High competition in retailer business develops nonstandard business models. Dropshipping is one of them. This business model gives the opportunity to start a new business without significant investments and professional knowledge. All beginners using a guide like this article can open a dropshipping store and start making money.
Dropshipping is an online business; a customer chooses products in an online store, places the order, and a dropshipper starts order fulfillment. The key difference of this model is that a dropshipper does not have a warehouse with products or does not produce them. A dropshipper places the order with a wholesale supplier, manufacturer, or another retailer. They produce and deliver the products to the customer. In such a model, a dropshipper is responsible for the online store, customer service, marketing, and proper choice of suppliers.
The business model is relatively easy, and the organization of such a business does not require a lot of time. To reduce this time and make your business profitable, below is the guide for opening a dropshipping business in five simple steps.
Guide for opening a dropshipping business in five simple steps
This guide is not based on the requirement to start a business with zero investments. As time is the most valuable resource, it is recommended to begin with special software tools. They help go through preparation steps significantly faster, open the store, receive orders, and correspondingly profit. Otherwise, you can spend many hours on manual research and receive profit significantly later.
Choose an automation software.
You need to choose the tool based on your budget, the number of tasks you want to transfer to AI, and the size of your future online store (number of listings and orders). If you use automated dropshipping software like Easync, you may rely on significantly reducing routine dropshipping work on every step of creating a new business. Like many other similar ones, this tool may help find the product niche, suppliers and make orders.
Tools are also available aimed only at one specific task, like creating a new brand, online store design, or delivery organization. If you build your business on marketplaces, many plugins and applications for creating product pages by easy export from other resources are available.
Do not hesitate to automate your business; you can hardly evaluate all profitable dropshipping ideas. If you are unsure about any automated products, use their trial versions or buy initial starting packages with minimum features. For example, the basic version of Dsers is absolutely free.
Use the software for finding the product niche and suppliers.
Considering that you have already purchased and used the dropshipping software. That is why you can pass this fundamental step of dropshipping business development only with several clicks. Every dropshipping business should start by finding a product niche and reliable supplier. Fortunately, almost all product categories are available for dropshipping, except dairy products, fake goods, large and fragile items complicated in delivery, drugs, or adult products. All other categories are available; you may read many stories of success.
Nevertheless, your dropshipping tool (if you purchase the one with a product research tool) gives you detailed reports about the most profitable product categories, niches, and items. You will see actual figures of how many items were sold during a chosen period and the estimated profit. It is recommended to start with popular products and set similar market-compatible prices. This will help you receive positive reviews and increase your seller's rating if you use marketplaces for your online store. Do not forget to search product niches in your required region, not worldwide.
After you have chosen the product niche, you need to find several reliable suppliers. It is better to have several suppliers, as you may split a high load between them. You need to execute the first order at your home address to check the supplier's quality and delivery services. If you find a local supplier or a warehouse in your region, you can win a completion of fast delivery, which is now one of the most crucial factors in e-commerce today.
Legalize your business.
Like any other business, dropshipping should be registered appropriately based on local and regional laws. You must pay all taxes, receive a business license, make business insurance, and do not forget copyrights. Even though you are not producing products, you will be responsible for their quality and safety.
You should be aware of consumer protection laws and provide only the truth in your advertising.
It is recommended to avoid any products that humans or pets can eat at the beginning. Also, you should sign settlement agreements with your suppliers, including information about disputable cases of lousy quality or delivery.
If you expand your business to a new country or region, you should check all legal requirements, including marketing laws, to be sure that your dropshipping store works on the safe side.
All licenses and permits must be ready before your registration on marketplaces, as this information is mandatory for sellers. Do not use fake information; you will be banned on this platform.
Create a website on a separate domain or on a marketplace.
All retail businesses should have a store. A dropshipper has two options for an online store: a separate domain or a marketplace. For the first option, you choose your name, domain, and all technical details. You have no restrictions and limitations; develop your website as you wish. But marketplaces have a bunch of requirements you should fulfill. From the point of usability, there are tons of apps and plugins for making a website without technical knowledge.
There are several benefits that marketplaces can offer: technical support 356 days per year and a stable flow of customers. But, correspondingly, each marketplace has many dropshippers- competitors, and you should set your price considering their prices.
To set up a store on the marketplace, you need to pay a fee for registration or for each sale. Also, marketplaces can limit payment methods, and you should choose the platform based on your product niche (for example, BestBuy is popular for electronic gadgets, while on Shopify, most customers purchase beauty products).
The online store should have a modern design with high-quality photos and videos of sold items. Each product page should contain detailed characteristics (your software can automatically download for the source market. The more unique and memorable your presentation is the more customers you get.
Make an advertising campaign.
Without proper marketing, your online store is invisible to customers. You can pay for the marketplace to include your store in the discount program or any other promotion. But if you have a separate store, all marketing campaigns should be organized by you. To receive organic customers, you need to set proper keywords for search engine ranking. Additionally, you can request a full SEO report to see other weak points of your online store.
All other customers can be attracted via social networks, advertising banners similar to your website, email marketing, forum posts, guest blogging, or reviews. All tools for attracting clients and creating loyal auditory can be used here.
Using software tools, the start of dropshipping business can be easily described in five simple steps. Be aware that it may happen that you will change your product niche several times, but all steps should be repeated for all products
Dropshipping is the best e-commerce business for beginners, as you only need to spend a little money on inventory; all responsibility for production and delivery lies with the supplier. With the proper choice of supplier and the correct business organization, you may achieve significant revenue in the first month of sales.
Simple business organization steps in this guide are good navigation for all beginners in dropshipping business. Automated dropshipping tools and active marketing campaigns are vital factors in your success!
This article was written in cooperation with Easync