Dropshipping is a popular way to start an online business as it requires little to no upfront costs and has the potential for huge profit margins. With more people than ever before looking for side hustles, many of which are new fathers who want to increase their funds by starting their own dropshipping business, this blog post will go over how you can get started with your own dropshipping side hustle!
I do not want to write this post and make it sound like dropshipping is as easy as setting up a site and then watching the money pour in. Just like anything in order to make money you will need customers. If it was just clicking a few buttons and your store is sending you money……. well everyone would have a dropshipping site. So Dropshipping can be great but it will depend on you.
Is Dropshipping a Good Side Hustle
Absolutely dropshipping can be a great side hustle if you are good at driving traffic. It is not a get rich quick scheme. Dropshipping allows you to start an online business without having to purchase inventory and worrying about shipping it out… this cuts costs in dropshipping but dropshippers still need traffic. So like any side hustle, dropshipping takes time to build up that income stream so do not expect it just to be dropshipping from day 1.
So when people ask me if dropshipping is a good side hustle I start asking a few questions. How good are you at SEO, Facebook, and Google Ads, blogging, Social Media? Do you currently have an email list and a following of some kind? If you have all of that in place then yes dropshipping is a great side hustle.
Wait you don’t have any of that stuff set up or skills in these areas? Yes, dropshipping can still be a profitable side hustle but you have some things to learn and work at. If you have been sold the big lie that to become a drop shipper all you need is a site and a supplier I would ask you how will you make a sale? Be careful when people show you a video of themselves with a fancy car saying how they make some crazy amount of money with dropshipping only working 10 mins a day.
Just like any business that you want to make a profit from it takes work. If you are willing to put in a few hours a week and wait to see profits for a few months then yes this dropshipping can be a good side hustle.
How profitable is Dropshipping
This is such a hard question to answer. It depends on your following. so if you have a brand new site with zero traffic that you started today, your dropshipping business can expect to make $0.00 per month. On the other hand, if you have a site or blog or youtube channel that drives 10k clicks per month then you can expect to make make an average of 3 to 5 sales per month. Depending on the product that you are selling. If you are selling a more typical product at around $10 profit for you then you are looking at up to $50.00 a month on average. On the other hand, increase the traffic to 100k views per month and increase the sales to 50 per month now you are looking at $500 or greater.
So like I tried to point out how profitable is dropshipping depends so much on a few factors. What is your profit margin per sale? How much traffic can you push to your site organically (Free)? How much can you afford to send to your site through ads?
If you are planning to push traffic through the use of ads then you will need to find the right ratio for the cost to sell an item. So which term or phase at what cost per click drives you enough traffic to get a sale and be profitable. If you are spending $11 bucks per average sale with a profit margin of $10 bucks well you are not going to make it.
The most profitable Dropshipping success stories are able to drive organic traffic to their stores. This is the recommended path to making profits in this side hustle. Set up your site, and store, and blog. Then start building content based on SEO keywords to drive organic traffic to your site. It takes about 6 months in truth to see the fruit of your labor. SO GET STARTED!!
Can You Still Make Money Dropshipping
Yes! there is money to be made in Dropshipping but it’s not as easy as clicking a button and money starts hitting your account. So just like anything else you hear about there is money in it but it takes work. Once you set up your site and link it to your dropshipping partner the key is traffic. there are so many ways to get traffic but our recommendation is to focus on the organic views. Either start a Youtube channel, a podcast, a blog, or a mailing list but start sending traffic to your store.
If you are planning to set up a store and pay for ads on Google and Facebook to drive sales, well good luck. I am not saying it can’t be done but let’s think about it. I set up an ad for you to click on. you don’ know me or have any reason to trust me. The link goes to some cookie cutter store with the same products from China as I see on many other sites. What are the chances of me buying that product? I can tell you it’s none. On the other hand, if you set up a mailing list and get me to sign up or make some Youtube videos or blog posts that I start to read and watch, well we develop some trust. Now you send me a link to a product and I may be interested in buying it. The Money is in the List and Audience not in the quickly made dropshipping website.
How much do dropshippers make on average
There is a simple formula you can use to understand your profits when you have a dropshipping side hustle. The two numbers you need to remember are 10% and 1%. 1% of your traffic will convert on average and you will make a 10% profit margin on the item sold.
So let’s do some simple math. Product A on your website sells for $100.00. That means for every product you sell, $10.00 is your profits the other $90 goes to the manufacturer. You get a 1% click through with a 1% conversion. Therefore for every 1,000 clicks of traffic, you send to your site 1% will click the product button to go to the cart. That’s 10 people who consider buying it. Only 1 will actually push the buy button on average. Therefore for every 1k clicks of traffic, you will be making around $10.00 profits.
Therefore to answer the question on how much do dropshippers make on average is $10 per 1k clicks of traffic. How much traffic can you send to your site and at what cost?
Conclusion
Dropshipping side hustle is a relatively easy way to make money online. It’s also been proven as an effective side hustle for those who are looking for something on the side. For dropshippers who want to make a lot of money dropshipping, you must continuously push traffic to your dropshipper store. The most effective strategy is creating content and optimizing it for search engines.
There is no magic behind dropshipping side hustle. Just hard work towards building an audience on social media or email list building. It takes some time to build up that audience and dropshipping business. Plus just like anything else, it helps to focus on a niche. Don’t try to sell every product available in your store. Instead set up a specific type of product so that you can focus on a specific customer and bring your cost for traffic down.
Good luck with Dropshipping side hustle! Let us know in the comments about your successes. I would love to hear about how our 1k to 1% to 1% ratio is way off and you made a fortune with only a few hundred clicks. Congrats if you do. Also if you find that our ratio is right on the money and as you have build up your site tell us how it compares to your profit margin
