Drop shipping is a popular method of making money online that has a number of advantages over other types of strategies. When a marketer can sell their own product instead of promoting a product as an affiliate, it allows them to earn more profit from each sale. It can be both expensive and risky to buy products at wholesale prices to resell, but the drop ship strategy allows for low start-up costs and higher profit potential.
Simplify Drop Shipping With Doba
One of the biggest downsides to running a drop shipping business is finding the best product distributors, suppliers, or manufacturers. Fortunately, a company called Doba is available that connects drop shippers with suppliers of a wide variety of goods. They also have quite a few other services that give marketers an easy way to find new products, connect their websites to Doba, and even directly publish sales through Doba to various online retailers.
When someone joins Doba, they get immediate access to a huge database of product listings. This database can be searched to find new products or brands to promote. Once products are selected, they can be directly sold to customers. The payment is collected directly from the customer, then an order is placed with the supplier through Doba to have it automatically delivered. A supplier only gets paid after a customer has already paid the drop shipper.
One of the best benefits to selling products with drop shipping is the freedom to set product selling prices. Doba’s suppliers offer each product at a specific wholesale price, so drop shippers get to choose their profit levels. Some people prefer to sell at low profit margins to increase sales volume, while others may prefer to sell for high profits even if it means fewer sales overall. The good news is that Doba allows the drop shipping marketers to choose how they want to operate their business.
The bad news about Doba is that they do have a monthly fee required to be a drop shipper, but they do offer a free trial program. The monthly fee can be well worth it considering the income that can be made with this site. By taking advantage of this free trial, many marketers are actually able to make money with Doba before the first payment is due. Since sales go directly to the marketers and not the suppliers, their trial lets people put money in their pockets fast without an initial investment.
How to Sell Drop Shipping Products
There are a lot of different ways to sell products as a drop shipper. The obvious method is to create a website to sell the products. Doba allows for easy product integration with a wide variety of website shopping carts, so they have made this strategy a cinch to use. There are also other methods that don’t require the drop shipper to have their own website.
Products can be quickly published as new eBay auctions. Doba is actually one of a handful of companies that are members of the eBay Certified Service Provider Program, which boosts confidence for both marketers and customers in their trustworthy business. Marketers can attract a lot of free, targeted traffic by selling their products through eBay.
Other options of auto-publishing include Amazon. The main thing to keep in mind with using Doba and Amazon is that it is possible that a supplier could require a payment for an order before Amazon actually pays the drop shipper. Amazon does make these payments faster and more frequently than their affiliate payments, but there can sometimes be a delay of up to two weeks to actually receive the funds.
Succeeding with Doba Drop Shipping
The main keys to succeeding with Doba’s drop ship program are to diversify sales outlets to increase exposure, build name loyalty and recognition, and to competitively price products while maintaining a profit. Proper attention to each of these areas is extremely important for any drop shipper, but they especially apply to beginners.
One of the recommended ways to diversify sales outlets from the beginning is to start with a home base for the business. A website with a dedicated domain name works best for this purpose. This allows the business to brand itself and bring in sales from other traffic sources. It also gives loyal customers a place to go to place future orders without the marketer having to pay fees to sell through other websites.
Establishing Customer Loyalty and Trust
After building a website to use as the base of operations for a business, this website can then be promoted through sales made on other websites. By simply referencing a company brand name, a website, and a customer support email address to a new customer when they order, that customer will often make additional purchases from the website in the future. This repeat business helps to build customer trust and loyalty, which makes it much easier to complete more sales with less effort.
An online presence can also be established in the business niche to build customer loyalty and trust. This can be done by offering free articles on the business website, running a free newsletter with helpful information related to the niche, or even branching out into other websites to reach new customers. Almost any kind of social media website can be used for this purpose. By simply talking about the niche or the products being sold, traffic can be drawn from these sites to the business site to increase sales.
Competitive Product Pricing
Although there is a huge selection of products available through Doba, it is very important that drop shippers do not blindly select products to promote. Once the wholesale price of an item is determined, the marketer will need to search the internet to find out how much the competitors are selling it for. When sales are being made through a dedicated website for the business, prices may actually be able to be more flexible, but competitor pricing will have a big impact on sales through eBay and Amazon.
When multiple people are selling the same product through the same online retail outlet, there are only two factors that people will use to pick which one to buy. The first is price, which can be direct pricing and also shipping costs. If a drop shipper has the lowest product price but their shipping costs are higher than a competitor, then more sales may go to the competitor based on the total sales price.
The other factor is reputation. A more established seller is generally considered more trustworthy and reviews can often be found for past sales to verify their reliability. For this reason, trusted, established sellers can sometimes sell their products for higher profits. With this knowledge, a new drop shipper can better determine if there is room for them to compete with a particular product.
The main key is to ensure that pricing factors in payment and sometimes commission fees. Receiving a direct payment through PayPal will have a fee removed from the amount received. Sites like eBay and Amazon will also take a fee for each item sold, which is often based on a percentage of the selling price.