Online businesses are on an ultimate high and are extremely lucrative, if we look at the ecommerce sales that were around $3.5 trillion in 2019, $4 trillion in 2020 and by 2021 it’s predicted to reach a whopping $4.8 trillion. So, if anyone wants to open an online store, now is the best possible time to do so. One such extremely money-spinning business is dropshipping, which is a great way to venture in the world of entrepreneurship. If you do this business, you can build a very successful and sustainable source of income. Take shopify services and reach new heights with this online business model with very low-risk.
What is Dropshipping Business?
Dropshipping is a business model that is known for one reason- no need to have any inventory! There are three main facets of this business model, the manufacturer, the retailer (that’s you) and the final consumer. The manufacturer has the most to do here, he has to create products, manage the inventory, ship the products to the clients, provide after-sales services and also restock the products. The manufacturer has to sell the products to the retailer with the risk of not selling. Whereas, the retailer that will be you, has the least risk factor. You just have to put the products on your site under your own brand name, you can set the pricing as per your wish, you can market them however you prefer and you’ll be responsible for the shipping costs. The last facet is the final consumer, who will order directly from the retailer and if any issue arises will contact the retailer.
Is Starting a Dropshipping Business a Good Idea?
I think dropshipping business is a great idea, it’s a low-risk, low-cost and low-maintenance work. The startup cost dropshipping business is the website cost, marketing costs of the products, packaging of the products if you have your own logo and shipping costs. You don’t have to maintain any inventory, no product manufacturing, no losses of unsold products and no fixed costs of employees shipping the products. This business can be run on the go, as most of the steps are automated. It’s a great side business and will run you a handsome amount of money with less effort.
How to Start Dropshipping Business?
Like all businesses, dropshipping will also need your time, energy and commitment. Don’t expect to have a 6-figure income within the 6 months of startup. Keep your expectations grounded and work hard to build a reputable brand, the rest will follow. But there are other factors that you also have to take into account to start a dropshipping business model, so let’s uncover them one by one.
1. Choose a Business Idea
The first step for setting up a dropshipping business model is to find a niche that is profitable and you are also passionate about. But the truth is that you feel zealous about any business that makes you good profit, so do extensive market search, don’t fall into the pits of saturated products and opt for trending items which are different yet highly lucrative. There are many ecommerce tools that can help you find that perfect business idea to start your own dropshipping business.
The first tool is the Google trends that lets you know if the niche is on an upward or downward trend. But don’t use this tool alone to gauge the niche, you’ll also have to pay heed to the search volume which can be done by the next tool called Keyword search. This tool allows you to see the search volume of the niche and also its competitors. Oberlo order volume tool lets you see the volume of sales of the niche and collectively all these tools will give you a comprehensive outlook of the niche.
2. Competitor Breakdown
Once you have zeroed on which product or products, you’re starting your dropshipping business to be aware of your competitors as they’re the ones who will be sharing your profit margin and in order to get the higher share you need to be cognizant of their strategies and policies. This can be done with simple google searches, put the niche in the google search and see which top brands come as a result, study those brands and for a more comprehensive study, search those brands through Alexa and get to know all about them in more detail. Also check their social media handles, their sales and if possible, order products from them to see their quality, packaging and shipping service.
3. Find a Manufacturer
Now comes the most critical and imperative step, find a supplier for that product. You can do that easily on the Oberlo platform, where you type your selected products, choose from the list of certified sellers and make your decision based on their reviews, ratings and time they have been registered on the platform. When you have narrowed down your list to 2-3, you can simply order samples from them and ultimately decide from there. Don’t forget that your dropshipping business heavily relies on the supplier/manufacturer so choose wisely.
4. Build your Brand
Branding your dropshipping business will be the game-changer and the only difference between you and your competitor. Make sure you go all in with it. Branding doesn’t only mean having a logo and packaging in a certain style, it means that your brand should be felt from all aspects. Take help from shopify web designers and take shopify services to build and launch your brand. You need to have a domain name, sign up for shopify, install Oberlo and create a brand with a mindset of long-term business module.
5. Market your Brand Extensively
The last step is to make sure that your brand reaches to the all-potential customers out there and marketing your brand is the only way to do that. There are many marketing tools like influencer marketing, social media campaigns, content creation, SEO, paid search and even free media coverage.
There you have it, in this article we have tried to cover all the aspects which will help you to start your dropshipping business with ease. Starting a new venture is always nerve-wrecking but when you know that you have a perfect guide that can help you get through whenever you get stuck, it’s just amazing. So gear up and conquer the world of Ecommerce.