2023 Secrets of successful dropshipping stores

ECommerce is an ever-evolving industry that has opened the door for many entrepreneurs to start their businesses. The more that is discovered about the online shopping experience, the more applications and strategies are created to improve upon it.

Dropshipping is one such convenience, making it accessible for merchants who lack the resources to jump-start their business. Dropshipping has become a booming industry and a preferred method for order fulfillment. Let's look at what makes dropshipping stores successful and how to utilize its benefits.

What is Dropshipping?

Dropshipping is an eCommerce business model that provides many benefits to first-time entrepreneurs. At the start of a business, there may not be many employees, if any, so having the ability to free up time and responsibilities for a single person or small group can be what keeps a starting business afloat.

Dropshipping is when products sold by an eCommerce store are manufactured, stored, and shipped through a third-party company. This business model eliminates the need for online retailers to keep a large inventory stock, cutting overhead costs. Instead, an online store could purchase the exact order quantity from the manufacturer once the payment is transferred from the customer.

Delegating order fulfillment to a third-party dropshipping company frees small businesses to focus on customer support, marketing, and brand growth. It also allows business owners to start with significantly less startup capital.

Top 3 dropshipping stores of 2023

DSers-AliExpress dropshipping

AliExpress, launched in 2010, is at the top of the dropshipping industry, and few companies can compete. The online retailer carries over 100 million products, so no matter what your niche, you'll find products to sell.

They offer Shopify stores a free plan (up to 3,000 products) with the DSers-AliExpress plug-in, so store owners can browse their catalog of low-cost products and add them to their online storefront with just a few clicks. AliExpress is especially beneficial to new merchants with a limited budget. The only disadvantage is that because so many merchants use them, you will likely come across other stores selling the same products.

Sprocket

Sprocket is an order fulfillment company with a wide scope of wholesale merchants across the globe, including Europe, the United States, Asia, Brazil, Australia, and Canada. Merchants can connect their Shopify with Sprocket with one simple click, and the whole order process is automated, shipping products directly to the customer at the point of purchase.

This dropshipping company can provide branded invoices that get shipped with products to help raise brand awareness and, ultimately, customer retention. Their starter plan, which allows merchants to list up to 25 products, is $39.99 a month, so this drop shipper is best for merchants with startup capital; otherwise, it could be too pricey.

Trendsi

Trendsi caters to a merchant with a specific audience or niche. They are a wholesaler for merchants that sell women's clothing, specifically in the United States, carrying more than 100,000 products. Trendsi is free to use, and any fees are incorporated into the whole pricing.

This online retailer is compatible with Shopify and offers branded invoices and fast shipping. The one disadvantage to using this drop shipper is the limited range of products offered compared to their competitors.

For more of the best dropshipping apps, consider reading this roundup of the best Dropshipping apps for Shopify.

3 Secrets of successful dropshipping stores

Specialize

Many of the most successful dropshipping stores have one overlapping characteristic: they specialize in a product or niche market. The more specific you are with your product, the better. Specializing won't limit your customer case; it will allow you to compete in a smaller field, communicate effectively, and stand out against your competition.

You're not just selling hiking shoes but specialized footwear for avid hikers who like an experience as close to barefoot hiking as possible. You're not just selling stationary; you're selling specialized paper goods that cater to all things dark, moody, and gothic.

Marketing and SEO

Driving traffic to your site is one of the most integral factors in success and many eCommerce merchant's number one issue. Creating an ideal site with thoughtful branding takes a lot of time and energy, but without proper marketing and SEO optimization, it could get buried in the search engine results.

Driving traffic involves developing your SEO, marketing, guest posting, and outreach skills. Utilize social media platforms to advertise your business and engage with your target audience. Seek brand ambassadors relevant to your products with sizable social media audiences and consistent engagement to promote your products. Create content, like blog posts, that will provide information that will drive traffic to your store.

You don't have to be an expert in marketing or SEO to be successful; use the resources available to you and prioritize. This is especially critical in the first 12 months of a business. A new business owner should be spending roughly 75% of their time on SEO, marketing, and generating traffic for the first four to six months.

Bring value

Successful dropshipping stores analyze the value they bring to customers and small businesses. They do this by asking how they will set themselves apart from the barrage of other shops selling similar products. The value isn't just in the product being sold; it's in the solution provided to the customer's problem. A solution takes insight and information.

The dropshipping business isn't just about being an eCommerce merchant; it's also an information business. So, how will you provide solutions to your customer's problems and add value to the market?

Shopify A/B testing guide

What is A/B testing?

A/B testing, or split testing, compares two of the same email, website, or another digital asset to determine performance. This tool improves overall performance and provides insight into what converts your target audience into your customer base. Utilizing the results of the A/B testing can help generate more traffic and revenue for your business by providing the data needed for an effective marketing strategy.

How A/B testing works

In A/B testing, when comparing two of the same digital assets, like a marketing campaign, you show one, the control, to 50% of your target audience and the other, your variant, to the other 50%. Whichever of the two has the highest conversion rate is the winner, which means you should push that marketing campaign toward 100% of your target audience.

The next time you want to test the same digital asset, the previous winner becomes the control, and the variant must be newly designed. When testing, it's important to track the value of the conversion all the way to the final sale to obtain valuable insight.

How to set up an A/B test

The first thing you need before performing an A/B test is a measurable hypothesis. For example, the hypothesis could be that conversion rates will increase if you offer Buy Now Pay Later as a payment method.

Once you have a hypothesis, you'll need to select a testing tool. The best and safest options are Google Optimize, VWO, and Optimizely. Shopify also has A/B testing tools in the app. Simply sign up and follow the instructions provided. While the process differs for each tool, you will likely be asked to provide a sample of your site and set goals.

How to use A/B testing to increase conversion rate on Shopify

No matter the outcome of the test, you will gain insight into your business for future testing. Also, keep in mind that even if a variant lost overall, it could have performed well in one or more segments, so it's important to look at all the data, not just the result.

Here are a few areas to consider testing to increase your conversion rate on Shopify:

• Product descriptions: A variant of a product description to test against the control could have different elements like adding bullet points, emojis, or changing the language. You could also alter the format to make it more scannable.

  
  

• Photographs: A variant of photographs to test against the existing control could look like adding more photos to the product, taking photos from different angles, showing a 360-degree shot of the product, etc.

  
  

• Review positioning: A variant of reviews to test against the existing control could be a simple repositioning to see where it stands out best and captures more attention.

  
  

• Guest checkout: Depending on your existing control, you could create a simplified variant to test against it with fewer steps to get to the final purchase.

  
  

• Calls-to-action (CTAs): There are various ways to change a CTA to see what works best: change the color scheme and verbiage, reposition it on the page, or add a convenience button.

There are many more aspects of a website that can be tested with this method. It’s important to continue testing these points, especially as trends change, to see what produces the highest conversion rate. 

Become a dropshipping success

Dropshipping has carved out a permanent place in the eCommerce industry. Many wholesale suppliers and manufacturers have found great success in providing products to online retailers, providing the service of order fulfillment so the merchant can focus on other important aspects of business, like learning their keys to success and utilizing their strategies to garner traffic and increase customer conversion.