Dropshipping programs sound very easy but are actually more complex than you may have expected. And, unfortunately, as is common in the world of internet, there are many scams out there as well. For instance, if you were to run a Google search for dropshipping, most of the results you will come across are actually middlemen who happen to list at wholesale price. Indeed, you will need to look a little further to find a good and true dropshipper.
How Dropshipping Programs Work
If you really want to get into dropshipping, you will need to find a manufacturer that is willing to do this. Larger companies are often not receptive to this, as they will work on eBay or other such platforms themselves. This means they already have a customer database and don’t need to work with someone like you to sell the rest. In fact, many have their own retail stores as well.
That doesn’t mean it isn’t possible, however. What you have to do first is find a niche for which there is a demand. Consumer electronics, for instance, are very popular. This means that, when you visit an online store such as eBay, you will notice that there are thousands of consumer electronic sellers out there, meaning the competition is very high. The result is that your profit margins will also be very low.
The problem also is that consumer electronics do sell. Because you have very little overhead costs as a seller using dropshipping programs, the fact that your profit margin is low is often of no great concern, so long as things sell. That being said, if you do want to stick to consumer electronics and you hope to make a larger profit, you will have to be more creative with where you sell. eBay is not the only platform that you can use. Selling through social media, for instance, is becoming very popular as of late. You can quite easily set up a Facebook page and closed Facebook group, for instance, where you can offer your products. Remember that your customer doesn’t need to know that you use a dropshipping program, which means you can make it look as if you are the direct seller or even manufacturer.
One of the great things about using a Facebook page, store, and group to take advantage of dropshipping programs is that you can ask your customers what type of niche they are interested in. Perhaps you started by offering consumer electronics, but quickly find that what people are interested in right now is perfumes and cosmetics. It is easy enough to then switch your niche, or even add a supplemental niche. Social media offers you the opportunity to measure your customers’ needs and respond to those in a way that selling sites such as eBay will never be able to do. Considering selling online through dropship programs is incredibly competitive, you need to use any opportunity you have to stand out from the rest.