Top 10 FAQs When It Comes To Dropshipping In 2020

Top 10 FAQs When It Comes To Dropshipping In 2020

CEO Insights team, 0

1. Is it better to start with a niche or a general store?

If you are a beginner entrepreneur, it’s usually best to start out with a niche store. Since the amount of products you can sell is so vast, it’s easy to get lost and overwhelmed in trying to be everything to everyone. Niche stores offer simpler marketing, more flexibility, less competition, and it’s easier to target your audience.

2. How many products should I sell?

Some of the most successful online dropshippers have several “flagship” products that they focus on. While you could offer 30,000 products for sale, it’s usually a good idea to start with between 10-200 depending on how many product images and descriptions you’re willing to put up prior to launching. Keep in mind; it’s going to be a fluid thing, with you adding or removing products based on current trends or performance, so definitely make it a number that you’re comfortable keeping track of.

3. What should I expect for profits?

This greatly depends on the types of products you’re selling. If you sell lower end, cheaper items, you may be able to mark them up 4 or even 5 times. Meaning if you have a $5 item that you sell for $20-$25, your profit will be $15-$20 per item. More expensive items usually get marked up less, but still might have a greater profit. For
example, if you have a product that costs you $30, and you sell it for $60, that’s only a 50% mark up, but your profit is $30 on each of those items sold.

4. How do I make my first sale, and how long does it take?

This all depends on traffic, traffic, traffic. You need to promote and drive new traffic to your site to let people know you’re open for business. Heavy marketing activity is going to be key early on in order to get your name out. If your budget is slim, the marketing options listed in the previous chapter will likely be your best approach, as many of them are little to no cost.

The more successful your marketing efforts, the quicker the first sale will come. While it isn’t likely to happen on day one, it’s not impossible. Some people take a month to make their first sale, and some don’t post a sale for several months. Each dropshipper is different.

5. Can I use my supplier’s product images?

The short answer is yes. It’s pretty common for retailers to use their supplier’s pictures. Most people will first remove any watermarks, logos, or other branding prior to uploading these pictures, however. For this question, it’s never a bad idea to ask permission ahead of time, just to be safe.

For those of you who want to take your own pictures, there are numerous online guides that show you how to take attractive, engaging photos of the products you offer.

6. Do I have to use the supplier’s address on the package, or can I use my own?

Currently, you must use the supplier’s address. While they offer customization of labels and logos, they need to ensure that their address is the one on the package for customs purposes.