How to start a dropshipping business online: a simple step by step guide covering dropshipping concepts and important strategies to get you started with the dropshipping business model.
Dropshipping is an eCommerce business model in which the store doesn’t keep the products it sells in stock. When the customer order, the wholesaler or the manufacturer supply the product directly to the customer on behalf of the drop shipper.
Lots of people are now shopping online than ever before which makes selling online an amazing business opportunity.according to statista 2.14 billion people are expected to shop online by 2021 up from 1.66 billion digital buyers in 2016.
Dropshiping is one of the best eCommerce business model that you can start with a limited budget. here is how you can start your dropshipping business.
How to start a dropshipping business?
Starting a dropshipping business may not require lots of startup fund. However, you have to do lots of hard work and make wise decisions, since you are going to compete with retail giants with limited funds. You can follow the steps below to successfully launch your dropshipping business.
Step 1: Select a dropshipping niche.
Selecting a niche is key to win the competition. A product range that isn’t focused will be more difficult to market.
Selecting a niche that you are interested and passionate about will help you to don’t get discouraged fast and it will be easier for you to promote.
Target high-profit products:-As a drop shipper your main task is marketing and customer acquisition.so targeting more profitable higher-priced products result in better profitability.
Target products that are inexpensive to ship: – though your supplier or manufacturer will handle the shipping. if the cost is high it may repel your customer. Targeting products that are inexpensive to ship for example products small in size and weight will give you even the option to provide free shipping. You can absorb the shipping cost of this product as a business expense. Which will attract more customer from different geolocation?
Focus on products that get active search:-do keyword research and check Google trends to check some common search terms related to your niche. Avoid products getting lower search or no search at all.
Create your own brand: – you can add more value to your dropshipping business if you rebrand what you are selling. Put your own white label and sell products as your own product with custom packaging and branding.
Target products that are not available locally: – Selling products that customer can’t find in their vicinity will make your business more attractive to a potential customer.
Learn from others: – As peoples say if you can’t learn from others mistake the easy way. You will learn from your own mistake the hard way. Look at what niche is selling best for your competitor and how they are doing the marketing.
After you know the best trending niche. You can do your own research and choose a niche that suits you.
Step 2. Do competition research.
Competition research is one of the most important parts of starting your dropshipping business. You are expected to compete with retail giants like Amazon and Walmart plus other lots of drop shippers.
Choosing products with no competition doesn’t always mean you are making a good choice. A lot of times this kind of products may have very little or no demand or it may have high shipping cost or poor profit margin. Choose products with the competition but it is sometimes good to avoid oversaturated competition.
Step 3. Get a supplier.
Your drop shipping business is dependent on your supplier choosing the wrong supplier can destroy your business. You should do proper due diligence before you decide to partner with a supplier.
The eCommerce giant Alibaba has become one of the largest resources to identify and communicate with potential manufacturer and suppliers. Ask lots of question and know how they operate and their production capacity in regards to your business.
Step 4: Build your store and start your dropshipping business.
Building a dropshipping eCommerce store is very easy with platforms like Shopify. You don’t need coding skill to create a Shopify store.
Shopify also has apps like oberllo which makes your dropshipping business a lot easier.
Ecommerce fuel reported Shopify had 65% of the eCommerce market share last year and still showing strong growth.
Step 5: plan a customer acquisition strategy.
Having a plan to acquire your customer is very important since your success or failure depend on your marketing.
Don’t forget to start building an email list from the first day. Building an email list is one of the best marketing strategies you should adopt from day one.
Running a targeted Facebook ad campaign is one of the best ways to attract potential customers. And, it will help a lot to generate sales right from the start.
You should never forget the value of organic traffic from social media as well. Though the organic method is long term game.it have a better ROI.
Based on Big Commerce report, a store that has a social media presence have 32% more sales than stores that don’t.
Have a strong social media presence on platforms like Facebook, Instagram, and Twitter which will help you to build a loyal community around your brand.it is important to post regularly on this channels to keep visitors engaged.
Search engine optimization and email marketing are as well very important marketing strategy that you have to include in your marketing plan.
Step 6. Analyze and optimize.
You need to track all the data and metrics available to grow your business. The data you going to track include Google analytics, Facebook conversion, and Pinterest and other analytics you may have used.
Tracking your performance helps you to understand where your customers originated and what path they took to purchase your product. This data will help you make a decision to scale what works for your business and eliminate what doesn’t work.
Resources to master drop shipping in 2019
This course teaches how to build a successful eCommerce business using Shopify, Aliexpress, and Dropshipping.
The course covers Choosing Niches and Products, Setting up Your Drop Ship Store, Finding Suppliers to Drop Ship, customizing your store, launch and Kick-Starting Your New Store Drop Shipping from AliExpress and Banggood
Time: 9 hours Rating: 4.5 (5,050 ratings)
Students Enrolled: 26,081
Created By: Theo McArthur
This course covers choosing your market and deciding what to sell, Adding products from Aliexpress, Understanding your target audience, Driving traffic to your store, Retargeting, Order fulfillment, Adding Credibility
Time: 9 hours Rating: 4.6 (8,725 ratings)
Students Enrolled: 53,601
Created By: Tim Sharp