Dropshipping has become an enticing revenue model for those seeking to make extra cash online, without inventory, storage space, or large amounts of start-up capital required.
It used to be that if you wanted to sell goods online, you had to store inventory.
But with the advent of dropshipping, without needing their physical inventory, anyone can start a product-based company.
Dropshipping, and with good reason, has rapidly become one of the most popular online business models. There were 1,66 billion global digital buyers in 2016, according to Statista. It is projected that that number will rise to 2.14 billion by 2021.
Dropshipping allows individuals without needing a warehouse or full-time workers to handle physical enterprises. It is the solution of the 21st century to create a scalable company focused on goods.
Dropshipping, what is it?
Shopify defines dropshipping as “a retail fulfillment method where a store doesn’t keep the products it sells in stock. Instead, when a store sells a product, it purchases the item from a third party and has it shipped directly to the customer. As a result, the merchant never sees or handles the product.”
In other words, you can build and sell items without ever having to hold inventory on hand by using dropshipping. One of the best aspects of starting a dropshipping company is to not have to buy inventory.
This helps you to tap into the growing online market without making major initial product investments or having room for storage. As a dropshipper, you can even avoid the upfront expense of shipping supplies and cargo costs.
A market, a customer, and a way to reach your clients are all you need to start a dropshipping company.
How to start a dropshipping business in 8 simple steps
It does not need to take weeks or months of preparation to start a dropshipping business. You can start within a few days with a little determination and patience.
1- Pick a niche:
You'll want to pick a form of company or niche first.
Health and beauty, apparel, technology, outdoor living, kids and toys, or household goods are some examples of niches. As a beginner in dropshipping, before expanding your niche, it is important to be specific with your company and test new lines.
If you want to enter the fashion industry, for example, decide if you're going to sell products for girls, men, or women. You may scale down further to sell or be even more basic to women's shoes and select a certain kind of shoe, such as heels, flip flops, or sneakers.
As you develop your brand, choosing a particular niche for your dropshipping company can help you concentrate on the right customer.
2-Select a platform:
You can list dropship items on a variety of sites such as eBay, Amazon, Etsy, or your website. To extend your scope, list the same things on multiple pages.
Another famous alternative is Shopify. You can incorporate your Shopify account with an Etsy website of your own or a third-party platform. For new dropshippers, Shopify has affordable options and also provides premium features such as abandoned cart-targeted marketing.
You may decide to create your website and use it to sell and develop an email list, even if your following is small in the beginning. At the same time to raise awareness, you can list your products on sites like Amazon or eBay. These websites are popular and trustworthy, and individuals search for products such as yours directly every day.
Ultimately, it will give you the highest profit margin by creating your website and using a particular marketing strategy to attract customers to your storefront. The hefty listing and seller fees that come along with Amazon and eBay won't have to be charged.
Related: Your First Online Business
3- Pick a product:
It's time to choose the particular goods you want to sell once you've chosen your niche and where you're going to list your pieces. To help you decide, make use of your niche.
Are you selling wedding dresses, sunglasses, or toys for toddlers? You may be able to list a whole line of products within your niche, depending on your dropshipping suppliers.
Initially, don't get too carried away. The aim is to start small and cater to one crowd. You can extend the goods in time to fill in the holes inside a wider niche.
4- Create and follow your brand:
Next, whether you wish to sell under the name of another company, you will need to brand your products. Finding existing brands allowing dropshipping is not a bad thing. But you will fail to scale your company in the long run if you choose this since they usually charge a high percentage for each sale…
You can create your brand and your followers on social media at the same time. Start by creating business accounts and regular sharing of relevant information on different social media channels. People will begin to recognize you and your brand if you're consistent. Take the chance to grow an email list to also sell your goods.
Instagram, Facebook, and Pinterest are the best social media sites to create a following on. Figure out where the target group is spending its time online and improve the social presence there.
Remember, by being sincere and honest, to communicate with your audience. That will help them communicate with you and trust you, making them more likely to purchase your goods.
Related:5 best email marketing tools (one of them is free )
5- Your competitor's study:
New dropshippers frequently forget this move and do not keep up with their rivalry. There's a huge online market, but that doesn't mean it's infinite.
Do a fast Google search for particular keywords specific to your products to find out who your rivals are. Your greatest rivalry is those that turn up in the first 10 rooms.
Take a close look at the types and selection of products offered by your rivals. Will they have in-depth content that describes how to use their goods, like a blog? You could start a blog to also market your goods.
To analyze the competition, use the details on their websites. You may not want to copy your rivals, but by learning from existing brands, you can learn how to make your product, company, and website better. As you study your competition, you'll find several tactics and ideas.
6- Choose your suppliers for drop delivery:
The secret to your success is choosing reputable dropshipping vendors. Where possible, be sure to study, test, and compare items.
If you're dropshipping from outside your country of residence, first you need to see and touch the object. You don't want to get calls for refunds or poor feedback for selling items of low quality. If it's a knock-off and does not do the job, a $35 vacuum is useless.
See if you can get a taste of the product that you can use in images and materials for ads. Be sure to budget the start-up expenses for this.
With dropshipping providers like Alibaba or Oberlo, you can get started. To find out which one fits best for you, study manufacturers directly. Some may be able to put your brand directly to your clients on the product and dropship.
If you are not prepared to market products as your own, consider selling products on behalf of a brand that has been created. Some manufacturers tend to keep their name on the product and market it to dropshippers. This is particularly helpful in establishing confidence in their niche for new dropshippers.
7- List and sell your items:
It's time to list your products online and begin selling now that you've selected a product, suppliers, and a forum. Yet more still needs to be done.
You will need to write a unique title when you list an item on Shopify, Etsy, or any website, create comprehensive bullet point details, and choose a competitive selling price for every item. This is where the study of the competitor is valuable because the data will make the lists of goods better.
If you do not sell an item on the first day you list it don't get discouraged. Businesses that drop shipping can take weeks or even months to take off. It might take a year or more if you don't have much time to put into your company from the beginning. During this point, you'll need to be patient and determined.
8- Watch your results and learn how to improve:
Just because the products are listed for sale doesn't mean that the hard work is over. In dropshipping, there are often shifts in rivals, market, and product offerings. That's why knowing what works is so critical and what doesn't.
To cater to your target audience and sell what they want, you can continually grow your dropshipping business. Re-visit your social media sites or email list and take a poll if you don't know what they want. To satisfy their daily needs, it will help you think of new goods.
The best way to expand a profitable dropshipping company is to listen to your audience and include what they need.
Half the war is learning how to drop the right way.
Dropshipping makes e-commerce seem easy, but to see results, it still requires effort and patience. Your job should pay off as long as you stick to the basics and don't break from your business plan.
Choose and stick to a niche. Don't worry about listing your products on more than one website, testing your product's consistency before going to full scale, and learning from your mistakes and achievements. It can mean all the difference between a time-consuming hobby and a full-time home business venture to know how to dropship the right way.
Sign up for Shopify's free training to learn more about how to get started with dropshipping: how to start a successful dropshipping shop.
