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10 Essential Dropshipping Business Tips for Retailers

A popular option for retailers looking to expand their product offering or reduce their on-hand inventory is drop shipping. Drop shipping is the process, in which a retailer markets a product, collects payment from the customer and then orders the item from a supplier (usually a wholesaler) to be shipped directly that customer. Not all [...]

A popular option for retailers looking to expand their product offering or reduce their on-hand inventory is drop shipping. Drop shipping is the process, in which a retailer markets a product, collects payment from the customer and then orders the item from a supplier (usually a wholesaler) to be shipped directly that customer.

Not all of your vendors are going to offer this service. It is costly to them and therefore not as common. If you can get a vendor to do this, it can really help your cash flow, especially if you operate an online retail store. If you only have a brick and mortar store, it may be the key to you competing with online.

1. Select a Reliable Supplier 

You shouldn’t rush into this step if you want to ruin your business by choosing the wrong supplier. The key to a successful E-commerce business using the drop-shipping model is to partner with reliable suppliers. You can stick to one business partner or several suppliers, depending on your preference. But ultimately, you need to select those that are credible and reliable. Make thorough research and choose from a pool of candidates.

If you’re planning to open up a custom product business, you can read or find other suppliers that have garnered trust among resellers. Due to the fact that dropshipping suppliers are usually based overseas, communication is crucial, both for response time and for understanding one another. Hence, it’s essential not to overlook the importance of building business relationships through communication.

Once you choose your supplier, study their business model and processes. Don’t be afraid to ask questions and learn their production capabilities. When you expand your business, ensure that they can scale up along with your orders and volumes too. Study about their drop shipping model and rules, and ensure that both parties have understood every term and condition together, making it a win-win deal for both.

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2. Add Reviews and Customer Testimonials On Your Site 

Initially, shoppers who shop on a drop shipping website tend to be skeptical about the products you’re selling. This is natural, especially if your e-commerce site is still new. To alleviate such trust issues, it’s best to add customer ratings, reviews, and product testimonials. New visitors will see what past buyers had to say about a product by reading reviews. Posting such reviews is one way to satisfy your customer needs and increase the chances of a closed sale.

Doing so can increase the chances of a buyer completing the purchase. This also increases your chances of earning impulse buys from customers who just visited your site to look and view your products. Essentially, due to your amazing reviews, they’ll feel satisfied with what they’ve read and eventually proceed to the checkout section. 


3. Execute Effective Marketing Strategies 

Dropshipping requires thorough marketing efforts just as much as any other business model. Online advertisements are necessary to make your business known more among your target market. Since you’re using the drop-shipping model, you’ll have more time in your hands to focus on marketing and promoting your e-commerce site. By planning your social media calendar and other content using a spreadsheet, you’ll handle your marketing easier. 

List down all your marketing plans and strategies, and mention specifically what social media marketing tips you’ll be applying. When creating a marketing plan, establish clear goals and define which market or individuals to target. It would also help to create buyer personas and study their purchasing behaviors. 

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4. Study Your Competition 

Every business shares the market with other competitors and firms in the same industry. You shouldn’t shy away from competing alongside big and small businesses. Keep an eye on how your competitors use social media, blog articles, and websites. These strategies will allow you to understand better which works for them, and you can copy or modify the same approaches for your own marketing efforts. You’ll be able to determine what works in your niche and what drives consumer engagement if you keep an eye on the online profiles of your competitors. 

Drop shipping may sound like the perfect scenario, but to be profitable, a retailer must do some research before deciding if, or when, to drop ship.

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Start With a Reputable and Dependable Drop Shipper

To find one, check with your list of current wholesalers and vendors. Although their catalog may not mention drop shipping, be sure to ask anyway. Next, look at the manufacturers of the products you sell. They may be willing to drop ship directly to the customer for a small drop shipping fee. Beware of any company charging a membership or monthly fee. Many times these middlemen are offering exactly what you can arrange with the manufacturer.

Carefully Choose Your Product

To be profitable in drop shipping, use the same product selection criteria for a drop-shipped product as you would for any other line in your retail store. Select one that will sell in sufficient quantity and at a sufficient markup to make money. Margins on these items can be slightly lower as no overhead or shipping is required.

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Stay Focused

When introducing drop shipped products to your line, make sure the products target the same market as the existing inventory. Just because you may find a drop shipping supplier with a wide array of merchandise, doesn’t mean you need to offer all of it to your clientele.

Plan for Returns and Other Issues

Using a drop shipper has many benefits. It may also have some headaches. Backorders, lost shipments, and returns are all part of retailing. These are issues retailers can plan for, but when using a drop shipper, some of these issues are beyond our control. Be prepared for these instances by discussing policies and expectations with the drop shipper ahead of time.

While you may not utilize drop shipping for all of your products, consider the impact on your online retail store. There are pros and cons here as well. For example, you cannot control what the merchandise looks like when it arrives at the customer’s home. Getting a great deal on an item only to have it show up in a messy box with sloppy packaging makes the customer feel like they got a bad deal.


Even though starting a drop shipping business is a fast and easy way to get a business going, it still requires effort, time, and energy to make it operate successfully for a long time. It takes active effort to grow a successful dropshipping business; therefore, implement the tips mentioned in this article. You’ll be able to expand your business soon when you’ve learned to master how to navigate and operate through a dropshipping business model.

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