancel the order because this purchasing behavior is typical for fraudsters.
Given that I run over 20 dropshipping stores, I have to do tons of work sorting all these emails out. On average, it takes me about 4 hours per day to go through all of the letters and to take the necessary actions.
And here I’m talking about a normal, ordinary day when I only have to process about 50-60 orders. When it’s pre-holiday time, online shopping activity rises and the amount of purchases goes up like crazy. So, the workload obviously gets heavier. That’s the thing you need to consider when you get your store prepared for any holiday season.
How to manage an online store: the core
As a dropshipping store manager, I have this really curious element of my daily routine related to order fulfillment. To be more specific, it’s all about checking the customers’ mailing details before transferring them to the relevant AliExpress seller.
During this part of the day, I:
Check the spelling of the addressee’s name and surname
You won’t believe this, but yes, people make spelling mistakes in their own names and surnames.
Fun fact: you won’t even notice it if your customer is a foreigner and you have no idea about the most common names in this country.
Obviously, this is not the only thing that can get mixed up 🙂
Check the ZIP code
Obviously, I can’t possibly know any person’s ZIP code, but there are cases when I’m 100% sure that the details are incorrect.
Some people just leave this field blank.
Some people write their phone numbers in this field.
How do I know it’s a phone number or just a wrong combination? I try to learn the ZIP code formats for the regions where my customers come from. If I know, for example, that this area should have a ZIP code that looks like SW1A 1NH (7 digits, 2 numbers, 5 letters), but the provided code is something like 644053 (6 digits, 6 numbers, 0 letters), it’s evident that there is a mistake.
Check the ‘Additional Details’ field
For some reason, some people use this field instead of the right one and write their addresses here. I don’t exactly know why anyone would do this, but it doesn’t actually matter – I take a careful look at this field anyway.
Rule #2 is to pay attention. If anything seems questionable to me, I simply write an email to the customer and ask him or her to confirm the shipping details, or to submit them once again.
This time-consuming, but simple procedure is essential. If I blindly submit incorrect shipping details to an AliExpress seller, it will most likely result in delivery troubles.
I could share lots of tips on how to run an online store, but most of this information (including small details) can be found in other articles on our blog. So, I’m going to give you two general recommendations on selling products.
Advertise your goods on social media
You can find dozens of online selling tips on AliDropship’s blog that explain how to find popular products, how to drive traffic to your shop with SEO, tips on using Google Ads and other tools, content marketing, etc. The team and I use all these methods, but most sales still come from social media, and particularly from Facebook.
Why are social media so efficient?
Partially, it’s because certain networks have very large audiences, which makes it easier to find customers among them. Partially, it’s because social media have turned into shopping destinations. People are not just used to seeing ads in their feeds. Often they expect to see an ad, find an interesting product, and buy it.
So, while using other advertising methods is desirable, social media promotion is a must for a successful online store! Describing how our team runs social media campaigns could take too long, so I recommend reading the corresponding article dedicated to our Facebook marketing strategy.
Another great way to raise sales is to send emails to previous buyers and new leads. On the one hand, the revenue from this channel may be much lower than what you earn from other sources. On the other hand, email marketing is mostly used in remarketing, which is very cost-efficient.
When you advertise goods to a new audience, these people are unfamiliar with your business and products. But if somebody left you his or her email, this person is more willing to get letters from you and buy goods.
So, sending emails should be part of your dropshipping routine, too. As for what kind of letters you should write, here’s the list of the most popular email types:
Product updates: tell potential customers about new arrivals.
Sales notifications: tell customers about upcoming sales or discounts.
Abandoned cart notifications: remind previous website visitors about the products they wanted to buy before leaving the site.
You don’t have to send these letters every day. Two or three times a week should be enough. Moreover, you can create email templates to save time.
How to manage an online store: the bottom line
After I sort out all the emails for today, I go ahead with the core part of managing an online store: order processing.
As you can guess, this procedure doesn’t take much time because the plugin does it all automatically. All I need to do is click the ‘Place Order’ button, and basically, that’s it. The system does all the rest. After the supplier sends me the tracking ID, the plugin automatically grabs this data and connects it to the order details.
After this, I only need to change the order status to ‘Shipped’, and the client will automatically receive the email notification about the successful shipment and the tracking ID. Given the amount of work I need to do manually every day, this is a huge time saver, obviously.
Once a week, I calculate the net profit: overall revenue minus advertising expenses minus the cost of ordered items.
Plus, I provide my colleagues with data on our buyers’ purchasing behavior. For example, I can see the customers’ country of origin. What’s more, I surely can tell what items sell best in a given period of time.
These details are valuable for our Internet marketing specialists because such data influences the product policy, the ads targeting, the amount of money spent on promotion, etc. I am not directly involved in the creation of promotional strategies; still, I can sometimes give a piece of advice to marketers when it comes to one specific store we run.
This store is all about a highly specific fan niche, and I’m actually a fan of it myself. Therefore, I know which communication tricks and product offerings can work well there.
The best solution is to work ONLY within a specified period of time that is convenient for you. Never sacrifice your personal life for the business’ benefit!
Lots of tricks can be used to minimize the time you’re spending. For example, I have pre-written email templates for almost every occasion. Additionally, I use AliDropship’s automated solutions that help me get enough time to sort out various queries that appear because of the human factor.
Rule #3 is to dedicate your store to something you know well. The more experienced you are in this particular field, the easier it is for you to predict what will work best for your customers.
This passion is what motivates you to keep going and to grow your business. I hope these tips on how to manage an online store will help you find the proper balance, and I wish you the best of luck with your awesome dropshipping stores!
Sooner or later anyone who’s thinking about launching a business faces an issue that causes severe headache – taxes! In this particular article, we are going to talk about value added tax (VAT).
What is VAT?
Value added tax, or VAT, is a type of tax that is levied on the value of goods or services added at each stage of production, distribution, or sale to the end customer (consumer). Also known as the goods and services tax in some countries, it’s a consumption tax that is paid by the final consumer who ‘consumes’ products and services, but in practice, VAT is paid at each stage of the supply chain.
Sounds too complicated? Let me explain it in simple terms.
How does VAT work?
Let’s imagine a supply chain that consists of three stages: a farmer who grows apples, a food-manufacturing plant that makes apple juice, and a retail store that sells the juice to end customers. Now let’s get to numbers.
For simplicity, let’s suppose the farmer only puts his own efforts into growing apples. He doesn’t buy anything from other businesses. In this case, he has no expenses and his added value equals the price at which he sells the apples to the plant. So, if he sells the apples for $100, the VAT is applied to this sum.
If the value added tax rate is 20%, the farmer will have to pay $20 to the government. But he doesn’t want to lose money and includes this sum into his final price which increases to $120.
The food-manufacturing plant buys the apples from the farmer and pays him $100 + $20 that goes to the government. The plant makes apple juice and wants to earn $200 as profit (added value). In this case, the plant will have to pay $40 as VAT.
But the plant has already paid $20 to the farmer, so it sells the juice for $360: the cost of apples ($100) + the farmer’s VAT ($20) + the profit ($200) + the plant’s VAT ($40). In this case, $40 goes to the government, while $20 goes to the plant as compensation for the farmer’s VAT.
Next, the retail store pays $360 for the juice and wants to make a profit of $400. But it has to pay $80 to the government as VAT and wants compensation for the plant’s VAT. So, it sells the juice to an end customer for a total of $840: the cost of juice ($300) + the plant’s VAT ($60) + the store’s profit ($400) + the store’s VAT ($80).
As for the end buyer, he or she pays $840 for all the juice bottles including $140 as VAT, but he or she cannot get this sum back.
So, as a result, the customer doesn’t pay the money to the government. Instead, the businesses in the chain do it. But the end consumer pays the tax to businesses so that they could hand the money to the government. The VAT that the customer must pay equals $140. It is the sum of the VAT the businesses have already paid to the government: $20 + $40 + $80 = $140.
But what about dropshipping? Do you have to pay value added tax? In most cases, you do.
When you purchase a product from a supplier, the price already contains VAT he/she pays to its government. So you don’t have to worry about it. But you must also collect VAT from your customers to compensate for your expenses and hand the tax to the government.
The AliDropship plugin lets you include taxes in the total price of your products. You can set the tax name and rate, apply it to the price alone or to the cost of shipping as well, and even bind the settings to countries, regions, or cities. Here you can learn more about tax settings in the AliDropship plugin.
Let’s take a look at tax systems in the most popular countries for dropshipping – the UK, the US, and the EU.
Disclaimer: The content of this article is provided for informational purposes only and should not be regarded as legal advice on any subject matter. We strongly recommend consulting a professional tax advisor before taking any action.
Value added tax in the United Kingdom
After the UK left the European Union, its tax regulations changed. Here’s what you need to know.
If you want to sell products in the UK from overseas, you have two options. You can either use an online marketplace or sell goods from your own website.
And since this is the case for dropshipping, you have to register your business for VAT in HMRC (Her Majesty’s Revenue and Customs). You can do it online or by post. After that, you’ll get a 9-digit VAT number.
If the cost of the consignment of goods doesn’t exceed £135, VAT is calculated based on the price at which you sell products to customers. If the cost exceeds £135, VAT is calculated at the point where the products cross the border.
The standard VAT rate in the UK equals 20%. But for some categories of goods, the government applies the reduced rate (5%). Some product categories are VAT-free. To see the full list of VAT rates in the UK, follow this link.
You can also read our article on dropshipping in the UK to learn about other taxes and customs regulations in the kingdom.
Sales tax in the United States
First of all, the government of the United States doesn’t collect value added tax. Instead, end customers pay sales tax.
It’s a consumption tax imposed on goods and services sold within a state’s jurisdiction. While VAT is collected at each stage of production, sales tax is collected only at the final stage (consumption). Still, from a retailer’s point of view, sales tax is basically the same as VAT.
The problem here is that the federal government doesn’t collect sales taxes. It is the responsibility of the states. As a result, sales tax rates are different in each state, and so are the rules (to some extent).
For example, California has the highest sales tax rate equaling 7.25%, while Delaware imposes no sales taxes at all. You can see all sales tax rates by state here.
Previously, a business didn’t have to pay sales taxes unless it ‘had a nexus’ in the given state. To have a nexus means to have a physical presence in a state: to own a brick-and-mortar store, a warehouse, etc. However, after the new Supreme Court ruling (South Dakota vs. Wayfair, Inc.), this requirement is no longer in force.
In simple terms, it means the following. Previously, if your business didn’t have a large enough presence in a given state and a customer from this state purchased something from you, you didn’t have to pay the sales tax. The same goes for businesses registered outside the US.
But now, according to the new ruling, it doesn’t matter whether you have or have not a nexus in a given state – you do have to pay the sales tax anyway.
Nevertheless, to collect sales taxes, your business must be large enough: to have annual sales not less than $100,000 or make not less than 200 separate transactions in a given state per year.
It means that if your dropshipping store receives less than 200 transactions from this particular state and makes not more than $100,000 from this particular state, you don’t have to pay the sales tax to the government of this state.
But if your business exceeds this limit, you will have to register your business with the given state’s tax authority. Unfortunately, each state has its own requirements, so it’s impossible to give a general recommendation here. Just visit the corresponding state’s website to learn the details.
Value added tax in the European Union
Goods imported into the EU countries with a value of up to €10-22 (depending on the country) are exempt from import VAT. But if their value exceeds this limit, import VAT must be charged.
If your business is located outside the EU, the responsibility to pay VAT lies on the importer of record. Usually, it is the end customer. The problem here is that the customer must pay the tax when he or she receives the parcel. It often becomes a very unpleasant surprise and can lead to more refunds.
To solve this issue, one can register for VAT in the country where the products cross the EU border. It’ll make you the importer of goods liable for collecting and paying VAT. In this case, the consumer will pay the full price (including import VAT) at the checkout. Or you could just warn customers that they will be charged with VAT.
But different EU countries have different VAT rates (from 17% to 21%), while some countries exclude mail orders from this exemption. What if you sell goods to an EU country different from your country of registration?
But it works only if the sales generated in the given import country do not exceed the threshold of this country. These thresholds vary from one EU country to another:
If you exceed the threshold, you will have to register for VAT in that country and charge its own VAT rate instead of domestic VAT. VAT rates differ depending on the country as well:
From July 1, 2021, these rules will change. EU and non-EU businesses importing goods with a value up to €150 will be able to join the Import One Stop Shop (IOSS) Scheme. It will let you declare and pay VAT in a single monthly VAT return.
You must collect the tax when accepting the payment for the goods (i.e. at the checkout). Then you pay it to the country where you registered your business for the Import IOSS.
Otherwise, the customs broker will collect VAT.
If the imported consignment of goods has a value exceeding the €150 threshold, import VAT is paid to the customs. It may also require a regular VAT registration in the country of importation.
The government will replace the old VAT thresholds with a new uniformed threshold. Small businesses registered in an EU country and selling less than €10,000 of goods to other EU countries, will be able to charge domestic VAT. Otherwise, they will charge the VAT rate of the country of import.
As you can see, the tax system of the EU is probably the most complicated because each country has its own rules and tax rates. So, consulting a tax advisor is a must here.
Every day we get hundreds of questions from absolutely different categories of people. Can you guess who the most common askers are? Happy new owners of dropshipping stores have more questions than anyone else! Often they ask questions related to dropshipping management operations.
It’s an absolutely normal situation if you don’t know how to run your brand new business. Don’t worry, you will learn it all in due time. And as for now, we’re always here to guide you.
1. What should I do day to day to manage my store?
It may sound obvious, but you need to actually run your dropshipping business every day if you want it to be successful.
It’s not enough to simply own a store without doing anything to it. Take a look at the success story of Alex – during the first month of his newly opened store operation, Alex did nothing to manage the operations. As you can guess, the results weren’t satisfying at all. Everything changed as soon as Alex started paying attention to the business, and now things are going more than well.
So, as an owner of a dropshipping business, you need to:
Manage orders and payments, inventory, and track delivery
Well, this is the essence of the dropshipping business model, right? You don’t have to think about warehouse management and shipping issues (and it saves you tons of money!), but still, there are certain dropshipping management operations in this field you should take care of.
You have nothing to worry about, though, if you have the AliDropship plugin already installed. In terms of business operations, it does the majority of necessary tasks, so the only thing you actually need to deal with is customer support.
Communicate with your customers via email and other means
Communication and interaction is probably the only thing that can’t be automated in this business field.
People value personal attitude, and it becomes exceptionally important when it comes to eCommerce.
Just think about it: someone decides to buy a product from you without seeing this item first; basically, this person trusts you with their money, and, to be honest, takes a risk.
Don’t leave them confused and uncertain! Help them, guide them through the store and the shopping process, encourage them to make a purchase, and thank them for their decision.
This is how you will turn their random purchase into a very personal and pleasant customer experience. This is how you will create additional value for your store, and this is how you will carefully build an audience of loyal and engaged customers.
Drive traffic to your online store
People can’t locate your store easily, you know.
The competition is astonishing, and the Internet is huge.
This is the challenge that can and must be taken. All you need to do is pay attention to your promotional efforts. If you don’t know where to begin, take a look at our Marketing Tips blog section.
Search and import new products for your store
The day to day operations of dropshippers always include frequent product researches.
It is important to do it regularly – this is how you will keep your existing customers enthusiastic about new offers they didn’t see before. Also, don’t forget about trends and fashion – technologies and interests change quickly, and it is vital to go with the flow. Nobody likes outdated and boring items!
Edit the content of your pages to make the store look neat and professional
Mostly, it refers to single product pages – when you import new products from AliExpress, the titles and descriptions you get are not perfect at all. This is why it is necessary to take some time and edit everything that doesn’t look good.
Also, don’t forget about search engine optimization – keep it in mind when you’re editing the pages’ content. You won’t see immediate results, but in the long run, these efforts will give your more benefits than you can imagine.
2. What are the costs of running and managing a dropshipping store?
Oh, no one can tell you how much dropshipping management operations will cost you.
Let’s think of all the possible costs you might have in this business:
Hosting payment – sorry, you just can’t go without it.
First orders payment – you need to order an item on AliExpress to get it delivered to your customer. So, at the beginning of your dropshipping journey you will spend your money first to get later paid by your customer.
Marketing activities – everything is up to you here. Maybe you will launch a full-scale campaign that will cost you hundreds of dollars, and maybe you will simply install some promotional plugin like Social Rabbit.
As you can see, it’s impossible to predict the amount of your expenses. No one defines it but you!
3. What should I do when I receive an order?
Step one: get excited.
Step two: go to the Orders section and click the “Place order automatically” button.
The AliDropship plugin will visit AliExpress and create an order for you automatically. It will select necessary product variations, add items to your shopping cart and fill in your customer’s shipping details on the checkout page. You will just need to click confirm button to complete a purchase.
Alternatively, you can place the order manually by clicking the “Place order manually” button.
Step three: celebrate!
4. Will the cost of an item on AliExpress be deducted from my PayPal account?
AliExpress doesn’t support PayPal as a payment method which is why you can’t use your PayPal account to pay for purchases on AliExpress.com.
In other words, the cost of an item won’t be deducted from your PayPal account. Instead, while placing an order on AliExpress, you can use one of the payment methods supported by the platform. The most commonly used ones are Visa and MasterCard credit cards, as well as Visa, Maestro, and American Express debit cards.
5. Does the plugin import the shipping costs or do I have to add shipping options to my products?
The AliDropship Plugin doesn’t import items’ shipping costs.
We highly recommend offering your customers a free shipping service by taking advantage of the free/low-cost shipping offered by many AliExpress sellers. However, the Plugin has a special section where you can enable or disable different shipping options.
You can add up to four different shipping options (including free shipping) to any or all products.
6. Are the customers able to create an account on my website?
Yes, your clients can get the option to create a personal account on your website.
This account gives your customers the opportunity to store their contact and shipping details, check the list of products they purchased, and track the status of any order.
7. Will the customer receive a tracking number? How can our customers track their orders?
The plugin will automatically collect this tracking data and add it to your order details.
Please note: you need to be logged in to your AliExpress account and your AliDropship orders section to activate this tracking auto-filling option.
8. How can I know if the package was delivered to the customer?
If there’s a tracking number available, you can easily track the package delivery.
With this tracking ID provided by the AliExpress supplier, you can check if the customer received an item.
9. My customer didn’t receive the order. What should I do?
First of all, stay calm and don’t panic.
Unfortunately, this happens. And it’s another part of your regular dropshipping management operations.
Maybe something went wrong within the postal service, or the customer provided a wrong address, or a seller is shady (did you choose the seller carefully?). You’ll figure it out later, but right now it’s not the first priority.
Whatever happened, it can all be fixed. Your behavior and personal attitude will help a lot to solve this issue.
We recommend talking to the seller first. Go on AliExpress, open the “My Orders” page, select the faulty order and write a private message to the seller. The seller should respond quickly and offer different solutions to fix it. The reputation of the sellers is rather exposed and they are willing to do anything to maintain their feedback rating.
So, if your customer is not satisfied with a product and asks you for a refund, you should dispute the purchase with the AliExpress seller.
If you are selling inexpensive products, your AliExpress suppliers usually refund you quickly and don’t ask you to return the items. They don’t want to waste their energy on managing disputes and receiving returns for relatively low-value items. You can read about it more in our interview with an actual AliExpress seller.
As a result, you can give a full or partial refund to your customer through PayPal without asking them to return the product. This is why we recommend that you don’t spend all your earned money at once – keep a small fund just to be safe.
If there are more questions related to dropshipping management operations we haven’t covered, feel free to leave them in the comments section below. We hope the answers will help you start a successful dropshipping business.
When you decide to start a business and build a completely new online store, your first priority is to pick a business niche for your venture. But how do you do it? And what if your initial choice turns out to be a mistake? Today we’re going to talk about how to find a niche or change it afterwards.
What is a niche?
A niche is a part of a broader market that businesses occupy. In simple terms, instead of offering all product or service types, a company focuses on a narrower range, thus specializing in a specific field, or a niche market.
And here’s a niche market definition: it’s a segment of a broader market that features unique demands and preferences that can be different from that of the broader market. Pet products, fitness equipment, toys – these are examples of product niches.
Businesses (especially small businesses) often focus on specific niches instead of trying to occupy larger markets. Narrow niches are more clear from different points of view. Business owners have a clearer idea of what kind of products customers need, better know how to target the audience or how to reach customers with content marketing, etc.
A specific niche is the key to success, and it usually has a number of advantages over general stores. However, it doesn’t mean that just any random niche will guarantee success. Entrepreneurs all over the globe come up with thousands of business ideas, but not all of them get worldwide attention. To find a good niche, one needs a proper market analysis, and a bit of luck won’t hurt either.
How to find a profitable business niche?
Here I’m going to talk about how to find your niche for a dropshipping business, but many of these tips will suit traditional ecommerce as well.
Use Google Trends
In ecommerce and digital marketing, any Internet user is a potential customer. Therefore, you can apply everything you know (or can learn) about internet users to your target audience. One of the easiest ways to pick your business niche is to check Google Trends to see what people search for in Google.
This tool won’t show you exactly how many queries people make, but it reflects how the relative number of queries changes over time. So, you can tell whether the interest is rising or falling.
Here, for example, you can see the results for the search term “camping” for the United States over a period of more than 15 years. We can conclude that the interest is stable (even has been rising a little bit) but seasonal.
Of course, one search term is not enough to define a profitable niche, but that’s a start.
Another way to find a business niche is to check other ecommerce stores and platforms (first of all Amazon). Your goal here is to find niche products that show high demand. To understand if a product belongs to a niche with high potential:
check the number of purchases on the platform;
look at the product’s score/rating;
read customer reviews.
If you’re going to launch a dropshipping store that sells goods from AliExpress, I also recommend checking the number of products within a potential niche. If there are many product types, the niche may be worth trying. But if not, you won’t be able to offer a large enough range of goods.
Also, make sure there are reliable suppliers with a high feedback score who’ve been on the platform for at least a couple of years.
If you want to dropship goods from AliExpress, make sure you build your website with the AliDropship plugin. This solution was designed specifically for dropshipping from AliExpress and has numerous add-ons that will make your online store even more profitable.
Use social media
Social media has long become advertising and retail platforms for both large and small businesses. It’s also another source of information for an entrepreneur looking for a business niche.
Facebook, Instagram, and Pinterest are probably the most important networks to check. On Facebook, you should look for social groups dedicated to certain interests. On Instagram and Pinterest, you’re looking for popular image categories and hashtags to understand what users are interested in.
How to evaluate a business niche?
These are the criteria that can indicate that a niche has potential:
The goods in the niche solve real problems
Usually, people don’t buy things they don’t need. However, a product that solves a real problem is a different story. If a niche offers many such goods, it definitely has potential.
The goods trigger an emotional response
Alternatively, a product may be useless but evoke strong emotions. Cute clothes and toys, hilarious coffee cups, beautiful jewelry – we buy such products not because we need them but because we like them!
It’s easy to identify your target audience
One of the benefits of building a niche store is that you don’t have to market your goods to everyone. Instead, you can focus on specific demographics. And if it’s easy to tell who your customers are, what they like, how to reach them, how much they’re used to spend, etc., it means you’ve found a good business niche.
You like this niche
Yes, you want to make money with your small business, but it doesn’t mean you should do something you hate. Besides, when you advertise and sell something you know really well, something you like, you can easily tell if a product is really useful or good and become a good adviser for your clients.
4 reasons to think about changing your business niche
Even after thorough research, you may find that things aren’t going smoothly and your business niche doesn’t bring as much profit as you expected. Sometimes entrepreneurs change the niche for other reasons.
In any case, you don’t always have to start over. There are ways to change your business niche even after you’ve launched an online store. But first, let’s find out when you really need to change it.
#1 Sales drop
If you start losing money, it’s an obvious sign that something’s wrong. However, one must be careful here because sales drop can be the result of different factors. The problem may lie in other fields such as promotion mistakes, wrong marketing strategy or seasonal demand fluctuations. That’s why if your sales drop, you’d better not jump to conclusions.
#2 Same efforts bring worse results
If what used to work a year ago is now working poorer, it clearly indicates that the market has changed. To keep doing the same thing and expect different results is madness. Nevertheless, many companies hold on to the methods that became traditional. ‘We always did it like this, and we’ll keep doing it like this!’
That’ll lead you to nowhere.
#3 You see opportunities
If you see something with a potential for growth, which you didn’t see when you started the business, it could be your chance for improvement. However, before doing something, conduct a proper analysis to make sure it wasn’t your imagination.
#4 You don’t feel satisfied
Also, don’t ignore your personal feelings. In online business like dropshipping, a lot depends on passion. If you don’t feel inspired anymore, maybe it’s time to make changes?
Again, it doesn’t necessarily mean you definitely need to change your niche. Maybe, you’re just tired and need a vacation. Or you’re going through a hard period of your life. But giving it a thought won’t hurt.
How to make adjustments to your business niche
Generally speaking, changing the niche is not a good idea because everything in your dropshipping store should correspond to it. The store’s name and design are defined by what kind of products you sell. However, there are more or less harmless ways to change a niche.
When a business focuses on a niche, promoting it becomes relatively easy. But at the same time, you miss other opportunities.
One of our stores used to sell paintings. It’s not like people didn’t buy stuff like this, but after the initial success, the growth stopped. The team tried different things, but nothing helped.
Then a manager noticed that a few customers asked about other art objects such as statues and decorative dishware. These categories were never presented in the store, but the team thought – if some customers expected to find something like this here, why not offer it?
During the next few weeks, the team created a number of additional categories, found and imported new products. Some of them didn’t sell well, but statues were a success.
Now the shop sells paintings and statues, and we want to try yet another category.
As you can see, we didn’t actually change the niche by switching to something else. Instead, we broadened it by including other closely related categories of products.
The opposite way to improve your dropshipping business is to narrow the niche. You do it for the same reason as to why you avoid general stores in the first place, but this time you go even further.
Another shop we own used to sell cute clothing. We had various models with lovely and funny prints, but the managers noticed some models sold well while others were never in demand.
After a thorough analysis, the team found out that people actively buy clothing with owls. Therefore, we decided to start adding even more stuff with owl prints. This way, our potential customers got more choice of what they really wanted, which resulted in sales rise.
Thus, the store became more focused on ‘owl clothes’ rather than ‘cute clothes’ in general.
3. Getting beyond your niche
A business niche is defined by people, and it’s not strict. What seems like a clear category of products can be easily expanded if you look at it from a different perspective. In other words, in certain situations, you might want to expand beyond the original niche and combine it with a related niche.
One of our stores was originally devoted to anime merchandise such as clothing, accessories, figurines and other stuff for fans. But to reach a greater audience and increase sales, the team decided to add Harajuku fashion clothing.
Of course, these two niches are related, but they’re not the same. Still, those who were interested in anime and Japanese culture in general gladly accepted the new products.
4. Pricing, delivery, etc.
Sometimes, it’s not the products you want to change, but another important aspect of your business. Prices are a good example.
The original idea for one of our shops was to offer low-cost items. But eventually, the managers decided to cut all the prices to only $5. As a result, we had to remove all products that were more expensive and add new goods to replace them.
The niche didn’t really change as the theme was still the same, but we had to focus on a limited range of products for a slightly different audience.
The same can happen if you decide to switch to the subscription business model, for example.
5. Complete rebranding
In a desperate situation when nothing works, you may want to completely change your store’s specialization.
Obviously, such a radical solution is a huge risk, and it’s not always possible. The store’s brand and domain name is the biggest problem as they usually reflect its content. So, if you suddenly change the niche, the name may look really weird. But if the name is vague enough, it may work.
There’s a store in our collection that used to sell accessories of all kinds including those designed for fans of popular movies and video games. Geek accessories, so to speak.
Promoting the shop was really hard, but the geek things sold really well. After a while, the team decided to completely rebrand it and start selling only geek stuff. Fortunately, the name wasn’t a problem and the decision proved right in the long term.
While finding a profitable business niche is very important, one should also take into account their own passion and interests. Our experience shows that starting a dropshipping store is much easier when you do something you sincerely enjoy.
People all over the world are increasingly wondering how to get started with dropshipping. So, today, we are sharing the step-by-step dropshipping success story of our own team. Here is the real-life experience that helps us create the best solutions for dropshipping store owners!
The AliDropship team has a huge experience in dropshipping business. We are creating and promoting lots of our own successful dropshipping stores that are available for purchase as Established businesses and Premium stores. Our team has done a lot of work and has gained solid practical knowledge over years, and it’s time to share our experience with a wide audience! We want you to use our practical tips and recommendations on how to dropship as we are sure it will help you create a profitable dropshipping store.
We started the dropshipping business in 2015. As of today, we have 50+ stores. At the end of February 2021, our monthly revenue was $900,000. Here you will find the 30 steps we took to achieve this impressive result in dropshipping.
How to get started with dropshipping business: Our experience
Ecommerce field is thriving. The growth of social media, mobile shopping, digital payments, artificial intelligence, big data, and personalized experiences are changing this business.
In particular, the dropshipping business grows really fast globally. It has huge potential because it is easy to start and run. People with any education and skills can do it. This is why we decided to give it a try and see what we can achieve.
Step 1. Dropshipping business research
How to start dropshipping? We started our journey with an analysis.
Can we run a dropshipping business?
Who will be our suppliers?
Will we find customers?
What do we need to launch this online business?
What technologies do we need to learn?
These questions are crucial. Without answering them, it is impossible to understand where to go next. You will need to do detailed research. As a result, you should get a clear view of your goals, opportunities, and challenges.
Step 2. Learning from competitors
This is tricky because not all ecommerce store owners openly say they are dropshippers. Still, any online store is a source of knowledge and can help you learn dropshipping tricks and strategies. Understanding how the store is designed and advertised can help beginners a lot.
We were inspired by the experience of Zappos. This is the biggest shoe and clothing webstore on the globe with great profit margins. It was an ordinary dropshipping store at first, but in 10 years Amazon bought Zappos for $1.2 billion.
This type of information helped us a lot. It is important to rely on it when you have no experience yourself.
Step 3. Understanding the legal part of dropshipping: registering a company
Most businesses should be registered. For dropshipping business, this is not always necessary. It all depends on the country where you run this business, although technically it doesn’t really matter where to start dropshipping. As a beginner, you can start a business with no registration.
We learned it when we talked to AliExpress sellers. We wanted them to be our dropshipping suppliers. They don’t mind if you are a private individual and not a business.
As a rule, buyers also don’t ask about it. But it is important that you provide them with money back guarantee and free shipping worldwide. These options should be offered by your suppliers, so check if they can do it.
Step 4. Understanding the legal part: dropshipping taxes
Taxes are a vital part of every business. Dropshipping taxes exist in the form of customs fees. Customs fees are added to the cost of the item, and it is a buyer’s responsibility to pay them.
Customs fees are different in every country across the globe. This is why you need to notify your buyers about it. Ask them to check what the customs fees in their own country are. Your potential customers must be aware of the local laws and regulations, and they must pay customs fees if necessary.
Step 5. Choosing dropshipping suppliers
To create a dropshipping store, you need to find products to sell and their descriptions somewhere. But these products and their sellers should be really special. It is important that they meet some criteria.
The sellers, for example, should be ready and glad to work with you. They should deliver items to any place in the world. Also, they should agree to deliver orders without putting their own promotional materials in the packages.
In addition, it is really important to choose the right niche. It means a lot to the success of your dropshipping store.
We have a lot of webstores, and all of them sell different products. Every niche for these stores was chosen with the same algorithm. It is a special mechanism we have developed ourselves when we started selling online.
Step 6. Understanding own interests
It is much easier to run a dropshipping store if you are deeply interested in it. So, we recommend that you think about your passions first.
When you have deep knowledge of your niche, you provide better customer service. Besides, if you like and understand your niche, you can pick the best items for your store. You can provide these products with top quality descriptions.
Your clients feel that you are passionate about your ecommerce business, so they trust you. Also, they know that they can get professional and detailed consultations.
Step 7. Defining the target audience
Who are your potential customers?
It is important to know your target audience. This is how you will promote and advertise your store more effectively.
It doesn’t matter what countries they are from. Dropshipping has a global reach, so you are not limited by a region. Instead, you need to know what they are interested in, and how you can attract them to your store.
When we choose a niche, we always go on AliExpress to check its potential. It means that we look at the number of products offered on the platform, the reputation of suppliers, and buyers’ feedback.
It is necessary to understand if we can find enough offers from this niche. These offers should meet some criteria (a big number of orders, positive feedback on the quality, good reviews about the seller, etc.). After all, we need to fill a store with lots of items, and we need to update our product range from time to time because it keeps our target audience interested.
Step 10. Checking the marketing potential
Can we promote this niche on social networks? Can we do something for its search engine optimization? Is the niche good for paid ads?
It is necessary to answer these questions when you choose a niche. If it has good potential for promotion, you will be able to attract more customers and earn more.
When you create a store, it is important to make it convenient for your customers. We did our research and understood we can make something great.
This is how we developed the AliDropship plugin. It can help you create and run a fully functioning and professionally looking webstore.
Step 11. Buying a domain name
We use the GoDaddy service to buy a domain name. Choosing the name, we prefer something short and easy to remember. Besides, ideally, domain names should be identical to company names. Alternatively, you can include the most important keyword in the domain name. It will make it much easier for you to promote the store.
Step 12. Choosing a content management system (CMS)
There exist numerous content management systems. Simply speaking, a CMS is a solution that helps you create and manage content online.
When you develop a dropshipping store, it is really important to choose the right CMS (ecommerce platform). It should be functional, easy to understand, and easy to manage.
That’s why we prefer to work with WordPress. It is perfect for dropshipping stores because it is easy to run. Also, it is really functional and convenient for business.
You can also make it even more functional if you install plugins with additional features. The AliDropship plugin is a good example of such a tool. It was created by dropshippers and for dropshippers, so it has all the features you need to get started with dropshipping.
Step 13. Choosing a hosting solution
This is the necessary part of creating your dropshipping business. Web hosting is the service that you use to publish your webstores online and make it visible for Internet users. If you don’t want to do it all yourself, you can ask for professional help with hosting.
Step 14. Creating the store design
When the website itself is ready, you don’t have to do much with it. As soon as you install the AliDropship plugin, all the main things will be done automatically.
It is especially important for design. A webstore design means a lot for business success, but it can be tricky. People who have no experience in developing sites often have a lot of questions about making a good store design.
With the plugin, you can choose one of several themes available, and use it for your dropshipping store. All of them look nice and professional. Therefore, you can be sure that your store visitors will enjoy being on your site.
Step 15. Importing products
Later in this article, you will learn how to check product ideas and choose the right products.
The plugin allows you to import items from AliExpress automatically. You need to set the search parameters, and the plugin will do all the rest. So, you don’t need to spend hours on AliExpress to choose and import items to your store. You only need to spend several minutes and do a few clicks.
Step 16. Integrating multiple payment options
Your goal is to sell something to your store visitors. It should be convenient for them to make a payment. Remember that you sell your products to people all over the world!
That’s why you need to include several payment options. For example, our plugin accepts payments made through PayPal and major credit card processors.
How we do dropshipping
How does dropshipping work?
The most common questions we get are related to management and organizational issues. They may seem challenging for beginners. This is why it is so important to cover them.
Generally, you need to check if you like the product description, its photos, and reviews from previous buyers. Also, it might be useful to order a couple of items for yourself. This is how you can check if you want to add them to your store.
Step 18. Choosing suppliers
Suppliers mean so much for the success of your store! AliExpress is different from major dropshipping platforms. The latter typically ask you to pay a fee to view suppliers’ contacts and their offers. However, on AliExpress, you can access all the necessary data for free.
So, AliExpress is a great place to search for dropshipping suppliers because you can see detailed statistics on every seller. This is really useful because you can check the feedback and performance of any seller you like. Also, it is really easy to contact sellers. When you communicate with them, you can understand if they will be good partners for you.
Step 19. Placing orders
When somebody buys something from your store, you need to give all the information to your supplier. The AliDropship plugin does it automatically.
It notifies the seller about the ordered product, its quantity, and the buyer’s address. It is all done by the plugin, so you won’t mix up anything. Besides, it is really useful when you have a lot of orders.
Step 20. Working with troubled orders
Sometimes it happens that our customers are mistaken. They provide incorrect names, surnames, and even postal addresses.
Sometimes they change their mind.
Some of them may ask for returns and refunds.
Sometimes they can’t track the package and say it is lost.
This is our job to be really polite and patient. We are all humans, and anything can happen.
That’s why we do our best to negotiate and offer several possible solutions. And of course, we have to contact the sellers and note them about the problems we have. It is necessary to provide top-level customer support if you want your business to grow and thrive.
Step 21. Preventing fraud
Internet fraud gets more and more widespread. We are always polite to our customers, but we are really attentive to their behavior.
If a customer tries to pay from several different credit cards, it is suspicious.
If all these attempts fail, it is suspicious.
When a customer uses a credit card that is different from his own name and country, it is suspicious.
If we have any doubts, we typically ask the buyer to send us an ID form. Also, we wait a couple of days before processing the order. If it is a fraud, the payment system will recognize it, and the order will be canceled.
In general, we recommend that you follow the instructions of your payment system provider. They have their own sets of rules for such cases, so learn them and stay safe.
How we promote dropshipping stores
Step 22. Working with SEO
Search engine optimization is really important in the dropshipping business. If you do it right, you can achieve great long-term results.
You need to think about SEO when you choose a dropshipping niche. You should also consider it when you choose the domain name, and when you write texts for the store. The more you work on it, the more visitors will find your store in Google search results.
This process takes a lot of time and effort, of course. But you can make it automated if you like. To do that, read our research and review of the Social Rabbit plugin that automatically makes promotional posts for your webstore in any social networks you choose.
Step 24. Learning about paid ads
To promote your store the fastest way, you can also use paid advertising like Google Ads and Facebook ads. If you use your money wisely, even more Internet users will learn about your store. We used paid ads to promote dropshipping stores, and the results are really impressive.
Step 25. Dealing with clients
We have already mentioned we try to stay patient and tolerant in every situation. But apart from that, we also do a lot to enhance our clients’ experience.
When we analyze what our customers like and want, we can use the knowledge wisely. We can add new products from time to time to keep the buyers satisfied. Also, we monitor the market trends. This is how we learn that some new products appeared on the market.
Remember that it is necessary to advertise these products. If you add something new, make sure your store visitors and social media subscribers learn about it.
How we expand our dropshipping business
The business should grow. If you stop working on your store, it will gradually wither. This is why our work never stops.
Step 27. Improving customer experience
You can do a lot to increase your customers’ engagement and motivate them to return to your store.
Make sure it is easy for them to navigate your store. Check if it is easy to make a payment. Don’t forget to include all the information on shipping costs and other delivery terms and conditions.
Also, always be honest about the delivery time. Remember that you need to notify every new client about it. People don’t mind waiting for their order, but they need to know the correct information.
Step 28. Adding new products
We already mentioned that it is really important to keep your store offer up-to-date. If you add new items regularly, your clients are interested in visiting your store again and again.
The bigger your product range, the bigger the average check. It means you can also add the products that are related to your niche, and your customers will also be interested in buying not just one but several products at once.
But we recommend following a specific concept when choosing new products. Always remember what the general idea of your store is, and don’t get distracted. It is especially important if you promote your site as a niche store.
Step 29. Creating new stores
When you launch your first dropshipping store, you don’t know much about management and promotion. But as soon as you get enough experience, you understand it is not really difficult to run such a store. It means you can use your knowledge to create more and more stores in other niches.
Remember that your ecommerce store is an asset. If you run it wisely, you can sell it for a good profit. We learned it from the experience of our client Alex who manages several dropshipping stores at once and sells some of them from time to time.
Step 30. Exploring
There is so much to learn! New business ideas, new niches, new traffic sources, new promotional methods, and many more.
Business and technology evolve every day, so you have a whole world to explore. Always look for something new, and don’t be afraid to try and test different things. This is the engine that drives you and your successful business.
These are the 30 steps that we took to get our impressive business results. We started from zero, and less than in 2 years we achieved the average monthly profit of $97,000. By 2021, the revenue of our dropshipping stores got to $900,000.
How to get started dropshipping using our experience?
We are excited to offer you 4 ways of becoming a dropshipping business owner!
Create a dropshipping store by yourself
Thanks to the AliDropship plugin we created as practicing dropshippers for our fellow entrepreneurs, you can launch a dropshipping store yourself even if you don’t have a technical background or any experience in website development. Installing the plugin even on the simplest WordPress site, you’ll get a fully functional dropshipping store that can accept incoming orders, transmit them to your AliExpress suppliers, and process your buyers’ payments! To see how you can launch your dropshipping business this way, simply read this article.
Order a custom store from our skilled team
If you want, you can safely delegate us all the technical tasks associated with a dropshipping store creation. Upon your request, we’ll make a unique custom dropshipping store and consider your individual preferences of its design, name, niche, product range, etc. As a result, as soon as we complete the development part, you’ll get a perfectly optimized dropshipping store ready to be put into operation immediately. Kindly read more about this offer here!
Get an exact copy of a store with a proven potential
If you don’t want to create a dropshipping store by your own effort, and don’t want to wait until we develop an individual custom version for you, there’s a simple and elegant solution!
Check out these Premium dropshipping stores: you can buy an exact copy of any one of them, and put this copied website into operation immediately, without waiting and wasting your time. Plus, with these stores, you won’t even be wondering whether your business will be successful: as you get a full replica of a well-performing store, you can be sure of its money-making potential. What’s more, you can even get the same marketing materials we used ourselves to promote these stores: check out the details here!
Buy an established business with a proven track record
If you like the idea of buying a ready business, but want it to be unique rather than copied one, check out the Established stores! They are also created, managed, and promoted by our skilled team, and they are only put on sale after they truly prove to be generating healthy profits.
Every store goes with detailed performance data, so you can view the stats and make a well-informed decision before purchasing an established store. In fact, by doing this, you’re safely investing in a highly profitable business that is ready to drive sales from day one. Just take a look at the details if you’d love to become an owner!
We hope our experience will motivate and inspire you to start your own dropshipping business in any way that is more convenient to you. If you have any questions, feel free to leave them in the comments section below. We wish you the best of luck on this road to success!
Are you looking for ways to get a quick sales surge for your online store? Have you ever heard about an impulse purchase? Well, today we are going to tell you how to make the most of your ecommerce business using knowledge of customer psychology only.
What’s the main aspect of any ecommerce business? Right, it’s your profit! Otherwise why have you started it?
So, are you satisfied with your online store revenues? Or do you have a good income, but you want more to make a fortune with your business? If so, there is a perfect solution for you – try to trigger impulse purchases!
What is an impulse purchase?
First of all, in order to discuss the benefits of impulse purchases, let’s take a look at the impulse buying definition.
An impulse purchase is a customers’ trend to buy something without prior planning.
So have you ever decided to purchase a tiny thing when just surfing an online store, even if you were not going to do this? This is, actually, the way an impulse purchase works.
In fact, impulse buying is the main engine of sales if speaking about online stores. But how much can you gain from impulse shopping if running an ecommerce business? Let’s figure it out!
How can impulse purchases influence your business performance?
We have found out what an impulse purchase is. So now you understand that you are able to get extra sales in your online stores if you follow this approach. But, indeed, can you earn a lot using this trick?
In fact, if you focus on impulse purchase generation when considering the product range for your online store, you’re highly likely to get a lot higher income than usual. According to a recent survey of 2,000 respondents, Americans spend $182.98 monthly on impulse buys. And that’s 18% more than what they spent before the pandemic!
Sounds impressive, doesn’t it?
Based on the above-mentioned facts, we can say for sure that impulsive shopping is a blessing to you and your ecommerce business!
However, in order to make the most of impulse buying, you need to know what impulse products are, how to organize your category pages in the right way to make your online store visitors add as many impulse products to their shopping list as possible, etc.
So, here’s our action list for how to trigger impulse sales online!
How to generate an impulse purchase in your online store: product choice
First, you should understand what kinds of products suit impulse purchases more.
However, there is no easy answer to this question because buying behaviors can differ very much. Impulse buyers tend to choose various impulse products. Seriously, people from different parts of the world have various interests, life concepts, needs, and what’s most important – different levels of income.
For example, if we are speaking about a young shopper with an average income, pretty socks are going to be a promising impulse product.
Well, $1.34 is not such a large sum for a person with median earnings to think a lot about, right? The most important thing is that a product looks very pretty, and that’s why it goes straight to the shopping cart even though it’s not essential.
If we are talking about a population group with high income, then the impulse products will be absolutely different. For example, with the rise of robot vacuum cleaners’ popularity, you can offer such a vacuum cleaner at a relatively low price. And this is going to be a great solution to encourage impulse purchasing when you deal with this audience segment.
So what does this mean? In fact, if you want to succeed in your business, you have to define your target audience carefully. Well, get a profile on your potential customer. After that, you will be able to bet on some impulse products.
However, we suppose you didn’t open this article to read typical advice on running an ecommerce business, right? That’s why we have examined the theory of impulse purchases and now we are ready to provide you with a set of recommendations on how to generate impulse sales.
Tips on increasing your online store revenues through stimulating impulse purchases
Make sure your online store makes spontaneous purchases possible
First of all, you need to create an environment that is going to encourage your customers to make an impulse purchase in your online store. It’s all about a theme for your store.
Meanwhile, if you buy a theme from AliDropship, you get free customer support, free updates, and a wide range of customization options. What’s more, pay attention that all the AliDropship themes were designed to comply with your dropshipping business.
Beyond this, when focusing on impulse purchases, it’s AliDropship Plugin that can help you much. With this dropshipping tool, you’re able to create perfect product pages that will serve as one more way to encourage your website visitors to purchase from you.
Try to focus on products with a low initial price
We have already pointed out that it’s essential for your business to define your target audience. Definitely, if your potential customers have higher income, you can use impulse products that are a bit more expensive. But still, it’s a lot easier for your business to make a fortune on low-cost impulse products!
By the way, if you think that it’s difficult to make lots of money on inexpensive items, you’re totally wrong. As a rule, different tiny things have incredibly low initial prices.
However, when you add this kind of products to your online store, in most cases you’re able to get a double or triple margin price. Some products can let you get even a 1000% margin. Great profit, isn’t it?
Consider where to place impulse products
You should understand that it’s crucial to put impulse products at the right places on your website. If you don’t pay enough attention to this, your website visitors are highly likely to miss these products.
However, if they are in sight, and the offer is quite tempting, you will have all chances to sell a huge number of these items.
Where to place impulse products in an online store?
Near the most popular and desired items
On single product pages of related products
Closer to shopping cart and checkout
Remember that impulse products have to be eye-catching on your website!
Give discounts and start promo campaigns
We recommend that you try to provide your potential customers with discounts on impulse products. As a rule, discounts are good enough at encouraging customers to purchase even expensive goods from your online store.
But in fact, this approach can help you when selling impulse products as well.
Moreover, try to make additional proposals: are you eager to buy a T-shirt? Get a discount on shorts as well!
It’s also a good idea to use FOMO (fear of missing out) to lure impulse shoppers to buy something from you. FOMO is able to tell your potential customers that the product is extremely popular among your purchasers, but the number of items is limited.
In sum, FOMO is one of the perfect tools for convincing your website visitors to make unplanned purchases from your website.
Moreover, AliDropship is glad to present to you the Urgency add-on. It includes a set of features (social proof icons, trust badges at checkout). Primarily, it aims at making your potential customers think that the products in your store are flying off the shelves.
Don’t forget to use additional dropshipping tools that are essential for increasing your customers’ engagement. For example, feel free to use the Countdown Timer Plugin. It’s going to inform your potential customers that the offer is limited in time.
As you can see, this is not challenging to start making money on impulsive buying right now. So if you follow, at least, some of these recommendations, you are extremely likely to boost your online store revenues substantially.
Enjoying the benefits of impulse purchases: final thoughts
There is no doubt that lots and lots of people make impulse purchases every day. The statistics tell us that impulse spending constitutes a significant part of all money spent on ecommerce.
So if you’re an online store owner, no matter if you use the dropshipping business model or not, pay attention to impulse purchases. This is really a must-have for you since it’s a chance for you to make a fortune on them.
However, if you want to succeed with impulse purchases in your online store, you should know how to use them in the right way. So, follow the tips from AliDropship and greatly increase your chances of success!
As you can see, providing opportunities and stimuli to make an impulse purchase is very important for ecommerce businesses. Haven’t you started your business yet? Then, today AliDropship is glad to offer you 3 newcomer-friendly OPTIONS to start your dropshipping business ASAP: Custom stores and Premium dropshipping stores! Don’t lose an opportunity to get a money-making venture right now!
The AliDropship plugin is undoubtedly one of the best ecommerce tools for dropshipping. But after launching a business, one may need a number of additional solutions. Presenting AliDropship’s secret bundles that combine our services, add-ons, and products.
With AliDropship’s solutions, one can create a semi-automated dropshipping business and profit from the booming industry. Moreover, if you order a Custom Store, you will get a professionally made website according to your own vision.
You can also choose from a variety of add-ons and services to offer your customers a better shopping experience, make your work easier, and ultimately increase your profit. However, it may be difficult to tell which of them will suit your particular business.
That’s why our team has gathered some of the add-ons and services into bundles. In this article, I’m going to tell you about these bundles and who can benefit from purchasing them.
This bundle will suit those who have purchased a Basic or Advanced Custom Store. It’ll also suit those who want to adjust their online business to getting passive income.
The bundle contains simple ecommerce tools for dropshipping that don’t require deep knowledge. At the same time, they’re designed to automate some of your work and increase your store’s revenue.
The Social Rabbit plugin will help you with social media promotion. The Product Bundle and Upsell add-ons will raise the average order value of your store, while Urgency and Reviews Page will increase the site’s conversion rate.
The New Store Bundle is a perfect solution for getting started without getting too much into advanced marketing techniques.
This bundle will suit those who decided to purchase one of AliDropship’s Premium Stores. These ready-made stores are copies of our own dropshipping websites. When you buy a Premium Store, you get a full copy of its design, site structure, and product inventory.
The benefit here is that all these elements were tested by our team. But it’s not just the site and product selection that made these stores successful.
By purchasing the Start-And-Sell Pack, you get the same ecommerce tools for dropshipping that our team uses.
The Social Rabbit plugin will provide seamless social media promotion. You will need SEO Image Optimizer for improving the site’s loading speed when you decide to enrich your initial offer with new goods. Gift Box, Bulk Discounts, and Purchase Upsell will help you get more sales from each customer. And the My Suppliers add-on will help you keep track of all your suppliers, which is very important when you buy a copy of an already functioning ecommerce store.
I also recommend buying our Add-on Installation service if you don’t want to set up these tools on your own. Besides, if you pick one of these secret bundles, you’ll get a 30% discount!
What you get: 3 page likes ads + 10 engaging posts + detailed guide
Most dropshippers drive traffic to their sites from social media and particularly from Facebook. After all, it’s the most popular social network in the world. But advertising your brand is difficult without a large number of followers.
People decide whether they can trust small businesses based on how many followers they have on social media. Besides, you can convert many followers into buyers. So, attracting followers is an important task for a dropshipping business.
Facebook Followers Booster is a service that lets you create Facebook campaigns aimed at generating likes and attracting followers. By purchasing this service, you get 3 followers generating ads, 10 engagement posts, and a step-by-step guide on how to launch such campaigns.
The service will suit any type of dropshipping store that relies on social media advertising. We provide the materials in four languages: English, French, German, and Spanish.
What you get: Mailchimp integration and pop-up setup + pop-up designs + sales-provoking coupons + attractive emails + sign-up form setup + step-by-step guide
Price: $149 / $189 / $249 (You save 15%)
This service combo will suit those who want to use lead generation in their marketing strategies. While standard ads end with a purchase, lead generation lets you collect customers’ contact information even if they didn’t buy anything. So, later you can reach them with email marketing and offer new products or new discounts.
By combining standard advertising with email marketing, one can substantially raise their revenue.
After you order the Email Marketing & Pop-Up Combo, our team will integrate your Mailchimp account with your dropshipping store as well as install a lead generation pop-up and a sign-up form on your site. You will also get a pack of pop-up designs, a coupon design, a number of promo emails to start advertising, and a number of reusable email templates.
The combo comes in three packages – Standard, Extended, and Premium.
This set of ecommerce tools for dropshipping will suit business owners who want to automate their marketing campaigns as much as possible. If you own a Basic or Advanced Custom Store or have built your own website with the AliDropship plugin, this bundle is for you.
The Google Merchant and Facebook Business add-on will make advertising on these platforms smooth and hassle-free. With the Social Rabbit plugin, you will be able to manage your social media marketing on Facebook, Instagram, Twitter, and Pinterest. The Split Test add-on will let you test products, product pages, and ads. You will also get Gift Box as a bonus.
But keep in mind that this set of ecommerce tools for dropshipping is designed for advanced users who know how to set up advertising campaigns.
Clients who purchase only the AliDropship plugin often want to make their sites prettier or improve their functionality. However, using third-party solutions can break your site. That’s why our team made this bundle!
The set contains tools that will advance your initial dropshipping store to a higher level. With the Product Bundle, Urgency, and Purchase Upsell add-ons, you will be able to sell more goods to each customer. AliShipping will let you import all shipping options available for this particular product from AliExpress. Recent Sales Pop-Up and SEO Image Optimizer will improve your site’s trustworthiness and performance.
So, if you feel like adding more functional elements to your site, this set is just what you need!
What you get: An advertising campaign aimed at your previous site visitors.
If you own a dropshipping business and have been driving traffic to your site for at least a month, it’s time to start a retargeting campaign. Although most site visitors never purchase anything, one can bring them back and turn them into buyers with retargeting. And that’s what you get by purchasing this service.
Our team will pick 10 of your best-selling products, create 10 image ads and a promo coupon, and design a retargeting campaign. After that, we will provide you with a step-by-step guide on how to launch and run this campaign on Facebook and Instagram.
As a result, your business will get profit from the warm audience who have visited your site before.
By now, you have probably noticed that some of the bundles offered above won’t suit those who have purchased an Ultimate Custom Store. Those sets contain the Social Rabbit plugin while the Ultimate package already includes this plugin. But why should you pay twice for the same product?
That’s why the team made this 7 in 1 set. If you own an Ultimate Custom Store but require more ecommerce tools, this bundle is for you. You get a number of add-ons designed for raising your business’ conversion rate and 2 tools for advertising.
If standard Custom Store packages are not enough for you, the Supreme Package is just what you need. You will get more pre-edited products, more social media accounts, advanced site optimization, a number of pre-installed add-ons, and even marketing materials.
The Supreme Package will suit entrepreneurs who want to operate in niches that feature a wide range of products. For example, customers won’t trust a fashion store unless it has hundreds of clothes. The Supreme Package was designed for niches like this: fashion, sports, fishing, toys, etc.
Your store will be better optimized to cope with a large product range. Besides, it comes with cool marketing tools which will automate 90% of your work. That’s why it is ideal for beginners: you will need to put little marketing effort to promote your business.
Whether you have only the AliDropship plugin, or own a Custom Store, or have purchased one of our Premium Stores, these ecommerce tools for dropshipping will enhance your business capabilities and offer your customers a better shopping experience.
Well, the words are not enough to describe all the benefits of dropshipping, but we can name and explain at least 10 of them. Here you are!
1. You take almost no risk
Fear is the reason why many people avoid starting their own business.
Of course, everybody understands the benefits of being self-employed and independent. Still, it is not easy for all of us to jump at the opportunity when it arises. Launching a business often costs a lot of money. And even if you have the money, there’s no guarantee your enterprise will pay off.
But dropshipping is different. It requires much less investment to start, and this is one of the most important benefits of dropshipping.
First, you don’t need thousands of dollars to create and launch a dropshipping website. Second, there’s no need to manufacture goods you are going to sell. As a dropshipper, you are going to resell products made and distributed by other companies. And finally, you won’t need to buy products in large quantities and rent a warehouse to stock them, so you will face no inventory issues.
In dropshipping, you buy a particular item only after you get customer orders. After that, your suppliers ship the products directly to the customers. Therefore, you spend money on goods and shipping only after you get paid.
This is why dropshipping gets so popular. Nowadays, it is basically the only type of ecommerce business that can bring you solid profits even if you had really low upfront expenses. Plus, you can safely enjoy this business model and have no fear of any risk factors.
Certainly, you do need a certain budget to start a dropshipping business. But it’s nothing compared to what you need to launch a traditional online store. If you fail, you won’t lose a fortune. And if you succeed, you can make thousands of dollars or resell your store eventually.
2. You don’t have to turn it into a full-time job
Time and energy are additional factors that typically hold people back.
Dropshipping, in turn, doesn’t require that you invest all your time and efforts in store management. You won’t have to quit your job or dedicate all your free time to this business. It works quite the opposite way.
With dozens of automated solutions, you can complete the majority of tasks automatically and save enough time for the things that require your personal attention and individual approach (most importantly, customer relations management). Most people who don’t want to quit their jobs or dedicate too much time to business really appreciate these dropshipping benefits.
The elements of your daily management routine that can surely be done automatically, without your direct involvement, include:
As you can see, you can easily delegate the majority of everyday tasks to automated systems. This way, you can organize your day wisely and pay your personal attention only to the customer service and management issues that include the human factor.
3. You can turn your hobby into a source of income
Among all the benefits of dropshipping, this one is the most romantic. Dropshipping is the business that helps you live your teenage dream.
If you’ve always wanted to explore space, or become a rock star, or live in a well-known universe, nothing holds you back from starting a dropshipping store on related topics.
The same is true for your current hobbies that you love and enjoy. If you like sewing, or dedicate your evenings to drawing, or adore pets’ grooming and training, you can definitely create a store aimed at like-minded people with the same interests.
You know what your clients might want. You can professionally describe your items’ features to them, and offer a suitable alternative if necessary.
It’s easy for you to create a nice and supportive atmosphere in your store and in social networks you run for it. This way, the store visitors will know you are an expert in your business, so they will trust you much more.
Isn’t it awesome to run a business in the sphere you like, and use it to escape from everyday routine while making some lovely profits? There are other benefits of dropshipping as well.
4. You will always find help and useful guides
Another advantage of dropshipping is that you won’t have to start this business alone with no experience and knowledge.
Dropshipping business is quite young. Still, the experience and knowledge accumulated in the industry are already impressive. People who already tried dropshipping are willing to share their business journeys and smart tips on thematic forums, and it gives you a brilliant opportunity to interact with proficient businessmen to learn a trick or two.
So, by choosing the most suitable type of educational materials and studying them carefully, you can find answers to the majority of your dropshipping questions. You definitely won’t be the earliest explorer who tries this business, so you’ll be able to avoid some critical dropshipping mistakes, and start your venture in a safe and smooth way.
5. You still have time to join the community
Actually, the dropshipping business now stays at a really curious point of its life cycle.
On the one hand, it’s quite mature already. Successful entrepreneurs share their business stories, so you can take a look at some real-life examples and understand what you can expect from dropshipping and what its potential is.
On the other hand, this business field is not oversaturated yet. As for now, this model is mostly tried by people from well-developed countries with unlimited access to the Internet. This is why it’s safe to say that dropshipping still has a huge potential for growth, especially in emerging countries. And this is why it’s so important to get involved in business NOW.
Technologies get more and more advanced every month, and people from every region on the globe will soon get the technical opportunity to start dropshipping. It’s wise to take your spot before the competition gets overwhelming, right?
6. Dropshipping will teach you useful skills
Even if you decide to quit this business sometime, you won’t be left empty-handed.
Apart from all the money you’ve earned, you’ll have something even more valuable: knowledge and experience.
When you do dropshipping, you eventually get a bunch of priceless skills that can come in handy for your regular full-time job. These skills include social networks management, digital marketing in general, customer relations management, webstore performance analytics, and many others.
In the nowadays world where technologies and services are developing rapidly, these skills give you a substantial competitive advantage and prove you’re a knowledgeable specialist.
Besides, running a dropshipping store has much in common with running regular online stores. In other words, dropshipping can teach you skills required to launch a traditional ecommerce business if this is where you want to move to. And this leads us to another benefit of dropshipping.
7. You can turn a dropshipping store into something much bigger
Have you seen this picture of Jeff Bezos that went viral recently?
This is the year 1999. Jeff Bezos, the founder of Amazon.com, has no idea yet that he will build an unprecedented ecommerce empire and become the richest person of all time by 2019.
Having started from scratch, from launching a really basic online store, he became a role model and inspiration for thousands of people all over the globe who explore the opportunities of ecommerce.
This is not the only story of this kind. Tony Hsieh, the founder of Zappos, also had a simple dropshipping store at the beginning of his business journey. Look what he managed to achieve!
The point is, there are no limits in this business. You can reach the heights you’ve never dreamed of, and one humble dropshipping store can be the right starting point. Why not give it a shot?
8. You have thousands of vacant niches to choose from
As we have already mentioned, dropshipping business is still staying at the growth stage. Technologies and automated solutions for its smooth running emerge every year, and new exciting products and product categories appear daily.
The point is, if you use AliExpress as the core platform to find and pick suppliers, you have a huge product selection – over 100 million items to choose from. This lets you create a unique product offer and explore a highly specific product niche that is not taken by anyone yet. Plus, if you treat your webstore design wisely, you can create a one-of-a-kind shopping destination that is exclusive and atmospheric enough to stand out from competitors.
9. You can profit from large wholesalers
Have you heard about the economy of scale?
Speaking in simple terms, it means that the more you produce, the lower are your production costs.
Since technologies and machinery are evolving rapidly, it becomes more and more profitable for manufacturers to produce items in huge amounts, and the price for these items gets lower gradually. This means that you can find great items on AliExpress for a fraction of the cost, and that’s one of the most important benefits of dropshipping from AliExpress. As a result, you can increase your final price after adding the goods to your store – your buyer won’t notice the difference!
10. You still have time to enter high-potential developing markets
As we have outlined in our previous article, developing markets demonstrate a huge potential in terms of becoming the perfect target segment for you.
With the rapid rise of various information technologies, transport infrastructure, and logistics services, you as a dropshipper get unrivaled opportunities to meet effective demand on the markets that were previously unavailable in terms of their geographic location and/or Internet penetration, devices affordability, payment gateways availability, etc.
In other words, again, if you act quick enough, you can get a solid share of these emerging markets before they become overly competitive. This and other advantages of dropshipping make it a very promising business idea.
Don’t wait for too long; enjoy the numerous benefits of dropshipping while the market offers you this opportunity!