How to Conduct Dropshipping Competitor Research?

To make your dropshipping business stand out in the market and get more quotes, one of the important things you need to do is to investigate your competitors. Your competitor company may inspire you to optimize your dropshipping business and help you develop a stronger marketing plan for your own shipping business.

Please select five competitors in your market for analysis, including one or two major players (such as Amazon or Walmart).

Dropshipping丨Admitad Academy丨ChinaDivision

Some methods of conducting dropshipping competitor research are:

Google search. Google search results will list your top five competitors. Starting with the keywords in a simple search, the top ten in search results will show who your top competitors are and how they promote their products. If you have a specific country or region to focus on, you can use third-party tools such as Ahrefs or SEMRush to find keyword data.

Use competitor spying tools, such as SameWeb and Alexa. Such online tools are great for finding (and tracking) the online activities of competitors. Tools can obtain a competitor’s website information such as social media profiles, popular traffic sources, number of visitors, etc.

Browse social media. Search for Facebook ads in your niche and see the top brands on the market. See how the company communicates with customers, the way its feeds are designed, how much engagement they get—you can even follow their feeds and never miss any opportunities. Use this information to find ways to differentiate your business and improve your social media marketing strategy.

Subscribe to email lists of competitors. Want updates from competitors to be sent directly to your inbox? Sign up for their email list and learn about their marketing strategy. You can also learn more about promotions and transactions to attract customers to buy.

Organize your research materials in spreadsheets and keep them updated so that you can easily refer to them when making decisions for your store. For example, if you want to use email marketing to promote your business, you can check the form material to see what strategies your competitors are using.

Challenges in Dropshipping Business

Dropshipping business is undoubtedly one of the most outstanding things brought about by the Internet and our new lifestyle. This new business model allows start-ups to run e-commerce with little resources. Here, we will discuss the seven most common challenges related to dropshipping business and how to overcome them:

Find a reliable supplier

The first major challenge most companies face in dropshipping is to find reliable suppliers. There are many manufacturers and sourcing agencies that can be your suppliers, but you need to maintain a detailed relationship with them on the same page.

You can easily find suppliers in almost any niche market of your choice. There are many resources to help you search. Make sure that the supplier you choose can meet your needs. Consider factors such as supplier fees, minimum orders, professional industry knowledge, and scalability.

Dropshipping-problems丨ChinaBrands丨ChinaDivision
Dropshipping-problems丨ChinaBrands丨ChinaDivision

out of stock

When you start your dropshipping business, you will discover that the warehouse may be out of stock. It is one of the most common problems, and it is more common in certain product hot seasons. If you work with a very large manufacturer and order fulfilment company, you may not experience a shortage. If a product is out of stock, you must notify the customer as soon as possible, even if you find another supplier. It is recommended to cooperate with multiple suppliers.

Delay in order processing

When customers buy items from your website, they expect their order to be processed as quickly as possible. Most customers don’t understand that, in most cases, the process of processing orders is not completely under your control.

In some cases, orders that have already been placed with manufacturers will be delayed. When customers wait for the tracking code, this delay may create some tension with them. Don’t let it linger. If you haven’t received any news from the supplier within 24 hours after placing the order, please contact them to solve the problem. When these situations occur, you will at least know why the order has not been processed and how long you have to wait. Pass information to customers to appease them.

Ship to the wrong address

As embarrassing as it sounds, some orders have been shipped to the wrong or non-existent address. This is another major challenge you may face as an e-commerce entrepreneur. The best way to solve this problem is to carefully check each order address sent to the supplier.

Product return

This is something you can’t escape in e-commerce. In most cases, this is never your fault, because third parties are always involved in direct shipping. You cannot make all the rules here. Suppliers handle returns in different ways, so you must find a way to communicate clearly with customers. Your return policy is clearly stated on your website. Make all necessary efforts to make your order fulfilment proceed smoothly.