Drop Shipping is a popular business that allows anyone with great internet marketing skills to sell products without actually having any inventory. It is a fantastic business model that has proven to be the best option for young entrepreneurs who want to join the e-commerce market space but do not have the financial backing to invest in an inventory of products.
Drop shippers offer products to customers like any other online retail store, except that the customers are unaware that the products are sourced from a third-party supplier or manufacturer who then handles the fulfillment of orders.
Not only does this relieve an e-commerce website operating the dropshipping model from operational costs or the financial burden of stocking up products, but it also gives you more time to channel your energy into acquiring new customers.
One of the easiest ways to start a dropshipping business with minimal investment is by using an e-commerce platform. Shopify and Woocommerce are two popular platforms that allow you to integrate apps like Oberlo which makes it easier to add products to your store.
Shopify offers a 14-day free trial which allows you to learn how to use the platform and decide whether you want to subscribe to the different plans available or not.
If you are ready to challenge bigger online retail stores for a share of the market, while earning a good income with little investment, these 10 steps will help you build a successful dropshipping business.
While a drop shipping online business may not require a huge start-up investment, there is usually a lot of hard work that needs to go into it.
1. Develop a Marketable Business Concept
Like every business venture, you need to come up with a concept that is marketable for your dropshipping and online business. You will find that most of the successful businesses including online businesses are built around a concept.
It is this concept that you will use in determining your brand, product collection, and content. Usually, this concept could be something that you are passionate about.
Also, many startups base their concept solely on trends that are discovered through extensive product research and several attempts/trials at finding the best product to sell.
2. Write a Business Plan
You can switch between step 1 and step 2 since they go hand in hand. Just like every business, you need to write up a concise business plan. The business plan will help you have a clearer view of your ideas and how you will execute them.
Ideas are easy to come up with, but most of them die at the point of execution because they have not been planned properly with all the factors involved highlighted.
Even though a drop shipping business requires minimal funding to launch, you need to understand that other aspects will require some hard work, and your business plan is one way to identify what you need to do to be successful.
3. Identify a Niche
Niche marketing is a term that is thrown around in the online marketing world. Niche marketing allows you to choose your brand, content, and products that appeal to a specific group of customers like drone enthusiast, musical instrument players, gamers, and so on.
Narrowing down your focus will improve your website ranking on search results that are specific to one topic and will attract an audience that is interested in the topic, like drone-enthusiasts drop ship site.
However, for a startup drop shipping website, it is advised to try different products and not be super focused on one when starting.