If you develop a successful dropshipping business, it’s possible to quit your job and become a full-time dropshipper. Here, we’ll tell you some of the steps you’ll need to take if you want to make dropshipping a rewarding career. Dropshipping can entail a lot of effort. But it will be well worth it as you watch your salary grow and start experiencing the success you’ve worked so hard to achieve.
What Salary Level Should You Hit to Become a Full-Time Dropshipper?
According to some numbers from MSNBC, the average salary for various age groups from around 2018 to 2019, regardless of occupation, were as follows:
- 16-19 years: $422/week, $21,944/year
- 20-24 years: $525/week, $27,300/year
- 25-34 years: $776/week, $40,352/year
- 35-44 years: $976/week, $50,752/year
- 45-54 years: $975/week, $50,700/year
- 55-64 years: $966/week, $50,232/year
- 65 years and older: $904/week, $47,008/year
Based on these numbers, we’re going to use a baseline of $50,000 annually. If you can make that much every year, you’ll do well for yourself without the need for a full-time job, especially if you’re just getting started on growing your own business instead of slaving for another company’s success.
Sure, your first instinct might be to aim higher than $50,000 per year, with six or seven figures in your mind as the ideal achievement. However, it’s important to be practical and start small. We suggest you focus first on making dropshipping a full-time job, which $50,000 per year will enable you to do.
How to Achieve That $50,000 Goal and Become a Full-Time Dropshipper
With that end goal in mind, assume that you’ll need 20 percent margins and $250,000 in revenue. 20 percent might seem a little low, but this is in line with the more realistic end goal and can keep you from aiming too high from the start. With these goals, you’ll also allow yourself more room for error. You’ll need that space to correct for missteps as you learn what works and what doesn’t.
Target $250,000 in Annual Revenue
To start off, if you want to get to the point where you’re making $50,000 every year through dropshipping, you will need to aim for a revenue of around $250,000 per year. That goal might seem a bit overwhelming at first, but as you break it down like with every other goal, you’ll see how achievable it actually is.
Based on the target revenue of $250,000 annually, we can calculate the total amount we’ll need to earn every day, which comes to $684.93. Even that smaller number may intimidate you if that seems like a lot to work for on a daily basis. But this is entirely doable if you have the right systems in place.
The key here will be to develop an efficacious sales funnel that helps you:
- Attract customers
- Upsell orders
- Obtain subscriptions for recurring sale
- Maximize your customers’ lifetime value
Ultimately, your average cart value should be around $20. Based on our daily goal, you’ll need to try to make around 34 sales per day. Again, that might seem like a lot of sales you need to make. There are also product costs and other expenses associated with those sales. But you can achieve that goal if you focus on increasing the average cart value as opposed to the number of overall sales.
Focus on Increasing the Value of Each Sale with Upsells
To begin moving toward that goal of 34 sales and $684.93 per day, let’s consider how that might be far more achievable if we increase the average cart value from $20 to $30. You might be wondering how that’s even possible beyond simply raising the price of your products. But the key is to increase the number of upsells.
For instance, a customer might be interested in buying a product such as a high-quality pen for $20. You could sell a complementary product like a premium notebook at a discounted price of, say, $15. This is perfect because this encourages the use of the first product and reinforces the customer’s decision to buy the pen. Together, both that pen and notebook would make up a cart value of $35.
Now, not every cart will be worth $30 or more through upselling. Not everyone will take you up on the upsell offers. At the same time, enough people could purchase those products and upsells to help raise the average cart value to $30 or more. In turn, you will need to make fewer sales per day, which puts less pressure on you.
Find Out What Your Niche Wants and Create Enticing Upsells
You can make the most of each sale with ample upsells. These offers encourage the customer to spend more money on each purchase. If you’re worried about running out of ideas for upsells that might be exciting for your customers, then you may need to spend some more time learning your niche before you decide to become a full-time dropshipper. Try to figure out what your customers want and need.
Consider ways to address certain pain points that your customers might have, which your products can relieve. Certain accessories that complement your main products can save customers time and money. For example, for optimal convenience, you may want to include a protective case or a sleeve for that $20 pen, which helps customers complete a package that also includes that $15 notebook. Including these high-quality upsells can help you maximize that cart value so you can boost the average and, subsequently, reduce the amount of average daily sales you need to make.
By implementing a good sales funnel with plenty of upsells that your customers will want, you’ll be well on your way to hitting that $50,000-per-year goal. Then you can quit your job and comfortably become a full-time dropshipper. As your income begins to exceed that goal, you’ll see why dropshipping is worth the time and effort.
Consult With the Pros
To start working toward that $50,000 goal and become a full-time dropshipper, reserve your seat at the Ecommerce Master Class today. You’ll learn everything you need to know to jumpstart your business and sell winning products.