Scale without Fail: 3 Tips to Grow Your Dropshipping Business in 2024
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To those who are still sitting on the fence, dropshipping is not dead. In fact, it is more alive than ever in 2024. As for the others with a good understanding of the concept and a decent amount of sales, it’s time to step foot into deeper waters.
Like most dropshippers, you may have started small. However, your business has now reached a point where you must restructure to compete against bigger market players. The business landscape is expected to become more cut-throat and unforgiving in the upcoming years.
A recognizable dropshipping brand cemented on the grounds of customer trust is essential. The worldwide market is expected to have a value of $591 billion by 2027. This means it is high time that you take your dropshipping business from four to six figures. Does it sound too overwhelming? This article will help you out.
Here, we will discuss three solid tips or strategies to future-proof your dropshipping business. Get ready to scale without fail!
Dig Deep into Customer-centricity
As a dropshipper, your shoppers are the lifeblood of your business. When you plan to scale your business, it becomes important to possess more than a surface-level understanding of your customers. For instance – It’s no longer sufficient to know that your audience includes middle-aged soccer moms.
Taking things to the next level means having an understanding of –
Shopper behavior – Find out the different ways in which visitors navigate your website. Use tools like Hotjar (in tandem with Google Analytics) to observe shopper decision-making in action.
Sales funnel – Ask yourself crucial questions like what ways shoppers find you. Besides that, what is the average number of interactions they have with your team before initiating a purchase?
Customer pain points – Track online website visitor behavior to understand what the main pain points of your audience are. Then, assess how your products can become solutions for those pain points.
Customer costs – Here, you must understand what the average cost of acquiring a customer is. You must also find out whether you’re able to make the money back through sales.
The aim of digging deep into customer centricity is to discover points of friction. In other words, a streamlined buyer’s journey is only possible when you understand why customers prefer to buy from you. Then, you can significantly improve your customer portal, website, product pages, and so on.
Automate and Outsource
When your business was in its fledgling stages, it may have been possible to handle all dropshipping operations by yourself. However, scaling may require you to seek help via automation and outsourcing.
For instance – apps like Importify help people to automate their dropshipping business. The semi-automated fulfillment system pre-populates a shopper’s address during checkout. This way, there are no hassles of copy-pasting.
Moreover, there will be no errors often found during manual typing of address. As a result, you can direct your attention towards other important tasks.
According to Importify, automation tools come with integration features for the most popular platforms. So, you will be able to increase business exposure (especially through easy supplier change) and scale at length.
However, keep in mind that not all tasks can be automated (or are suited for automation). You can save time on such tasks by outsourcing through third parties. These include social media management, web design or development, copywriting, and more.
We know that it may sting a bit to spend your profits on a support team, but that is what the inevitable process of successful scaling is all about. Building your dropshipping empire will require automation and outsourcing to boost long-term profits.
Market Your Dropshipping Business Effectively
Plenty of dropshippers want the universe to take the wheel. They concentrate all efforts on securing good suppliers (which is a major challenge in the industry). However, it’s not possible to find more relevant shoppers unless you’re willing to put yourself out there.
In other words, market your dropshipping business effectively. The top four options in this regard include –
Influencers – This option is the most lucrative for those who deal in lifestyle products like kitchen gadgets, fashion, and others. Micro-influencers hold enough sway over their audience’s buying decisions. Choose a relevant and popular influencer and partner with them to speed up the marketing process.
Organic content and SEO – Content marketing is a must for dropshippers. This way, your potential customers will be able to find you through social media and organic searches. So, start creating useful content in the form of blogs, videos, podcasts, and more.
Pay-per-click or PPC – When done right, PPC ads can act as an immediate boost for your eCommerce business. Yes, it can also create a poorhouse (if not careful), so stick to retargeted ads and lookalike audiences.
Affiliates – Did you know that 16% of all eCommerce sales happen due to affiliates? You can leverage this method of marketing yourself by offering your shoppers an affiliate finder’s fee.
Remember that marketing yourself across every platform will not yield desirable results. What you need is a comprehensive strategy that will help grow your business quickly. Expand your marketing practices carefully by testing as you go (which methods are the most relevant and cost-effective for your business).
Finally, do not forget to invest in customer support. This area can seem like a huge headache at times but it helps gain a competitive edge. According to a PwC Global report, at least 32% of customers check online reviews before buying. Another 30% consult their friends, family, colleagues, etc.
Also, Gen-Z prefers to speak to actual human agents (not chatbots). This means your dropshipping business needs that personal touch for customer support. Keep the above-mentioned tips in mind, and you should be able to take your dropshipping operations to the next level in no time.