It is not an easy task to build an e-commerce dropshipping business from scratch. Most starters struggle when they start their first business. Without knowing much about the e-commerce business, it is very hard to get success in what you do. Most people who want to start a drop shipping business consider it is as a very hard task. it is very easy to be successful in this business if you have a good idea about how to proceed in this business.
By knowing the real-life story of a successful person will help you to start this business and get a good outcome from it. This is my story of building a 5 figure dropshipping business without using FB Ads.
When someone wants to start a business, they may think about the risks and complications related to it. But the real fact is that you don’t have to be worried about the cost and time it may take while starting an online business. Before you start this business, it is very important to learn more about the basic concept of the dropshipping business.
This article will help you to know more about the business and how you can be successful in it.
A small initial investment is what you need to have when you want to start a dropshipping business. From my own experience, I can help someone who wants to start a dropshipping business to be successful. Through well-implemented strategies, I succeeded to achieve a 5 figure dropshipping business.
Here I am going to present the strategies I used to build my drop shipping business. I hope this article can help someone who wants to learn more about this business.
What is Dropshipping?
Before going further, one needs to know the real meaning of the term dropshipping. It is a process where someone sells products without an inventory. In detail drop shipping is a selling method where a seller purchases the product from a third party when they get an order and ships it directly to customers.
The main benefits of dropshipping are
- Low investment
- Flexible location
- Easy to get started
- Low overhead
- Easy to scale the business
The main benefit of the drop shipping business is you can buy any product you want without the help of a middleman. No need to have an inventory to store the products and labor charges for handling, packing and shipping the products when it comes to dropshipping. This is a new concept of bringing a quality product to customers without any risk. With careful planning and consideration, you can be successful in this business. I cannot promise this as a stress-free way to build a business but you can build a business that is easy to manage with low capital. Get ready to explore more about some effective drop shipping business strategies.
How Dropshipping Works?
Dropshipping is a very innovative business concept that helps manufacturers to gain more profit. Usually when a manufacturer needs to sell a product, they have to pay for third parties. Here there is no third-parties or middleman involved which helps the manufacturer to save some money. To understand the process in detail I hope this diagram will help you
- Customer orders a product from a website
- The person who runs this website forwards this order to the manufacturer who makes the products
- The retailer directly ships the product to the customer
This is how the system works. This can reduce a lot of unnecessary costs such as storage cost, maintenance cost, retailer cost, etc. the manufacturer and dropshipper get their own profits from the price of the product. As there is no middleman involved this is a very good business to start. You can do it from anywhere in the world with a laptop and internet connection. No need to pay for office and inventory space to start this business. It is one of the most popular businesses nowadays because of the low initial investment.
Strategies I followed to build a 5 figure dropshipping business
I was struggling to build my own dropshipping business a few months back. The reason behind this is not because of my inability to find the right product for testing. The strategy I followed looked like this. I am pretty sure that most of you can be related to this
When we decide to start this business, you need to have a small amount of money to buy a product. What I did before getting started is to brainstorm some possible action items
- List out what to sell
- Choose a supplier to buy products
- Order some samples
- Finalize the pricing
- Create an online brand
- Set up an online store
- Take a picture of the product
- Post it on the store
- Audience research
- Try various marketing channel
- Increase sales
List out what to sell
Before starting a drop shipping business, you need to have an idea about the products you are going to sell online. There are many products you can sell online. But as a starter choose sine products which won’t cost much money. For example, if you want to start selling Electronics items that will be expensive. As an initial step, you can start to sell products that fall under $10. You need to do some research and find out some unique products that are rare to find in the most popular online stores. You can check the price online and fix the price of it. Make sure to select some useful products for your online store because people only buy useful products even if the price is a little bit high.
For beginners, it is best to test more products initially so that you will get an idea about the type of products that have the potential to make more sales. Try multiple niches initially to see which niche gets more response. If you choose a particular niche that is not selling properly them all those efforts will be wasted. Find out trending and unique products from various niche such as
- Petcare products
- Fashion accessories
- Phone accessories
- Haircare accessories
Choose a Supplier to Buy the Product
The next step is to find out a good supplier to buy the product. There are many wholesale supplier websites online but it is very important to choose a good supplier to buy products. What I did is to find some products from AliExpress at a reasonable price in between $1-$5. The main factors I looked at while selecting products are price, trending, small size, and easy to ship good reviews, and free shipping. Some products only offer free shipping and some others charge a small amount for shipping My range of products was to fall below $ 10.
Order Some Samples
This is the next step I did after listing out some trending products that fall under my choice. I ordered some sample products in order to check the quality. My first and foremost criteria were to offer quality products at a low price through my website. In order to ensure quality, you can try the product before selling it through your website. Once you find out the quality of the product you can move forward with your business
Finalize the Price
After ordering the product is to finalize the price. The price should be after considering the actual price of the product and the cost it may cause for shipping it to your customers. You should do some research to find out an affordable shipping channel that offers excellent service. Find out the price of products you are selling from various sources and fix a price where you can get around 60% profit margin. You can fix the price of the product after considering all these factors and start selling.
This is the next stage of your business. You need to set up a website where you can sell all these products. You can design a website or other sources through which you can sell your products.
Take Pictures and Post-it
After creating a website to sell these products want, I did was to take the picture of the product and post it on it. The pictures should be clear and attractive to the audience. You can highlight product title, quantity, price, description, benefits, and steps to use the product. Before uploading pictures make sure to edit the picture using Adobe Photoshop which helps to boost the brightness. You can use the Oberlo website to find the products for your business and add them to your Shopify account. No need to have an inventory to start an e-commerce business.
After launching the website, the next stage is to do some audience research. Defining the target audience is the main step of every business. I researched well about the response of the audience by posting some products on my website. I chose Facebook to do audience research. While using Facebook for promotion it offers a lot of facilities to track the conversion. Facebook pixel is one among them. This is a code that marketers can place on their website. It collects data about Facebook Ad conversion and helps you to create ads for your target audience.
To promote your product, it is very important to have a clear marketing plan. There are various methods to promote an e-commerce website nowadays. Google itself offers various advertising options for marketers like PPC. YOU can also use social media channels to promote business. Facebook is one of the most favorite platforms for marketers to promote the sale. I tried the Facebook Ad to see how it can change my product sale.
I chose PPE (Post Page engagement) to test my product. The main objective of PPE is to provide customized ads for the audience who are interested in it. After getting an idea about your targeted audience it is best to choose this type which can say to Facebook that you are interested to engage a particular group of audience who can be your potential customers. After 3 days of analysis, I find out that there was two or 3 sale happened. Then I decided to invest in a website conversion ad on Facebook with an aim of ‘Add to Cart’. This ad helped me to improve the sale a little bit. But my question was how these e-commerce sites are making more sales?
I did some research and found out that the secret behind their success was a feature of Facebook called a pixel. We already discussed what pixel does on your website. It is a very smart technology which helped businesses to improve sales. The code they implement within your website will help the marketers to track their visitors and provide customized ads for them. Buyers now started to like customization and businesses use this chance to attract them towards their website and increase the sale. They build their customers over time by offering the products as they want and through promotions and advertisements on various channels. But my problem was money. I was not having enough money to spend on those Facebook Ads at that point in time.
Finally, I came to the conclusion that Facebook ads cannot help me in improving my sale without spending money. At that point of time, I was not having enough money to start Facebook Advertising. Then I started my research to find out a channel where I can advertise my products and improve the sale without spending much money. I found out that Instagram has some better features to offer for me without spending much money. Do you want to know how I succeeded in building a 5 -figure dropshipping business? It’s very easy to achieve that position if you get the real trick. Instagram is that powerful platform. Here is how I used my Instagram to build my pixel while making enough sale without spending more money
Facebook vs Instagram
Finally, I came to the conclusion that Facebook ads cannot help me in improving my sale without spending money. At that point in time, I was not having enough money to start Facebook Advertising. Then I started my research to find out a channel where I can advertise my products and improve the sale without spending much money. I found out that Instagram has some better features to offer for me without spending much money. Do you want to know how I succeeded in building a 5 -figure dropshipping business? It’s very easy to achieve that position if you get the real trick. Instagram is that powerful platform. Here is how I used my Instagram to build my pixel while making enough sale without spending more money
We can see a comparison of these two platforms when it comes to business promotion. As you all know Facebook offers a lot of features to business promotion. But if you want to use Facebook features you need to invest some money on it. At the same time, Instagram is a platform that offers a lot of direct engagement to its users compared to Facebook. You can sync both your Instagram account and Facebook account while promoting your business. Most companies use Facebook for business promotion compared to Instagram. If you are exploring possibilities on Instagram this will be a good chance for you to get into a less saturated market. Companies post multiple times a day on Instagram to increase audience engagement.
Instagram for Business Promotion
- For those who are unaware of the power of the Instagram platform here are some data which can prove it
- More than 800 million people now use Instagram all over the world
- There are 500 million active users
- 70% of Instagram users look for a company profile on Instagram
- More than 60% of users follow a company on Instagram
- 29% of women use Instagram when 22% of men follow it
- 53% of users are of the age of 18-29
Now you know the power of Instagram. By seeing all these statistics, I used this as the main platform to promote my business. I got a good result for my efforts too. So, don’t underestimate the power of Instagram for business promotion. Here are the steps I followed to promote my business on Instagram
Go to your Instagram Business Account
It is always advisable to use the Instagram business account to promote your online business. Unlike a personal account, the Instagram business account offers you a lot of features for business promotion. There are many advertising features from Instagram which you can use to develop your business
Type your Niche in Search Bar
When you start a business promotion it is very useful to find the corresponding niche of your business. You can type the niche in the search bar and find related products in the result. This will help you to market your product corresponding to its niche. It improves the reachability of your product’s product thousands of others. You can make your products fall into a corresponding niche using hashtags.
Find Instagram Influencer
This is a strong point to consider if you want to be successful in Instagram marketing. Find people who can influence users with their powerful words and make them buy a product from Instagram. There should be at least 50K to 300K followers on their account. They can help you to promote your business and make it accessible to as many audiences as possible. There should be at least 10 influencers who have many followers and specializes in your niche.
Put all of them in a new Google doc Sheet
The next step is to list down the name of influencers in a Google doc sheet for your reference. By making a list and researching about them will help you to make your marketing strategy more effective
Check the Engagement from their Post
You need to do good research about the engagement they can create through their post. You can do this by checking other products they are promoting. The engagement can be measured by seeing the response their post is getting in the form of like, share, or as comments. Measuring this can help you to analyze the effectiveness of your product’s marketing efforts
Send them a DM
If the engagement for their post is more than 2% then without waiting you can send them a mail asking about their charge for promoting a product for 24 hours. If their charge is affordable for you then you can hire him to promote your products on Instagram
Use Influencer to Promote the Product
Each influencer charges a different amount when it comes to their promotion. It depends on their popularity and previous result. You can analyze your budget and hire an influencer who can fall under your budget range. Use them to promote your product on the Instagram platform
Analyze The Result
Analyze the result and put them all together in the Google Docs sheet. This result will help you to get a deep insight into your marketing effort. After analyzing sales, you will get a clear idea of developing effective strategies to reach your target audience.
Repeat the Steps Again
I tried influencer marketing on one product to see the response. After getting a clear idea about the response you can implement this to other products your sell on your website. Profitability is what I looked at in this promotion. For me, this influencer marketing through Instagram worked and I got the result of building my pixel and increasing sales.
If you are trying hard to build your pixel then follow these steps and see how it works for you. When the pixel cart becomes 300 Add to cart you can start Facebook advertising. Then pixel will do all business canvassing for you and your task of achieving your goal will be easier. The more sale you can make through Instagram the better will be a pixel. You can also save some profit too.
If you want to build a 5-figure drop shipping business this is the best way. Facebook Ads are much costlier and initially, you may not have that much money to spend on advertisement.
I followed these simple and easy steps to promote my business and improve my sale using Instagram. Don’t consider Instagram as a platform to just post some pictures. It has many features a marketer can explore. Influencer marketing is what I used on Instagram for my product promotion. This won’t cost you that much money as Facebook Ads.
The initial struggle will be there for all businesses. Implement my tips and see how your business changes with these simple strategies. Hope my experience will help someone who dreams of building a 5 figure dropshipping business.
Try out these strategies and let me know your experience.