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How to Scale Your Dropshipping Business in 8 Steps

March 20, 2022 eCommerce TipsEntrepreneurs

It’s time to scale your dropshipping business! You have an impressive amount of sales, and you’re ready to play in the major leagues.  Like most dropshippers, you started little but after a while, you begin to reorganize your business to compete with greater competitors on a global scale.

After all, dropshipping will be worth an estimated $590 billion worldwide five years from now. Here are some crucial steps on how to scale your dropshipping business.

Pick a Niche

The niche you choose needs to be exceptionally focused and something you are interested in. A product that lacks focus will be hard to sell. If you aren’t passionate about the niche you choose, you will be easily discouraged, because it takes a lot of work to effectively scale a drop shipping business.

Brand Yourself

As a dropshipper, you’re selling a manufacturer’s item. One of the drawbacks of dropshipping is that your competitors can dive in and sell the same item at a lower price. The best way to protect yourself against the unavoidable race to the bottom is by branding your e-commerce business.

Your dropshipping brand should be the bedrock of everything else you do. Your brand should not only instantly tell potential buyers who you are and what you stand for but should also differentiate you from other dropshippers and convince shoppers to choose your product.

Get in Your Customer’s Head

Buyers are the heart of your dropshipping business. When it’s time to scale your daily tasks, you need more than a casual understanding of your potential clients. Knowing that you sell to 35-year-old soccer moms won’t cut it at this level.

Your goal is to discover points of friction in the client experience. Go beyond statistics and try to understand why clients buy from you. This can lead to so many advancements in your product pages, website, customer portal, and more. Pay attention to the data to plan a path forward.

Perform Competition Research

Do not forget that you will be competing with other drop shipping experts as well as retail heavyweights such as Amazon and Walmart. This is where most drop shippers go wrong because they search for a product that has little to no competition. That shows that there isn’t a demand for that precise product.

There are several reasons why a product may not have lots of competition, including poor profit margins, expensive shipping costs, supplier and manufacturing problems. Find products that have competition, as it’s a sign that there is a huge demand and the business model is sustainable.

Secure a Supplier

Teaming with the wrong supplier can wreck your business, so you mustn’t overlook this step. Carry out appropriate due diligence. Most dropshipping suppliers reside overseas, making communication greatly essential, both in terms of response time and the ability to understand each other. If you are not completely confident in the communication abilities of a possible supplier, continue your search.

Alibaba has become one of the biggest online tools to recognize and communicate with potential suppliers and manufacturers. Ensure to ask a lot of questions and know what their production capabilities are. If your business expands enormously, you want to be sure that they have the potential to scale with you.

Automate and Outsource

It’s very hard to scale a dropshipping business without some kind of help. Automation and outsourcing help to free up your time so you can focus on expanding your business. Automation is awesome for manual tasks like fulfillment and repricing that take up the majority of your time.

For instance, their inventory fulfillment tool is available online that helps you logically route orders with zero manual efforts. Instead of letting orders accumulate, automated fulfillment helps to prevent customer service headaches and backlogs.

Invest in Customer Support

Poor customer service can lead to several headaches, but when done properly, it gives you an unbelievable edge over your competitors. That’s because 84% of buyers say customer service is a major factor in their decision to buy a product. The drawback here is that 75% of all buyers want to talk to a human support agent, not a chatbot.

That means your dropshipping business needs breathing, living humans available for customer support. Customer experience is essential. If you’re finding it difficult to surpass your competitors, you can win buyers over by offering top-notch customer service.

Build Your Ecommerce Website

The quickest way to launch a website that supports your drop shipping operation is to use a straightforward e-commerce platform such as Shopify. You don’t need tech knowledge to get it up and running, and it has lots of apps to help boost sales.

Even if you have an ample budget that would allow you to seek the services of a web designer to create a custom solution, it’s a much smarter move to use one of the plug-and-play alternatives, particularly in the beginning. Once you are well known and the revenue is coming in, then you can explore more website customization.

Bottom Line

In dropshipping, you have to move fast and efficiently to increase revenue. It requires hard work, but you can increase profits by streamlining and simplifying your dropshipping operations as you grow. Follow these insightful steps to preserve your sanity, earn more profit, and scale your dropshipping business to greater heights.

For more information about how we can help grow your dropshipping business, contact us today at Fulfillman. We are experts in Dropshipping services, China sourcing, Warehouse fulfillment, Third Party Logistics, and many more. Our dedicated team will be available to speak with you and provide suitable answers to your questions and concerns. We guarantee you excellent services.