So, it’s time to grow your dropshipping business. You have proof of concept, a decent amount of sales, and you’re ready to play in the big leagues.
Most dropshippers start out small, but after a certain point, you need to restructure your business to compete with bigger competitors on a global scale. After all, dropshipping will be worth an estimated $591 billion worldwide by 2027; you need a trusted, recognizable dropshipping brand to cement yourself in a cutthroat market.
It’s pretty easy to earn a 4-figure revenue with dropshipping, but going to 6-figures and beyond is a different ballgame. You need a strategy in place to help you future-proof your business as you grow.
But what strategies actually move the needle? What steps should you take to increase dropshipping revenue?
Keep these 6 best practices in mind when it’s time to scale your dropshipping business to the next level.
As a dropshipper, you’re selling a manufacturer’s products. The danger of dropshipping is that your competitors can swoop in and sell the same products at a lower price.
The best way to protect yourself against the inevitable race to the bottom is by branding your business. Your dropshipping brand should be the foundation of everything else you do. A brand:
If competition is making it hard to boost revenue, branding is the answer. While you’re still operating as a dropshipper, this step means thinking of your operation not as a dropshipper, but as a true eCommerce brand (even if you’re still selling other people’s products).
This matters because shoppers trust high-quality, consistent brands—in fact, consistent branding can lead to a 33% lift in revenue. Since they can’t see your business and products in-person, consumers often rely on your branding to choose what to buy.
So if you don’t have a brand yet, create one, stat.
Shoppers are the lifeblood of your business. When it’s time to scale your dropshipping operation, you need more than a surface-level understanding of your audience. Knowing that you sell to 30-year-old soccer moms won’t cut it at the 6-figure level.
This means understanding:
Your goal is to find points of friction in the customer experience. Go beyond demographics and try to understand why customers buy from you. This can lead to so many improvements in your website, customer portal, product pages, and more. But you need to listen to the data to strategize a path forward.
It’s very difficult to scale a dropshipping operation without some kind of help. Automation and outsourcing free up your time (and sanity) so you can focus on growing the business.
Automation is great for manual tasks like repricing and fulfillment that take up way too much of your time. For example, Spark Shipping’s inventory fulfillment tool helps you intelligently route orders with zero manual actions. Instead of letting orders pile up, automated fulfillment prevents backlogs and customer service headaches.
Plus, automation tools often perform better than humans for these types of tasks, minimizing errors and speeding up your entire operation.
But not all tasks are suited for automation. Save more time by outsourcing tasks to other humans. Whether it’s social media, copywriting, web design, or web development, other professionals can help you save time while doing the job right.
Maybe it stings a little to spend profits hiring a support team, but you can’t scale effectively by yourself. If you want a dropshipping empire, automation and outsourcing help you take care of business quickly, boosting profits in the long run.
Customer service can be a huge headache, but done well, it gives you an incredible edge over your competitors. That’s because 84% of shoppers say customer service is a big factor in their decision to purchase a product.
The downside here is that 75% of all shoppers want to speak to a human support agent, not a chatbot. That means your dropshipping operation needs living, breathing humans available for customer support.
Investing in customer support means:
Customer experience matters—a lot. If you’re struggling to outpace your competitors, you can win shoppers over by offering stellar customer service.
Many dropshippers don’t market themselves, but if you want to connect with more shoppers, you need to put yourself out there.
Not sure how to market your dropshipping business? Try these 4 popular and effective options:
While you shouldn’t market yourself on every platform known to man, a comprehensive strategy will grow your business more quickly. Carefully expand your marketing and test along the way to find what methods are the most cost-effective.
It’s hard to earn money if you keep spending it, right? Your goal is to improve not only revenue, but profits.
And expenses are weighing you down. Take a good, hard look at your numbers to streamline your dropshipping business:
While it’s important to cut costs, be reasonable. Don’t cut things that you need to stay profitable. Spending too much or too little on your business is bad either way.
In dropshipping, you have to move fast and effectively to boost profits. It’s hard work, but you can increase revenue by simplifying and streamlining your dropshipping business as you grow. Follow these 6 steps to preserve your sanity, earn more revenue, and scale your dropshipping business to new heights.
Need help getting to the next level? Check out Spark Shipping: we help growing dropshippers automate and streamline their operations to save time and money.