Many people talk about drop shipping as an easy way to make a lot of money. You don’t need to have an inventory, you don’t need to spend money up front, and last but not least you don’t need to ship anything. So it must be easy to make a lot of money in drop shipping, right? Can drop shipping make you rich?
The answer to this question is yes, drop shipping can make you rich. However, it may seem as getting rich off of your drop shipping side hustle is easy due to ease of starting a drop shipping business, but it is not quite that simple. There are many factors you need to consider in order to get to the point of being rich with a drop shipping side hustle. Those factors include:
- The Margins Are Lower With Drop Shipping
- Drop Shipping Is a Real Business
- You Need To Do Just as Much Market Research With a Drop Shipping Business
- You Need a Website and Other Social Media Platforms In Order To Promote
- Choose a Legit Niche
The Margins Are Lower With Drop Shipping
When you get started with drop shipping you need to realize that the profit margins won’t be as high as if you bought products wholesale. This is because you have your suppliers taking care of your supply, shipping, customer service, and other things. This means instead of getting 40-50% profit margins, you’ll be looking at margins closer to 20%.
In order to get rich off of drop shipping, you will have to sell a lot more in order to make a lot of money in comparison to the traditional wholesale methods.
Because of this reason you may want to consider selling higher ticket items, which are products that usually cost several hundred or even thousands of dollars. These products may be more expensive, but they can allow you to make much higher profit margins.
Drop Shipping Is a Real Business
Drop shipping is a real business and should be treated as such. You need to make sure you use legitimate suppliers as well as follow the necessary steps in order to get your business registered. Additionally, you will need to spend time marketing your products and building an online presence in order to attract customers.
Just because the products are easy to get your hands on doesn’t mean it’s easy to get a loyal customer base.
You Need To Do Just as Much Market Research With a Drop Shipping Business
When it comes to drop shipping you need to do just as much market research as a traditional business. You could make the argument that you don’t need to do market research since you are selling products that other people have already sold, but this is not the case.
You may actually have to do even more market research due to the fact that anyone could get their hands on the products you’re selling. This means that you have to dive deep in order to find underserved products that other people aren’t pushing with ads already.
You Need a Website and Other Social Media Platforms In Order To Promote
Just like a traditional business, you want to create social media profiles, a website, and other online platforms that you can use to promote your products. This is necessary in order to reach the widest audience possible, and attract customers who may be interested in the products you’re selling.
Just like any other business, you’ll need to:
- Create social media content to get eyes on your products
- Use influencers to push your product
- Promote your products with ads
- Create blog content on your website in order to get visits to your store
Choose a Legit Niche
If you were one of those people who got in early on the fidget spinner era, good for you. You probably made some good money. However, it’s a better idea to go with a legit niche where you could come up with multiple products to sell, instead of going with what is trending. Take a look at the Google Trends for fidget spinners now.
As you could see, fidget spinners went down hill fast, and there are many different products that do the same. It’s better to choose an overall niche like a specific sport or hobby in order to keep the interest of your customers over the span of time.
This will allow you to:
- Build a good social media following
- Build an email list
- Build loyal customers as a whole
- Learn the in’s and out’s of the niche over time
Why Does It Seem Like Everyone Gets Rich Off Of Drop Shipping?
It seems like everyone gets rich off of drop shipping due to the fact that a majority of the people claiming they are rich through drop shipping want to sell you a course. You may see people sharing their Shopify dashboards with a lot of sales in order to get you on board to buy their $300 course.
You need to be careful who you listen to. Number one you could share fake shopify dashboard stats because a shopify dashboard could be very easily manipulated in terms of stats. Number two just because their dashboard shows a lot of revenue, doesn’t mean that they are actually making a ton of profit. Their dashboard could say $1,000,000.00 in revenue, but they could be $50,000.00 in debt.
What Is Some Proof That You Could Get Rich From a Drop Shipping Business?
The website Wayfair.com started out completely as a drop shipping business. They now are a huge company. It just goes to show that if you stick with it, and aren’t in the mindset of drop shipping being a get rich quick scheme, you could do very well for yourself.
It’s important to note that in any type of business, you can’t take shortcuts or it will come back to bite you.
In Summary
When you go to start a drop shipping side hustle, you need to keep in mind that it’s no easy feat. There may actually be more competition within drop shipping which makes it even harder to stand out.
However, if you put in the work over the competition, there’s no reason you can’t become rich from drop shipping. Just ensure you do your research, put together a good marketing strategy, and focus on building a loyal customer base to succeed with your drop shipping business.
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