How To Make Money Dropshipping: 7 Tips To Be Successful

Key takeaways

• Choose the Right Niche: Selecting a profitable niche is essential for targeting marketing efforts and minimizing competition.
• Secure Reliable Suppliers: Reliable suppliers are crucial as they directly influence product quality, shipping times, and overall customer satisfaction.
• Optimize Your Online Store: Utilizing user-friendly design and strategic marketing can significantly enhance conversion rates and customer experience.
• Effective Marketing and Customer Service: Effective marketing combined with excellent customer service drives traffic, increases sales, and builds customer loyalty.

Introduction

So, you’ve decided to launch a dropshipping business. We don’t blame you. After all, by 2030, the global dropshipping market revenue is expected to reach $1253.79 billion.  

As a business owner, questions like: “How to make money dropshipping?” and “Is dropshipping profitable?” keep running through your mind. 

And contrary to popular belief, dropshipping isn’t an easy way to make money. You need to come in prepared. 

To that end, we’ll share some tips and strategies to help you launch and maintain a successful dropshipping store. 

How does dropshipping work?

With the dropshipping business model, eCommerce merchants sell products directly to customers without holding inventory. This business model involves collaborating with a third-party supplier, like a manufacturer or wholesaler, who handles product storage, preparation and shipping. 

Here’s how the business structure works: when a customer places an order on your website, you forward the order to the supplier. The supplier ships the product to the customer on your behalf. The customer pays the retail price and you pay the supplier the wholesale price, keeping the difference as your profit, making this a low-investment business model. 

This is a low-risk business model that allows merchants to focus on marketing and sales, without worrying about warehousing, shipping logistics or inventory costs.

How to make money dropshipping store?

Step 1: Choose a niche

The importance of finding a profitable niche

Choosing the right niche is one of the most important steps in starting a successful online business. A niche dropshipping store refers to a specialized market segment catering to a specific audience with distinct needs. By focusing on a particular niche, you reduce the risk of being lost in a sea of competition and can target your marketing more effectively.  

A well-chosen online business niche helps you develop a deeper connection with your target audience, increasing customer loyalty and trust turning it into a profitable business model. Additionally, niche businesses tend to face less competition, allowing you to position yourself as an expert in that particular field. 

Researching market demand and competition

Before settling on a niche, it’s critical to conduct thorough market research. Start by identifying products that are in high demand but aren’t oversaturated with competitors. Use tools like Google Trends, Amazon Best Sellers and niche-specific forums to gauge the popularity of potential products. Also, consider using platforms like SEMrush or Ahrefs to analyze keywords and traffic volumes related to your online store niche. 

Competitor analysis is another crucial part of market research. Pay attention to competitor analysis by browsing their websites, customer reviews and social media presence. Determine the quality of their selling products, the type of audience they’re targeting and how they market their products. Identify gaps where you can differentiate your store. Entering a niche with a balance of strong demand and limited competition increases your chances of long-term success. 

Choosing products with the potential for consistent sales

Once you’ve identified a promising niche, focus on selecting products that have the potential for consistent sales. Ideally, these products should solve a problem or fulfill a specific need for your target audience. The answer to how to make money Dropshipping business is corelated to the products you choose. You want to avoid trends that fade quickly and instead choose products with a long lifecycle. Consumable products or items that people need to buy repeatedly, such as health supplements, pet products or beauty care, are great examples of items with recurring sales potential. 

In addition to repeat purchase potential, assess the quality, pricing and shipping logistics of the products. Ensure the products are durable, reasonably priced and easy to ship. Offering products with minimal shipping complications (e.g., lightweight and compact items) can enhance customer satisfaction and improve your profit margins. Also, consider margins when selecting products—choose those that allow you to maintain healthy profit margins while still being competitively priced in the market. 

By choosing a niche with high demand, manageable competition and reliable products, you’ll position your dropshipping business for sustainable growth and consistent revenue. 

Step 2: Find reliable dropshipping suppliers

Securing best dropshipping suppliers is crucial for your online store’s success. Your supplier manages product fulfillment, so their reliability directly affects customer satisfaction. Here’s how to find and assess your dropshipping suppliers:

How to source suppliers

• AliExpress: A popular marketplace offering a vast range of products. It integrates seamlessly with various eCommerce marketplaces, making it ideal for testing different product categories. AliExpress suppliers typically provide global shipping options but make sure to verify shipping times based on your target market. 

• Oberlo: This platform, specifically designed for Shopify users, simplifies dropshipping by providing easy access to vetted suppliers. Oberlo offers a one-click product import feature, allowing you to quickly add products to your store and fulfill customer orders directly. The focus is on supplier quality and consistency, making it a trusted source for many new dropshippers. 

• SaleHoo: A directory offering access to a wide range of trusted wholesale suppliers. SaleHoo provides niche-specific suppliers, ensuring that you can find specialized products within your chosen niche. The platform also verifies supplier authenticity, so you can be confident that you’re working with reliable partners. 

Additionally, platforms like Doba, Spocket and Wholesale2B can also help you source suppliers, especially those offering local products or fast shipping options.

Importance of supplier reliability

Supplier reliability is a critical factor in determining the overall success of your dropshipping business. Here’s why: 

• Timely shipping: One of the most common issues with dropshipping model is long shipping times, which can lead to customer frustration. Reliable third party suppliers ensure timely shipping and provide tracking information. Look for suppliers that offer express shipping options or work with fulfillment centers that can minimize delays. Timely shipping not only enhances customer satisfaction but also helps build trust in your brand. 

• Product quality control: As a dropshipper, you won’t physically handle the products you’re selling, so ensuring product quality is essential. A trustworthy supplier maintains high product standards, ensuring that the items delivered to your potential customers match the descriptions on your dropshipping website. Poor-quality products can lead to negative reviews, high return rates and loss of business. To ensure quality control, test the same products by ordering samples before listing them in your online stores. 

• Consistent stock availability: A reliable supplier will have consistent stock availability, meaning that your listed products won’t unexpectedly go out of stock. Having a supplier who frequently runs out of inventory can harm your business reputation, as customers may place orders only to find out the items are unavailable. Work with suppliers that offer real-time stock updates or notify you immediately if a product becomes unavailable. 

• Customer service: Good suppliers also offer responsive customer service, which can help resolve issues such as order discrepancies, lost packages or product defects. Choose suppliers with a proven track record of strong communication and support to avoid long delays in solving customer problems. 

• Shipping flexibility: Look for suppliers who offer flexible shipping options, including international shipping if you plan to sell globally. Some suppliers offer express shipping services, which are essential for meeting customer expectations in regions that demand fast delivery. Suppliers with global warehouses can also help reduce shipping times for international orders.

How to evaluate supplier reliability

1. Review supplier ratings and feedback: Most supplier platforms like AliExpress, Oberlo and SaleHoo allow users to leave ratings and feedback. Carefully review the feedback on supplier reliability, quality and shipping speed. Focus on suppliers with high ratings and consistent positive reviews from other dropshippers. 

2. Test sample orders: Before committing to a supplier, place a sample order. This will allow you to evaluate product quality, packaging, shipping costs and times and overall service. If the sample meets your expectations, you can confidently list the supplier’s products in your store. 

3. Verify shipping times: Ensure that the supplier offers reasonable shipping times to your target market. If your customers are primarily based in the US, consider suppliers with US warehouses or fast shipping options to reduce delivery times. 

4. Communication: Regular communication with your supplier is essential for addressing stock changes, shipping issues and customer queries. A reliable supplier will provide clear and prompt communication, making it easier for you to manage orders and respond to customer inquiries. 

By choosing reliable suppliers, you ensure smooth operations, satisfied customers and ultimately, a more successful dropshipping business. Platforms like AliExpress, Oberlo and SaleHoo offer easy access to a wide range of suppliers. Make sure to verify their reliability through feedback, testing and clear communication before committing to a long-term partnership. 

Step 3: Set up your online store

Creating an efficient, user-friendly online store is a critical step in launching your dropshipping business. To achieve this, using a reliable platform like WooCommerce paired with Bluehost hosting ensures your store is scalable, secure and optimized for performance. 

Choose a platform like WooCommerce

WooCommerce, a powerful WordPress eCommerce plugin, offers all the essential features for a successful dropshipping store. It’s highly customizable, providing the flexibility to create a store that matches your brand identity without needing advanced technical skills.  

WooCommerce supports a variety of functionalities that are essential for dropshipping. Starting from product listing, inventory management and payment gateways to integration with dropshipping-specific tools like AliDropship and Oberlo. 

WooCommerce also offers numerous customization options for your store’s design, checkout process and customer experience. You can easily add extensions to automate tasks such as forwarding orders to suppliers, managing shipping, tracking orders and sending automated emails to customers. Additionally, WooCommerce supports integration with most major payment processors, ensuring smooth and secure transactions. 

Benefits of Bluehost’s WooCommerce hosting plan

When paired with Bluehost WooCommerce hosting, setting up and managing your dropshipping store becomes even easier. Here’s how Bluehost WooCommerce hosting helps your store thrive: 

• Easy integration: Bluehost simplifies the process of getting your WooCommerce store up and running. With its one-click WordPress and WooCommerce installation, Bluehost removes the hassle of manually configuring your store. You’ll be guided through the setup process, including configuring your payment gateways, shipping options and product pages, saving you time and effort. 

• Scalability to meet growing demand: As your business grows, you’ll need hosting that can scale with your expanding needs. Bluehost’s WooCommerce hosting is designed to handle varying levels of traffic, from small-scale operations to larger, high-traffic stores. Whether you start with just a few products or hundreds, Bluehost ensures your site can expand and accommodate increased demand without downtime or performance issues. 

• Performance optimization for eCommerce: Speed is critical in eCommerce. Slow-loading pages can lead to higher bounce rates and lost sales. Bluehost’s WooCommerce hosting is optimized for performance, meaning your store will load quickly and provide users with a seamless experience. Fast loading times also contribute to better search engine rankings, making your store more visible to potential customers. 

• Enhanced security: Security is a top priority for any eCommerce store and Bluehost delivers robust security features to protect your website and customer data. With Bluehost WooCommerce hosting, you get a free SSL certificate, which encrypts data during transactions, safeguarding sensitive information such as payment details. Bluehost also offers additional security features, including automatic updates and daily backups, ensuring your Dropshipping website remains safe from cyber threats. 

• SEO benefits: A fast and secure website doesn’t just enhance user experience; it also improves your SEO rankings. Bluehost’s optimized hosting enhances the speed and reliability of your WooCommerce dropshipping stores, making it easier for search engines like Google to rank your website higher in search results. Additionally, Bluehost allows easy integration with Yoast SEO, a popular SEO plugin, helping you improve on-page SEO elements like keywords, meta tags and content structure. 

• Reliable 24/7 customer support: For dropshipping entrepreneurs, having a website that runs smoothly around the clock is crucial. Bluehost offers 24/7 support via chat, phone and email, helping you troubleshoot any issues that may arise. Whether it’s a technical error or a performance issue, Bluehost’s dedicated support team is available to assist you and keep your store running without interruptions. 

• WooCommerce-specific features: Bluehost’s WooCommerce hosting comes pre-configured with features designed specifically for eCommerce stores. These include a built-in product catalog, secure payment processing through various payment gateways, shipping management and inventory tracking tools. This suite of features makes managing an online store easier and more efficient.

Step 4: Optimize your store for conversions

Optimizing your dropshipping store for conversions is key to turning visitors into paying customers. Here’s how to enhance your store’s performance: 

Create a user-friendly store layout

Your website’s layout should be clean, intuitive and easy to navigate. Ensure that visitors can easily find products, view details and check out without confusion. Use clear menus, categorized products and search functionality to streamline the user experience. Optimize your online store for mobile devices, as a significant portion of online shoppers use smartphones. 

Key tips: 

• Use a minimalistic design to keep the focus on products. 

• Ensure that important pages, such as your product catalog, service page and checkout process, are no more than a couple of clicks away. 

• Include a clear call to action (CTA) on the homepage, such as “Shop Now” or “Browse Our Collection.” 

Optimize product descriptions, images and pricing

High-quality product descriptions, images and appropriate pricing are essential to convincing customers to make a purchase. 

• Product descriptions: Make your descriptions informative and engaging. Highlight the benefits of the product, not just the features. Use language that resonates with your target audience and addresses their needs. 

• Images: Use high-resolution images that showcase the product from multiple angles. Including images that show the product in use can help customers visualize how the product fits into their lives. 

• Pricing: Price your products competitively by researching similar items in your niche. Be transparent about pricing and avoid hidden costs, as unexpected fees at checkout can lead to abandoned carts. 

Implement conversion strategies

Encourage visitors to make purchases from your eCommerce business by using conversion-boosting marketing strategies. 

• Limited-time offers: Offering discounts or flash sales for a limited time can create urgency and motivate customers to make quick decisions. Highlight the deal prominently on your website with a countdown timer. 

• Free shipping: Offering free shipping is a proven way to reduce cart abandonment and boost sales. If offering free shipping across all products is not feasible, consider applying it to orders over a certain amount (e.g., “Free Shipping on Orders Over $50”). 

• Exit-intent popups: If visitors are about to leave your website without purchasing, consider using exit-intent popups. It offers a discount or special deal with minimized shipping costs to encourage them to complete their order. 

By optimizing your store layout, product presentation and applying strategic offers, you’ll improve the user experience and encourage more conversions. Ultimately it boosts your customer orders and grows your dropshipping business.

Step 5: Market your store

Marketing strategy is key to driving traffic to your dropshipping store. Here are some strategies to promote your business effectively: 

Social media marketing

Social media platforms like Instagram, Facebook and Pinterest allow you to showcase products and engage with your target audience. Use eye-catching visuals, post regularly and engage with followers through comments, stories and polls. Social media ads can also be an effective way to reach more potential customers, offering targeted advertising based on demographics, interests and behaviors.

Search engine optimization (SEO)

SEO is the process of getting your website to rank higher on search engines like Google. Your content, such as your meta descriptions, blog posts and product descriptions, should include the keywords people might use to find your products. Even when writing blog posts, you can add relevant keywords to optimize for SEO.  

And if your budget is limited, implementing free advertising tactics like SEO can help you reach your goals. 

Influencer marketing

Collaborate with influencers in your dropshipping niche to promote and sell products. Influencers have established trust with their audiences so their recommendations can attract customers and drive sales. Choose influencers who align with your brand and have a following that matches your target audience. Offer them free products in exchange for reviews or negotiate paid promotions for broader reach. 

Google Ads

Running Google Ads helps you target potential customers based on their search intent. You can create text ads that appear in search results for specific keywords relevant to your products or use display ads that show across Google’s partner websites. Google Ads can drive immediate traffic and with the right targeting, help you reach potential buyers who are actively searching for products like yours. 

Email marketing

Email marketing allows you to build lasting relationships with your customers. Use sign-up forms on your website to collect email addresses and offer incentives like discounts or free resources. Segment your audience based on their interests and past interactions to send personalized messages. 

With Bluehost’s professional email services, you can manage your email lists efficiently and create engaging campaigns. Bluehost provides reliable and secure email hosting, ensuring your marketing emails are delivered directly to your customers’ inboxes. You can also integrate email marketing tools like Mailchimp or Constant Contact. It can automate email campaigns, helping you nurture leads, send personalized product recommendations and increase conversions. 

By leveraging these marketing strategies for eCommerce marketplaces, you can drive traffic, increase brand awareness and convert visitors into loyal customers. 

Step 6: Focus on customer service

Providing excellent customer service is the backbone of a successful dropshipping business. Unlike traditional retail, where customers interact with products directly, your relationship with clients is built almost entirely on trust and support. Here’s how to excel in customer service: 

Offering exceptional customer support and quick response times

Delivering timely and effective communication is key to a positive customer experience. Offer various support channels such as email, live chat and social media. Ensure responses are quick, ideally within 24 hours or less, as long wait times can lead to frustrated customers.  

Using automated responses for common questions can help you manage support requests more efficiently but it’s important to maintain a personal touch for more complex queries. 

To go the extra mile, set up a detailed FAQ section on your website that addresses common questions about your products, shipping policies and return process. This not only saves time for you and your customers but also adds value to their overall experience. Consider integrating chatbots for real-time assistance, which can handle basic questions and guide customers through the buying process even outside of normal business hours. 

Managing returns, complaints and building trust

No matter how well you run your business, returns and complaints are inevitable. Handling these situations on your dropshipping journey with empathy and efficiency can help turn unhappy customers into a loyal one. Establish a clear and fair return policy, making sure it’s easy for customers to understand. Include specific guidelines on how long they have to return a product, how to initiate a return and what to expect during the process. 

When handling complaints, always adopt a customer-first approach. Listen to their concerns, show empathy and offer a solution, whether it’s a refund, exchange or store credit. Respond to complaints quickly and keep communication open and transparent. A bad experience can quickly spiral into negative reviews and harm your reputation so swift resolution is key to maintaining trust. 

To prevent future complaints, work closely with your suppliers to ensure that product quality and shipping times are consistent. Regularly review feedback and use it to improve your offerings and services. By maintaining open communication with your customers and addressing their concerns in a respectful and prompt manner, you’ll foster a positive reputation for your business. 

Building trust with customers

Customer trust is built through consistency, reliability and transparency. By offering high-quality products, clear communication and fast resolutions to problems, you can create a loyal customer base. Send personalized follow-up emails after purchases, ask for feedback and show appreciation for their business through promotions or discounts for repeat customers. Trust leads to referrals and long-term relationships, which are critical for the success of your dropshipping business. 

Incorporating excellent customer service practices from the start ensures that your customers feel valued, understood and supported. This leads to stronger loyalty and better overall business growth.

Step 7: Scale your dropshipping business

Once your dropshipping business is running smoothly, it’s time to scale. Here’s how to take your dropshipping business model to the next level: 

Create dropship bundles

Product bundling is an effective way to increase the average order value. Group related items together (e.g., a tarot card set with a crystal kit) and offer them as a package at a slightly discounted rate. This encourages customers to purchase more, boosting your overall revenue.

How to scale through automation tools and outsourcing

As your business grows, manual tasks like order processing and customer service can become overwhelming. Invest in automation tools to handle repetitive tasks like forwarding orders to suppliers, inventory tracking and email marketing. Tools like Oberlo or AliDropship can automate the order fulfillment method and process, while Zapier integrates apps to create workflows that save you time. Outsourcing non-essential tasks like customer service or social media management allows you to focus on business growth. 

Diversifying your product range and entering new markets

Scaling your business often means expanding your product offerings. Start by analyzing customer feedback and trends to identify complementary products that fit within your niche. For instance, if you sell tarot cards, consider adding accessories like tarot pouches, books or astrology tools. 

In addition to expanding your product range, consider entering new markets by catering to different geographic locations. Partner with various dropshipping companies and suppliers who offer international shipping and optimize your store for multi-currency and multilingual support. Expanding globally can greatly increase your customer base and overall sales. 

By using common business structures, bundling dropshipping products, automating processes and diversifying your offerings, you can scale your dropshipping business structure effectively and sustainably.

Final thoughts: How to make money dropshipping — top tips for success 

There you have it. We’re confident you no longer ask yourself how to start dropshipping or make money dropshipping. If done right, any of the above business models strategies can help you meet your financial objectives. 

Add a reliable eCommerce platform into the mix and you have a winning formula for success. 

At Bluehost, our WooCommerce hosting plans are designed to give you the tools and resources to scale, market your store and grow a loyal customer base. Plus, if you run into any issues, our 24/7 support team is on hand to assist you. 

Contact us today to learn more about how partnering with Bluehost can benefit aspiring dropshippers like yourself. 

How to make money with dropshipping: FAQs