When running a dropshipping store, it's important to understand the fundamentals of your business strategy.

The main question: Why should customers buy from you instead of someone else selling the same products, or the supplier directly?

A common mistake with dropshippers is to think that they can make money online by offering lower prices. Unfortunately, this is almost always a failing strategy, because someone can ALWAYS undercut you by offering an even lower price. This is called a 'race to the bottom' and reduces profit for everyone involved.

The winning strategy is to focus your energy on building a brand. A brand is a combination of a few factors, but the most important are:

The look and feel of your store needs to be appealing and match what you are selling.

If you are a men's fashion brand, your design should use colors and images that match this. We see stores all the time that use strange bright colors and blurry images that don't relate to what they sell, and that is an instant turn off for customers.

You should focus on a product category or niche.

For example, you may choose 'Men's Fashion' and sell men's watches, sunglasses, leather wallets, and clothing. You DO NOT want to be selling 20 different product categories if you are trying to build a brand. Think about the brands you know and love. Let's use Nike as an example. When you think of Nike, you think of athletic wear. That's it! Nike doesn't sell pasta, headphones, computers, and furniture. If they did, their brand would be confusing and would not have the same power that it does. Your brand should be the same. You should pick a category and stick with it, and make every aspect of your store match that concept. For every part of your store, you should ask yourself the question: does this make sense with my theme/brand?

In the end, a brand is about trust, and if customers trust you, they will prefer to buy from you and not your competitor.

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