Starting a dropshipping business is one of the easiest ways to make money online in 2019. The growth of Amazon, eBay, Etsy, Shopify, and other online marketplaces and platforms means that anyone can start an online store for as little as $20. If you’re thinking of starting your own dropshipping business, take a look at the basic guide below for newbies.
Here is an example of how the dropshipping mode operates:
Dropshipping is when you advertise a product for sale that you do not stock yourself. When someone buys from you, you take that money, put in your buyer’s shipping info and have the supplier ship directly to your customer. Your price of the item should be high enough to cover the item, taxes, shipping, and profit.
In summary, dropshipping is the process of selling a product on your website without actually handling its fulfillment and shipping. In this model, the goods will be shipped directly to your customers from a third – party supplier. Another key component of this model is that you won’t pay for the goods until the customer does. Therefore, it eliminates the risk of storing goods that won’t sell.
With the print on demand (POD) model, your designs are printed on products only as orders come in and only in the quantity that the order asks for. Similarly to the dropshipping concept, POD means that you don’t need to buy large quantities of products when you get started – each order is printed as it comes in. The printed designs work on almost everything from T-shirts, to books, and mobile phones, but the most sold ones are on shirts, mobile covers, and cushion covers.
So what is Warehousing & Fulfillment? With W&F services (often called third-party logistics or 3PL) you keep a stock of your products at a warehouse of your partner who fulfills incoming orders and sends them to your end-customers.
Despite all the drawbacks, none of the followings means that dropshipping business is a wrong fit for you. It just means that you’ll have to do a little work to increase chances of success. Now let’s take a look at 6 basic steps to start a dropshipping business.
Choosing a niche is the first step to start a dropshipping business. The emergence of dropshipping makes it harder to find a not-saturated-yet niche. However, new products and niches are emerging every day, so opportunities are almost endless. Here are a few things to keep in mind when you’re in search of your own business ideas:
Now that you have at least one niche idea at this stage, you’re ready to progress to the next level.
Spyfbads is a powerful market research tool for dropshippers and eCommerce store owners. It provides you with valuable information on thousands of products across various categories such as:
It can help to give you product ideas and save you hours of time that it takes to conduct market research manually.
Here are some of the most popular online platforms for dropshippers:
Most dropshippers operate as Business to Business (B2B) companies so they have different strategies for attracting their audience. That means they won’t necessarily appear at the top of search results on the Internet.
To get better results, start by trying words like “wholesale”, “bulk”, “distributor’, “manufacturer”. You can also combine these terms with your niche for a better result. Additionally, when you’re choosing your usual dropshippers, keep in minds these considerations:
A lot of dropshippers take the route of starting their own online store. While it requires more investment up front, this is really the ultimate long-term option for making money and building a business online. Nowadays, there are plenty of online tools like Shopify that makes it really easy to get started.
If you have the time and money to invest in your dropshipping business and you’re planning to be in it for the long haul, then starting your own store is a good option, especially with established platforms becoming more and more saturated every year.
You can apply for a tax ID by visiting your local country clerk’s office or just Google “your state + sales tax ID”. To get your sales tax ID, you may need to be a business entity, a company and have a Federal Tax ID number. Also, remember that some wholesale suppliers require you to have one before doing business with you.
Now that you have an online platform for your business, you need to attract customers to your stores. Below are some strategies for your online dropshipping store:
68% of Internet users come from Facebook ones, resulting in a vast advertising opportunity for businesses. Facebook ads are a good option for the following reasons:
Building an email list is still one of the most effective ways of acquiring customers. First, you need a way of capturing email addresses, such as a request to sign-up at checkout, or an offer or competition that requires an email address. Once you have a decent list of email addresses you have a way of reaching a large group of people regularly, for free.
Blog or Forum Marketing
This involves finding blogs or forums that are related to your niche and actively participating in discussions. By positioning yourself as an authority in your niche and including a link to your website, you can increase traffic and acquire new customers.
Finally, to conclude the Basic Guide to Dropshipping, there is surely a lot to gain from the dropship model, as long as you follow the tips above and you choose the right dropshipper for your business. With a bit of work, negotiation and set up, you will have your online store in no time! We hope you’ve enjoyed this blog on how to start a dropshipping business. Did this inspire you to create one? Just leave a comment down below. And don’t forget to share this article with your entrepreneurial friends.