When it comes to business, there is no other time to start than now. A lot of ideas have gone into how to make money online and one of those is dropshipping.
If you don’t have a product to sell. You can start a dropshipping business. This is one of the easiest businesses to start at a low cost.
You need to understand that to build a successful dropshipping business, you need to work on your marketing because your job as a dropshipper is to market the product to the buyers that are looking for the products. The products will be sold in your name.
What is dropshipping?
Table of Contents
- What is dropshipping?
- Who can run a dropshipping business?
- Step by Step Guide to Start a Dropshipping Business
Dropshipping is a new line of business that involves you becoming the middle man between the producer or suppliers and the final consumer. It is completely done online without a physical store or office. You are closer to the customers than the manufactures of the products.
By definition, a dropshipping business is where you can sell goods to your customer without running any inventory. It means a customer will purchase an item from your online store at retail price. You will then forward the order to your supplier, which you are going to pay at wholesale price. Once your supplier receives the order, they ship the item directly to the customer under your business name while you earn the profit from the simple transaction.
Who can run a dropshipping business?
Virtually anyone ready to do real marketing to become successful can start a dropshipping business. Your main job is to connect the buyers to the products using your e-commerce website.
7 Reasons to Start a Dropshipping Business
An online business can also get started by those who don’t have access to products that they can sell. This opportunity is presenting itself through dropshipping. The benefits of starting a dropshipping business are;
- It is easy to start. It is a model that is open to anyone ready to put in the initial work. No restriction by location and education.
- It does not require much upfront investment. Though you might need to invest in your store setup and marketing.
- You don’t need to stock the products.
- You can run it with your current job, this means you can earn more money if your current job is not meeting your needs.
- It is not time-consuming because you don’t need to spend time thinking about product development, cost of production, and other factors that you need to carry out traditional business.
- You will become better at marketing. This business backbone is your marketing skills
- It is partially passive. All the work has been done for you by the producer or retailer of the products you are selling through your dropshipping business.
If you love to enjoy the benefits of running a dropshipping business. It is time to take a deeper look into the seven steps that you need to take to be successful in your dropshipping business.
Step by Step Guide to Start a Dropshipping Business
The steps in this guide will show you how to start your dropshipping business and make it successful.
1. Discover Your Dropshipping Niche
You know that you can’t sell everything. It is practically going to be a mountain that you may not wish to climb. Finding a suitable niche will help you to:
- Stay focus.
- Brand your business.
- Know more about your customer, since the aim of dropshipping is to connect your buyers to the products of their choice.
2. Get a Dropship Supplier
When you have discovered your niche, it is time to look for a supplier. Like I said earlier, you are connecting the buyers of your chosen product to the manufacturer or retailers of those products. Finding a reliable supplier is an important part that you should be serious about.
Your suppliers should be capable of making the delivery as at when due. This is to reduce the risk of your business losing more customers.
3. Register Your Business
For a successful business, your customer should be able to recognize your business by name. Getting your business registered is an important part of starting your dropshipping because you will need to brand that name and also use it to obtain your tax ID.
4. Obtain a Sales Tax ID
By now you should know that you are in business. This means you have to pay your fair due to the government. Get a sales tax ID from the nearest city to you. This is very important for the sustenance of your dropshipping business. As you know, evading tax is a criminal offense.
5. Select a Selling Platform
Now, you have all the necessary things for your business to get started: You know your niche, have connected to suppliers and gotten your sales tax ID.
It is time to set up your platform. This is where your customers will make their selection, purchase, and payment of the products you are selling.
It is much easier to use dropshipping software such as Alidropship plugin or Oberlo services available on Shopify. These dropshipping software will link your store directly to popular e-commerce platforms like Amazon, Aliexpress, Etsy, etc. These are platforms that already have raving buyers. It is easier for you to start with them because it will help you to understand the in and out of the dropshipping business.
6. Marketing Strategy.
Earlier, I mentioned that your marketing skill is the backbone of your dropshipping business. You have to know how to market your business to your potential customers. The common channels that you can use to market your business are:
1. Social media: You can tap into the game of the tribes, this is where users of Facebook, Twitter, LinkedIn, etc. congregate to share information. You can use these platforms to market your dropshipping business.
2. Email marketing: You can collect the emails of your customers. This will help you to upsell and cross-sell. Your email list will help you to have more returning customers. To get your customer’s email, make a formal request from them.
3. Blog: It is no news that a lot of people would love to read about the products they want to buy. This is to ensure that they don’t end up taken by surprise. When you have a blog that publishes content, it will add value to your Dropshipping platform and brands your business. Plus, you can easily get your reader’s email and turn them into customers.
4. Customer support: The best way to gain insight into who your customers are and what they want is to read through the question they ask. A lot of customers will always want you to give a helping hand. This is where trust and confidence in your brand are built.
7. Monitor Your Expenses
You are in business to make a profit. It is a bad business practice not to monitor how you are spending your investment fund. Marketing and customers could drain your pocket. Keep an eye on every money you spend on your dropshipping business.
All you have to do is set up the retail website, find customers, and handle customer support. You can start with as low as $100. It all depends on how you want to go about setting up the platform. If you don’t have the skills. You can hire someone to do it for you.