Starting a dropshipping business can be the first and successful step if you desire to be an entrepreneur. Retail e-commerce sales hit a milestone of USD 4.28 trillion worldwide in 2020. The revenue is expected to reach a new height of USD 5.4 trillion by the end of 2022.
This clearly indicates the power of online business, its future in the next few years, and the chance of becoming a successful entrepreneur. But you aren’t sure how to build a dropshipping business? Let us help you first understand the whole science behind the concept.
What is Dropshipping?
Dropshipping is one of the leading retail fulfillment methods known all over the world. Its where the merchant is autonomous of owning and keeping an inventory. The seller is never responsible for tracking and shipping the products when a sale is made.
Instead, once an order is received, the manufacturer or the wholesaler ships the product to the customer. In dropshipping, the relation of the drop shipper and the seller remains private and never disclosed to the customer.
The dropshipping entrepreneur gathers different suppliers and manufacturers to a single platform. This allows a chance of partnership with them, all under a dropshipping business. The entrepreneur receives an order, inform their suppliers and manufacturers, who ship the product to the final user.
Is Dropshipping Different from Classic Commerce Model?
Both are two different models with unique characteristics. In the classic commerce model, the store owner or the seller will purchase the goods directly from the supplier. He would be responsible for managing the sales and ensure safe shipment to the customers.
The classic commerce model is a continuous chain represented in the image above.
Whereas, in dropshipping, the store owner or the seller is solely responsible for ensuring sales. The later part of shipment and order fulfillment is handled by the supplier or the manufacturers themselves.
Reasons to Start Dropshipping Business
Have you ever wondered why you should choose a dropshipping business model? There are numerous reasons backed with benefits to pursue your business in dropshipping.
Economical Business Idea
One of the most fascinating aspects of starting a dropshipping business is its low-risk entry and economical investment plan. The seller can start their business without holding any inventory or arrange a warehouse. It eliminates the risk of maintaining inventory and managing the stocks.
Stress-free Start
When you don’t have to manage the physical inventory and products, running a business already becomes easy. All you need to do is start an online store backed with suppliers and manufacturers, get orders and leave the rest on your partners.
Omnichannel Capability
You can manage such a business model from any part of the world. It’s an omnichannel pathway that doesn’t restrict you at all. Get a computer system and a fast internet connection to start your business.
Minimal Overhead
Owning and running a dropshipping business have low expenses. You can run your business from your room also. There will never be additional expenses, any cost-cutting, and other headaches. As the expenses start growing when your business expands, the overall cost would never exceed your budget.
Delivery Based on Sales
Once you receive an order from your customer, contact the supplier or manufacturer immediately. As soon as the order is confirmed, your partner will do the needful and deliver the item to the end consumer. Without any capital investment, you will start earning.
Indefinite Range of Products
You can have as many products listed on your online store as you like. All you need is confirmation of partnership from your suppliers and manufacturers, who would deliver the product once an order is confirmed.
How to Start Dropshipping Business? Easy 4 Steps for a Perfect Business Plan!
There are no hard and fast rules when it comes to becoming an entrepreneur with dropshipping business. By following these easy 4 steps, you can easily start your business any day.
Step # 1: Choose A Profit Yielding Niche
What you sell on your platform matters. Most people are advised to pick a niche they are passionate about. However, the truth is completely different.
Always opt for such a niche that’s a combination of your passion and profit, inclined more towards revenue benefit. You can get passionate about any niche at any time. Once you are making money, you will ultimately fall in love with it.
Either check Google trends or use Ubersuggest to track keywords, browse websites to know the potential of different niches. You can also check out the order volume of many products. This all will help you in finding a range of products that could be sold on good profit margins.
Step # 2: Find a Trusted Supplier or Manufacturer
The next phase is to find a trustworthy and reliable supplier or manufacturer who can partner with you in your dropshipping business.
You can find thousands of suppliers and manufacturers but are they all reliable? Find someone who can provide you’re a wide range of products at competitive prices, ensures swift delivery processing, and are dependable in the long run.
Check on any leading platform regarding supplier or manufacturer reviews, rating, and how long they take to process the received orders.
Step # 3: Choose a Platform
You need a good platform to start your dropshipping e-commerce business. A reliable platform where you can launch your online website.
Start with purchasing a domain name, then look for a trusted web hosting partner, choose a resilient platform such as Shopify or Magento or WooCommerce, or BigCommerce. Design a beautiful website with exciting content to attract your customers.
Step # 4: Start the Journey of Marketing
Nothing is accessible without marketing!
Since ever, marketing has been an essential part of promoting any business. Especially, online businesses need proper marketing and brand management. Boost the reputation of your online website by attracting traffic via organic and paid sources. Advertise yourself and craft a unique identity for your dropshipping business.
Join our Group to be part of a community of active learners: www.eg.com.pk/group
