Dropshipping is a new business model, in which a person, who run his or her business through e-commerce, sell the orders and get them delivered to the customers via third party. The third party, that is usually a wholesale retailer or other entity, runs a warehouse or a shipping operation.
So, if you are interested in a start up, that requires less investment and minimum inventory and tools, can start dropshipping business of your own. In this article, we have tried to give you all the necessary details related to dropshipping business.
In the dropshipping business model there are three important persons:-
- Manufacturer
- Retailer or you, and
- Customer
In this business, the main task of a manufacturer is to make products, carry inventory, ship products to the customers on a retailer’s behalf, replace defective products and restock the products. You, as a retailer, sell the products made by the manufacturers on your website under your brand. The customers buy these products especially from you.
This dropshipping business can be quite profitable for you. In this business model, you, as a retailer, are not responsible for the cost of manufacturing and shipping. So, if you are into business with right kind of suppliers, you will earn a huge profit.
Steps to Start a Dropshipping Business
When you think of dropshipping business as your new venture, just go through these steps:-
Get an Idea:-
Before you start this business, just think deeply about some of the first dropshipping business ideas. Focus on the idea that suits your passion as well as which would give you huge profit. Some of the trending ideas are related to fashion, fitness, technology, gadgets, jewellery, bags or purses, electronics, smart phones etc. These things are always in demand, so you can work for any or even more from these.
Analyse your competitors:-
Once you make a decision of the product that you would sell as a retailer, just have a thorough research about your competitors in the field. Focus on what they sell, how they sell and what are their charges. For this research, you can always take a help of social media, Google, Alexa or any other search engines.
Look for a good supplier:-
The next step is to look for a good supplier. For this, find out the suppliers, who can provide you with the good quality products at a cheap rate. Make a list of at least 6 to 8 suppliers of your selected products, and then contact them to find out about the minimum quantity of orders and the time for shipping. Then, place a sample order of any product. Compare the results in terms of ecommerce shipping time, quality of product, packaging quality etc. Finally, keeping in mind your customers, make a decision about a supplier.
Make a Dropshipping Business Store:-
The next step is to build your own dropshipping business store. For this, register for your domain name related to your niche, sign up with any comprehensive e commerce platform in the market like shopify etc. Design your e commerce store and then start selling your products, about approximately 15 to 20 every day.
Marketing:-
Marketing of your e commerce dropshipping business is very crucial, as with the help of a perfect marketing strategy only, you would be able to move ahead of your competitors in this business. Take a help of social media like Facebook and Instagram to advertise your business. Also, focus on marketing by influencers, get media coverage and do not forget to involve your family and friends.
Finally, test and optimize your business, as it is one of the most important part of an e commerce store. This will help in increasing the revenue that you would generate online from this business.
