My New Selling Strategy – Is Dropshipping Dead?
I hope you are having a fantastic day. Mine was filled with opportunities so for that I’m thankful. Over the weekend at my work Christmas party, and to my delight, I actually had a brief opportunity to discuss online selling strategies with one of my co-workers.
Specifically he asked me if I thought drop shipping via Shopify was dead. I think my exact answer was “No, but I think selling on other platforms is better.” I definitely do think that if you have a well presented site with quality products in front of the right audience you will still sell things, dropshipping or not. But I don’t think dropshipping from your own site compares to selling on a platform like Amazon, Facebook Marketplace, or EBay.
Oddly, I think this topic goes along well with my theme for 2019: not doing things just for monetary gain but rather because it’s the right business move to make. I’m not saying that dropshipping cannot be a successful way to earn, I’m simply saying I don’t think it’s the best selling choice. I also think that the person that typically chooses to do it, is doing so for two reasons:
1. They don’t want to purchase product
2. They think it will be easy just to be the middle man
So speaking to the first concern, you obviously must be able to invest in having your own product if you want to make a higher margin selling. And secondly, in many cases the consumer will have to have a strong reason to trust your site in order to even make a purchase; so it may be especially harder to be the middle man.
I have had several dropshipping sites before and made sales but never really saw the type of traction I wanted. I understand now that many people are in this same position. If you want to stick with dropshipping, then I think increasing your marketing efforts and SEO will help your site make more conversions. However, if you’re thinking that promoting your website or getting traffic in that way is going to be a challenge, then I encourage you to adopt my new selling strategy.
Step 1: Invest in Product
Yes you have to do it! Take the leap of faith and get your own inventory. I would highly recommend doing a fair amount of research into your potential product and the market you want to sell it in.
I specifically have been looking into Alibaba.com to find a wholesaler to source my product (I recommend downloading the app to do so.)
Some advice I was given from a girl who sells 45k a month via Amazon was that you do not necessarily have to purchase thousands of units, or even the minimum number suggested by the wholesaler. Make sure you take the time to talk with them, discuss getting samples, and the specific amount that you want to invest in. But basically secure a number of units that you are comfortable with and establish a retail price for them (make sure to compare competitors so that you’re competitively priced.)
Step 2: Sell Your Product On A Platform Like Amazon, EBay, or Facebook Marketplace
Dropshipping doesn’t compare to selling on one of these platforms for the following reasons:
1. They are some of the highest trafficked sites in the world
2. People trust these platforms – they have a high level of brand recognition
3. These product listings will pretty much always outrank yours in the search results
In my selling strategy specifically I will be taking my white labeled product that I sourced from an Alibaba.com wholesaler and selling it on Amazon.
Step 3: Market Your Product
Your product, if presented well, on one of the main selling platforms is bound to get some traffic. However, advertising your product and creating content around your product via social media and YouTube will also help it start selling consistently.
This strategy gives you a better overall advantage than dropshipping. From selling on these platforms you’ve gained traffic without doing much, and in the long run cost actually go down, because the fee to maintain a Shopify site will be greater than your listing fees. Lastly, in my opinion, having your own product opens up many future possibilities, like getting it placed on a store shelf.
So this is my strategy, I have not tried it to be fair. It’s mostly based on the advice of others who tried both dropshipping and Amazon/Ebay selling and did better selling on a platform.
Tomorrow I’ll be ordering my first batch of product from my wholesaler. So you could say I will be gaining real work experience on the topic very soon. I do hope you’ll check back when I drop an update to see how it’s working out; and I still recommend you trying this method over dropshipping because I think you’ll be better off fully invested in the product that you sell.
With love always,