If you are an entrepreneur starting your online business, you would have surely heard the term “dropshipping” being thrown around a lot. Like everyone else, it is normal if you are having your doubts about starting an online business.
But this can change your mind…
Some stats by Redseer say that despite the pandemic, eCommerce had 20 million new shoppers in 2020. They predicted that 2021 was going to see double that number and as a matter of factly, eCommerce had 190 million users by the end of 2021.
The change in consumer behavior and the convenience of shopping online have increased the demand for online shopping platforms, making now the right time to start an online business.
New Online Businesses and Dropshipping: The Perfect Duo
Starting an online business does come accompanied by nerve-wracking logistics and inventory management. Handling deliveries, finding ample storage space for stocking bulk boxes in bulk, managing stocks and inventory without missing a beat can be exhausting and complicated especially if you have little to no experience in handling an online business.
But, what if you have one solution that bypasses all these complicated tasks for you and lets you handle just the simple tasks of your online business. That’s what dropshipping can do for you.
As an online business owner, all you need to do is have an online store or eCommerce platform where customers can place their orders and look pretty. The dropshipping platform takes care of shipping the order to your customer with your brand name, packaging to make it look like it has been hand-delivered by you to your customers.
Here is a little more about Dropshipping and how it makes selling online easier
What Exactly is Dropshipping and How Does it Work?
Dropshipping is a business model where you do not have to be responsible for the inventory of your products. When you make a sale or when the customer places an order on your online store, you can either intimate your supplier regarding the order details or automate the order to them directly. The supplier will ship the orders directly to the customer with your Brand’s packaging.
This way, you do not have to worry about warehouse management, inventory, delivery, etc.
The model works with 3 entities in place:
- The Manufacturer
- The Retailer (you)
- The Customer
The manufacturer may sometimes create the product or simply hold the stocks for you. Their role also includes efficient inventory management like replacing stocks, eliminating defective ones, and also shipping your order to the customer.
As a retailer, you can sell the manufacturer’s product in your store under your brand’s name. You can choose the products, market them, and also fix the prices of the products including their shipping costs to make profits on your own.
The customer buys the product from the retailer (you) and pays you for the sale. Any issues or queries regarding the product will be raised to you.
How Does Dropshipping Make You See Profits?
Making profits with dropshipping is easy, especially if you are starting an online business as you do not have to buy and hold inventory or manage the shipping/delivery costs. You can focus on marketing your products efficiently and running the business while leaving the complicated tasks like managing stocks and delivering to the dropshipping partner.
Steps to Starting your Dropshipping Business
Starting your Dropshipping Business is as easy as signing up for a newsletter. But what makes the business profitable and sustainable is how you strategize and plan your business elements.
Here is a quick step-by-step guide to starting your own dropshipping business online.
Step 1: Choose what you want to sell
Take the time to research what you want to sell. Ensure that the niche you choose can give you enough profits. See what products are being sold on the fly by top-selling stores. Take the time to browse through dropshipping business ideas and see if that is what you are passionate about.
Google Trends is a great tool to help you understand what is trending and what is not. They can tell you what niches are popular and can also tell you what niches have higher search volumes. Keyword tools are also great for this purpose and work similarly to how Google Trends work in picking your niche. This data can also help you choose what you want to sell.
Browse through websites that sell similar niches like yours. Check out their trending categories or their best-sellers and see if the niche is viable for you.
Dropshipping platforms sometimes tell you what product has high order volumes. Pay attention to upcoming trends too. They don’t necessarily have a high order volume but can be a great prospect down the lane.
Step 2: Competitor Analysis
Perform thorough competitor analysis and find out who you are up against for your niche. Learn what they are selling and how they sell their products. You can do this by browsing on Google with related keywords. You can even hunt through social media to analyze their marketing strategies and campaigns to understand how you can work the profits. You can even identify mistakes and learn from them or simply replicate their strategies.
Step 3: Find a Supplier
Find a supplier that can be your trusted dropshipping partner. Here is what you look for in a supplier before you make a decision:
- Check their reviews and ratings.
- Check for their experience and how long they have been in the business.
- Make sure that they are reliable and can make you go a long way with you.
- Make contact with your supplier and understand what they bring to the table and check if those offerings are feasible with you.
- Check their order shipment timings, minimum order quantity, and other details.
- Having a supplier with good customer support and efficient communication silos in place can help you solve any issues if any in the future.
- See if their prices are sustainable for you.
Step 4: Build your Online Store
Setting up your online store is easier now than ever with the plethora of online eCommerce platforms available today. Set up a valid domain that is exclusive to your store. Make sure that the user interface and other features on the online sites are dynamic and user-friendly. Make use of quality developer tools to build your website and integrate secure payment portals to build trust with customers and keep their experiences pleasant on your site.
Step 5: Market your Products
Marketing your products is vital especially if you are just starting up as it can help you gain more visibility and traction to both your site and your trending products. It is important that you project your marketing strategies to the right audience using the right platforms.
Digital marketing channels like Social Media, SEO, Paid Marketing, Influencer Marketing on Social Media, Email Marketing, and Content Marketing are some ways you can use to market your products.
Always research what your competitor analyzes, understand market trends and patterns, and stay one step ahead at all times. This can give you an upper hand in the trade and sell your products quicker.
Step 6: Learn to Optimize
Use a marketing Analysis tool like Google Analytics to understand how your marketing strategies are performing and find ways to optimize them. Keep coming back to these figures to ensure that you are making a profit sustainably. Use the help of experts to test your strategies and strive to generate more profit online. This can help you go a long way.
Dropshipping Business can be great fun when you do it right with the right partner. It does have its challenges. No drop shipping business is devoid of competitors. Make more profits by keeping your margins high. You can still make good profits by offering products that are of high value despite having strong competition for the niche.
Choosing the right supplier who is reliable for your business is a vital part of the Dropshipping business.
Baapstore is one of the finest dropshipping platforms that lets you choose from a wide range of products to sell and make easy profits.
You can simply begin by choosing the product you want to sell and set up your prices for the same. When a customer places an order with you in your store, we will ship the orders to the customer with your branding on the packaging. You can either automate orders or let us know the order details.
Thus making dropshipping business the easiest way to sell online.