Winning Product Friday Episode 278
15 November 2024
Can You Make Money From Dropshipping in 2024?
Created: 4 December 2023 Updated: 24 October 2024
Contents
Do you want to learn how to make money dropshipping? This post is for you.
As much as starting a dropshipping business is easy, making money from it can be tough.
Does that mean we are telling you to quit your dreams of building a successful, highly profitable dropshipping business? Certainly not!
On the contrary, we are trying to prep you for the journey ahead. By getting you into the right mindset and arming you with the right information, nothing will stand in your way of becoming a successful dropshipper and stand out from other dropshipping businesses. And even if something does, you will know how to wriggle your way out of it to reach your goals.
In this post, we will show you how to get into dropshipping the right way. Most importantly, we will show you simple hacks for making profits out of your dropshipping hustle.
So stick around!
How to Start A Dropshipping Business
So we thought it wise to give you a quick refresher course on how to start a dropshipping store before we share tips to make money from it.
How exactly does the dropshipping business model work?
Dropshipping is a low-risk business model. It revolves around selling products without keeping any inventory. You find a product you believe will sell well, search for dropshipping suppliers selling it, list it in your store, add a markup, and then promote the product to attract buyers. The dropshipping industry is rapidly growing, with significant potential for profit, making it an attractive option for both beginners and seasoned entrepreneurs.
Once you get an order from a customer, you order the product from your supplier using the customer’s information. The supplier fulfills the order, while you keep the markup as profit. Selecting a reliable dropshipping supplier is crucial for ensuring product quality, order fulfillment speed, and overall customer satisfaction.
Simple, isn’t it? You bet!
Easy? Well, not exactly. If dropshipping was that easy, every Dick, Tom, and Harry would own a successful online business. Therefore, we suggest you spend some time understanding how dropshipping works and how to start before diving head-first into it.
Is Dropshipping Still Profitable and How Much Can You Make From It?
Can I still make money from dropshipping? Is dropshipping still a profitable business model?
Those are the kinds of questions we get asked a lot of times, especially by wannabe and beginner dropshippers still learning the ropes.
The simple answer is, yes you can still make money – and we mean good money – from dropshipping, regardless of how saturated it is now. Effective marketing strategies and choosing the right products are crucial factors that make dropshipping profitable.
The dropshipping market is projected to grow significantly in 2024, with increasing market size and future growth rates, driven by the popularity of online shopping and global trends.
This then begs the question: how much can you make from running a dropshipping store?
The short answer is that you can make anywhere from $10 to $100,000 a month in profits. And yes, we’ve seen stores that rake in north of 100K in profits from dropshipping.
The long answer is that how much you make dropshipping depends on many variables, including:
- Your Niche
- Your Target Audience
- Your Promotional Channel/Method.
Profitable Dropshipping Niches
It’s no secret that the success of your dropshipping business model is highly saturated. To stand out from this crowded market space, you need to pick the right dropshipping niche.
What are some of the profitable dropshipping niches that make sense to get into come 2024?
Here are our top picks based on reliable data collected by the NEXUS, our AI-powered product research engine.
Apparel and Fashion Products
Although the competition in this niche is crazy, you can make a decent profit from it. For best results, we suggest focusing more on women’s fashion products and jumping on trends. Fashion accessories like bags and bracelets also perform excellently well.
Home Decor
Home decor is another niche we’ve seen sell like crazy. Trending products in this niche include rugs, comfy pillows, wallart, etc.
Phone Cases
This is an evergreen niche that spins money – loads of it! It should be on your top list of dropshipping niches to consider in 2024.
Beauty and Skincare
This niche can make you a millionaire if you know what you are doing. Don’t believe us?
Here’s a snapshot of a product The Nexus, our AI-powered product research tool, found.
Notice the insane volume of orders this rather simple foundation cream product has generated? That gives you a fair idea of how in-demand beauty products are.
We suggest you take your time to do a little market research to find other profitable niches to try.
How to Make Money From Dropshipping In 2024
People are getting into dropshipping by the hundreds every day. You know what that means? Competition! A fierce one at that.
So, the odds are not exactly in your favor. That means if you want to get ahead regardless of the competition, you need to be strategic about your approach.
That being said, here are tried-and-true hacks we’ve seen on successful dropshipping stores you should try as well.
Tip #1: Pick the Right Products to Dropship
If you are going to run a successful dropshipping store profitably, you need to sell products people are willing to pay for. Selling fancy products people aren’t interested in will frustrate you out of the dropshipping game faster than a hot knife through butter. Dropshipping minimizes concerns related to inventory management by allowing suppliers to handle stock, thus reducing the risk of unsold goods and operational costs for the retailer.
One simple way to know if a product is fit for dropshipping is to run it through these checks:
Emphasizing the importance of having multiple suppliers ensures reliability and a broader product selection, which are crucial for maintaining customer satisfaction and business success.
1. Does It Have a Wow Factor?
Attractive products that command attention will always win over lacklustre products with poor visual appeal.
Case in point: Smartwatches. These products are so attractive that people often buy them out of impulse, not necessarily because they need them. Here’s proof that smartwatches sell well:
As you can see, these watches have pulled in an insane volume of orders for stores selling them. So, by all means, go for products that command attention.
2. Does It Solve a Problem?
More often than not, people buy products that solve their problems – even if it isn’t attractive.
Have a look at this rechargeable electric screwdriver which The Nexus, our AI-powered product research tool, picked up:
Notice it has been sold over 43K times? Although it isn’t attractive per se, it solves a crucial problem, which is allowing people to use it on the go even if they don’t have access to electricity.
3. Is It Easily Easily Accessible?
What’s the point of dropshipping toothpaste, milk, and grocery products? These are items shoppers can easily get anywhere.
If you want to make money from dropshipping, you need to sell products people will prefer to buy online than from a convenience store.
4. Does It Have a Good Profit Margin?
That’s a no-brainer, isn’t it?
5. Is There Sufficient Consumer Interest in It?
This is by far the most important check you need to take into account before picking a product. If a product checks off all the 4 boxes we’ve highlighted but people aren’t interested in it, it will be a dud.
There are a couple of ways to check if there’s sufficient consumer interest in a product, and we will be covering them in the next section.
How to Find Products from Reliable Suppliers People Are Interested in Buying
1. Check for the order volume in Sell The Trend: One surefire, tell-a-tale sign that buyers are interested in a product is by checking the volume of sales it has generated for stores selling it. And you can easily do this right inside your Sell The Trend account.
If you have any product in mind, just plug it in, and instantly, you will have an idea of the sales volume it generates for stores selling it.
Additionally, using Google Trends can help you identify popular products and emerging trends by analyzing search data over time.
2. Search for User Generated Content (UGC) on the product:
- Another way to check if people are interested in a product is by checking if there is sufficient user-generated video around it. The more views and engagement the video gets, the stronger the indication that there’s a lot of interest in it.
The easiest way to find these videos is to utilize the TikTok Explorer right in your Sell The Trend account.
You can then filter these videos based on niche, number of plays, date created, etc.
Utilizing the TikTok Explorer enables you to automate the product research process, allowing you to focus on other important aspects of your business.
3. Check on Facebook Ad Library:
- Another creative way to check if people are actually buying a product is to check if stores are actively promoting it via Facebook ads. This is where the Facebook ad library comes in handy.
Launch it, set the location as All, select All ad for the Ad category, and input your target search term.
If you see ads from other stores, it means there is likely a good demand for it.
If you see ads from other stores, it means there is likely a good demand for it.
Tip #2: Set Up Your Store
After finding the right mix of products to dropship, the next logical thing to do is to set up a storefront where you will list and sell them.
Dropshipping remains a legitimate ecommerce business model in 2024, highlighting its accessibility due to low startup costs and minimal prior knowledge required. Successful dropshipping relies on partnering with reliable suppliers to maintain product quality, contrasting it with outdated methods of reselling low-quality items.
This is assuming you’ve found a supplier (or third party supplier). We have a detailed guide for finding dropshipping companies and suppliers you might want to check out.
There are a couple of options you can try, and each will depend on how much you are willing to spend. Let’s start with the cheapest option:
Note: Although there are some free options you can try, the truth is that any free website option out there will have a severe limitation, making it unusable.
In most cases, you will only be able to set up a storefront but can’t sell anything. And even if it allows you to sell, processing payments from customers will likely be impossible. So you are better off looking for an affordable website solution than a free one.
That being said, here are some of the cheapest website solutions for setting up your store:
1. SHOPS
SHOPS is Sell The Trend’s native website builder that enables you to create a stunning storefront for your business. It’s intuitive and so easy to use that you can create a nice-looking online shop with it even if you haven’t built a website with it before.
The best part is that the store you create with SHOPS comes dropshipping ready. That means you can list products on it and start selling instantly after setting up your store. All the tools you need to run your store are built into it out of the box.
SHOPS comes with your monthly subscription to Sell The Trend, so you won’t be paying any extra fee.
2. Shopify Starter ($39/month)
For just $39/month, you can start selling via the Shopify Starter plan. However, you are only restricted to selling via Facebook, Instagram, WhatsApp, and Emails.
The best part though is that on the Shopify starter plan, you can use dropshipping apps to import products into your store with a few clicks of the button.
The coolest part is that when you start, you would only pay $1/month for the first 3 months, before paying $39 for subsequent months.
3. Ecwid ($14/month)
Ecwid is another e-commerce platform that is dropshipping-friendly. It allows you to set up an online store on the fly without worrying about the technical side of things. And it’s one of the cheapest website builders for e-commerce, starting at just $14/month
4. Wix ($17/month)
Wix is another top contender for building an online store for your dropshipping business. It is very easy to use and offers round-the-clock support.
Tip #3: Promote Your Products
If customers can’t find your store, they won’t buy your products – and you won’t make any sales. In fact, if you want to make money from dropshipping, you have to get really good at promoting your store and getting eyeballs on your products.
One key factor driving the growth of the dropshipping industry is the rising trend of online shopping. As consumer preference for the convenience of online shopping increases, the demand for more retailers to meet this expanding market also grows.
There are several promotional methods you can try, and we will be going over them shortly starting with the free methods:
Free Promotional Methods
1. Create user-generated content (UGC) for your products and post on TikTok: With just your smartphone, you can create UGC content for your products. These are videos of you using the product. Keep it simple, but allow your creativity to flow.
When you are done creating the videos, post them on TikTok and repurpose them as Instagram Reels and YouTube Shorts. And of course, don’t forget to add a link back to your product page when you post the videos.
P.S.: Don’t be afraid to replicate viral UGC videos you find online.
2. Pump out a ton of SEO content: Another method of promoting your products without spending money on ads is to pump out lots of SEO content. These include product descriptions optimized for SEO, blog posts, product review posts, etc.
For this method to work, you need to find relevant keywords potential customers are typing into Google to find the products you are selling. Then infuse these keywords into your content.
Paid Promotional Methods
Free promotional methods won’t always cut when it comes to dropshipping. As your dropshipping business starts to pick up, you will have to spend money to reach more potential customers and drive more sales.
Facebook ad is a good place to start with paid promotions. It’s easy and offers a wide reach. We suggest you take our Facebook ads crash course and get yourself up and running quickly.
Alternatively, try boosting the UGC videos you post on TikTok using paid ads. TikTok gives you a lot of advertising options, including video promotions, spark ads, video shopping ads, and many more.
Tips to Make Your Paid Ads Effective
- Drive traffic to a specific product page, not your homepage
- Target the right audience profile
- A/B test your promotional campaign. Try a different audience set, try different messaging, use a video, etc.
- Try multiple advertising channels besides TikTok, including YouTube ads
Tip #4: Optimize Your Website for a Successful Dropshipping Business
You’ve spent time and money setting up your ecommerce store, and you’ve invested in ads. Fortunately, your efforts have paid off, and potential customers are now coming to your website.
Partnering with reliable suppliers is crucial to ensure product quality and timely delivery, which directly impacts customer satisfaction and repeat business.
Now what?
It’s about time you optimized your website pages to make the most sales from that traffic. Here are some simple, yet effective hacks to do that:
1. Entice With Discounts
Nothing gets the attention of modern-day shoppers than discounts. So if you can, be generous with your discounts.
For best results, add a sense of urgency to them. A good example is pegging an expiration date to the discount. For example, you could say, this discount expires in 4 hours.
By doing so, you would create a sense of urgency in the minds of potential customers, making them take prompt action.
2. Let Shoppers Know You Offer Free Shipping
If you don’t offer free shipping to customers, making sales will be hard. So if you can, offset shipping costs for your customers.
But if you offer free shipping and they don’t know you do, that will be bad for your business. The best way to let shoppers know you can ship their orders for free is to display your free shipping offer using a sticky bar like so:
Another creative way to use free shipping is to offer free shipping on a specific order quantity. For example, you can offer free shipping for orders above $100.
3. Upsell and Cross-sell
Upselling and cross-selling are another way to increase sales. It involves getting customers to buy more, thereby boosting your store’s average order value.
Amazon is very good at this, and you’ve probably seen these upsell/cross-sell campaigns a couple of times. Here’s one:
To upsell a customer, all you need do is suggest a higher-priced product based on their previous purchase.
Cross-selling, on the other hand, involves enticing customers to buy a product that complements their original purchase, often for a lesser price.
Done correctly, upselling and cross-selling can supercharge sales, taking your dropshipping business to heights you never thought possible.
4. Offer Great Customer Experience
Prospecting for new customers is one of the hardest parts of dropshipping. It costs way more than keeping the existing customers you have already.
In fact, studies suggest that it costs 5 times more to acquire a new customer than to keep the one you have already.
Selecting a reliable dropshipping supplier is crucial to ensure the timely delivery of quality products, which directly impacts customer satisfaction.
You already know where we are heading with this, don’t you? You need to go out of your way to satisfy your customers. When you do, they will come back to buy some more from your store.
Here are some ways you can do that:
- Offer live chat if you have the means to
- Offer freebies to repeat customers. This could be a small discount, zero shipping costs, etc.
- Give customers multiple channels to reach you, including phone calls and email
- Have an active social media channel. It helps to build trust
- Ensure your return policy is clearly stated out
Providing Excellent Customer Service
Customer service plays a crucial role in the success of your dropshipping business. Happy customers are more likely to return, leave positive reviews, and refer others to your store.
Here are some tips for delivering top-notch customer service:
- Offer Live Chat Support: Live chat allows you to assist customers in real-time, addressing their questions and concerns before they abandon their cart. Consider using chatbots to provide 24/7 support.
- Handle Returns Gracefully: A clear and fair return policy is essential for building trust with your customers. Make the return process as simple as possible, and handle returns quickly and efficiently.
- Respond Promptly to Inquiries: Whether through email, social media, or phone, respond to customer inquiries as quickly as possible. Prompt communication shows that you value your customers and their business.
- Go the Extra Mile: Small gestures like including a personalized thank-you note, offering discounts on future purchases, or providing free samples can leave a lasting impression and turn one-time buyers into loyal customers.
Conclusion
Pressed for time and couldn’t read through the entire post? Here’s a breakdown of the tips to make money from dropshipping and sell online successfully:
- Pick the right product
- Set up your store the right way
- Promote your products
- Optimize your website for sales
No matter how saturated dropshipping might be, you can still make money from it. You might not make a fortune at a stroke from it but, with patience and persistence, it can be your ticket to financial freedom.
By putting the tips we’ve shared in this post into action, you can become hugely successful at dropshipping, so much so that you will amaze yourself.
FAQ
Can you actually make money from dropshipping?
While it’s true that the dropshipping model has become somewhat saturated, leading to fiercer competition, you can still make money from it.
The key to making money from dropshipping is knowing the right products to promote – and the right time to promote them. This is why it’s important to learn how to jump on trends.
How much profit can you make from dropshipping?
How much profit you make from dropshipping depends largely on the niche you get into and the amount of effort and time you put into your hustle.
That said, you can make anywhere between $500 and $50,000 in profits monthly from dropshipping. With determination, you can build a successful dropshipping business that makes more.
Can you start dropshipping as a beginner?
Just about anybody can start a dropshipping business, regardless of your level of experience. Of course, it will take you a while to get a hang of it if you are just starting.
Is dropshipping better than affiliate marketing?
Dropshipping does have its downsides that can make you consider other alternatives, such as affiliate marketing. However, if you are considering making a switch to affiliate marketing, keep in mind that it is also riddled with its own challenges.
As such, we can’t exactly say that dropshipping is better than affiliate marketing – or otherwise.
