Beginner’s Guide On How To Start A Watches Dropshipping Business
Are you thinking of starting a watch dropshipping business? I must commend you, as this is one of the most lucrative niches in the dropshipping market. But how do you start a successful business as a beginner? For the experts, how will you stand out from the competition?
In this article, you’ll learn;
- The watch dropshipping business model
- Why watches is a profitable niche
- The challenges you’ll encounter
- How to find the best watches and suppliers
- How to start dropshipping watches in 5 easy steps
- How to scale your watches dropshipping business
The Art Of Dropshipping Watches
Dropshipping is a business model where sellers don’t keep inventory. In short, when you’re dropshipping watches, you don’t need to have that particular watch. That’s why dropshipping watches is considered a low-risk and low-capital investment.
So how does all this work? I’ll explain.
Say you, as an entrepreneur, want to start a watches dropshipping business. You’ll first find a supplier who will sell you a watch for let’s say $3 and then list it on your store for $15. Once you get the order, you pay the supplier, and they send the watch to your customer. At the end of the day, you keep $12 as profit.
Sounds easy, right?
Well, it may sound like an easy way of making money, but it involves a complex web of steps that have to be followed to get the results. As an eye opener, just 10-20% of dropshipping businesses succeed, and 90% fail during the first year. I’m not trying to discourage you, but that’s the reality, and here’s the good part – you can start a successful business if you do it right!
Why Dropship Watches?
There are many niches you can choose from, including fashion, automotive, home improvement, phone accessories, electronics, pet supplies, and kitchen & appliances, among others.
But why watches?
Dropshipping watches is a low capital investment and is also a low risk as you don’t need to own or keep inventory. The dropshipping business model is also flexible, as your part is raking in sales only, and the supplier handles fulfillment. Besides the main benefits of dropshipping, there’s something special about watches.
Below are 3 reasons why watches make a good dropshipping niche.
- Perfect size
Watches and jewelry are evergreen products that are in demand throughout the year. Whether it’s at the beginning of the year or during fall in preparation for Christmas, online marketplaces enjoy steady sales in this category. Even from a simple search on Google Trends, you can tell that, indeed, watches are evergreen products.
The watches niche also attracts huge margins compared to other products. A watch that you may buy for just $3 can fetch you up to $20 real quick. You can also focus on the luxury watches sub-niche, which, with just one sale, you can make thousands of dollars.
Another factor that makes watches a good niche is that watches have that perfect dropshipping size. A good dropshipping product should be small and lightweight for fast and affordable shipping. You won’t have trouble with shipping, and besides, you can capitalize on free shipping options offered by most suppliers.
Challenges to Expect
Dropshipping watches is among the most lucrative ventures, but it has its fair share of challenges. Below are the major problems you’ll probably encounter.
- Counterfeit products
The dropshipping industry attracts millions of entrepreneurs, so expect stiff competition from other stores dropshipping watches. The top brands, for example, Apple, TAG, Rolex, Cartier, SEIKO, and Omega, have dominated the market, but you can still bring your A-game and get a piece of the cake.
There’s also the problem of defects, just like with any other battery-operated products. To solve this loophole, work with suppliers that have trusted warranty and a friendly return policy.
You’ll have a problem with low-quality and counterfeit goods. Even though the cheap watches may have huge margins, you risk hurting your brand by selling substandard watches. If you’re not careful, you might also end up on the wrong side of the law and even get up to 10 years imprisonment. Avoid selling counterfeit watches.
Some marketplaces and shipping companies have strict regulations on items with batteries and may require some more paperwork to sell products with batteries.
How To Start Dropshipping Watches: A Step-By-Step Guide
Now, to the main business of the day, how do you start a successful dropshipping business? Below is how to launch a successful watches dropshipping business in 5 easy steps.
Step 1: Product Research
I must say you’ve made a good decision to start dropshipping watches, considering the global watch market size was valued at $617.8561 billion in 2022, and projections show that it will witness a (CAGR) of 8.41% to blossom into a $1408.88 billion by 2030.
But picture this.
There are many types of watches and different price ranges, and now that you are a beginner, selling just any watch can be overwhelming in the long run. Experts recommend starting with a sub-niche before going out all guns blazing. Below are some of the sub-niches you can start with;
- Leather watches
- Stainless steel watches
- Bracelet watches
- Ultrathin watches
- Wooden watches
- Luxury watches
- Designer watches
- Pocket watches
- Nurse fob watches
Once you have a niche, you have a focused and tailored approach to product curation and marketing.
PRO TIP: Wooden watches and nurse fob watches sub-niches are perfect for beginners as there’s less competition.
How To Find Winning Products
Even after settling on a sub-niche, there’s still a lot of work to do. You now need to find those winning products in the sub-niche that you’ll list on your store. For starters, a watch that you should consider a winning product should be unique, in demand, and have the potential to give you high margins.
Now, to find the best watches for your store, it’s best to use product research tools, for example, Easync, which shows you the hottest-selling products. Platforms such as AliExpress, Amazon, and eBay have built-in tools to help you in product research. Other methods for product research include Google Trends, TikTok, and competitor analysis.
Step 2: Supplier Research
The next step after finding winning products is finding suppliers, and this is a crucial stage. I’ll explain why.
According to Printful, over 84% of online retailers say that finding the right supplier is the biggest challenge when establishing and running their business. When starting your watches dropshipping business, you need to find a reliable supplier as the supplier affects key business dynamics, including, product quality, pricing and profits, shipping turnaround, and customer satisfaction
To succeed, you need to sell high-quality products only, lest you start dealing with unending returns and negative reviews. Make sure the supplier you’re dealing with can deliver quality watches as described. The price points should also be favorable, and shipping time should be fast, as 62% of consumers believe fast delivery is the most important aspect of a positive customer experience (Insider Intelligence). Last, the supplier handles much of the fulfillment, including delivery, and this is crucial in overall customer satisfaction.
How to Find the Best Supplier
There are several ways of finding a dropshipping supplier. You can search ‘best watch suppliers’ on popular search engines, for example, Google, or use supplier/manufacturer directories and niche scrapers. However, the best method is using supplier research tools such as Easync, which can link you up with all the top dropshipping suppliers.
So, which are some of the best suppliers for watches?
AliExpress is one of the best dropshipping suppliers, with a wide range of watches and complementary products. The prices are as low as $3, and with careful product selection, you can find some gems that can rake in profits. The platform allows dropshipping and offers relatively fast shipping times.
You can also opt for Alibaba, Amazon, CJ Dropshipping, DHGate, LightInTheBox, and Shein, just to mention a few.
While there are many dropshipping suppliers out there, beware of some unreliable companies. Some of the red flags of an untrustworthy supplier include lack of physical address, selling to the general public, hefty monthly fees (upfront), and lack of industry knowledge.
Step 3: Choosing a Platform
Where are you going to sell your watches? Is it a marketplace, or do you want your own store? This is the next dilemma after finding winning products and a reliable supplier. You need to know the advantages and disadvantages of either option.
Selling On Marketplaces
You can start your dropshipping business on established stores such as Amazon and eBay. Such stores are ideal for beginners as there’s a ready market. For example, Amazon has over 300 million users, while eBay has around 130 million customers.
The advantage of selling on marketplaces is that you can start selling immediately and don’t require marketing as you have a ready audience. On the downside, you have no control of your business as Amazon and other marketplaces have strict rules and can even ban your account without notice. Your hands are also tied when it comes to branding.
Build Your Store
If you want to build a brand, you’ll have to opt for a store. Here, you can build your store from scratch, which can be expensive and require a lot of attention. The other option is using pre-built websites such as Shopify, which are cheaper, and you can get started immediately.
If you want to take charge of your business and brand, building your store is the best option. You also get rid of competition, but then, you’ll need to invest heavily, talk of buying a domain and hiring developers or paying for monthly subscriptions.
Step 4: Creating Listings
Now that all is set regarding matters of sourcing, you need to list the products you’re selling on your online store. 3 things matter here: product description, pricing, and inventory.
A good product description is key to the success of your business as it sells the product and directly affects conversion rates. One of the main benefits of writing proper product descriptions is SEO, which, in turn, determines the visibility of your products on search engines. Make sure your product descriptions have all the information needed for transparency and, importantly, to reduce the chances of returns.
Next, you need to calculate profits, and this is a crucial stage now that it involves money. You don’t need to have a finance degree to find your way around as the math is simple – factor in all costs, including buying price, taxes, shipping fees, store subscription/marketing fees, packaging, and everything in between. When it comes to margins, they vary depending on the sub-niche. For example, most entrepreneurs put up a 20-30% markup, which is a good point to stay afloat.
Last, make sure to set your inventory with allowance. As you may be aware, your supplier may be working with other retailers, so even if there are 1000 pieces today, that doesn’t guarantee that there will be enough stock tomorrow. That said, work with minimum stocks on your site and update inventory regularly so you don’t end up getting orders for items your supplier doesn’t have.
Step 5: Marketing Your Store
Whether you’re selling on a marketplace like Amazon or you have a store, marketing is paramount. The big question is, how will you find leads and convert sales? There’s just a single path – marketing.
So, what are some of the marketing strategies you can opt for? Well, it depends on your budget and goals, plus a lot of other factors, including your sales channel.
If you’re selling on a marketplace, much has already been done for you, but you still need to find ways of driving traffic to your store. For example, you can go for ads or use the platform’s marketing tools, if any. For my Amazon store, for example, I use Amazon Ads alongside external PPC ads, which are quite effective in the long run, especially during sales seasons like Christmas.
For those with personal stores, it might take a little more effort as you’re starting from zero. Luckily, there are several ways to get traffic and sales. For instant results, ads work out best, but if you want to create a brand or for SEO, its results are long-term.
Other marketing strategies include email marketing, social media (TikTok, Instagram, Facebook), and promotions.
One advantage of dropshipping watches is that the supplier handles the entire fulfillment process, from product sourcing to packaging and delivery. But this doesn’t mean you are not involved. Yes, you are.
First, it’s your responsibility to transfer the order to the supplier and get confirmation that the order is being processed. The customer should also be kept in the loop at every stage of the order process.
While the supplier is responsible for delivery, you’re responsible for processing returns. Once the customer files for a return, you should lead the process because the customer knows you, not the supplier. That said, make sure to iron out all issues regarding returns before signing up that partnership with a supplier.
Scaling Your Watches Dropshipping Business
Your business is running, but how do you add fuel to the fire to beat the competition and stand out from the crowd? Below are some helpful moves that could make a difference.
- Product research
- Customer service
- Free shipping
Product research should be a continuous process, considering there are different seasons, and each season has demand for certain types of watches. There’s also the fact that new watch designs are being rolled out, so it’s best to give your buyers a taste of the latest timepieces.
Next, think of automation as this helps you boost efficiency and reduce human errors. We’ve got dozens of automation software such as Easync, that put mundane and repetitive tasks such as product research, listing, repricing, and marketing on autopilot.
Third, endeavor to offer exemplary customer service as customer is king. Many businesses fail because they overlook customer service. That simple message from a visitor could be a potential sale and a loyal customer.
Free shipping can also be a winning strategy to scale your dropshipping business. The stats say it all. 90% of consumers are encouraged to shop more given the free shipping option, while 73% are more likely to buy an item if it has the free shipping option. Considering watches are small and light, find a way of offering free shipping or use suppliers with the free shipping option.
There you have it folks, the ultimate watches dropshipping guide for beginners. Indeed, dropshipping watches is a lucrative venture that can bring good returns considering watches is an evergreen niche and has high margins.
To start a successful business, you need to find the right type of watch to sell, a reliable supplier, and a platform. You’ll also need to take care of marketing and do the necessary follow-ups in the fulfillment stage. To scale your business, a product research tool is also necessary to automate mundane tasks and prevent errors.
So, what are you waiting for? Start dropshipping watches today, and if you get everything right, you’ll have a steady source of income all year round.
Frequently Asked Questions (FAQs)
1. Is dropshipping watches legal?
Like any other dropshipping business, dropshipping watches is legal. However, you need to take care of licensing and taxation issues where necessary and not sell counterfeits, as this might land you in trouble with the authorities.
2. Are watches good for dropshipping?
Dropshipping watches is among the best niches considering there’s demand for watches all year round and they have good margins. Watches are also the perfect size for dropshipping.
3. Who is the best watch supplier?
AliExpress is by far the best dropshipping supplier for watches and offers some of the lowest prices and free shipping. But you can always seek alternative suppliers such as Shein, Alibaba, and DHGate.