You’ve probably heard about dropshipping more times than you can count. Almost every seller and e-commerce expert has talked about starting a dropshipping business. But why is it so popular? What exactly is it all about? And how can you start up your own dropshipping business?
Well, this article will answer these questions and any other questions you may have about the subject. In this article, we’ll explain what a dropshipping business is and how you can start up one without any hassle at all. So, hop right in and let’s get started.
What is a Dropshipping Business?
Basically, dropshipping is a unique business model where sellers can run their stores without having to hold any inventory. As a seller, you don’t necessarily have to worry about shipping, packaging or even storing your products. Once you’ve made a sale, the supplier will ship the products straight to the customer’s doorstep.
Dropshipping is a pretty convenient business model especially if you’re new to entrepreneurship (Tweet me).
How does it Work?
Think of dropshipping as a three-player team or chain involving the manufacturer, the retailer (you) and of course, the customer.
The manufacturer plays a very significant role in this business model. He creates the products, takes inventory of them and ships them to customers. He is also responsible for replacing defective products. He sells products to the retailer (you) and in a situation where a product is returned or unsold, he bears the loss.
As the retailer, you sell the manufacturer’s products under your name or brand. You select and market the manufacturer’s products. You’d also be responsible for setting your own prices and shipping cost.
Finally, the customer buys directly from the retailer and if they have any questions or problems concerning the product, they contact the retailer.
How to Start up Your own Dropshipping Business
1. Choose Your Business Idea
Before you start up your own dropshipping business, you have to figure out what exactly it is that you want to sell. Now, most people would probably tell you to choose a niche that you’re really passionate about. However, when it comes to dropshipping, it’s not entirely about passion. You want to choose a niche that’s really profitable. It’s a combination of passion and profit with profit taking a larger part of the equation.
In fact, the best dropshipping ideas are the ones that rake in the most profit. Keep that in mind (Tweet me).
2. Competitor Analysis
Now, this probably sounds like a creepy idea when said out loud but you need to check out your competitors. Once you’ve figured out what you want to sell, you’d need to research the sellers that are in your niche market. Find out who they are, what they sell and how they sell them.
You can do this by searching through Alexa or on Google. You could also hunt on social media for other dropshippers within your niche. Take a look at their content, what works for them and figure out how to create something even better.
3. Get a Supplier
Finding a good supplier is easy yet tricky at the same time. We recommend that you create a list of about six potential suppliers. You can then narrow the list by asking them relevant questions like their minimum order quantities or their shipping procedures. This will help you trim your list to about three suppliers. You can then go on to trim your list further by testing their services to see which one offers the best service.
4. Build a Business Store
Creating a store for your dropshipping business is a pretty important step if you want to hit it big. You want to get a store that’s easy to navigate and would display your products prettily. You can set up your online store on ListBuy in just a few steps.
5. Market like Your Life Depends on it
Now that you’ve created your dropshipping business and set up a store for it, there’s no better time to start marketing. Market your business like your life depends on it. Remember: you want to make your first sale. Put the word out there about your dropshipping business and utilize social media. You’d be amazed at the sheer number of customers that’d troop in.
Phew! We’ve finally got you covered on the basic elements of dropshipping. Hopefully, you now feel confident enough to start your very own dropshipping business. Dropshipping is an incredibly low-risk business model that lets you make profit without burden. There are so many possibilities when it comes to this model. All you have to do is take the first step.
However, if you don’t invest time into your dropshipping business, you may never hit it big. Put in time and you’d build an empire out of your business.