Dropshipping business is a very popular online business because you don’t need stock to sell your products. It allows you to set your own prices and market the product your own way without ever handling the product.
An e-commerce website purchases the item and sells it to a third party who sells the product. As the e-commerce website, all you have to do is get the customer and pass the sales order to the supplier. No worries about operational cost. Although you don’t need a lot of funds to start a Dropshipping business, a lot of effort is required in starting and managing it.
Here is a 5 step guide on how to start a successful Dropshipping business.
1. Choose your Niche
Take your time here and don’t rush. If you choose a niche that you are not passionate about you will be more susceptible to discouragement when things get tough. Here are some points to consider when selecting your niche.
- Select a niche with high priced products. Selling a $35 product and an $800 product will require the same amount of work, so why go for cheap
- Shipping cost – A very expensive shipping cost will scare away your customers.
- Product type – You should choose a product that attracts impulse buyers because these products will generate a lot of traffic to your website.
- Availability – Don’t choose something that is common and easy to find.
2. Research your competitors
You’re going up against giants like Walmart, Amazon and general retailers and you, therefore, need a competitive product. Most people go for products with low competition and they could not be any more mistaken. If a product has low competition it means its demand is very low and the chances of getting a buyer are very slim. Look for something that has high demand because it has high chances of being bought.
3. Create your Dropshipping Store
Launch your Dropshipping business website fast using an e-commerce platform like Shopify. Shopify is the best e-commerce platform online. It provides so many useful features, resources, and tools that you can use.
4. Secure a Supplier
Conduct proper research on the best suppliers before hiring them. A bad supplier can and will ruin your business. The best suppliers in the market currently are Oberlo suppliers and Verified suppliers mainly because they will be aware that you are dropshipping. Alibaba is also another great place to identify and communicate with potential suppliers.
5. Market your Dropshipping Business Heavily
Now that you have your website and supplier there’s only one thing missing to start earning: customers. There are so many ways to attract customers and the best and most effective is social media marketing. Join social sites and follow pages of people who are more likely to buy your product in popular sites such as Facebook. The best way to get customers through Facebook is by using Facebook ads. You can also use email marketing and offer discounts and offers to your potential customers.
Starting a drop shipping business is hard and very risky, but if you follow these 5 steps you will be enjoying great returns pretty soon. There are some drawbacks to Dropshipping though that you should be aware of like changes in inventory, complications in product return, and sometimes profit margins can be very thin. But all in all, It is a very profitable business.
If you need to dropshipping supplier in China to help you jumpstart your business, you can visit Dropshipchinapro.com to learn more.