When you first started researching about dropshipping this was the first question that popped into your mind. Can you earn a part-time income with dropshipping? We will give you a short answer below and then we will go in-depth to answer this!
Yes, it is possible to make your dropshipping store succeed and be profitable, but it might not be as easy as most gurus make it look like. You could still become rich if you spend your time building a store where you look first at what the customer wants and not what your pockets want.
Profitable Business If You Know What To Do
As we said above, yes dropshipping is still profitable and is definitely not dead yet, but the increase in competition does mean that you need to put more effort into your dropshipping store.
This also means that you need to start treating it as a real business in order to succeed.
Before this people could just open a Shopify store, put some trending products in it that are not sold in retail stores (so they have that “wow I never saw that before” factor) and boom they made sales and probably profit as well! But nowadays more and more people are getting to know the dropshipping method. So your competition will be high unless you have a pretty cool product to display in your store.
Why most people fail in dropshipping?
Do you know what all these stores that don’t make it mostly have in common?
They don’t treat it as a real business. They treat it as a way to make a fortune overnight because that’s what everyone online is telling them happens when you start with dropshipping.
These gurus don’t teach you, that even though dropshipping is still profitable, that you need to put a lot of your time and effort in it to succeed, especially in the beginning. To treat it as a real business you first have to change your mindset.
You need to go from making some quick money to helping your customers have the best experience they ever had when shopping online. And then, of course, you can still make money!
Give Best Customer Service
To do this you have to make sure that you know how to do customer support. You need to treat your customer like a king.
Make sure that whatever your customer says that you reply as nice as possible. This will result in fewer people being upset at your business.
Also, if you helped them really good, with for example the tracking of there package, you have a great chance that they want to buy from you again because they know that they can count on you if they got any problems.
Branding Is Really Important
Do you know what most failing stores also have in common? They don’t pick a niche. They don’t focus their energy on one type of person, but rather just focus on everyone hoping something sticks.
All you have to do is pick a niche, pick a name that has something to do with the niche (or not, just make sure it’s catchy or easily memorable).
Can Dropshipping Make You Rich Overnight?
Nope. But you can be rich if you try to run the business for a long time. This business model isn’t a roller coaster ride anymore. You have to take it as a real business in order to succeed.
We would say yes to long time business mind set people because the income potential is unlimited and you don’t have to worry about stocking products and shipping them to your customers.
So that means that theoretically, you can scale your store as big as you want. Or maybe even start a new dropshipping store to get multiple streams of income.
As I said above; if a lot of people are giving dropshipping a try, then the market could become so saturated that it will become harder and harder to get into as time goes by.
But with that said we still believe that dropshipping is not dead, but profitable and that you can get rich with dropshipping!
The truth about dropshipping income proofs:
We’re almost certain that some of the dropshipping income proofs are real, but there are many fake gurus out there who post photoshopped screenshots and fake sales. Just to make you believe that dropshipping is super profitable and that they got rich off it.
Also, a screenshot of sales of let’s say $50,000 a month may be real, but that’s not all profit either. They might be spending $40,000 on advertisement and product costs.
So their profit margin is around $10,000 a month, which is still not bad for not holding any inventory, but a lot less than the $50,000 earning they showed off with.
Dropshipping vs Affiliate Marketing: Which One Is More Profitable?
In comparison with Dropshipping, affiliate marketing is a lot easier to start and manage. In a dropshipping website, you will have to actively monitor the store and order products through suppliers. All this requires time.
But in an affiliate website, you don’t have to actually do any of this because you get a commission by letting people buy through your link. That’s it.
While affiliate marketing is great for starters who don’t want to spend a lot of time on the business side like customer service, we believe focusing on dropshipping is the best choice.
Dropshipping is definitely the best choice if you’re focusing on the long-term.
You know why?
Because if you own your own store you can do so much more to increase the customer lifetime value and increase the average order value.
This means you can earn more per acquired customer. Not only that, but you can do so much to increase your own profit margins. In comparison to affiliate marketing where not you, but the other store where you “work” has the lifetime value of that customer. For example, that person decides a few weeks later to buy more of that same item you promoted with your affiliate marketing. Guess who gets the profit? Correct, not you.
With affiliate marketing, you need to keep spending money on advertisement to acquire new customers or start learning ways to get free traffic like SEO as explained here.
While if you’re further with dropshipping you can tap into your past customers via email marketing or any other form of marketing and get them to buy again from you. Thus increasing the lifetime value of that customer. And it’s not only when you’re further with dropshipping. For example, increasing the average order value is something you can already do from the beginning.
Also, a dropshipping store can be turned into a passive business. By hiring freelance staff for marketing, customer service, and fulfilling orders. Then you only need to work a few hours a week on your dropshipping store. Just to make sure everything is going the way you want it to go.
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