Making Money with e-commerce in Dropshipping - Money Grow

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mercredi 27 janvier 2021

Making Money with e-commerce in Dropshipping

Making Money with e-commerce in Dropshipping

I don't know if you are aware of this, but my job in life is traffic manager for an e-commerce website. I'm in charge of acquiring traffic and increasing the turnover of an online shop. I've been doing this for 5 years, so I can say that I know a lot about e-commerce.

I can tell you that you can win well with e-commerce if you work hard. One of the preconceived ideas is that in order to launch into e-commerce you have to invest a lot, and this is no longer entirely true thanks to dropshipping. But to get started you need to master several things, otherwise your e-commerce site will fail. In this article we will look at how to start creating an e-commerce site, which tools to use and how to make money with them.

Definition of dropshipping

Dropshipping is a type of e-commerce, with dropshipping you don't buy stock, your supplier stores the products for you and sends the orders to the end customers. So the big advantage is that you can get started quickly, without too much cost because you don't have stock to buy and store and you can offer a large catalogue on your site. The customer who will have more choice will be better able to find the product he is interested in. Dropshipping order process: 1/ the customer places an order 2/ you receive the order that you send to your supplier 3/ the supplier sends the order to the customer who receives a white label order, i.e. he cannot know that it is your supplier who sent the order. 4/ on the other hand, the management of returns is generally managed by the e-merchant, in the event of a return, you receive your customer's parcel and are responsible for reimbursing or exchanging the product.

Which platform should I use to create my e-commerce site?

shopify
Without hesitation no Shopify. Why do you tell me? It is an e-commerce platform used by over 500,000 e-commerce shops worldwide. This platform makes it possible to get started without any technical knowledge and at a low cost. For 29$ you can launch a professional shop, you can test the tool for 14 days before launching. In a few days you will have finished configuring it, when it takes several weeks to set up an online shop with a so-called open source solution (Prestashop for example). The advantage of using a turnkey solution is that you get with the software full of features already installed, you can modify the different graphical elements of your site and use the free themes offered by Shopify. Anyone who is just starting out can launch their shop with just one click. I recommend that you take a training course before starting your e-commerce business, by clicking this link you will receive a free video training worth 1497€: receive the free video training[/box]. Cost to get started
Here are the various fixed costs involved in setting up a dropship e-commerce business Turnkey e-commerce solution: Shopify : 29$/month Professional Shopify Theme: between $140 and $180 single purchase Applications to boost your online shop: between 10 and 30$. Even if it's dropshipping it requires a minimum investment, you will invest a little money but mostly time. It will cost you a lot more if you have your e-commerce site done by an agency.

Choose the theme of your shop

One of the disadvantages of dropshipping is that your products can be sold just about everywhere, so it willt be difficult to position yourself on Google, because the competition will already be well established and then if you do not differentiate with your site it will be difficult to sell. We will see just below how to find a theme for your e-commerce.

Your passion

You have a passion for fishing, golf, basketball...it will be very easy to sell because you will know the product at your fingertips, it will be easy for you to "sell" it well, moreover the enthusiasts are buyers who are willing to buy compulsively. When you love you don't count. Let's take the example of a football fan, every year he will want to have the last jersey of his team, to have the flag in fashion. The sharper this passion is, the better you will be able to target your future customers. However, be careful not to target a niche that is too small.


Products that solve a problem

Your future customer will be willing to pay if your product solves a problem he or she encounters. The purchase will be the easiest in the world because he will see your e-commerce site and your products as the solution. For example, I have sold safety belts for dogs in cars, which sold very well because with the belt the dog was safe and so was the driver. Moreover your dog must be fastened when you drive, it was doubly easy to sell this product because it is compulsory and thanks to this product the dog is safe.

Products with a high perceived value for the customer

If you sell products with a low perceived value to the customer you will not be able to apply interesting prices that will allow you to make good money with your e-commerce site in dropshipping. Let's say you are selling key rings, difficult to sell them for more than 10€, you will have to sell a lot of products to make money. Let's say you sell a product at 10€ with a 50% margin, you have 5$ left to make a salary with this type of product, you will have to sell 300 of them to earn 1500. Conversely, if you sell products at around 50€ with a 50% margin, i.e. 25$, you will only have to make 60 orders, which is much more affordable. I advise you to sell products between 25$ and 100$ selling price. It is therefore important to sell products with a high perceived value such as watches for example, on this type of product it is easier to put a high price.

The margin

It's a bit like the part from above, you need to have good margins to be able to amortise the costs of running your shop (shipping costs, marketing costs, management fees...) Below 30% it's going to be difficult to be profitable. Obviously the higher your margin the better.

Product rating and testing

You are going to offer a supplier's products, you will never see their products, how can you be sure of their reliability? The reliability of their products? You must make at least one test order to ensure the reliability of your supplier and test the products you sell. This will help you avoid disappointments when your customers tell you that your supplier is no good. You may not have the products in stock, but you are the guarantor of what you are selling. Before selecting your theme, I advise you to look at the notes on the products you want to sell, most dropshipping suppliers offer a scoring system. Once you have found a product or products with a minimum score of ⅘, you can go to the next step and make one or more test orders.

Avoid buzz products

Who remembers the shamballas? This bracelet inspired by Tibetan prayer bracelets was a real success a few years ago before the bellows fell off. I even remember a report on TF1, which talked about the "shamballas madness" and presented a site that made 1 million euros in 1 year by selling only shamballas. It was in 2014, it's a good bet that this site no longer exists or earns much less, because the demand fell back as quickly as it came. You have to sell products that have been approved for years and therefore have a future ahead of them, at least if you think long-term.

Find your dropshipping supplier

aliexpress dropshipping Now that you know which product to offer you will find your dropshipping supplier. First reflex you will have is to type dropshipping + the name of your theme. And then you will come across ugly sites, suppliers who are not serious and from one supplier to another you will find almost the same products, especially from Chinese suppliers. 2 solutions are available to you, to go through Chinese suppliers or even more qualitative but with lower margins through French suppliers. Aliexpress
Aliexpress is a Chinese marketplace that offers all products, honestly you find everything on the site, all types of products and all kinds of quality. Do not tell you it's Chinese so the quality is not there. Chinese products are more and more qualitative. The advantage of offering Chinese products is that you can make good margins, moreover the choice is greater than any French dropshipping supplier. The disadvantage of course is the delivery time which is very long, between 10 days and 24 days according to the suppliers, but if it is displayed on your site, it won't be too much of a hindrance. Easily import your products from Aliexpress to Shopify with Oberlo
To import Aliexpress products directly from Shopify, you can use Oberlo. Oberlo uses a chrome extension that allows you to import products from Aliexpress to Shopify with one click. You can also bring in bulk products directly to the Oberlo interface. Big Buy
Big Buy is one of Aliexpress' major competitors, with the difference that Big Buy is located in Spain. The delivery is faster, it takes about 72 working hours. But why do I think Aliexpress is better than Big Buy? In a word, CHOICE! Big Buy offers 20,000 products when Aliexpress offers 100 times more. Moreover Aliexpress is free as long as you don't sell, whereas Big Buy asks you to take out a 60 euro subscription to be able to offer products. Contact directly the small suppliers or brands To stand out from the others and offer products that hundreds and hundreds of e-commerce sites do not offer, you can contact French brands and suppliers directly, which do not necessarily do dropshipping. It's up to you to have the commercial fibre to convince them, but it's worth it, by doing so you will be able to offer products that are not very widespread.

You can also contact small foreign brands that are not yet established in France and offer them to do dropshipping. Good dropshipping practices make money with ecommerce dropshipping Easy to create your e-commerce site with Shopify, easy to connect with thousands of suppliers in dropshipping with Aliexpress, does not mean that everything is easy in e-commerce and that you will sell easily.

I will give you some good practices in dropshipping: Displaying delivery times: I think it has become essential, a customer who doesn't know when it will be delivered will not place an order, or if he places an order he will end up sending you an email to ask you when he will receive his order. Be transparent by displaying the real delivery times and explaining why the delays are longer. Without going into detail you can explain that in wanting to offer a selection of products that are important to customers you have to work with suppliers based in several locations around the world.
Order tracking: the customer must be able to track his order, it is essential otherwise you can be sure that he will call you or send you a message?
Multiply the suppliers: by putting all the eggs in the same basket you run the risk of your supplier defaulting, this can jeopardize your shop, choose 2 to 3 different suppliers in case one is on holiday, no longer has the product available or is simply not competent. Testing suppliers: as I said above, you are responsible for the smooth running of your orders and products, you sell products that you must test, to get to know them better and to ensure that your suppliers are working properly. Modify the texts of your product sheets: if you use products that several dropshippers offer, you do not bring any value to the customer, on the contrary if you write product sheets that explain the benefits of your products, or the advantages of them you have more chance of selling. Work on your SEO: if you want your shop to make a long term turnover and not depend only on advertising you need to work on your SEO, this source of traffic will allow you to get free and highly qualified traffic on a recurring basis. Be patient: Rome wasn't built in 1 day before you wanted to become an empire, you need to become the head of your village, you need to improve your site, make it more professional, add information that customers would miss and above all wait. With time and effort you will be successful.

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