Dropshipping is a profitable venture, but it isn’t easy. It’s definitely not built for the faint-hearted and lazy. Since this is something new from what we’re used to, it has a steep learning curve. Some even spend thousands just to join dropshipping masterclasses and get one-on-one coaching to win at this venture. But, because you give so much to learn and master the process, you’re also in for a serious ROI.
Plus, you can sell anything you want without keeping an actual inventory. That means you don’t have to raise capital to pay for the products you sell upfront. If you’re passionate about dropshipping, it could be a sustainable source of income for you. Check out these tips in launching your first dropshipping business shared by the dropshipping experts behind H-Com 3030 Review.
Decide and commit to your business
Before anything else, you need to ensure that you’re 100% committed to your business decision. The difference between wanting to start a business and being committed to it is how you will react during tough times. If you only want it, there’s a possibility that you will ‘un-want it’ when you’re faced with a lot of challenges. However, if you’re committed to it, come what may, you’ll stand up and ride the tide with your business — until you become successful in it.
Do an extensive market research
At the heart of dropshipping is selling. So, just like when you’re opening a store, you need to study the market, know what they need, and observe how your competitors do things. You can check out Shopify’s curated list of trending products based on the top-selling products on the platform.
Choose niche products because it has the most passionate and loyal customer base. You can raise awareness about your product, and you’ll see them selling like hotcakes. If you’re looking for a good product entry point, try yoga-related items, phone accessories, electronics, beauty products, fashion, and fitness. If you don’t have extra cash to build your inventory, try selling these types of products.
Aside from Shopify’s list, you can also take a look at Google Trends. This tool can help identify whether a product is trending downward or upward. Aside from that, it also indicates the reason for such a trend. But since Google Trend doesn’t keep track of the search volume and Oberlo order volume.
As you search for your competitors, take note of their marketing strategies and ways of working. One of the ways to do this is running a Google search. Use the name of the product you’re selling when running a Google search. From the top 10 items that show up, list down the first five and mark them as your competitors. Study their business models, ways of working, and methods of marketing their products. Aside from this, you can also use competitor spy apps like Alexa and SimilarWeb. These tools can help you track the online activities of your competitors.
Choose a supplier
The next thing you need to work on is finding a reliable supplier with ample inventory to cater to your orders. Since you won’t be stacking items and products in your physical store, you need to ensure that any order from your customers can be provided and delivered by your supplier. If your supplier isn’t stable, the apparent problem is they could quickly turn down an order that you already approved and processed. If you have nothing to ship, there will be no customers to make a purchase.
Also, work with a supplier that offers high-quality products as these are easy to sell at a decent price point. If you’re on Shopify, you can take advantage of Oberlo to help you find and connect with potential suppliers. Oberlo is a Shopify-linked marketplace that allows drop shippers to find trending items that can yield good profit.
As the world moves towards a more digital economy, it is essential for drop-shipping businesses to have an e-commerce checking account. For starters, an e-commerce checking account makes it easy to manage finances and track expenses, minimizing the risk of errors in accounting. By having this type of account, drop-shipping businesses can also benefit from improved cash flow management and faster processing times, giving them a leg up in the highly competitive e-commerce landscape.
Build your eCommerce store
Once you already have a product and supplier, it’s time to build your eCommerce store. This store is usually built on dropshipping platforms like Shopify, Amazon, AliExpress, and Doba. But, if you are knowledgeable in creating websites, you can also use WordPress hosting and use eCommerce plugins.
Once you set up your store, this is where you should drive traffic to, sell, process payments, and send out orders.
You need to spend time creating your store. The good thing here is you can make it by yourself. You don’t have to pay for a developer or web designer to set everything up. Just take note of the pricing options for these stores in your chosen dropshipping platform to know precisely how much you’re paying and what services to expect in return.
The process of setting up a store doesn’t end here. Aside from these, you also need to choose a logistics partner to deliver customer orders. A reliable logistics partner can significantly improve customer experience, encouraging them to make repeated purchases to your store.
Yes, opening an eCommerce store and venturing into dropshipping may not be easy, but they are never impossible. With a good plan based on extensive research and unswerving determination to make it big in this industry, you can grow your small store into a highly profitable venture.