We know 2020 has not been very kind to us, many have had to leave their job, reinvent themself, find new options, which is why we want to share the steps to start a dropshipping business, we want you to thrive.
It might sound scary to start your online business, but something you need to know is that e-commerce sales amounted to nearly 3.5 trillion dollars worldwide in 2019, interesting right?
Now let’s talk about Dropshipping, what it is, and how to start a dropshipping business. First, you need to know that this model of business is great because it is mainly focused on helping you start!
What we mean is, in a dropshipping business you don’t need to buy the inventory to start your business, you will not need to manage inventory nor shipping the product.
A “Dropshipping is a retail fulfillment method where a store doesn’t keep the products it sells in stock. Instead, when a store sells a product using the dropshipping model, it purchases the item from a third party and has it shipped directly to the customer. As a result, the seller doesn’t have to handle the product directly.”
This being said, there are three key factors in this business model, the manufacturer, the retailer (you), and the customer. So basically, before starting a dropshipping business you need to take care of those key factors first.
Let’s start discussing some of the main steps we think will help you gain some clarity so you can start your own online business!
The first step to start a dropshipping business is to select a niche:
What is a niche you might ask, well “a niche is a focused, targeted area that you serve particularly well.” Therefore, the first thing you need to do is to find that place where you feel comfortable, passionate about and where you know you will not get frustrated because you find it interesting, exciting and motivated.
Finding a niche that you are interested in will allow you to stay focused on it, to find more ways to market it to believe in it. When the niche you select is related to something you are interested in it also allows you to find creative ways to improve it.
Here 3 tips and questions you can ask when searching for a niche:
- Identify your interests and passions, once you locate this information inside of you, make a list of them and start researching.
- Identify problems you can solve in the areas you find attractive, finding the gap in a niche is a key factor to sell and market a product. You can choose a crowded niche, but if you find something that is missing in it, you can become a pioneer.
- Research! Research your competitor, the market you will be moving around, investigate, and gather as much information as you can before starting. You can come up with lots of ideas and gaps and everything you can imagine, but if you don’t research before you will not be able to know what is happening in the real world. Take your time and do the job
The second step is to Analyze your competition
Once you decide the niche you will be working in, it comes the investigation phase, because, before starting you need to research and have information related to the market you will be investing time and money in.
We don’t want you to start a dropshipping business without the knowledge, numbers, and competitor investigation, if you do, it would be like entering a war field blindfolded. We don’t want that for you.
Therefore, make sure you check on product research platforms the trendy products. It might seem that looking for a product that doesn’t have competition will be the best way to go, but that’s not always the case.
There are other ways to investigate the market, for example, put on google search the name of the product you want to sell and make sure to check the top 10 results of the search.
You can also check on social media the market or niche you are going for, check trends, websites, social media pages. Always, look for products that have competition, as it’s a sign that there is a high demand and the business model is sustainable.
The third steps to start your dropshipping business is to Find a Supplier
This step is incredibly important please don’t rush it. At the beginning of the blog, we talk about the main three factors on the dropshipping business, the first one being the manufacturer or supplier.
Your supplier is going to be a key piece of your business and is going to be the one manufacturing the product and supplying it to your customers. Therefore, you will rely on them to provide a great product so you can gain the trust of your customers.
Before selecting a supplier make sure you research since most dropshipping suppliers are located overseas, making communication extremely important, both in terms of response speed and the ability to understand each other. If you are not 100 percent confident in the communication abilities of a potential supplier, move on and continue your search.
When finding and securing a supplier, make sure to ask a lot of questions and learn what their production capabilities are if your business grows exponentially. You want to be certain they can scale with you. Also, try to learn from other entrepreneurs who have walked this path in the past.
The fourth step is to build your store
As a retailer you need to have a platform to sell your products, you need a website, social media platforms, you don’t have to be an expert to do it.
You can create a simple online store that doesn’t have to take so long to build. Besides, to create an online store you don’t need to be an expert on the matter and you don’t need to be too savvy, one tool you can use during this process is Shopify.
Going forward, you can always hire someone to do it for you. But it is important that when working on these steps you need to make the site user friendly, easy to navigate, and fast. You want people to stay in it.
The fifth steps to start a dropshipping business is to market and manage your dropshipping business
Right after you have the product you want to sell, the supplier that will manufacture and send it, and the platform to sell your product the one step left to complete is to market your product with everything you got.
Marketing is all about putting your product out there, in the world! This is a crucial step in your dropshipping business plan. Creating marketing strategies can be overwhelming and expensive, and since you are starting, you are likely you are on a tight budget.
Every social media platform has different options for you to market, you don’t have to go super crazy creating one campaign and investing $500. Instead, you can target your audience correctly and create advertisements focused on your niche.
For this type of campaign you can just spend 5 cents per click, and from there analyze how good it went. You don’t have to advertise everything on your page, you just need to know what to promote, when to do it and who to promote it too.
In conclusion, to start a dropshipping business you will need to make a lot of investigation and research, it takes time but it is worth it. We know it’s a little scary at the beginning but you can do it.
Another alternative option you have is to use our services to put your products on the best marketplaces. We give you access to the best platform and the best thing is that you don’t have to wait on each to be approved! You will start selling right away! Contact us today and find out more about our services.