Are you planning to start a new business? Then the process of planning and launching a drop shipping eCommerce business is similar to starting any other type of sales enterprise. This is a great step to entrepreneurship and you will be able to sell products to customers, set your own product prices, and market your very own brand.
How To Start A Dropshipping Business?
If you are willing to do the work then you can build a successful brand. Sounds like the right business for you? Want to know how to start? So here in this article, “How To Start A Dropshipping Business? The 5 Easy Steps Explained!” you will learn how to start a dropshipping business, also you will find what is dropshipping business and how to find the right dropshipping business ideas. Read on to find more about it.
What is Dropshipping Business?
The dropshipping business model is extremely popular for entrepreneurs, which is used to run a store without holding any inventory. It’s possible to start a dropshipping business with limited funds and when you have made a sale, you don’t need to worry about storing, packaging, or shipping your products. The supplier will ship your products from their warehouse, straight to your customer’s doorstep.
How does it work?
In the dropshipping model, there are three key players. They are:
- Manufacturer: Manufacturer is the one who creates the products, carries inventory, shipping products to customers on behalf of the retailer, replacing defective products, and restocking them. Also, they sell products to the retailer at wholesale prices.
- Retailer (You): In this dropshipping model the retailers sell the manufacture’s products to their website under their own brand. And they are the one who is responsible for choosing and marketing those products, also, they will be responsible for managing customer inquiries and complaints.
- Customer: In the last step the customer buys the product directly from the retailer. So if any questions or issues arise, they contact the retailer they bought the product from.
Also, read our article about What Is Forex Trading And How Do Forex Traders Make Money?
5 Steps to Build a Successful Online Dropshipping Business
If you are ready to do business on a limited budget, then follow the five steps given below.
1. Select a Dropshipping Business Idea
Many businesses grow out of something on they are passionate about and most of the people tell you about to pick a niche you are passionate about. It’s only a half-truth because the reality of the best dropshipping business ideas is usually the profitable ones. So, spend some time looking into different dropshipping business ideas. If you are coming with your own dropshipping business ideas, here are a few things to keep in mind.
- Know the Google trends
- Use Google’s keyword planner
- Browse popular websites within your niche.
- Check out the order volume for products.
2. Do Competition Research
When you start a dropshipping business, remember you are competing with many other drop shipping operations as well as a retail giant. So now you need to educate yourself on who your competitors are, what they sell, and how they sell their products. To do the research there are many ways, they are:
- Do a quick search by entering one of the products you want to sell into Google and see who shows up on top.
- If you do not find the niche competitors on general results, then try to search through an Alexa or SimilarWeb.
- Stalk around on social media and find out How many followers do they have? How do they market their brand? How much engagement does their brand get? What can I do differently to stand out against them? What are they doing right that I should copy?
- Use Buzzsumo and know your competitor’s content and what performs better for them.
3. Discover a Supplier
Finding a supplier is very important in this dropshipping business because the wrong supplier can ruin your business, so it’s important that you don’t rush this step. If you have a list of five or six potential suppliers to choose from, then the next step you can take is to contact these suppliers and ask important questions like minimum order quantities and shipping times. By now it is reduced the supplier’s from a list of 5 to 2, so the last step now you can do to make a decision, place a sample order with them for a product and compare the results. Compare delivery time, product quality, and packaging while making a decision, keeping your customers in mind and what they will expect from you when placing an order.
4. Build your Dropshipping Business
To build a dropshipping business there are few components. Here are they:
- Domain name: If you are building a long term brand, then your domain name matters. Always get a .com domain, no matter what.
- Sign up for Shopify: It is the most comprehensive e-commerce platform on the market. It’s easy to use with new features, tools, resources, and apps being added regularly.
- Shopify themes: The themes can be changed over time. Once you start investing you can invest it into buying a new theme for better store design.
5. Market your Dropshipping Business
So now you have found your business and built your business so that your store is ready. This is the crucial step in your dropshipping business, getting your first sale is one of the best feelings. So here are some of the best marketing ideas to get you started, they are:
- Facebook advertising
- Retargeting ads
- Influencer marketing
- Get free media coverage
Now you have got an idea on how to start a dropshipping business right? If you have questions along the way, feel free to leave a comment.