Dropshipping is a word that we hear more often, but what is it exactly and how can you create a business from it? Today we will answer about all of these questions. Dropshipping is a cost-effective way of starting a business with a low budget and quickly, without needing any asset.
The idea behind dropshipping is that you will create an online store (or use one that already exist like Amazon) to sell products, without the need to manage inventory, delivery etc. You are basically being an intermediary between the producer of that product and the customer, and you will put a margin on each sale that you will do. Let’s see together the pros and cons of dropshipping.
Find suppliers
So where do we start with dropshipping? We start by looking for places where to find suppliers. Usually a good place to start is Alibaba (for bulk orders) and Aliexpress (for smaller ventures); but if you know how to calculate your costs and margins you can become very creative, you can look for items to resell from etsy, ebay or even locally with the right marketing strategy. Your number one priority to create a dropshipping business is to find loyal suppliers, since they will be responsible for any problem that happens with the product and its quality (remember to ask for samples when available).
Find a Niche
This is where doing a marketing research is mandatory, you need to find niche. The best niches that you can find are those products that people want/request, but there is yet not enough competition in the marketplace. Avoid choosing products that are too generic and are sold already by hundreds of other dropshippers since you will face extreme competition and low margins (if any!).
Brand Your Packaging
There could be some of these suppliers that give you the choice to personalise packaging, labels etc. This is the best opportunity to create a brand even in dropshipping, something that your customers can recognise from the distance and something that you can advertise properly on social networks! As you are personalising packaging, it is advised to put some effort in creating some amazing photos for your new products, so that will increase customer’s conversion.
Become proactive at Dropshipping
If You want to succeed at dropshipping you will need to diversify your products, do various tests to see which products fit the market the best. You need to start having a mindset of change. Observe the market and analyse time by time when certain products are requested (by festive events, by season, school items etc.). It is very likely that a product that may be selling well now will not be doing the same after (remember that it is a competitive market, other people are watching for products that sell and as soon as they see an opportunity they will join it and profits will drop)
Are You ready to start your dropshipping business? Remember to select a proper niche and you will be seeing some effective results in no time!