A lot of people think so much is already going on in the e-commerce industry which has made it saturated with so many people recently, dropshipping is one of those activities.
Drop shipping is a retail fulfilment method where a store does not keep stock of the products it sells. In other words, there are three parties, the suppliers, retailers and the consumers; the retailer gets the supplier to ship a product directly to the consumer.
You do not have to hold any product physically with dropshipping. Drop shipping is the modern e-commerce which enables a business to operate without maintaining inventory, owning a warehouse to store their products or even having to ship their products to their customers themselves.
Drop shipping is a very good business because you can start with very little capital, you do not have to have a product physically, it goes from the manufacturer to the customer.
What You Need To Start A Dropshipping Business
- A product to sell
- A supplier of that product
- A platform to sell
- A sales tax ID
The following steps will guide you through what you need to do to start a successful drop shipping business.
Choose A Dropshipping Niche
A niche is a particular segment of a market, that is a sub-industry. For example, if you want to sell things related to fashion your niche product can be shoes or even more black shoes.
Make sure your niche of choice is not already saturated with other sellers selling the same products.
To get this done, start with your interests and passions, try to solve a problem, research the competition, ensure the niche is profitable.
Brainstorm Business Ideas
As soon as you know the niche you want to explore, the next thing to do is to get the right product and business idea.
Start narrowing down product ideas between ten to twenty or more. You can get information about top products people are willing to buy into your industry niche on google as soon as you have a product idea, you can move forward.
Find A Dropship Supplier
You need to find a reliable supplier who will not disappoint you in any way, you are to rely on your suppliers to keep your product in stock, to uphold product quality, and to ensure orders are shipped to your customers in a timely manner, the supplier is more like your business partner.
You can find reliable suppliers at websites like Alibaba or Ali express, and also salehoo.
Choose A Selling Platform
You have to choose where you will be selling your products, this place has to be popular and established to make your activities easier and better.
The established online marketplaces for drop shippers are Amazon and eBay especially if you are just starting out. You can also use Etsy which has around 54 million members, about 2 million active sellers and 32 million active buyers.
Implement A Customer Acquisition Strategy
This is the art of persuading customers to buy from your store. You can use different methods to get your products to the screens of your customers using different media. You can use Facebook ads, Google ads, social media influencers. You can also share the products on blog or forum marketing, content marketing, social media marketing and email marketing.