Can Dropshipping Scale Your Business? Online platforms provide ample opportunities for businesses to scale up their income and reach their products to prospective clients. With the internet explosion and the creation of online businesses in the 2000s, many like to shop ‘Online’. Dropshipping helps business development and has enabled many manufacturers to meet their customers globally.

Dropshipping and Business Scaling

The dropshipping market slowed down during COVID-19. Yet, it survived and it is projected to reach 591.77 billion dollars by 2027 at a CAGR of 18.3% from 2020 to 2027. The market was valued at US 162.44 billion dollars in 2019. According to the Dublin Globe Newswire.

What is Dropshipping?

Dropshipping is an e-commerce business where drop shippers sell the products online without carrying the inventory.

In dropshipping business, you do not manufacture or store the products. Rather, you outsource them from the manufacturer, retailer, or any third party and then sell them to your customers. It is one of the most cost-effective businesses to sell the products and reach customers globally without any heavy lifting. You may say ‘the world is your market from your home or office’.

Taking the sales order at the storefront and passing it to the manufacturer means you don’t need to handle the inventory or stock. You take your cut while your dropshipping supplier ships the order directly to the customer. Many dropshipping platforms work as a marketplace for both parties, such as Shopify, Amazon, and many others.

Benefits of Dropshipping

  • Scalability
  • No inventory
  • Low risk
  • Flexibility
  • Low startup cost

How Can Dropshipping Scale My Business?

The following steps will make dropshipping help scale your business. Remember, shoppers are the lifeblood of your business. Therefore, you need to take all necessary actions to please your buyers.

Feedbacks, customer services, and accommodating your customers are the additional secrets to scaling your business.

Brand Yourself

With the increasingly high competition, competitors can easily swoop your products anytime. If your competitor sells the same product at a lower price, your market can come down very soon, affecting your sales.

However, branding yourself will save you from the inevitable race. It is the best practice and the cornerstone for your market recognition.

Understanding the Customer’s Psyche

Getting into the customer’s head is one of the best practices to create brand awareness, loyal and long-term customers.

Understanding shoppers’ behavior, frictions, pain points, budgets, etc., counts in. Buyer-friendly portal, websites, and easy-to-use store makes it all easy for buyers.

Always go for sorting out the ‘WHYs’.

Do not stop marketing yourself.

Besides all other strategies, marketing is the tool to recognize your product to potential customers. After achieving a certain point in the market, the businesses often stop marketing their brands.

To remain on the buyers’ list and attract new buyers, marketing your brand is imperative.

An effective marketing strategy helps grow your business by branding recognition. Digital marketers are imperative.

Tips for effective marketing:

  • SEO
  • Influencers
  • PPC
  • Affiliates.

Keep an eye on Competitors

You only grow when you keep yourself in a competition mindset.

Keeping an eye on competitors is as important as setting up your store. Be it pricing, blogs, keyword research, marketing, targeted audience, or anything. It helps you make a profitable strategy and pinpoint weak points. Keep an eye out and speculate the next move of your competitors to be able to overcome them.

Investing in Customer support creates a difference

95% of consumers take customer service as brand loyalty.

This may be the negligible point where most of the businesses lack. Investing in customer support creates loyal customers. Your first-time customer may recommend your store. Hence they become your organic buyers-come-marketers.

However, most people like to solve their problems through humans, not AI. I still remember when I stopped buying services from a provider because their customer service was unresponsive.

84% of the shoppers like to have good customer service, while 75% want to talk to human customer services than a chatbot robot.

  • 24/7 chat support
  • Hire a service
  • Humans for customer support
  • Resolve the issues

Accommodate your Customers

I decided to give a separate heading to this part because it needs highlighted attention. This may sound weird, or you might think it can reflect negatively on your business. In reality, it brings more customers and profits than you think.

Accommodating your customers means building a trustable relationship with your shoppers.

It may include;

  • Offering your expertise
  • Returning or refund
  • Exchange policy
  • Discount codes (if anything goes wrong late deliveries etc.)
  • Sale offers
  • Value points for the regular customers
  • Referral codes etc.

The Bottom line

Dropshipping has the potential to grow your business and profits. China’s online sales as a dropshipper surpassed 1.29 trillion dollars in 2018. Smart products such as watches, speakers, etc., were among the shoppers’ favorite buying items with a sales’ surge of 80%. Irwin Dominguez from San Diego generated $1,000,000 profit as a dropshipper within eight months. However, as everything needs hard work, dropshipping is not a piece of cake. You also need to be business-oriented to grow and make a profit.


Authored by Afsheen Khan

Edited by Yara Fakhoury

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