Start Your Own Dropshipping Business
What is Dropshipping?
This guide talks about Dropshipping, what it is, and how you can get started. We will also provide you with four simple steps that will hopefully set you on your way to starting your own Dropshipping business today. We will also cover several basic parts that you should take into account when considering starting, operating and growing your own Dropshipping business.
If you have been looking at different ways of making money Online, you may have seen the term ‘Dropshipping crop up many times but what is it?
Ok, let’s assume you are considering starting your Online business but are not really sure where to start. Let’s also imagine that you do not know what to sell, have no cash flow to buy products and you do not have any spare space to stock inventory. Well, that is the beauty of Dropshipping and is the sole basis of why so many people get into Dropshipping. Simply, Dropshipping allows you to sell products Online, without actually having to physically handled any products. Yourself. In fact, the only things you really need is a computer with Internet connection, an understanding of how to Market your products and a platform to sell from.
How Does Dropshipping Work:
In simple terms, the process of Dropshipping can be summed up in 4 simple steps
- The first thing you need to do is to decide on a product(s) you wish to sell and then find a supplier for the product(s).
- List the product on your chosen selling platform (such as your own website or ebay) at your desired price. The price you set, will obviously be higher than the price you pay your supplier. This will enable you to make a profit on the sale.
- When a customer purchases the product from you, the customer will pay you the price of the product you set, to which you will make a profit.
- Once you have received the order from the customer and received the money into your account, you then place an order with your supplier for the price you have agreed with them and have the supplier ship the product direct to the customer.
As you can see, you can sell an item Online and make a nice little profit, without actually having to store or handle any products yourself.
For Example: Let’s say you have sourced a supplier of bicycles and you know you can buy the bicycles from the supplier for £100.00. You would then list the bicycle for sale at a price which you think is a good price but will obviously sell for. Let’s say you list the bicycle for £199.00, when a customer purchases the bicycle from your selling platform, you will have made £99.00. All you need to do, is take the customers shipping information, contact your supplier, pay them their £100.00 and provide them with the customers shipping information. The supplier will then ship out the bicycle to the customer. It really is that simple and when done properly, it can be a very, very lucrative business to get into.
I imagine you now have several questions, such as “why doesn’t the customer/buyer just buy direct from the supplier themselves?”. Well, there are many reasons why they don’t and the two main reasons are:
1.They probably don’t even know the supplier exists.
- People are busy and do not want to waste their time searching the Internet.
Why Start Your Own Dropshipping Business:
Dropshipping has so many advantages and as well as being a lucrative business to start, it is relatively simple to get started, especially on a low budget. Another added bonus of Dropshipping, is that as we have mentioned before, you do not need to purchase stock and therefore do not have to worry about storing stock and having surplus stock left over, if you can’t sell it all. Not having any stock to handle or ship out, lets you spend your time building your Online Dropshipping business and concentrate on providing a quality service, that your customer grow to trust and love.
Things To Consider When Setting Up Your Dropshipping Business
The biggest obstacle when you first start out Dropshipping, is finding a good product from a reputable supplier. You will also need to be assured that the supplier can fulfil their obligation in shipping the product(s) to your customers. Try to find products and suppliers can be time consuming, especially when you are new and don’t really know where to look and which suppliers are reputable.
Dropshipping Companies and Software
Obviously, it is your choice whether you wish to do your own research but it is well worth using something like Oberlo, along with an eCommerce store building tool such as Shopify.
Oberlo – Shopify:
Oberlo gives you access to a massive range of products to sell and simply provides easier solutions to starting your Online Dropshipping business from the start. Not only does Oberlo give you access to reputable and trusted Suppliers but Oberlo also has a number of great facilities that allows you to track inventory, track orders, track shipping and calculate your profit margins, to name but a few.
Dropshipping With Shopify: Shopify
How To Get Started In Dropshipping Today
Although the term ‘Dropshipping’ may sound very daunting and many years ago was a little harder to start, the good news is that today, it is much easier. To get started with your own Dropshipping business, one of the best routes to take, is to create your own Shopify Store and then sign up for a FREE account with Oberlo.
Once you have signed up for your FREE account, you can then begin to find the product(s) that you wish to sell and from the suppliers who best suit your requirements.
How Much Can I Make:
This really is down to you and how well you can Market your business. Obviously getting your product(s) in front of buyers in a major factor in determining how much you will sell. The more people you can get to your Online store or selling platform, will obviously result in more sales. As with any business venture, no one can really say how successful a business will be but if you are willing to put in the hours, then there is no reason why it will not be a success.
What Should I Sell
Once again, this is down to you but it is advisable to sell a product that is in demand and something people want to buy. Niche Markets can be very lucrative and are a good way to target specific audiences. However, the only downside to this, is that certain niche Markets can become saturated and as a result, very competitive. Take a look at what products are trending and see how well they are selling. If there is a niche Market that does not have a lot of competition, then this could be a good Market for your to explore.
Disadvantages
As with any business venture, there are always downsides and starting a Dropshipping businesiness is no exception. Yes, Dropshipping is a great little business to start and with very little cost or experience needed. However, these two factors, also cause one of the disadvantanges of a Dropshipping business. Due to it being relatively easy to set up and if done properly, can be very lucrative, there can potentially be quite a lot of competition in specific Markets. This said, if you choose your target Market wisely and concentrate in a specific niche, there is no reason why you won’t beat your competition and become an authoritative figure in your chosen niche.
Yes, there will inevitably be mistakes in shipping to which you may need to deal with. Shipping mistakes do happen but not very often but if they do, you will need to be ready and rectify the error as soon as you can, in a professional manner. Also, you will no doubt have to handle returns and once again, this should be conducted in a professional business-like manner. The cost of the returns will need to be covered by you but if you have a good product, then your returns should be minimal.
Time Difference and Distance
Depending on which supplier you choose, it is worth remembering that some suppliers may be located in different countries. This can obviously affect delivery times if the time difference between countries is big. If this is the case and you know that the delivery time may be a little longer, be sure to inform your customer and make them aware of when they should expect to take receipt of their purchase.
Stand Out From The Crowds
One of the hardest parts of Dropshipping, is driving traffic (potential customers) to your products. There are a number of ways that you can promote and Market your products and everyone is different in terms of how they want to Market their business and products. In todays society of Social Media, getting your product in front of hungry customers is far easier than it used to be but once again, this results in more competition. This is why you should always try to be one step ahead of your competitors and ensure you provide your visitors with the best experience. Firstly, make your products stand out from your competitors and provide your potential customers with all the information they need. Offer them informative product description, clear sharp visual images of your products, provide videos where possible and assure them they will have full support and aftersales care. Give them a seamless buying experience and one that they will be happy to go through again in the future.
Marketing
Although setting up your Dropping business is relatively cheap, one of the biggest expenses you may incur is Marketing. If you are a new business and want to start driving traffic to your website, store or other selling platform quickly then you may want to consider pay per click advertising such as Google Adwords or Facebook Marketing. However, this should be done with caution, as it can be very expensive if you do not do it properly. Other ways to Market your business can be in the traditional way or using other Social Media platforms such as Youtube, Pinterest, Instagram and Twitter. To be honest, the list of possibilities are extensive and are only limited to your own imagination.
Things To Consider
Legalities: It is very tempting, when you are new to Dropshipping, to source products and then simply try to sell it. The problem is, you need to ensure that you are not selling any products or items that have Copyright on them.
This is just one reason why using a platform such as Oberlo is a very good idea when you first start, as you will be assured that the products you sell, will be safe and clear of any copyright infringements.
Don’t Run Before Your Can Walk: Once again, when you are new to any business, it is very easy to become exited and overwhelmed with the possibilities and choices for you to make money. As a result, this generally ends up with you trying to do far too much too soon. At first, it is advisable to take small steps and just concentrate on a few products. Then, once you have sold a few products and have become more familiar with the process of Dropshipping, you can start to add more products to your store.
Diversify: Having multiple streams of income, is one of the best ways to build wealth creation. Don’t put all your eggs in one basket and once you have been successful with one niche store, try to emulate the process and set up multiple stores in the future. This will then allow you to capture larger Markets and as a result, help you build your income through time.
Summary:
Dropshipping is a great way for you to start an Online business with very low cost and without having to stock or physically handle any products. However, it does have some cost involved and these costs will generally be through Marketing your business and handling returns. However, if done properly, Dropshipping can be a very lucrative business that you can run from the comfort of your own home.
As with any worthwhile genuine business, success will not come overnight and at the beginning, it will need hard work to establish your business and drive traffic to your website.
Useful Resources:
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