How To Start Dropshipping Business – Follow these 6 Steps
How To Start Dropshipping Business:
Dropshipping business model is the best model for people planning to start an online business especially those who are short of funds can manage only low investment
As you are not required to maintain any physical inventory, the cost of starting this business is almost negligible. You just need to have a computer with an internet connection and small money to invest in buying a domain name, Webhosting, and some tools.
Dropshipping is a very low-risk business model that requires an e-commerce website where customers can visit to buy the goods. The goods are procured from an online supplier or manufacturer, who will take care of order fulfilment. You won’t be incurring the operational costs and your focus would be on acquiring the customers and business marketing.
In this article about the dropshipping business model, I’ll reveal to you that how to build a dropshipping business with limited funds and start making 6 figure income online.
Dropshipping doesn’t require a lot of funds but a little bit of hard work, proper tools, and some training to execute your dropshipping business plan.
How to Start Dropshipping Business - Quick
I am going to discuss 6 steps required for starting your own drop shipping business.
By following these steps , you would have sufficient knowledge and can get started.
Dropshipping business require an ecommerce website and some tools to import the products from Dropshipping websites like Aliexpress.
In case you have not build a website before, I would advise to buy the customized Dropshipping store from experts in this field.
The store would be build with the most trending products in your niche from most reliable suppliers. You can then just focus on marketing efforts. Best part is you shall also get free training for promoting your store.
In this way , you can start making money in very short period.
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Select a Niche:
Selecting a niche, you are passionate about will surely give you an advantage over the competitors. It will be difficult to continue promoting the products without having some knowledge or interest in them. You will agree that business is all about passion apart from making a profit.
In your dropshipping business, you will have to compete with giants and that is not difficult if you know the product well and are passionate about it because you will be writing content about the product. Do not worry I don’t expect you to be a professional writer.
Moreover, it is not all about passion, the product must also have a demand in that market.
Finding a suitable trending product is the first main step towards establishing a successful online business.
Here are some useful points to take note of when choosing your niche:
Target Attractive Profits:
The main goal of any business is to make money whether it is a brick-mortar business or a dropshipping business.
You will agree that extent of hard work required to sell a $100 product is almost the same as required to sell a $2,000 product. Therefore, you must select a niche targeting the audience looking for higher price products.
Low Shipping Costs to control overall cost:
Most drop shippers do not look at the shipping cost while listing the products on their website. I agree that shipping will be taken care of by the seller but the cost will be borne by you.
A higher shipping cost would not only eat up your profits but also may make your product costlier than the local suppliers and take you out of competition.
There is no point in selling an item worth $10 with a shipping cost of $15. Rather you should be looking for vendors with fee shipping or lower shipping cost.
Also, try to select a niche having products with less weight and volume.
A low overall cost will help customers make an instant buying decision.
Select the Trending Products as they sell fast:
You must ensure that the products being sold on your website are trending and appealing. This will help you in increasing the customer base and in doing so you will be able to fulfil your marketing goals. The ultimate aim should be to acquire the customers and sell your products for making a profit.
Rebranding and building Own Brand:
When You start the business, your first aim should be to sell as many products as possible. But your business will attain another level when you sell quality products in your own brand.
Initially, it may not be possible but once you have to build a good relationship with your suppliers to manufacture the products as per your quality requirement and pack them in your name.
This will only happen when you start giving them orders on regular business
Sell a Unique Product:
You may try to find unique products in your niche those are not readily available and are difficult to find. This will help to achieve more sales from the targeted audience.
But practically finding a unique product in the dropshipping model is difficult as all these products are available to every person in this business.
Therefore, at least stick to the trendy products.
2. Conduct a Competition Research
A successful business can be built by carefully researching the product and analysing the market demand and competition.
A product with the low competition may not always be a good choice as it may not have a demand in the market.
As a newbie, you should not be worried about the competition, if there is good demand. You should properly analyse the supply and demand and also the strategies being deployed by your competitors.
3. Associate with a Reliable Supplier
In dropshipping business, your supplier has a much bigger role. He is just not manufacturing or sourcing the product but actually fulfilling the orders on your behalf. You must lookout for a supplier who deals with quality products and ships them properly packed item on
You must conduct proper research on prospective manufacturers and suppliers and have regular communication with them.
If you find anything suspicious, move on and continue with your research, you can’t afford to lose business for their mistakes.
4. Launching Your Dropshipping Ecommerce Store
Once you have implemented the dropshipping business idea, it is time to launch your dropshipping store and business. You can either select an e-commerce platform like Wix, Shopify or may use Woo Commerce with WordPress
In my opinion, Shopify is the best platform for dropshipping business if you can afford to pay monthly recurring expenses and if you are on a budget, I would advise you to build an eCommerce website using WordPress and use a plugin like Alidropship for importing the products in your website.
5.Create and Follow a Marketing Plan:
After setting up your eCommerce website, you have to acquire the customers as a business cannot survive without customers. A perfect marketing plan is the foundation of a successful business.
There are many ways to drive traffic to your website and sell the products. You must deploy both free and paid methods to see fast results.
But as you may not have enough experience with paid advertisements initially, you can outsource it to avoid any losses. But you must sit discuss with your outsourcing agent clearly the budget and set achievable goals.
Social media advertisements will help to reach the targeted customers and will help you generate sales, revenues, and quick scaling in business. It will also give you the edge to compete with other existing brands and retailers.
The options like content writing and search engine optimization may be a bit slow but give log-lasting results by ranking your site high on search engines.
Besides the above, you shall also build your email list and collect the email addresses of your customers. You can use this list to send discounts and special offers to their inbox.
6. Analyse and Optimize
Once you have launched the marketing campaigns, It is important to track all the data and metrics required to scale your business. You have to keep tabs on all your traffic organic and paid that includes Google, Facebook, Instagram, etc.
You must analyse the performance of various advertisements to see which one is working for you. Proper analysis will help in optimizing the marketing campaigns by eliminating the ones that do not work and scale up those that are converting.
This is a continuous process and you should keep on testing the waters,