How To Start a Drop Shipping Business in 4 Easy Steps?
If you want to start your own dropshipping website, then it’s a good idea because starting a dropshipping business is one of the easiest ways to make money online. In this article, I will show you step by step process to start a dropshipping business.
What is Drop Shipping?
Drop shipping is a business, where you don’t keep the products in stock. Instead, When you receive an order from your customer, you purchase the item from your drop shipper.
How Drop Shipping Works?
- You list the products in your store without having the stock of the product.
- Customer purchase a product worth $100 from your store.
- You purchase the same product at $70 price from your drop shipper.
- Drop Shipper ships the product to your customer’s address.
- You keep the $30 as profit.
Is Starting a Dropshipping Business a Good Idea?
1) If you want to do it as a Part-Time Job:
If you’re thinking that you’ll be able to earn in a six-figure from a part-time drop shipping business, then you should stop reading this article right now. Drop shipping isn’t a simple business, where you’ll work for a few hours a day and live a stress-free life.
2) If you want to do it as a Full-Time Job:
If you’re ready to do drop shipping business as a Full-Time Job then you’ll definitely be able to make a good amount of money. But this will also take the massive amount of hard work, patience and a little bit of investment.
I am sure you all have seen that so many drop shipping expert has mentioned that “How I made $500 within hours of launching?”, “How I made $4000 within a month of launching?” etc…
But you should know that 90% of them are fake and rest 10% of people are doing drop shipping business from a long time and they know what to do and what not to do.
If you’re also thinking that you will be able to earn money within hours, weeks or a month of launching then it’s not possible for you because you’re a beginner in this field. And As I said earlier, You need the patience to make a good amount of money from any business.
Steps To Start A Drop Shipping Business?
1) Select a niche
Choosing a niche is the key to open a successful drop shipping store. You should take some time to find the best trending niche with low competition for your store.
Most people will tell you to choose a niche with higher-priced products because “The amount of work required to sell a $20 item is almost the same as it would be to sell a $2,000 item”.
Even, I know that the processing time is the same for both (Cheap and Costly) products but I won’t suggest you select a costly niche because the fact is there is a very high chance of getting sales on a cheap product instead of costly.
Most people don’t care about a store when they buy a cheap product but when it comes to buying a costly product, there are so many people who still scare to buy a costly product from big shopping website such as AliExpress, eBay.
So, Just think about that, Why people will purchase a $2000 costly product from your store?
However, If you can convince your customer to buy a costly product from your store then you can choose costly niche otherwise you should choose the best trending niche with low competition for your store.
Here are few more tips to find the best niche:
- High Profit: You need to find a niche with a profit margin of at least 30-40% after all the charges. But, If you’re just starting out your drop shipping store then you can decrease your profit margin to keep the product price low at your store. And, Once you start getting sales at your store, You can increase the price.
- Low Shipping Cost: Find a niche with a low shipping cost or if possible then find a supplier, who offer free shipping. So, You can also offer free shipping to your customers. Even, If your supplier isn’t offering free shipping, you can mention free shipping in your store and add the shipping cost to the list price because free shipping is a great way to attract more sales.
- Light Weight: Product of your niche should be small and lightweight, This will decrease the shipping cost.
- Compare The Niche: You can use Google’s Keyword Planner or Google’s Trends to check some common search terms related to your niche. And, You can also use these tools to compare the search trend of multiple niches.
- Seasonable Product: Find something that you can sale anytime, don’t go with a seasonable niche. For example, Summer wear, Winter wear, Christmas, etc. If you will choose a seasonable niche then people will buy from you this season and won’t visit your store until the next season.
- Target Market: Find a niche related to your target market. For example, If you want to target the US customers then find something, which the USA’s people will like.
2) Find A Supplier
You’re just the owner of your drop shipping store but your business is totally dependent on your supplier. Your supplier is responsible for everything including product quality, timely shipping.
Any mistake by your supplier can ruin your business, so it’s important to confirm that your supplier is reliable before doing the partnership.
Alibaba and AliExpress are the best places to find the best supplier for your drop shipping business.
Here are some tips to find a supplier:
- Communication: Communication is the best way to identify potential manufacturers and suppliers. You should write down your questions and make sure to ask all the questions from your supplier. You should also check the response time of the supplier because no matter how big your supplier is if he won’t answer your question as quickly as possible then you should let them go.
- Sample: You should also ask your supplier to send some real(not the edited) pictures of the product. And, If possible then you can also ask him to send some sample product to your address. Obviously, You’ll pay for the sample but you’ll get the idea of the product quality.
- Order Processing Fees: Every dropship suppliers will charge a small fee(between $2 – $5) for their services. If a supplier charges you more than that, you should change the supplier. Alternatively, You can also ask a supplier to tell you the price of the product after all the charges.
- Fast Shipping: You can ask your supplier about the shipping time for the country you want to sell. If your supplier is registered on Alibaba then you can also check his store page to check the shipping time.
3) Choose a Selling Platform
There are multiple places to start selling your products. For example, Amazon, eBay, Shopify, WordPress + WooCommerce, etc. and Each platform has its own advantages and disadvantages.
Amazon or eBay
Start selling via Amazon or eBay is a good choice for a beginner because It’s very easy to set up an account. But, the problem is they’ll give you limited control and also charge you fees for every sale you make.
And later, If you decide to switch your business from Amazon/eBay to Shopify/WooCommerce then you have to start everything from scratch.
WordPress + WooCommerce
WooCommerce helps you to convert a normal blog/website into an eCommerce store and setting up a store is also easy but the maintenance of WordPress website isn’t easy.
To create a store using WordPress + WooCommerce, You have to purchase your own hosting plan, optimize your website for faster loading, etc.
And, You can also find so many cheap hosting plans in the market but the cheap shared hosting plan won’t able to handle the traffic of your website.
It requires additional technical knowledge to install WordPress on a hosting account, choose a WooCommerce compatible theme and upload the WooCommerce plugin. So, If you want to save time for the promotion of your website then WordPress + WooCommerce isn’t for you.
An eCommerce platform like Shopify is the most recommended method to start a drop shipping website because it gives you full control.
Shopify charges you to use their service but the advantage is you don’t have to worry about anything because Shopify handles everything for you.
However, The one disadvantage is that you cannot transfer your Shopify store to other platform but If you want to do drop shipping as a full-time Job then it shouldn’t be a big issue for you.
Steps To Start Shopify Store
1) Go to Shopify Website ➤ Click “Get Started” button ➤ Enter your email address, password, and store name ➤ then click “Create your store” button.
2) After that, Shopify will ask “Where would you like to start selling today?”, select “Online Store” and click “Next” button.
3) On the next page, Shopify will ask you to “Add an address to set up currencies and tax rates”, enter all the details and click the “Next” button.
4) Enter the detail about yourself and click on the “Enter my store” button.
5) On the next page, You will see a Shopify Dashboard. From here, You can add the products, customize the look of your store, add domain and more.
Promoting your store is the most important part of any drop shipping business. You cannot get your first sale without advertisement because nobody knows that your store exists on the internet. Even the search engine doesn’t know about your store.
Steps To Get Your First Sale
Nothing can be better than advertising your product on the world’s largest social media platform. So many drop shippers are earning thousands of dollars per month from Facebook ads but for that, they are investing 40% of their total income in the advertisement. So, You should also start promoting your product on Facebook but keep your budget low at the beginning.
Google Ads or Bing Ads
You can rank your store/website on the first page of Google/Bing by doing search engine optimization(SEO) or Ads.
- If you know about SEO then you can achieve this organically but this will take time.
- You can advertise your product, store or keyword to rank it on the first page of the search engine. If you haven’t used Google or Bing Ads yet then you will also get free advertisement credit as a new customer.
Influencer Marketing is not effective similar to Facebook Ads but sometimes it works. You can contact a Model on Instagram to share your product with the store link on his/her account. Obviously, they’ll charge you depending on their number of followers.
Alternatively, you can also contact a Famous YouTuber(related to your niche) to promote your store. So, your store can reach so many new customers.
You can create a blog on your website, YouTube channel, Facebook Page, Instagram Account and a Twitter Handle and then you can share your product on these platforms. But, This will also take time because currently, you don’t have subscribers or followers.
Promoting a product or store via email is also a great way to get sales but the same question arrived again. Currently, You’ve started a new dropshipping store and You don’t have subscribers on your blog and no subscriber means no email list. So, Email marketing will also not work for you.
I hope you found this article helpful but, If you still have any questions, feel free to ask in the comment section below. You can also subscribe to ShopAbroad YouTube Channel.