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Thread: Newbie
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16 May 2011 07:43 PM #2
- Join Date
- Dec 2010
- Location
- United States
- Posts
- 95
Hi Kawabri,
Welcome to Dropship Forum
Since you are new to dropshipping, it is important that you understand that dropshipping is more complicated than normal reselling. It seems to be a paradox, because the assumption is that it should be simpler because you don't have to hold any stock. The truth is in fact the opposite. Its simplicity makes it accessible to more resellers (your competitors), and therefore in most cases the profit margins are low to non existent (especially if you are reselling online). Further, because it attracts many new starters who assume that dropshipping is easy, it is also rife with scams and all kinds of websites making absurd claims just to get your money.
Therefore, it is right that you are aware of how dropshipping really works:
1. You start at a disadvantage vs. resellers that can buy in bulk/wholesale
2. Because it appears to be simpler to set up, you are automatically in competition with many more people, all trying to sell products from those overpriced biz-in-a-box "dropshippers"
Dropshipping can work, but you MUST first choose a unique and well thought out strategy, unless you want to spend the rest of your business life constantly looking for a new evasive profit opportunity:
1. Dropshipping is not difficult, the difficult part is finding a niche.
2. Do not be tempted by those websites claiming to offer you a dream business, IF only you paid a fee to join them. They are all overpriced, and they distance you from how a successful dropshipping business needs to be set up.
3. Try working with manufacturers, preferably local to you, and focus on a specific market segment. Evaluate its potential, create a website focused around your niche, and then market it using SEO, targeted search engine marketing, social media, blogs, and industry related forums to build up a customers database.
4. Profile each customer, and aim for repeat business (aiming for repeat business also means choosing products that require a repeat purchase, ie that are perishable over time and that therefore require repurchase).
Once you have made these considerations, post any additional questions and we will be very happy to guide you accordingly
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