Did you know that it is possible to become a millionaire just by creating your own online business? We're sure you've heard the success stories. Many of them start with little to no money and grow to successful operations. Anyone can start down this entrepreneurial path and create multiple streams of income. This blog will uncover the number one secret and tool for starting an online business quickly and easily. That secret is dropshipping! This guide will explain how and what dropshipping is.
Dropshipping is a business model that allows you to hold physical product inventory and sell online without purchasing any upfront. Only buy the products you sell from third party suppliers, and the supplier will take care of shipping the product directly to your customer. Dropshipping is simple, showcase your suppliers' inventory on your online store, set your retail prices, and pay suppliers wholesale prices when products sell. The price difference is your profit.
A dropshipping business model is an order fulfillment method with three main parts: the supplier, merchant, and buyer. The suppliers' role in dropshipping is manufacturing or purchasing the products, shipping them directly to the customers on behalf of retailers, and dealing with returns and inbound shipments. As the retailer, you sell these products through your brand, and purchases are sent directly from the supplier.
Know that we've covered how dropshipping works, you may be asking yourself if drop shipping will still be profitable in 2021. Many entrepreneurs are catching on to the drop shipping industry due to its low threshold. Dropshipping requires little to no money to get started, yielding fast profits if done correctly. Because there are several products and product niches, dropshipping will continue to be a profitable business model moving into 2021.
Dropshipping is a low-risk business model where you only need to pay for the cost of products. There is no need to bear the burden of creating products from scratch, managing inventory, maintaining unsold inventory, or paying shipping staff. Handle orders on your own time and be the entrepreneur you want. With drop shipping, automated processes only require a few mouse clicks.
Dropshipping allows you to find and sell products with large potential profits. You can quickly test the demand for products without having to invest as much as traditional retail businesses, saving you a lot of money. All you will need to do is invest time in marketing your store and driving more traffic to those products.
Yes and no. The premise of "Yes" is if you are going to invest your time and money. If not, you are not going to reap the rewards. One of the reasons why people quit their dropshipping business is the lack of consistency and perseverance. Dropshipping needs time because you have to create the store, import products, and decide on a pricing strategy before selling. If you are not going to invest in your efforts, you will not have the results you expect.
To start a dropshipping business, you first need an online storefront. There are several marketplaces and eCommerce platforms frequently used by entrepreneurs to create their online stores, such as Amazon, eBay, Shopify, etc. Once you select a service, you will need to find products from dropshipping suppliers; many dropshipping suppliers and platforms are available on the market. A known industry leader in dropshipping is Doba.com.
● Step 1: Choosing a dropshipping business idea
Firstly, what you are selling is essential. It would help if you spent some time to find your dropshipping angle. Most people would suggest choosing a niche that you are passionate about, but that's only part of the equation. The reality is that the best dropshipping business ideas are usually a combination of profitable and passion. When you are making money, you will be more passionate about your dropshipping business.
At Doba, we save you time by regularly creating a list of trending products based on the platform's top-selling products. By focusing on more niche and trending products, you will attract buyers' attention without competing with large scale, established businesses.
Niche products usually have a more passionate customer basement, making selling to specific customers easier by improving product awareness. Among them, health and beauty, fashion, electronics, and phone accessories may be a good entry point for starting a dropshipping business.
● Step 2: Finding a supplier
Choosing a supplier is another critical step in establishing a successful dropshipping business. Without a supplier, a dropshipping business will have no products to ship to customers. Once you have reviewed the products you want to sell and know that they can be profitable, you want to make sure to find a supplier that can provide you with the high-quality services you need to grow.
Doba is a dropshipping platform where you can easily find products to sell online. Whether it is electronic products, fashion, toys, or other popular goods, you can find products with good profit potential from suppliers mainly based in the US and then add them to your store with one click. The site manages the forwarding of orders to your selected supplier, so you don't need to worry about packaging, shipping, or managing inventory. There is a 30-day free trial to help get you started.
● Step 3: Build an eCommerce store
The next thing you'll need to start a dropshipping business is an eCommerce platform like Amazon, eBay, Shopify, etc. Those will be the home where you send traffic, sell products, and process payments.
● Step 4: Market your dropshipping store
Now that you know how to start a dropshipping business, it's time to discuss marketing your new store. To stand out in your market, you may want to put extra effort into your marketing and advertising efforts when building your dropshipping business plan.
With so many things about dropshipping being automated, you can spend time focusing on marketing and promoting your business in the following ways:
1. Paid ads ( Google and Facebook)
2. Content marketing
3. Influencer marketing
4. Get free media coverage