Dropshipping is a profitable venture, but it isn’t easy. It’s definitely not built for the faint-hearted and lazy. Since this is something new from what we’re used to, it has a steep learning curve. Some even spend thousands just to join dropshipping masterclasses and get one-on-one coaching to win at this venture. But, because you give so much to learn and master the process, you’re also in for a serious ROI.
Plus, you can sell anything you want without keeping an actual inventory. That means you don’t have to raise capital to pay for the products you sell upfront. If you’re passionate about dropshipping, it could be a sustainable source of income for you. Check out these tips in launching your first dropshipping business shared by the dropshipping experts behind H-Com 3030 Review.
Decide and commit to your business
Before anything else, you need to ensure that you’re 100% committed to your business decision. The difference between wanting to start a business and being committed to it is how you will react during tough times. If you only want it, there’s a possibility that you will ‘un-want it’ when you’re faced with a lot of challenges. However, if you’re committed to it, come what may, you’ll stand up and ride the tide with your business — until you become successful in it.
Do an extensive market research
At the heart of dropshipping is selling. So, just like when you’re opening a store, you need to study the market, know what they need, and observe how your competitors do things. You can check out Shopify’s curated list of trending products based on the top-selling products on the platform.
Choose niche products because it has the most passionate and loyal customer base. You can raise awareness about your product, and you’ll see them selling like hotcakes. If you’re looking for a good product entry point, try yoga-related items, phone accessories, electronics, beauty products, fashion, and fitness. If you don’t have extra cash to build your inventory, try selling these types of products.
Aside from Shopify’s list, you can also take a look at Google Trends. This tool can help identify whether a product is trending downward or upward. Aside from that, it also indicates the reason for such a trend. But since Google Trend doesn’t keep track of the search volume and Oberlo order volume.
As you search for your competitors, take note of their marketing strategies and ways of working. One of the ways to do this is by running a Google search. Use the name of the product you’re selling when running a Google search. From the top 10 items that show up, list down the first five and mark them as your competitors. Study their business models, ways of working, and methods of marketing their products. Aside from this, you can also use competitor spy apps like Alexa and SimilarWeb. These tools can help you track the online activities of your competitors.
Choose a supplier
The next thing you need to work on is finding a reliable supplier with ample inventory to cater to your orders. Since you won’t be stacking items and products in your physical store, you need to ensure that any order from your customers can be provided and delivered by your supplier. If your supplier isn’t stable, the apparent problem is they could quickly turn down an order that you already approved and processed. If you have nothing to ship, there will be no customers to make a purchase.
Also, work with a supplier that offers high-quality products as these are easy to sell at a decent price point. If you’re on Shopify, you can take advantage of Oberlo to help you find and connect with potential suppliers. Oberlo is a Shopify-linked marketplace that allows drop shippers to find trending items that can yield good profit.
Build your eCommerce store
Once you already have a product and supplier, it’s time to build your eCommerce store. This store is usually built on dropshipping platforms like Shopify, Amazon, AliExpress, and Doba. But, if you are knowledgeable in creating websites, you can also use WordPress hosting and use eCommerce plugins.
Once you set up your store, this is where you should drive traffic to, sell, process payments, and send out orders.
You need to spend time creating your store. The good thing here is you can make it by yourself. You don’t have to pay for a developer or web designer to set everything up. Just take note of the pricing options for these stores in your chosen dropshipping platform to know precisely how much you’re paying and what services to expect in return.
The process of setting up a store doesn’t end here. Aside from these, you also need to choose a logistics partner to deliver customer orders. A reliable logistics partner can significantly improve customer experience, encouraging them to make repeated purchases to your store.
Yes, opening an eCommerce store and venturing into Dropshipping Business may not be easy, but they are never impossible. With a good plan based on extensive research and unswerving determination to make it big in this industry, you can grow your small store into a highly profitable venture.
Dropshipping is a business model where you, as the retailer, don’t keep the products you sell in stock. Instead, you partner with a supplier or manufacturer who stores the products, and they handle the storage, packing, and shipping of the products directly to your customers. As a dropshipper, your primary responsibilities are to market the products, manage the online storefront, and handle customer service.
Here’s an overview of how to start and run a dropshipping business:
- Select a Niche: Choose a specific niche or product category to focus on. Conduct market research to identify products with demand and reasonable competition.
- Market Research: Research your competition and target audience. Understand what products are in demand and what customers are looking for.
- Choose Suppliers: Find reliable suppliers or manufacturers who offer dropshipping services. Popular options include AliExpress, SaleHoo, or working directly with manufacturers.
- Create a Business Plan: Develop a business plan outlining your goals, budget, and marketing strategy. Determine your pricing strategy and how you’ll handle customer service.
- Register Your Business: Depending on your location, you may need to register your business, obtain necessary permits, and comply with tax regulations.
- Set Up an Online Store: Create an e-commerce website using platforms like Shopify, WooCommerce, or BigCommerce. Ensure it’s user-friendly and aesthetically pleasing.
- Product Listings: Add product listings with clear and compelling descriptions, high-quality images, and competitive prices.
- Marketing and SEO: Implement online marketing strategies, including search engine optimization (SEO), social media marketing, content marketing, and paid advertising to drive traffic to your store.
- Customer Service: Be prepared to handle customer inquiries, process orders, and manage returns. Good customer service is crucial for success.
- Order Fulfillment: When a customer places an order on your website, send the order details to your supplier, who will ship the product directly to the customer.
- Monitor and Optimize: Regularly review your business performance, sales, and customer feedback. Make adjustments to your product offerings, pricing, and marketing strategies as needed.
- Legal Considerations: Familiarize yourself with local and international e-commerce laws and regulations. Consider issues like product safety, intellectual property, and taxes.
- Scaling: As your business grows, you can consider expanding your product line, adding more suppliers, or diversifying your sales channels.
- Customer Trust: Building trust with customers is essential. Provide transparent shipping information, quality products, and reliable customer support.
- Profit Margins: Keep a close eye on your profit margins. Pricing your products too low can lead to losses while pricing them too high may discourage sales. Find the right balance.
Dropshipping offers a relatively low barrier to entry, but it also comes with its own challenges, such as intense competition, low profit margins, and issues with product quality and shipping times. To succeed, it’s essential to continuously learn, adapt, and provide excellent customer service. Additionally, consider finding a unique selling proposition or a niche within your chosen market to stand out from the competition.