How to Become Successful in Online Drop Shipping Business in 2020?

Online Drop Shipping Business
  • November 27, 2019

Want to Start an Online Business in 2020?

What is Drop Shipping?

Drop shipping is a business model that allows entrepreneurs to start an eCommerce store and sell products to their customers without stocking the items themselves.

An eCommerce website that operates a drop shipping model purchases the items it sells from a third-party supplier or manufacturer, who then fulfills the order. This not only cuts the operational costs, but it also frees up your time to focus on customer acquisition.

Dropshipping Business OnlineIf you are ready to start an online business that can compete with retail giants, and do so on a limited budget, then follow the six steps to become a successful in online drop shipping business in 2019. While it doesn’t take a lot of start-up funds to launch a drop shipping business, it will require an immense amount of hard work. Here’s how.

1. Find a Niche

Finding a niche needs to be laser-focused and something you are genuinely interested in selling to your customers. A product choice that isn’t focused will be difficult to market. If you aren’t enthusiastic about the niche you decide on, you will be more apposite to becoming discouraged, because it takes a lot more effort to successfully scale a drop shipping business. Here are some points to consider when finding your niche by our Top Naming Agencies:

Attractive Profits: When you are running a drop shipping business model, your focus should be on marketing and customer acquisition, so the amount of work required to sell a $20 item is essentially the same as it would be to sell a $1,500 item. Select a niche with higher-priced products.

Lowest Shipping Rates: Even though your supplier or manufacturer will handle the shipping, if the shipping cost is too high, it will act as customer repellent. Find products that is low-priced to ship, as this also gives you the option of offering free shipping to your customers and gripping that cost as a business expense in order to increase more sales.

Make sure your product appeals to impulse consumers with disposable income: When you are focused on driving traffic to your website, you want to experience the highest conversion rate possible because most visitors will never return. The products you are selling should trigger instinct buys and appeal to those with the financial ability to make a purchase on the spot.

Make sure people are actively looking for your products: Use Google’s Keyword Planner and Trends to check common search results related to your potential niche. If nobody is searching for the products you are planning on selling, you are dead in the water before you even begin.

Build Your Own Brand: Your drop shipping business will be more valuable, if you can re-brand whatever it is you are selling and pass it off as your own. Look for a product line you can white label and sell as your own brand with custom branding and packaging. Get your branding done by The Best Creative Advertising Agencies

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Sell something that isn’t easily available in local market: Pick something that your customer can’t find in their streets. That way, you can become more attractive to a potential customer.

2.  Perform competition research.

Remember, you will be challenging with other drop shipping operations as well as retail giants such as Walmart and Amazon. This is where a lot of potential drop shippers go wrong, because they look for a product that has less to no competition. That’s a sign there isn’t demand for that particular product.

There are many reasons why a product might not have a lot of competition, including higher shipping costs, supplier and manufacturing issues or less profit margins. Look for product that have competition, as it’s a sign that there is a high demand and the business model is sustainable.

3.  Secure a supplier

Partnering with the wrong supplier can ruin your business, therefore it’s important that you don’t rush this step. Conduct proper due industry. Most of drop shipping suppliers are located in overseas, making communication is extremely important, Both in terms of response speed and the ability to understand each other. If you are not 100 percent confident in the communication abilities of a potential supplier, move on and continue your search.

Alibaba has become one of the largest online resource to identify and communicate with the potential manufacturers and suppliers. Make sure to ask a lot of questions and learn about their production capabilities are in the event that your business grows exponentially.

Try to learn from entrepreneurs who have been working in the same industry. Try to avoid costly suppliers that charge extra for each delivery and other materials.

4.  Start your eCommerce Store

The best way to launch a website that supports a drop shipping business model is to use a simple ecommerce platform as Shopify. You don’t need a tech background to get up and running, and it has plenty of apps to help increase sales.

If you don’t have knowledge about Shopify then you can Hire Expert Shopify Developers.

Even, if you have low budget to hire website developer and designer, Shopify works like a plug and play option for your store. Once you are established and the revenue is coming in, then you can have additional custom options for your store.

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5. Develop a customer acquisition strategy

Have an eye-catching website and great product is the key but without customer it is not worth it. There are various ways to attract potential customers, but the most effective option is to start a Facebook ad.

Facebook allows you to generate sales and revenue right from the start, which can contribute to quick scaling. Facebook allows you to place your offer directly in front of your highly targeted audience. This gives you the ability to compete with the big brands and retailers immediately.

6. Track and Optimize

You need to track all of the data and metrics available to take your business to next level. It includes Google Analytics traffic and Facebook conversion pixel data, if it is your main customer acquisition channel. When you are able to track every single conversion — to know where the customer coming from and which page, they drop off on your website that eventually led to a sale — it enables you to scale what works and eliminate what doesn’t.

You will never have a set-and-forget advertising or marketing solution. You need to constantly test new opportunities and fine-tune current campaigns, which allows you to know when to optimize or shift campaign spend.


Becoming adept at drop shipping requires time, research, and planning. But it is the easiest way to kick-off your online business and it’s totally awesome for testing new product ideas. It requires low starting capital, and therefore you have the ability to try your hand at eCommerce with limited risks.

Drop shipping is all about creating customer acquisition plan, doing product research and start campaign to increase revenue. We have helped newly drop shipping businesses to start their online stores.

Looking for Drop shipping store development expert? We also offers logo design services. Check out our The Best Logo Design Companies  Drop us a line at

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