Aside from having the positive attitude, positive mind, the good work ethics, and the genuine motivation that will commit to the latest business venture, there had only been some essentials that is required to begin with the dropshipping business, and these are the products to sell, the suppliers of certain products, the platform to sell it on and the sales tax ID.
To explore these in a more detailed way, you have to figure out the niche, find the dropshipping suppliers, get the sales tax ID, select the selling platform and promote your store.
Dropshipping Statistics: Are the numbers adding up?
The build up around dropshipping will mean that some people are cynical about it as a feasible business model and are also cautious about pitching in. There are limited facts about dropshipping specifically; however, these statistics should assist to give you the peace of mind with the sense of excitement too.
1. About 22 percent to 33 percent of online retailers had able to adopt dropshipping as the primary business model.
2. Dropshipping being accounted for 34 percent of products sold at Amazon in the year 2011, and that is about $14.2 billion of the dropshipped merchandise from just an online marketplace.
3. The standard profit of the manufacturer that dropshipped is 18.33 percent higher than the manufacturer that utilizes traditional retail models.
4. The global eCommerce sales that amounted to about $2.3 trillion USD where in the projections show the growth of until $4.48 trillion USD in the year 2021.
5. Around 84 percent of the online sellers said that establishing the positive relationships with the dropshipping suppliers is just the number one barrier in beginning an online industry.
Google Trends data are also showing the massive increase of curiosity in dropshipping with the few years that passed by.
How to select the dropshipping niche?
1. It must drive with what your passion and interests are – select the niche where you have your exclusive knowledge of the merchandise.
2. Scratch your own itches – you have to know and to be aware of your own problems, because chances are, other people or retailers are also having the same problems as yours.
3. Research for your competition – if possible, choose the niche with the low to just medium competitiveness.
4. Make sure that the niche is really profitable – Select the niche that has the profit margin of about 40 percent or up after the shipping amount, the seller fees and the taxes.
Characteristics of dropshipping merchandise that sells really well on Ebay and Amazon.
1. Products that are not dominated by those major brands and are simpler to compete.
2. The products that are lightweight and small, shoebox sizes and weighs less than 4 pounds.
3. Products that are non-seasonal and those merchandises that are always in demand, what the day it is in a year.
4. The product retails that are in between 15 dollars to 200 dollars, is the eCommerce sweetest spot.
findingthings • 2019 Dec 17