You can earn anywhere from $0 to over $10000 per month by doing dropshipping. The more you invest, the more you can earn. However, if you are not careful you can also lose money.

How much you earn from dropshipping will vary greatly depending on the number of products you sell in a particular month and your profit margin per product.

For eg – Let’s assume, in a particular month you bought 100 products worth $20 each and sold every one of them for $30. That means you made a profit of $10 per product. Thus, you were able to earn $1000 in that month.

This is your gross profit. In order to find out your net income, you have to minus the defective product returns, money refunds and the marketing cost associated with selling your products from the gross profit.

For eg – Based on the previous example, if it takes you $2 to advertise and sell each product, you are left with a net profit of $8 per product. Also, suppose you had to refund products worth $100 in that particular month. According to the calculations, your net profit for that particular month will be $800-$100 = $700.

How can you increase your earnings from dropshipping?

Dropshipping is an easy business model to get into, but it’s not a guaranteed one. If you are not careful, you can incur some losses. However, if you play your cards right, you can find a very good sustainable source of income.

In order to increase your revenue from dropshipping, you have to do the following –

• Recognize products that have the potential to sell(evergreen products) well but which has low competition.
• Learn how to market your online store or products in a way that will maximize your return on investment(ROI).
• Research thoroughly about your target customers in order to satisfy their needs and wants.
• Refine your ability to find and penetrate new market segments.
• Differentiate your brand from the rest of the competitions.
• Provide value to your customers in order to build brand loyalty.

You also have to research your competitors in order to see how they are approaching their business and adopt their strategy in order to keep up with them or beat them at their own game.

Is dropshipping viable in 2019?

Dropshipping is a high-risk vs high-reward type of business model. Many people try dropshipping without any knowledge, lose their money and claim that dropshipping is hard or it is dead. However, that is not true at all.

People are still making plenty of money through dropshipping. You just have to understand the art of doing dropshipping and forget trying to get rich quick.

In the beginning, you may only earn about $100 per month. However, as you get better at researching products, finding new markets to sell and learn how to properly market your products, you can keep reinvesting money and generate more profits.

Just remember, every viable business model requires effort, investment in both time and money, and some skill in order to generate profit.

Conclusion

There is no sure way to tell how much you can earn from dropshipping as it depends on a number of factors. With some luck on your side, you can generate some profits right from the start and keep reinvesting a part of it in order to scale your business. As you gain experience, you will develop the necessary skills and gain the knowledge to earn more, build a brand image and leave your competition in the dust.

You can start a dropshipping business using one of the available E-commerce platforms such as

• Shopify
• Woocommerce
• Bigcommerce

and then adding products from dropshipping suppliers such as the ones found on

• Aliexpress
• SaleHoo
• Doba
• Wholesale2B

Read the rest of the article to learn more on how to do this properly.

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Dropshipping business is the most trending business model of 2019. It allows making money online easily with winning products and minimum risk and investment

The dropshipping business model is a typical online e-commerce business where the business owner (entrepreneur) sells winning products on an online store without having to purchase the inventory. As there is no direct handling or stocking of inventory, thus the investment required to start a dropshipping business is meager. It is really a great way to make money online.

With an increase in the growth of online marketplaces like Amazon, eBay, etc., it has now become a lot easier to start your own online store. But it is also highly competitive as a low barrier to entry have led to massive growth in the dropshipping business trend in the last couple of years.

So, if you’re thinking of starting a dropshipping business and are ready to enter this highly competitive marketplace, set yourself up for success. Here’s how

How does it work?

The dropshipping business model is rather simple and works like this:

1. A customer buys a product from a merchant’s (your) online store
2. The merchant (you) forward the purchase order to the supplier
3. The supplier ships the product directly to the customer under the merchant’s (your) business name

Now that you know how the dropshipping business model works, let’s explore how to start dropshipping business in 6 easy steps

How to start dropshipping shipping business

To be successful with your dropshipping business, it all starts with:

1. Choosing a profitable niche

The first step is choosing a profitable niche. A niche is the segment of the market that you’ll be focusing on selling your winning products. To select a profitable niche, you should:

• Focus on something that interests you, and you have unique knowledge about.
• Research the niche you are choosing for competitiveness and profitability
• Choose products that help solve a problem, are non-seasonal, not readily available and not dominated by major retailers.

2. Competition Research

Once you’ve found the niche, conduct competition research on that segment. Research on how many sellers are already in that niche. Analyze their product listing, descriptions and customer reviews. Make use of that information and refine your approach to customers by bringing them better products to meet their requirements.

3. Find a Dropship supplier

A dropshipping supplier is an important business partner as the business is very much dependant on its product stocking ability and timely delivery.

When choosing a dropship supplier, look for a supplier who legitimately provides dropshipping as a service and has a good year of experience offering this service. Consider the supplier fee and the shipping times for fast delivery. Do check product samples before committing to the supplier and ask them for referrals of businesses they’ve conducted with others.

4. Select a selling platform to sell

Now that you’ve selected a product and secured a supplier, the next crucial step is to choose a selling platform. You can choose from an already existing marketplace like Amazon, eBay, and Etsy or can decide to start your independent store by setting up an e-commerce website using some of the options we noted at the beginning of the article.

Creating your own online store does require some investment upfront but also has its benefits such as you have full control of your store, the brand, and layout. There is no direct competition from other sellers, and there are no fees, and the profit margins are high.

It is also easy to set up with online tools like Shopify which require no prior technical knowledge to set up.

5. Implement Customer Acquisition Strategy

With dropshipping platform setup, now you need to attract customers to your business. This is where you need a good customer acquisition strategy.

An excellent way to start is through Facebook Ads, as with this you can tap into a vast customer base. Facebook Ads give you full control on how much to spend, target audience and the results are fast.

Other long-term strategies could include search engine optimization, social media and influencer marketing, and email marketing.

6. Analyze and Improve

To be successful in business and to grow it is essential to evaluate analytics, make use of the right tools and improve your business based on results. This way you can analyze which strategy is working for your business and how you can further grow it, and start to make a sustainable income from dropshipping.

Conclusion

The outlined six steps should be enough to get you started with your dropshipping Business. The critical thing to remember is that the competition is high. The only way to do a successful business is to choose a focused niche to sell your winning product, connect with the right supplier, set up an e-commerce store and implement a successful customer acquisition strategy and you’ll be set for success. But don’t forget to analyze results and improve your strategy along the way for steady growth. Good luck!