One of the best ways to become an entrepreneur is to start dropshipping. As it does not require a lot of investments and you do not need to handle any items you are selling.
If you do not know what dropshipping is, let me explain it to you. It is a business model when you sell products online but you do not have those items in your warehouse. You rather order those products from a manufacturer or your supplier and send it directly to your customers.
Here is a short introduction to dropshipping and a guide on how you could start your own successful dropshipping business.
Find Your Target Audience
It is really important to pick the right niche and target the right audience if you want to become successful. When you do not have a target audience it might be pretty hard to advertise your shop and sell items. Also, you should be at least somewhat passionate about the niche you pick as this might increase your motivation and allow you to put much more work into your shop. You can search for some ideas in the best shopify stores list.
When you are selecting a niche, try to pick one with more attractive profits. You will need to put the same amount of work either you are selling items for $10 or $1000, however, you can put bigger price markups on more expensive items. Try to find the lowest possible shipping rates because high shipping costs might discourage your customers from buying.
Do Research on Your Competitors
Do not forget that most of the time you are not alone in the market and your competitors might be other dropshippers as well as such retail giants like Amazon and Walmart. Do not go for a niche where there is no competition because it might be a sign that there is no demand for that specific product.
The perfect scenario would be to find a niche that does not have much competition but products are in a high demand. When you have identified your competitors look for their weak spots and try to avoid such things in your business. Also, recognize the positive aspects of your competitors and try to apply those to your dropshipping business as well.
Find a Supplier
It is crucial to partner with the right supplier because otherwise, it can ruin your business. One should look at this step really seriously. You should conduct thorough research on the supplier of your choice. Keep in mind that the communication with your supplier is essential for your business success and the location of your supplier cannot be an excuse for communication problems. If you are not sure about the communication abilities of a potential supplier, you should search for another supplier.
There are many online marketplaces for suppliers like Alibaba, AliExpress and Dino Direct. Most of them have inbuilt message systems and you should use them to contact with your potential suppliers and make sure to ask them a lot of questions on different times of a day to learn about their communication capabilities. Also, try to ask them for product samples that would allow assessing product quality.
Build Your Website
There are many possible ways to build an e-commerce website, you could use WordPress or Squarespace. But probably the fastest way possible would be to use Shopify which was specially created for purposes like this. It does not require any technical background to set up and get your site running as it has intuitive drag & drop builder as well as many plugins that will help you to increase sales.
One of the most popular quotes these days is “fail fast” and you should follow this tip too. Even if you have a pretty big budget to hire a web developer, I recommend for you to use such platform like Shopify in the beginning to get a grasp of the market as well as of the challenges that you could face.
Have a Marketing Strategy
It is really important to have a good marketing strategy because if nobody knows about you, nobody will buy from you no matter the quality of the products. There are quite a few ways how you could start advertising your business. However, at first, you should try to run Facebook or Instagram ad campaign as it allows to target specific audiences.
Also, one of the most profitable marketing strategies is so-called influencer marketing. You basically pay money for internet celebrities to advertise your companies. An average influencer charges about $200-$400 per post so it can be a bit pricey from the start but you should definitely try it later.
Analyze Gathered Data
You should always keep track of your website’s analytics and your sales to keep your business growing. Use Google analytics to see how people find your website from search engines, check Facebook data to see what products people clicked the most. When you are able to track every conversion, you can understand what works and what does not.
This allows you to scale what works and increase sales as well as eliminate things which do not work. Do not forget to always experiment and find new opportunities because there are no such things as set-and-forget marketing campaigns.