Dropshipping has gained a lot of popularity in the past few years. With the digital market expanding every day, more and more people are making use of multichannel selling software and inventory management tools to set up camp across lucrative online websites. Although dropshipping home goods can seem scary and more on the side of extra hard work and late gains and less on the quick riches scheme, it is still wise to look into it if you’re in the ecommerce business.
What is Dropshipping?
Before we move any further, let’s discuss what dropshipping is all about. If you’re a dropshipper, you have to facilitate the sales and delivery of a product between the manufacturer and the customer. In the field of ecommerce, what you need to do initially is partner up with one or multiple dropship suppliers and then sell their products on your online store. Dropshipping only requires you to display the products of others on your website, taking their share of the purchase, without having to worry about inventory management. Since most of the suppliers aren’t household names, they tend to cordially oblige to giving dropshippers a cut, hoping for some extra exposure in return. Depending on how much the sales margin is, ecommerce stores can utilise this business as a main source of income, since these stores receive special discounts and ample commissions aiding to this medium of assisted sales.
The Guide to Dropshipping Home Goods
As an online seller, if you’re looking to get into the arena of dropshipping home goods, read on to find out about the basics that will help you cover the fundamental foundation of this business.
- Choosing Your Niche
Home goods have as essence that is warm and intimate. As opposed to some of the other industries that are mainly based on necessity, home goods are essentially about individual taste and personality. Therefore, if you wish to succeed, it’s best to cash in on an ecommerce niche by catering particularly to people with identical taste and personality.The first thing you need to do in this regard is look for markets that have an opening that you can fill. The style and range of home goods are as diverse as they come, from posh and antique to handcrafted and postmodern. Although it’s best to select products and customer groups towards which you have a personal predilection, your final verdict should be derived from the competitive research. Conduct a thorough search to see which are the most trending products both in sales and in online searches. Just look for products with over 100,000 monthly searches for the top three keywords. One can always rummage through what and how much their competitors are offering. In addition to that, some of the useful resources are Google Trends and Google Adwords that will aid you in discovering which are the most popular keywords and what is it that the customers are looking for.
- Your Product Range
The concerns related to dropshipping are different from that of traditional ecommerce. Hence, sellers need to look at the products they sell from a different perspective. For starts, cheaper items work better for dropshipping, since the returns aren’t as ghastly. The reason for this is that returns can burn a huge hole in the pocket of dropshippers. Hence, too many expensive items being returned can even get you out of business. In a market as competitive as dropshipping, every penny is crucial, and low-cost items sell better in general.Although, if you do want to go the opposite way, that won’t be too bad either. This would entail large and expensive items such as furniture, mattresses, etc. Since storing and shipping cumbersome furniture is mainly profitable for successful home goods retailers, dropshipping is the more practical approach in this case. Do keep in mind the fact that most customers prefer to buy furniture by seeing it first in person. Therefore, make sure you have the market for it before deciding to sell it.
- Finding Suppliers
When it comes to dropshipping, the relationship between a seller and a supplier is extremely crucial. It’s almost like having a business partner, and sharing your success and failures equally. Therefore, it’s pertinent that you select the right supplier. There are several lists available on the internet for you to choose a supplier from. Reach out to as many suppliers as you can, and have discussions with them before you zero in on someone, so that you have a clear idea as to what the standard is like. Most importantly, don’t forget to sign a Dropshipping Agreement Contract. This ensures that you won’t be held accountable even if your supplier is doing something illegal.
- The Right Platform
Hosting an ecommerce store is more about your niche and branding than whether or not you’re a dropshipper. This equates to the logic that you can run a successful dropshipping company anywhere, as long as it flows with your niche. For instance, handcrafted home goods do well on Etsy, whereas Amazon is the better place for rare goods. However, Shopify has proved itself to be the best for dropshippers. Firstly, Shopify’s DIY interface is extremely easy to navigate for first-time ecommerce entrepreneurs. Secondly, it offers the best-received dropshipping apps, making it easy to organise everything and work with the suppliers.
- Navigating Web Design and Branding
Your web design will depend on the platform you choose. For example, while WooCommerce has more customised options, Shopify has a limited selection of templates. Thus, choose your platform depending on what kind of web design will benefit your niche the most. That being said, branding is always a tough nut to crack in dropshipping. Since your logo isn’t pasted on the product, you will have to go the extra mile to please your customers and make your worth known with elements such as return policies, satisfaction guarantees, and social media engagement.
One way to do your branding and promotion is through social media. Since this is the easiest way to spread the word about your business, use it to connect to your shoppers. Go out there and see what people are saying about your products. Note down their suggestions and complaints, and even brush up on reviews of products you’re planning to offer.
Due to the fact that home goods are personal, it makes them more sensitive to branding and customer engagement as compared to other categories. Having a connection with your shoppers is significant in order to reach your niche group. However, don’t let the myths and rumours about dropshipping scare you. It’s a fairly manageable and pretty lucrative venture once you master the basics, and with these tips, you’re sure to crack the code sooner than you realise.