Monday, May 27, 2019

How Do I Start A Dropshipping Business?

Imagine yourself getting money from a business without having an inventory.  You work from home and manage your own time, no boss, no traffic jams. All this can be done through dropshipping.  You can start getting profit by selling products, get paid without having upfront costs! Let us pay attention in the next posts to learn how to start a drop shipping business.

How do I start a drop shipping business?  
There are four basic steps in starting a dropshipping business.  

(1) You need to start with an idea. (What products to sell, why you are selling it)
(2) Set up a website.  (What service will you use for your website)
(3) How to get the products to sell. (Where are you getting the products to sell)
(4) How to market the products.

Now that we already know the basic steps, we want to get specific details in starting up a dropshipping business.

All business begins with an idea
Entrepreneurs are taking advantage of the opportunities that they encounter.  From the opportunity, a good entrepreneur will make extensive research and come up with a plan for the business.  In this phase, a drop shipper will determine what demands are high in terms of products, and why you are choosing them as a product to your store.  

Choosing the right niche is the foundation in dropshipping.  Obviously, if you were able to see the demand, and you feel that this is going to sell like crazy, then definitely it is a good choice you made.  The more products we sell in your store, you will get more profit to earn.

Set up a website
We know that drop shipping does not require inventory to be able to sell items on your store.  But for a drop shipping to work, you need an online shop or a website that you will use to post your products on sale.  With this said, it is very important that you are able to set up a website that will attract your customers to from you.  

One of the benefits of dropshipping is that this has become widely known to entrepreneurs and developers have designed tools and services that can be used as a platform for your dropshipping business.  An example of a tool that you can use for dropshipping is Multi-Drop - One stop shop for your eBay stores. There are a number of dropshippers using this tool to manage their drop shipping store.

How to source the products for dropshipping
In an old fashion way of business model, if we want to sell items we have to manufacture hundreds of pieces of the same item, get inventory for these products and sell it on your store.  In dropshipping, you do not need inventory at all. I think this is primarily the reason why the interest of people into dropshipping has also increased. Risks are low as well as the capital.  

Here you will choose a supplier for the products you will sell online.  There’s a list of websites to choose from that showcases products that can be sold, you can see the customers rating, the buyers rating and the number of orders.  You can use this as a benchmark of what popular items to sell. Once you have the list handy, you can contact the supplier and have them do the drop shipping on your behalf.

After getting a supplier and select the product to sell, then you can link it on your website, add your competitive mark-up rate and remove any logo, product brand on your items.  You certainly would not want to sell items that are labeled by a different seller, wouldn't you?

Create a good marketing strategy for your dropshipping business
Competition is high in dropshipping.  There are many businessmen who already ventured in drop shipping because they found that the risks are low.  Also, people are adept to making online purchases because of convenience. They would also have access to reviews to check product rating and know how reliable the product is.

Marketing goes hand in hand in getting the right niche for dropshipping.  Upon choosing the right product, you would have to find ways on how you can promote them.  One of the most common marketing strategies is using social media (Facebook, Instagram among the many).  This is free and easy to access. Most people of this age are using these two social media sites on a day to day basis.  For this reason, using social media as a marketing strategy is highly recommended.

Some uses blogs, vlogs to promote their products - the same as for dropshipping.  This is one way to promote how reliable a store is. There is a really tight competition in dropshipping hence customer review has a huge impact in terms of marketing.  Of course, this includes customer ratings posted on the Reviews /Rating section of your website. People usually go to this section to understand if it is worth it to make that purchase.

In essence, dropshipping is a business model designed to help both customers and business owners get convenience while shopping. There are a lot of people getting into drop shipping because of low risk, small capital, and convenience.  Resources are readily available at this day and age which makes drop shipping a good choice for starters. At the end of this post, we hope that you were able to get important pieces of information just to make you decide and start your own dropshipping business.

Keep in mind though that every entrepreneur who wants to start their own business must look for opportunities and innovations that will provide convenience to customers.  Dropshipping is one of the hot trends and is a good business model fit for those who want to manage their time spending it with their families while earning.

However, in every start-up shop, you should understand that it will take time and perseverance to be able to get to the goals you want to achieve for the business. By doing things right and carefully learning what to expect surely, you can go a long way in your venture to start a drop shipping business.

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