Making a Living from Dropshipping: A Complete Guide to Successful Dropshipping and Earning an Income Online
December 26, 2023
Dropshipping is an adventure that is attracting more and more entrepreneurs who want to get into the online business. Making a living from dropshipping today is an achievable goal for those willing to devote time and effort to this activity. In this article, we'll explore the different strategies you can put in place to succeed and make a living with dropshipping in 2023. So, if you're ready to get started in this exciting business, we invite you to closely follow the advice revealed in this guide. Let's get started!
What is Dropshipping?
Before we learn how to make money with dropshipping, let's learn more about dropshipping. Actually, dropshipping is a method of order fulfillment by which you can sell products without keeping them in stock. In addition to this, you buy products from third-party suppliers every time customers order from your store.
The same suppliers deliver the products to your customers' addresses. So you only pay for the products once you've been paid. So you can start your dropshipping business with no investment at all. Let's see how this business model works.
How does dropshipping work?
In this section, we'll explain in detail how dropshipping works. If you haven't got a clue before, we suggest you read on for a better understanding.
In fact, there are three important factors in a dropshipping business: the supplier, your store and the customer.
The supplier: first of all, you need to find a reliable supplier/wholesaler. The supplier will be responsible for fulfilling your order and maintaining the physical inventory. One of the most popular sources of suppliers is AliExpress. However, you can also find many independent suppliers by consulting this detailed guide"TOP 15 Best Dropshipping Suppliers".
Your store: this is the actual e-commerce store where a customer will place an order. All you need to do is upload the product catalog, including clear images, item details and a unique description. There are various e-commerce platforms that work well, with WooCommerce and Shopify being the two most popular options.
Customer: once the order has been placed, you will receive a notification and can direct it to your supplier. You only have to pay your supplier when a converted visitor makes the payment.
What are the advantages of dropshipping?
Now that you know more about the dropshipping model, let's look at the benefits of dropshipping. Especially since people can be hesitant to start dropshipping. This list of information on dropshipping can help you decide:
Low start-up investment
No need to keep an inventory
Low barrier to entry
Easily replace and test products
Low-risk business model
Easy command execution
No need for advanced training
While dropshipping has many advantages, there are a few disadvantages that you can minimize by following the advice we'll give you throughout this guide. That said, let's take a look at the disadvantages of dropshipping.
The disadvantages of dropshipping
Here are some of the disadvantages of dropshipping:
No control over product quality
No control over inventory and shipping times
No control over supplier price changes
Sales channel policies
It's hard to build a brand
Order processing may be limited to our bank credit.
Customer service is our responsibility
Making money with Dropshipping: steps to follow
As you already know, dropshipping is a business model that can bring you a lot of profit. With that in mind, here are 8 essential steps to starting your dropshipping business and making money in 2023:
The first and most crucial step in making money with dropshipping is finding winning products. With product research, you can find trendy products with high profit potential. Here are some effective ways to search for dropshipping products:
Minea's product search tool
Product search blog
Search suppliers' best-seller sections
Analyze market demand with Google Trends
Find trendy product sources with Google Lens
Keep abreast of social media trends (e.g. #TikTokMadeMeBuyIt)
In this list, Minea is the best option for searching for winning products on social networks such as: Facebook, TikTok, Pinterest and more. In fact, it's an all-in-one tool with a wide range of features that can help you :
Find a winning product in one click,
Find the best marketing approach for a quality product,
Analyze your competitors' stores and strategies.
What's more, when selecting a product, the tool provides you with advanced information such as :
Product engagement on Facebook,
Profit potential, and more.
Select the best dropshipping suppliers
Suppliers often have limited knowledge and resources to devote to marketing their products. By partnering with dropshippers, they can further extend their reach, enabling them to increase sales without additional marketing costs.
With this in mind, you need a reliable supplier to provide you with quality products. So you need to select the best dropshipping suppliers. But how do you identify a trustworthy supplier? Here are a few ways to check whether suppliers are reliable:
With Minea, you can automate dropshipping processes such as product research and supplier search on AliExpress. This means you can earn money with dropshipping without having to perform many tasks.
Create your dropshipping store
Here, you need to choose a sales channel to market your products. A sales channel is a platform for presenting your products to your customers. As such, there are two sales channels:
Customizable dropshipping stores.
Customizable e-commerce platforms are website creation platforms that help you create your dropshipping store from scratch and with customized domain names. This means you can customize your dropshipping store with professionally designed templates, themes, images, logos and more. So you can concentrate on branding your store.
Here are the customizable e-commerce platforms you can consider to create your store:
If you're just starting out and don't have a large budget to entrust the creation of your store to a professional, we recommend Shopify. It's an easy-to-use platform that doesn't require a great deal of skill. You can start creating your store on Shopify right now, with a special offer of $1 for 3 months.
Import trendy products into your dropshipping store
In dropshipping, importing a product means sourcing it from a third-party supplier and offering it for sale in your store without holding stock. This makes it easy to test and replace products, maximizing profits by identifying the most profitable items.
The next step is now to import the products into your store, which can be done in two different ways: manually and automatically. In general, the manual method of importing products involves adding titles, descriptions, images and product variants.
As such, the manual import process can take 5 to 20 minutes per product. For this reason, manual dropshipping is only suitable for dropshipping stores with few orders per day. On the other hand, the automatic method can process several orders a day, saving you a lot of time and effort. In this guide"13+Best Automation Tools for Dropshipping in 2023", we've listed several tools that can help you automate tasks.
Use marketing strategies to earn more money with dropshipping
Once you've imported your products, it's essential to set yourself apart from the competition by marketing your products effectively. Indeed, marketing plays a vital role in attracting more customers to your store, enabling you to remain visible in a crowded market.
By leveraging marketing strategies, you can highlight the unique features and benefits of your products. You can also highlight your brand values and create a strong bond with your target audience. Ultimately, effective marketing helps you build brand recognition, increase sales and establish a competitive edge in your industry.
So let's take a look at the best marketing strategies for each Shopify, Wix and WooCommerce sales channel:
Create a blog page
Create publications on social networks
Advanced sponsored ads
Standard for sponsored ads
Facebook Marketplace and Facebook stores
Promote products in buying and selling groups
Now you can select the most appropriate marketing techniques for your sales channels and business development strategy.
Establish financial obligations
When you make money with dropshipping, you need to comply with trade regulations. What's more, complying with these regulations helps you carry out your business operations without legal hassle. That said, here are the main financial obligations you need to comply with:
What's more, most regions require you to register your business. There are different types of business registration, such as LLCs and partnerships. This also helps build confidence in your business.
Next, you need to meet your tax obligations. Paying taxes is compulsory, and you can incur heavy fines if you fail to do so. Finally, you need to look after your financial accounts so that you understand your profits and losses. Ultimately, it's best to work with a professional accountant to ensure that you are all able to meet your financial obligations.
Fulfill customer orders quickly to build loyalty
Once you've launched and marketed your products, customers will start buying from you. So you need to fulfill customer orders quickly to increase customer satisfaction. When customers receive their orders quickly, they are more likely to feel valued and appreciated. This can lead to greater trust in the company and a greater likelihood of customer loyalty.
Provide exceptional customer service
Finally, you need to provide excellent customer service. And with so much competition in e-commerce, taking care of your customers is an integral part of dropshipping success. Not only can you stay one step ahead of your competitors, but you can also build a loyal customer base by consistently providing quality service to your customers.
With this in mind, here are some of the ways you can provide exceptional customer service:
Quickly resolve customer queries and complaints
Quickly process returns and refunds
Stay in touch with your customers
Create an FAQ page
Invest in customer service management software
Dropshipping strategies: the keys to success
To make your dropshipping business a success, here are some effective strategies you can adopt:
Marketing and advertising: use platforms like Facebook Ads or Google Ads to promote your products and attract potential customers.
Efficient order management: set up an order tracking system to ensure that products are dispatched quickly and that customers are satisfied.
Impeccable customer service: respond quickly to customer queries and resolve any problems to build customer loyalty.
Analysis and optimization: regularly monitor the performance of your dropshipping store, identify areas for improvement and adapt your strategies accordingly.
Successful dropshipping: inspiring stories
Many people have made a living from dropshipping by adopting the right strategies and working hard to build their business. We've put together these stories to encourage you to keep up the hard work:
David, a Canadian student, launched his dropshipping store while still at school and quickly generated five-figure monthly sales.
Julie, a French stay-at-home mom, has set up a boutique specializing in eco-friendly baby products, and has managed to generate a comfortable income enabling her to stay at home with her children.
Valuable advice from dropshippers: their secrets revealed
Successful dropshipping entrepreneurs often share valuable advice based on their own experience:
Be patient and persistent: success in dropshipping doesn't come overnight. You have to be prepared to invest time and effort to see results.
Don't neglect customer service: excellent customer service is essential to building customer loyalty and ensuring the long-term future of your business.
Keep abreast of trends: regularly monitor market developments and adapt your offer accordingly to maintain your customers' interest.
In conclusion, making a living from dropshipping is an achievable goal for those who are prepared to commit themselves fully to this activity. By following the strategies presented in this article and learning from success stories, you too can create a profitable dropshipping store and enjoy financial independence.
To benefit from profitable dropshipping, the choice of products and supplier is not to be taken lightly. To help you at this stage, we offer you Minea. It's a tool that can help you easily find the winning products and suppliers to suit your needs.
Frequently asked questions
Is dropshipping dead?
Dropshipping isn't dead, but it has evolved. Increased competition, changing e-commerce policies and higher customer expectations pose challenges. Success depends on adaptability, niche selection and providing exceptional service. It remains a viable business model when approached strategically.
How do I set up a dropshipping store?
To guide you, here are the five essential steps to creating a dropshipping store:
Choose a site template and customize it to your needs.
Choose the products you want to sell and select a reliable supplier.
Import products onto your site.
Finish setting up your site, including the essential parameters.
Put your site online and start promoting it to attract customers.