How To Win The Dropshipping Game In 2021

June 17, 2021

How To Win The Dropshipping Game In 2021

How To Win The Dropshipping Game In 2021

June 17, 2021
Published at
What is Dropshipping?  

Never heard of Dropshipping?

Let’s explain!


Dropshipping is an order fulfilment method where the retailers don’t hold any stock. They just accept the orders and send them to the supplier. The supplier then packs the order and ships it directly to the customer.  

This way the retailer doesn’t have to keep any inventory with them. They just need to convey the order to the supplier or manufacturer, and they handle the delivery.So, the product is never actually handled by the retailer, all he has is the information that he is conveying to the customer through his marketing.


Benefits of Dropshipping

-      Saving inventory cost

Dropshipping business model requires you to store zero inventory. You can carry out a successful business without ever having to deal with upfront inventory even though you are selling online.

If you follow the traditional order fulfilment model, you’d have huge amount of tied up capital in the form of inventory. You can never say for sure if you’ll be able to sell all of your inventory unless you decide to under-stock, which might lead to loss of profits and customers.  

With dropshipping, you can launch your online business without having to spend thousands of dollars on buying inventory, storing it and delivering it.

-      Simple business model

When you choose dropshipping, whether you are starting a new business or planning to move one online, you eliminate the need of setting up an inventory management model in your operation process. Not only does this make operations super simple but lets you test out what products customers are responding to without actually investing a ton of buying inventory.


-      Sell to a wider location

All you need to run a dropshipping business is an internet connection.It doesn’t matter which part of the world you are in geographically. If you can communicate with you suppliers and market well to your customers, you can run a very successful business (even on a vacation!).

-      Sell multiple products

Starting a new online business but don’t know what products actually sell? Dropshipping might be the best option for you!

The simple business model lets you list more than one product as you don’t have to pre-purchase the products to sell them. All you need is a supplier that stocks the product, and who said anything about having only one supplier?  

You can engage multiple suppliers until and unless you have a clear communication channel with all of them.


Misconceptions about Dropshipping

 Dropshipping might seem like the perfect go-to-choice whether you’re just starting an online business or looking to expand an existing one. But it’s not all flowers and butterflies, something so good doesn’t come without any disadvantages nowadays.

When it comes to dropshipping, people have some common myths and misconceptions that need to be cleared before they get involved.


-      Fast results

Doprshipping might be a simple business model it doesn’t ensure fast results. It requires you to build a strong relationship with your supplier, making sure he delivers on all your orders.

You also need to market the products to your target customers. When we say market, it means really convince them to purchase from you as there is intense competition in this field.


-      Highprofit margins

When something is so new and easy to start, trust us you’re not the only one wanting to do it. Dropshipping is simple, requires minimal overhead costs and no major capital investments. Such attractive features reduce the barriers to entry, thus making the competition much intense.  

When selling ordinary bulk items, there is not much you can do to differentiate your products from that of the competitor’s. Some of them wills ell their products at minimal profit margin just to grow sales and capture market share. They do not invest in customer service or a fancy website, but well customers don’t really care about that when they are selling the same products at half the price or even lower


-      Preferable shipment method for new businesses

New businesses need to make some amounts of profits in order to sustain themselves. If you are someone who wants to earn a living out it, you should think twice about dropshipping. It definitely helps you experiment with multiple products and start with less financial investments, but it also wants you to put in a lot efforts when it comes to the other aspects.

 You need to foster strong relationships with your suppliers. There are not a lot of suppliers who’ve adopted dropshippin since it’s a relatively new concept and already have retailers in their network. Why do you think they’ll prefer you over their existing partners? Why would they make efforts to build a strong relationship with you? If you are willing to take that extra step and risk, GO FOR IT! Or else dropshipping might not be the best choice for your business.


-      You’re the boss

Well, when you start your own business one of the perks you tend to enjoy is being the “BOSS”.

 In dropshipping, you might be the boss on pen and paper, but you really have very little control over your operations. You can only receive orders, after that it’s all on the supplier. You have zero control over the supply chain, the supplier is responsible for packaging and delivering the order, but if they fail to do so efficiently, you are the one blamed by the customers. If the product is faulty, you are answerable to the customer, not the supplier.


Tips to win the Dropshipping game

 Here are a few tips and tricks that can help you launch a successful dropshipping business.


-      Find your niche

If you are just starting your business, having a general category is better as you can explore all the different products and see what your customers respond to the most. The end goal is to find the right niche within various categories.

But if you have done your research and are confident, your focus should be to start building your niche store. It makes things simple as you have to target a specific group of people and manage lesser products. You can put more marketing efforts into your niche and expand your business over time.

Companies like Amazon first started with as a niche store that sold books online and now, they sell everything from needles to mobile phones.


-      Find a good supplier

This tops the list of things you need to start a dropshipping business.You cannot start your business without a supplier, and you cannot make it successful without a reliable one. Having a strong bond with your supplier is more important than your bond with the customers in case of dropshipping.  

If the supplier fails to deliver, your relations with your customers will be affected for sure. You cannot afford losing customers to competitors over inconveniences like these.

Here are a few things you should look out for while finding your dropshipping business partner, your supplier:

1.    Sells legitimate products

2.    There is not communication jargon between the two of you

3.    Make sure they handle returns and take responsibility for damaged products

4.    They take a reasonable amount of time and money to deliver the products

5.    How efficient is their customer service?


Before finalizing your supplier, always order samples to test out the product yourself before selling it to customers.

-      Lookout for competition

Every business has competition, but when it comes to E-commerce the competition is way more intense. You should keep a close eye on your competitors and adapt strategies to keep differentiating your business from them.

You can differentiate yourself in a number of ways, like uploading better product images and description, better marketing of products, providing efficient customer support and so on.

The price point is something which you can use but in a saturated market it is very difficult to operate at a level different from competitors. If you sell it for lower than the standard, people might think your product lacks quality and if you sell over the standard, well no one’s going to buy from you, unless your product offers something more.

-      Marketing

Since the product is handled by the supplier, you have a lot of time to focus on marketing your products.

You have to master ads in order to target potential customers, generate leads and convert them into sales. Ads and Search Engine Optimization (SEO) can help drive traffic to your website or marketplace store. SEO can be a stronger tool as it has long term benefits. Consistent efforts invested into SEO will rank your page higher in search results, above competition giving you an edge over them. Customers are impatient and trust google rankings, so being on top will not only drive more traffic to your page but also improve your overall credibility as a seller.



Dropshipping might seem like a simple business model which requires comparatively lesser efforts, but it comes with its own drawbacks too. But that doesn’t mean you shouldn’t try it! If you follow the correct steps and keep analyzing your results and improve, you can launch a profitable dropshipping business.

Don’t lose patience and keep persevering!


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