What is a DropShipping Business?
DropShipping is a type of e-commerce business in which the online store doesn’t produce or stock the product it sells.
Instead, the store first sells the product then purchases it from a third party for a lower price and gets it shipped directly to the customer’s address.
You don’t need to worry about stock, inventory, packing, shipping or handling.
The most simple and hassle free way to get started is by signing up on shopify.com.
Shopify is a website which provides you all the technical things that you’ll ever need to setup your online store.
You’ll get hosting, domain name, design, themes, payment gateways and almost everything at one place.
Shopify makes online store setup so easy that anyone without much of technical knowledge can do it.
It’s a great choice if you want to focus and spend more time on your business growing activities rather than technical setup and maintenance.
Shopify is not just like any website generator or CMS like WordPress. It’s a complete e-commerce platform with more than 70k people using it for selling products online.
TIPS ON HOW TO START A DROP SHIPPING BUSINESS
1. Decide what you are going to sell– Before you can start setting up your online store on Shopify make a list of things that you want to sell.
You can sell anything from wristwatches to t-shirts, necklaces, accessories and so on. If you still can’t decide what to sell then try
to make a list of things you like or which interests you the most, this will give you a heads up.
2. Do some initial research– Once you have the list, you must conduct some research. Find the answers to the questions such as:
- Does the product you are intending to sell have demand in the market?
- How much price are people willing to pay?
- Where are people visiting to buy these products?
- On which social media channel you can find your best potential customers?
- What is the age group of your potential customers?
- What are the current trends?
The best way to find the answers to above questions is to visit top-ecommerce stores such as Amazon.com find which product designs are selling the best, read the customers reviews to get more insight into customers expectations.
You can also visit product forums, join social media groups, popular blogs to collect more data about your potential customers.
This data will help you to select right products that will appeal your target audience and thus fetch you more sales and profits.
For example, if you plan to sell wristwatches visit Amazon and check out best-selling wristwatches note down their price range,
observe their designs, read customer reviews and note down important points.
Find out other similar e-commerce sites like Amazon and repeat the above method. After that move on to watch forums, fashion blogs to collect more data about your potential customers.
3. Find the suppliers– Once you’ve finalized the products you want to sell, you can visit sites like Aliexpress or Alibaba.com to find the suppliers who can provide you the products.
Shortlist some good suppliers, discuss your marketing plan with them and see if they are the right fit for you and can deliver agreed products within time limits.
4. Set your store on Shopify– Once you’ve complete the first 3 steps it’s the time to setup your online store.
To do this, register on shopify.com, verify your e-mail and start store creation process.
Here you’ll need to choose your custom domain name, theme, product category and finally, add products.
While adding products you can use the images and description used by your preferred supplier from Aliexpress or Alibaba.com
5. Pricing strategy– Your pricing strategy is going to define how much money you are going to make.
Use the data you collected during the research step to decide your product’s pricing.
For example, If you’ve decided to sell wristwatches and they cost you $17 per piece on Alibaba, and your research data is
suggesting you to sell it for maximum $30, then you can sell it for $27 and make $10 profit on every sale.
6. Promote your product links– Once you’ve added products on Shopify store you can start promoting them wherever you want.
Social media is the best place to start your promotion campaign. You can also offer discount codes to attract more customers to your store.
7. Orders and shipping– Once anyone places an order, use that money to place the order from your supplier on Aliexpress or Alibaba and provide him your customer’s shipping address.
Your supplier will himself make the arrangement for packing and shipping, you don’t need to worry about anything.
The more targeted people visit your store and make a purchase, the more money you make.
HOW TO START A DROPSHIPPING BUSINESS WITH NO MONEY
You can literally start a Drop Shipping business with no money.
The key here is speed. You have to take advantage of some free trials, act fast, and then re-invest your initial profits.
Shopify lets you have a 14 day free trial with only an email address. This is so you can get familiar with their dashboard.
The problem is your store will not be live until you enter payment information.
However, if you do enter your payment information right away, Shopify will not actually charge your card until your trial period is over, yet your store will go live instantly.
Then you need to integrate Aliexpress (for the dropshipping) with Oberlo. Oberlo costs money but they give you a free trial as well.
When you sign up for Shopify they give you $100 in free Adwords dollars. So this is how you promote the products.
When you make a sale, you will wait till the money hits your account before you dropship it to your customer.
Now re-invest profits into more ads and scale it up.