Yes, it’s possible to make that much each month in dropshipping, but it is not easy.
We know it’s possible because we personally know many people making that much and even more, and they use our Dropified dropshipping app to power their eCom stores.
Now before you ask – no, we won’t share their details publicly just as we would never share your store details publicly either.
But we can tell you about what these ultra successful drop ship businesses have in common. Here are the things most if not all of these multi-million dollar dropship companies have in common:
- They Treat It Like A Business
- Niche Products Are Key
- Negotiate With Suppliers
- Ensure They Have Inventory
- Watch Expenses Like A Hawk
- Systemize And Automate Everything
- Run Multiple Stores
- Do Things Differently Than Most Dropshippers
- Focus On Building Brands
- Remarket Their List With Email And Social
- Building Relationships With Their Customers And Niche
Let’s dive a little deeper into each of these points:
They Treat It Like A Business
Most people that get started with dropshipping treat it as a hobby, which is fine. In fact, it’s a good thing to take your time at first, doing as much research as possible to make sure you get started the right way and don’t “lose your shirt” because you got too excited, went to fast, and lost money.
However, the most successful drop shippers we know ultimately pursued this as a business. They…
- Spent a lot of time watching and learning from the best dropship trainings on the market
- Wrote up business plans
- Carefully studied what market (or markets) to enter
- Spent a lot of time doing in-depth product research to find products they knew would Resonate with their niche audience
- Spent time customizing their products and listings
- Invested in the right tools to power and automate their business
- Invested real money into their business
Bottom line, they invested their time to learn the business model, the markets, the tools that powered their stores and their money to grow it.
Niche Products Are Key
As mentioned above, picking the right products for your market is the key to being successful.
However, the most successful drop shippers we know go super-niche. You won’t find many of them selling mainstream products that you see every day.
In fact, if you saw their stores, you’d wonder how they make any money because their product selection is so niche that you’d just move on past it.
For example, if you wanted to be in the computer niche, you might sell laptops, desktops, towers, hard drives, mouse pointers, laptop bags, etc. You’d sell the bigger, more obvious surface level items that you’re familiar with already.
If they were in the computer niche, they’d be selling things like circuit boards, computer fans, heat sinks, wi-fi boards, optical drives, etc. – items that the average person never thinks of or works with. But there is a massive group of buyers that want and need these computer parts, and they serve those customers.
They may go even deeper and sell to gamers, in which case they’d be selling specialized accessories like custom casings, ultra high powered processors, powerful Motherboards, tricked out graphics cards, lots of memory and storage, a really dependable power supply, specialized keyboards and more
That doesn’t include options like adding lights and sounds to make your gaming rig even more awesome.
Basically, they are going several layers deeper in their niches than you are… serving what many might consider “underground” niches.
Negotiate With Suppliers
Successful drop ship businesses negotiate with their suppliers.
Whether it’s for price breaks on the cost of each unit sold, discounts on shipping, or priority shipping to make sure their products are the first ones to be packaged and shipped out…
…they are always looking for ways to cut costs, get speedier fulfillment and give their customers a better experience.
Ensure They Have Inventory
Once you begin to grow and scale your business, making sure you have enough inventory becomes a big deal, especially when you sell hundreds or even thousands of units each day.
That’s why the most successful drop shippers have an open line of communication with their suppliers at all times and also have a great relationship with them.
Without great communication, it would be quite easy to sell out your suppliers stock inventory, and then have to wait weeks or longer to get new inventory. When you have constant contact with your supplier, they know how quickly the inventory is selling and how much they need to make to ensure neither of you runs out of stock.
Watch Expenses Like A Hawk
When you are selling large quantities at a time, it’s quite easy to overspend if you’re not watching every detail like a hawk.
The fact is, suppliers regularly change the prices of the products they sell, shipping costs can change fast, the prices of different tools can change, tariffs and other international fees can change, etc.
As a result, it’s important to stay on top of all of your expenses, because you can lose a lot of money fast if you’re not paying g attention.
That’s why tools like Dropified make the lives of our users so much easier. We have a profit calculator built in that shows you how much you can expect to make on each item, and price change alerts that notify you the minute a products price has changed. Simple features like that save our users a lot of money.
Systemize And Automate Everything
When you’re selling hundreds to thousands of products per day, you MUST systematize and automate everything you can.
That’s why the most successful drop shippers trust Dropified to power their businesses. While many drop ship tools on the market automate a number of things, none of them automate everything that Dropified does.
One of the most tedious and time-consuming tasks that Dropified automates that none of the other apps do, is Captcha Solving.
Whenever a customer buys a product that you are fulfilling though AliExpress, you must solve a Captcha to place that order. That may be fine when you sell a few products per day.
But when you sell hundreds or even thousands of products per day, it becomes a full-time job. People that use other apps either sit there for hours manually solving each Captcha, or they hire someone to solve it for them. Either way is super expensive.
Not Dropified users though – our system automates that process for you, so that you can regain those hours per day or those hours fees you’d be paying someone else so you can focus on growing your business.
Run Multiple Stores
Another way our most successful users earn more money than everyone else is that they run multiple stores, whether just a few or dozens.
This also helps them spread their risk, just in case a certain niche store they have hits slow times, they don’t have all their eggs in one basket.
Dropified makes it easy to manage multiple stores at once, and all from one dashboard so that you can see how all of your stores are doing at a glance, and not have to worry about logging into each one separately.
Do Things Differently Than Most Dropshippers
While most drop shippers are building stores using the same obvious products and selling in the same fashion, successful drop shippers are doing things differently.
They are all taking their own product pictures, they are creating custom demo videos showing the products in action, they are writing their own descriptions, they are branding them as their own, etc.
They are making the products unique and making sure they stand out from every other product and copycat out there.
They do what the average drop shipper won’t do, they think outside the box and that’s why they keep winning.
Focus On Building Brands
As we touched on above, they also build actual brands. They don’t just slap a bunch of products in a store and start trying to sell them. They create a new brand and story around them, give them new names, change up the product packaging and make their products unique.
When they create a brand, they create exclusivity and are the only ones that can now sell this brand of product, giving them a huge market advantage.
Remarket Their List With Email And Social
While most drop shippers are focused on spending money on traffic and getting sales daily selling their products…
…the most successful businesses are also building their email lists and their remarketing lists…
…and marketing to those list assets on a regular basis and at a much lower cost.
Their email lists get regular promotions and their customers get followed on social media through remarketing efforts to get additional sales on a daily basis.
Building Relationships With Their Customers And Niche
In addition to all of this, these successful sellers also have a great relationship with their customers and their niches. They are actively involved in speaking with them regularly, whether it’s through their email lists, Facebook groups, or other communication channels.
Bottom line, their community knows them, likes them and trusts them.
If the above list sounds like a lot to do to be successful, you’re right. It’s also not a complete list.
However, everything above is totally doable when you learn to automate most of your business.