Are drop shippers turning to digital products to make more profit?

 

This is a very interesting question, as competition hots up and more and more manufacturers enter the drop ship market, drop shippers are finding their margins are being slowly eroded. We’ve seen a number of successful dropshipping companies turn to digital products in the last six months, one can only assume that this is where the higher profits lay.

 

So what are your options if you’re currently using drop shippers to send tangible products out to your customer base? Well, there is the “if it aint broke, don’t fix it” mentally, however we think that this is a short sighted approach. That is unless you have a secret niche with zero competition, which lets face it is as rare as the proverbial rocking horse droppings.

 

As a result, we’re advising our readers to look seriously at digital products. Especially if they are products that they can create themselves. One example of this is the new offering from Xsitepro Templates, this is the new business from the founders of one the Europe’s leading drop shippers of DVD’s. They worked out early on that their client’s were looking for better ways to increase their online earnings.

 

One of these “new” ways to make money online was via contextual advertisements from the likes of Google and Yahoo. Many eBay sellers and drop shippers evolved into webmasters and began creating their own content based sites in order to make money from advertising. Of course making a site specifically for Adsense is strictly against the terms and conditions, so many started producing sites about their experience, knowledge and passions.

 

Once they were able to prove the model and the money began to flow in, they focused more on this side of their business than on dropshipping other people’s products for a fraction of the margin. However, it was not without challenges; earning money from contextual advertising is about scale, to make serious money you need a handful of very good websites with great content, or a collection of web sites.

 

This is where Xsiteprotemplates4u.com came in, spotting a gap in the market they started to produce website templates that were ready made with quality content. All their client’s had to do was swap in their adsense or YPN code and they were good to go. Instead of spending time listing on eBay or dealing with their customer queries, they updated their sites in order to make them more attractive to the search engines.

 

Xsiteprotemplates4u are now on their 5th Power Pack, they stock over 100 quality website templates and are helping drop shippers to take the step towards digital products and understanding other ways to make money online.

 

Useful Links