End 2020 the Right Way: Guide to Starting a Dropshipping Business
If you’re looking to break into the world of entrepreneurship, a dropshipping business could be your answer. Why? Because e-commerce is a lucrative industry right now, perhaps one of the most lucrative for budding entrepreneurs.
According to statistics, e-commerce sales tallied a whopping $3.5 trillion in 2019. That says plenty about the popularity of e-commerce and the potential for building a successful dropshipping business.
If you’re interested in learning more, check out the rest of this blog.
What is Dropshipping and How Does the Business Model Work?
Dropshipping allows you to run an e-commerce store without having to store any inventory. Once you’ve sold a product on your website, a wholesale manufacturer ships your product from their warehouse to your customer.
This means you can cut out the responsibilities and costs of packaging and shipping your products.
The dropshipping business model hinges on three main players: you as the retailer, the manufacturer, and your customer. The manufacturer creates your products, stores inventory, and ships products on your behalf. They also handle issues like defective products and restocking inventory.
As the retailer, you sell the manufacturer’s products on your e-commerce site. But the best part is that you get to market these products under your very own brand. You can also choose the best e-commerce platform to suit your needs — to learn more about that, check out Alidropship vs Shopify.
Simple Steps to Start a Dropshipping Business
In a dropshipping business, you are responsible for choosing the products you sell and how you market them. You are also responsible for the manufacturer’s shipping costs and determining the prices of the products.
Here’s how to get started:
1. Determine Your Business Idea
Yes, e-commerce business is popular, but that can also mean it’s oversaturated. It’s important to think carefully about what you want to sell, because this defines your business. Keep these two principles in mind: passion and profit. Pick something that interests you, but also something that is profitable.
2. Closely Analyze Your Competitors
When your business model is established, it’s crucial to take a look at what your competition is doing. This is important to so that you can learn from what they’re doing right, and what they’re doing wrong. Look at what they sell, how they sell it, and how they market themselves.
3. Find a Reputable Supplier (Manufacturer)
When it comes time to choose a supplier, research is crucial. Many popular dropshipping platforms offer lists of suppliers for your particular product niche. You’ll have access to ratings, reviews, prices, and more in order to do fair comparisons.
Once you have narrowed down a list of potential suppliers, make sure to contact each one and ask them important questions about shipping times, responsibilities, quantities, payment, etc.
4. Build Your Dropshipping Store
Once you have chosen your preferred dropshipping platform — Shopify is usually the best — it’s time to build your dropshipping store. Here are a few key steps to follow:
- Select a memorable and succinct domain name that aligns with your brand
- Choose an easy-to-use, free theme on Shopify if you’re starting off on a budget — you can make changes later on
- Get in touch with your supplier to find products that you can add to your online store
While there are plenty more steps involved in this process, these are the three most crucial to get you started.
5. Prioritize Your Marketing
Once you’ve established your niche, secured your products, and built your e-commerce store, there’s nothing much left to do but market your business with gusto! Some of the best marketing platforms for e-commerce are Facebook, Instagram, TikTok, and Twitter.
Learn How to Become an E-Commerce Business Pro
Dropshipping success is contingent on a variety of factors, but the products you sell and your business marketing are what matter the most. If you’re interested in broadening your business acumen or e-commerce knowledge, explore the rest of this site for more!