Starting the dropshipping business is one of the greatest steps towards entrepreneurship. In this guide How to start dropshipping, I will walk you through the dropshipping business, its pros and cons and everything else necessary to venture into this exciting business.
How to start dropshipping business might seem tough and almost impossible to be done especially to a completely new person trying to know how it works.
Being able to set your prices, market your brand makes the process of the dropshipping business even more fun.
IF you are ready…..Just read to put the hard work, you will build a great, successful brand in no time.
If you are still contemplating starting an online business, it will interest you to know that in 2019 the ecommerce business generated more than $3.5 billion. You see there is huge dollar there. You can go in there and grab your share……
What is a dropshipping Business
Dropshipping is a type of a business in which you can use to run your store online without having to think about having an inventory.
Note that dropshipping is different from mini importation.
You don’t need to have a physical store. You don’t need to manufacture a product to do be able to run a dropshipping business.
How dropshipping Business Model works
In a dropshipping business model, three parties are involved: The manufacturer, the retailer (yourself) and the customer. Without one of them it is no longer a dropshipping business model.
Each of these parties has a role to play in the dropshipping business model.
The manufacturer’s role is to produce products, carrying inventory, shipping the products to your customers on your behalf. They will be responsible for replacing faulty products. They sell to you (retailer) at wholesale price.
The retailer sells the manufacturer’s products on his website as your own brand. You choose the products to display on the site. You will be responsible for both shipping cost and setting your own prices that gives room for making profit.
The customer places an order on the retailer’s website and also pay through the retailer’s website. The retailer will be responsible for the customer’s questions and any other issues that come up during the transaction process.
Is dropshipping business profitable?
This is a common question asked by many who want to go into the dropshipping business.
Yes the business of dropshipping can be very profitable if you choose the right dropshipping niche and also because you are not involved in the cost of shipping and manufacturing.
Why you should start a dropshipping Business
Dropshipping business is a very low-risk business. The cost of start-up is not high. You pay only what a customer can pay. If you have your own website you can start with $0 dollar in your pocket because you will use the money a customer will pay to get the goods for them.
Dropshipping is one of the businesses you can start with less than $100 dollars.
Dropshipping is not time consuming. You can do it while still doing your job or studying if you are a student.
Dropshipping will be worth it if you are patient and ready to put the hard work to start.
How to start dropshipping business
1. Choose a dropshipping niche
The first and most important step in this business is choosing what niche to go into.
Many people will tell you go into a niche you are passionate about, but the truth is you might be passionate about that particular niche but there might be no market for it where you live.
Choose a niche people are interested in and buying from.
If your passion does not bring you money you will work all your life in vain.
Fashion, fitness, beauty, jewellery, tech are some of the most profitable dropshipping niches you should consider going into.
In business what you sell matters.
2. Know your competitors
This not only applies to dropshipping business alone but every business you are going into.
Knowing who your competitors are gives you the chance to know how to go about your new business.
Make sure you know what they are doing and not doing and then start from there. Know what they sell and how they sell their products.
A way to know your competitor is to head over to Google to and type the name of the dropshipping niche you are going into.
Notice the people who show up at the top and see why they are at the top.
Another way is to check them on social media. Go to their pages and see what they sell, how they sell it, how much engagements they have and you will an idea of how to grow in that particular niche you chose.
3. Finding a supplier
Now that you know who your competitors are, it is time to start looking for suppliers.
It is easy to find dropshipping suppliers. Just head over to Google and search for “Dropshipping suppliers”. You will be provided with tons of suppliers to choose from.
Check from the list and select at least six suppliers. After picking about six of them, check their sites and how their ratings are.
Choose the ones with higher rating and good reviews. You can choose two or three.
Place a sample order and see how each one of them will respond. Am talking about delivery cost, and time taken for the goods to get delivered to you.
Choose the supplier with fastest delivery and it might also be the cheapest one. Choose one that will allow you maximize profit because that is what you are after.
Always have your customers in mind and the kind of product they will get from you when they place orders.
4. Building your dropshipping store
This part might sound scary to you I know. You might be asking “How can I build one now”? Don’t worry buddy…..Just read on.
You just need few things to build a dropshipping store.
Domain name: You need to have a domain name for your store. Brand name matter a lot in this business. If you don’t know what to name your business you use the business name generator to get a name for your business.
Do make sure you get a .com domain and try as much as you can not to use your own name as your domain name. You can have a persona; blog and have the name after you but don’t do such in a business situation.
Sign up for shopify: Shopify is one of the best ecommerce websites in the world. With new features being added always and, resources, different tools and app you will find it relatively easy to do business on the platform.
5. Market your dropshipping business
Now that you have built your platform, it is time to market your business and start making money through it.
This is one of the most important stages of this business.
You can promote your business by running Facebook ads to reach more people and sharing what you do on social media and telling your friends about it.
6. Optimize your site
You can use Google analytics to monitor your online traffic and to make sure that traffic is ever increasing rather than decreasing.
Learn the art of SEO if you don’t know. So you can target keywords that will bring you more traffic and help you make sells on your ecommerce site.
Hope you enjoyed reading this post today?
Tell me more in the comments section.
Don’t forget to share with family and friends on social media