How to launch your dropshipping business in 5 steps
Posted: Sat Dec 07, 2024 4:06 am
If you want to have your own e-commerce business but you don't have the budget to invest in inventory, the best way to start is by creating what is called a “Dropshipping Business”.
What is a dropshipping business?
This is an e-commerce where you sell products to your users without having these products in your possession. That is, you do not need to invest in buying inventory, renting a warehouse, or have shipping costs. The user buys directly from your e-commerce at the store price set by the distributor/brand, while you pay the brand at the wholesale price. Once the distributor receives the order that the user has made on your e-commerce, it sends it directly to the user in your name (your business name).
Using this formula, you earn the difference between the price that the user has paid as the final price of the product and the price that you have paid for that product to your distributor.
An example: A user buys a hat for 20 euros, you have paid the brand 5 bulgaria consumer mobile number list euros for that hat. Your margin in this transaction is 15 euros. And I say margin and not profit, since you have to deduct from these 15 euros any costs associated with the sale of this product, such as advertising.
It seems like a bargain, right?
The truth is that today, there are thousands of people earning a good salary with this digital business formula.
In a simplistic way, all you have to do is create an e-commerce and find customers. In reality, it is much more than that, but it is still worth a try if managed correctly.
Let’s see how to create a dropshipping business, and what mistakes to avoid!
1- CHOOSE A DROPSHIPPING MARKET NICHE ON THE RISE:
Dropshipping businesses are on the rise, which is why it is increasingly important to know how to select your niche market well. It is true that it is an increasingly saturated industry, but with new products being launched every day, the opportunities are also endless.
PRO TIPS:
Choose a niche market that is not dominated by big brands.
Include small, lightweight products in your catalog so they are easy to ship. They are always less of a problem than very delicate or very large and heavy products, even if you are not responsible for shipping. A good dropshipping product should fit in a shoe box.
Products that can be sold all year round and not seasonal.
With prices in stores ranging from €15 to €200, it will be very difficult to make a profit on anything under €15, and it is difficult to sell anything over €200.
Make sure there is enough demand. Analyze your competitors' products. What is selling and what is not.
2- FIND A DROPSHIPPING SUPPLIER:
For most entrepreneurs starting their dropshipping business, finding a reliable supplier is the hardest part and the one that has the biggest impact on the business. As a dropshipper, your supplier is the one who will guarantee that your business will work. That the product is of quality, that there is stock on a regular basis, and that your orders are delivered on time. Without these guarantees, your business will not survive for long.
What is a dropshipping business?
This is an e-commerce where you sell products to your users without having these products in your possession. That is, you do not need to invest in buying inventory, renting a warehouse, or have shipping costs. The user buys directly from your e-commerce at the store price set by the distributor/brand, while you pay the brand at the wholesale price. Once the distributor receives the order that the user has made on your e-commerce, it sends it directly to the user in your name (your business name).
Using this formula, you earn the difference between the price that the user has paid as the final price of the product and the price that you have paid for that product to your distributor.
An example: A user buys a hat for 20 euros, you have paid the brand 5 bulgaria consumer mobile number list euros for that hat. Your margin in this transaction is 15 euros. And I say margin and not profit, since you have to deduct from these 15 euros any costs associated with the sale of this product, such as advertising.
It seems like a bargain, right?
The truth is that today, there are thousands of people earning a good salary with this digital business formula.
In a simplistic way, all you have to do is create an e-commerce and find customers. In reality, it is much more than that, but it is still worth a try if managed correctly.
Let’s see how to create a dropshipping business, and what mistakes to avoid!
1- CHOOSE A DROPSHIPPING MARKET NICHE ON THE RISE:
Dropshipping businesses are on the rise, which is why it is increasingly important to know how to select your niche market well. It is true that it is an increasingly saturated industry, but with new products being launched every day, the opportunities are also endless.
PRO TIPS:
Choose a niche market that is not dominated by big brands.
Include small, lightweight products in your catalog so they are easy to ship. They are always less of a problem than very delicate or very large and heavy products, even if you are not responsible for shipping. A good dropshipping product should fit in a shoe box.
Products that can be sold all year round and not seasonal.
With prices in stores ranging from €15 to €200, it will be very difficult to make a profit on anything under €15, and it is difficult to sell anything over €200.
Make sure there is enough demand. Analyze your competitors' products. What is selling and what is not.
2- FIND A DROPSHIPPING SUPPLIER:
For most entrepreneurs starting their dropshipping business, finding a reliable supplier is the hardest part and the one that has the biggest impact on the business. As a dropshipper, your supplier is the one who will guarantee that your business will work. That the product is of quality, that there is stock on a regular basis, and that your orders are delivered on time. Without these guarantees, your business will not survive for long.