Why Specializing is the Key to Dropshipping Success

February 14, 2013 by

There are a million things that people will claim is the ‘key’ to success in dropshipping.  It could be marketing, bringing in traffic, finding a good supplier, making certain margins, etc, etc.  To be honest the list could be as long as your arm and there would still be people trying to claim to have the key to success that isn’t already on it.

But when you group together a lot of what people think makes dropshipping a profitable business you soon come to realize that large parts of it can be answered by one thing – specialization.

Why Specialize?

That sounds a bit odd right?  After all selling anything that can turn a profit seems a much better tactic.  Now let us be clear, throwing what you can against the wall to see what sticks (who knows their pasta metaphors?) is one way of doing business…but give me a business plan any day of the week.

You see by specialization you are able to plan, to adapt, to see what works and what doesn’t – but on a scale that is manageable and understandable.

Think of a few benefits of specialization when dropshipping

  • Your customers get to know you.  If you sell in a niche where repeat custom is likely (hobby niches for example), then customers can get to know you and your service and come back for more, bringing you in money month on month.
  • You get to know your customers.  You know what they will like, what they will dislike.  You know when to make a special offer on your dropshipping – perhaps dropping your margins, or even selling at a loss if you know you will make money on the upsell.
  • You can create a brand name.  Whether this is as a pure supplier, or you create a newsletter within the niche that people turn to for interesting articles, news and tips.
  • Word of mouth and SEO.  This is a little outside the box, but as you build up a reputation within a niche for supplying quality products and services (via your dropshipping), people will start to naturally link to you – whether on blogs or forums, suggesting your service to others, reviewing your products, etc, etc.  And the more word of mouth and SEO, the more customers.

People like to think dropshipping is about selling as many profitable products as you can. But the reality is that specializing can be a major key to success.

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