So, you want to get started in drop shipping. You’ve heard it’s a great way to make extra money and are interested in trying your hand at it. Although drop shipping has become all the rage in the e-commerce world over the past few years, there’s certainly a right way and a wrong way to do it.
If you’re a beginner, here are three drop shipping secrets you need to know.
1. Study Your Competitors at Lenght
All companies should have a thorough understanding of their competition but in drop shipping, it is particularly critical. Marketing is the basis for what differentiates one company from another.
Many rivals are likely to offer the very exact commodity that you are doing from the same supplier (that’s the essence of the industry’s competitive scene), and how you market it is everything.
Once you understand the competition, you can confidently choose which product, to begin with for drop shipping — and understand how to make your product stand out amongst the noise.
2. Make Sure You Find a Good Supplier
Reach out beyond cost when choosing a manufacturer for the drug. Profit is, of course, central to the shipping equation going down. But a successful supplier in a drop-shipping project will make all the difference.
Make sure to also first complete a quality check. Order the product just as you would if you were a customer ordering directly. Take note of all the basics: timely shipping, packaging, and the quality of the product.
3. Test the Market First
Finally, adopt the mindset that you’re first testing the market. Once you’ve chosen a manufacturer and a product, don’t invest thousands of dollars upfront until you’ve completed a “test period” to make sure it’s a market fit.
You have to make sure that people like the product and that it’s of the highest quality, first and foremost. Many drop shippers get excited once they’ve found their niche and a manufacturer and think it’s best to order in bulk upfront because of bulk discounts, but this must be done cautiously.
Test first to reduce risk! Once the test is successful, you can proceed with white labeling and ordering in bulk.