If he had to start over, Jordan Welch says that starting your own dropshipping business would be the way he would go. Now, with a few years under his belt, he outlines exactly what he would do. In fact, this is the process is used not long ago when he started a new Shopify store, which is pulling in nearly $1500 every day. His success comes down to these 5 crucial elements:
- The products you sell
- Your dropshipping suppliers
- The store you run
- Your marketing
- Order fulfillment and shipping costs
So let’s dig into this Dropshipping For Beginners review.
There can be a lot of moving parts with a successful dropshipping business, not the least of which is having a product that’s a big seller. In other words, it’s hard to succeed in the drop shipping business if you’re selling a bunch of duds. Basically, there are 3 things to look at when evaluating a product:
- Does it get a lot of attention on Instagram or Facebook Is there any competition for the this product and are they running ads and getting views (this means there’s demand)
- Does the product appeal to a wide variety of people (How else can you scale?)
- What are the profit margins like? Rule of thumb in the dropshipping industry is that you want to be able to sell the product for 3x the amount of what it would cost to acquire and ship to your customer.
The best way to find products for your online business that falls into the above categories is really pretty simple. Just start going through your facebook and instagram feeds to see what types of products are being sold. Also, take a close look at the comments that people are leaving, whether good or bad. Oh and another thing, and this is key… make sure you comment and like so that you will start seeing more of these ads in your feeds. Every day you want to look at what pops up and catches your eye. If you find something you like, try to think of ways that you can advertise them for your own business.
Next, you need to take a look at the type of store you want to build. There are a few schools of thought here… You could build out a store that sells a bunch of different, unrelated products (kind of like Wal-Mart), or you could look into building a store around one specific product. Now what Jordan did was building a store that combined these two ideas. It looks like a store that’s centered around one product, but he also tests other RELATED products. This gives him the best bang for his buck!
Regarding the dropshipping business model, I really want to drive this point home, and that is you want to build your own dropshipping store like other successful dropshipping stores are built. Jordan once had a Flora-Flow store (Flor-Flow is a home gardening company) in which he modeled everything from the general design all the way to down the basic color. Why, because it worked. “You don’t have to reinvent the wheel,” he says, “you just have to take what’s already out there working well and put some of your own sauce on it.”
Now, it’s time to get going… look for a product and build out your online store. Throw in some other related products and you’re off to the races. Take a look at Articture.com to see what I’m talking about. This is what Jordan does and it’s the best route starting out. At this point, you need to get eyes on your site. Running Facebook Ads is Jordan’s bread and butter, and you’ll probably need a couple hundred dollars to get up and going. The beauty of this is that store owners can get traffic over night. And if you hit a home run with that ad, then scale the heck out of it.
While I’m on the topic, Jordan really like to run video ads. Remember back in your Kindergarten days where you would get in front of the class during “Show and Tell”? Well, this is basically the idea. Get yourself in front of a camera, talk about a product and upload it to Facebook or Instagram. Next, you’ll want to run some ads to this video to different audiences. Set your budget low in the beginning (about $5/day). Keep and scale the audience that converts, and delete the ones that don’t. This is the key to making dropshipping profitable.