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How Much Can You Make Dropshipping?

How Much Can You Make Dropshipping?

Last modified: March 19, 2023

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One of the first questions that you might ask when you are thinking of starting a business is how much can you make dropshipping? This is a reasonable question when it comes to running a business, you want to make sure that you are offering customers a good service but will be rewarded for your efforts.

Many different things can contribute to how much you can earn as a dropshipper. Here is what can make up that figure and how you can improve those numbers.

1. Traffic

The first thing that will impact the success of your dropshipping business is that you have good levels of traffic. Research has shown that your brand’s conversion rate can only be expected to be between 3 and 5%. Therefore, you need at least 20 visitors before you can make a sale and sometimes need more than 30.

Therefore, you need to generate more traffic. This can be done through effective marketing, but this takes time. Be sure to include social media, blogging, email marketing and push notifications within the mix to make more money.

2. Conversion Rate

Conversion rate is an important factor when it comes to making revenue online. The higher the conversion rate on your store, the more of your traffic will become customers. There are numerous ways to improve conversion rates on your website including using video, urgency apps, FOMO, discounts, dropshipping apps and more.

Another option is adding free shipping as more than half of all US customers expect free shipping from brands. However, for this to work, you have to charge a little more for your products.

3. Profit Margins

Another factor that can be an important element in how much you can make is the profit margin you have on products. A good profit margin for dropshipping products is estimated to be between 40-70% of the base price of the product.

However, there are many ways that profit margins can affect sales. Too high a price and customers won’t buy from and too low a price and other costs will reduce profits from your business. If you have too low a profit margin as well, you can’t use discounts because this can wipe out your profitability.

4. Trust

Trust is a major factor when you’re trying to sell online. Some businesses won’t get sales if they don’t have reviews or product reviews. And you need good reviews too. Only 19% of consumers will make a purchase from a brand with a three-star rating or less.

There are numerous ways that you can improve your brand’s trust by automatically collecting reviews from customers. Constantly getting new reviews is important because many customers think that reviews that are older than three months are no longer relevant.

Final Word: How Much Can You Make Dropshipping

There are lots of factors that can answer the question: how much can you make dropshipping. However, in reality, the eventual earnings for your brand are limitless. It depends on how much effort you would like to put into your website and brand to make it a success.

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