You wanna start a Dropshipping Business? But you don’t know what it is? Looking for detailed info about what a Drosphipping business really is? Alright, the Dropshippingguy is much availabe and ready to answer these questions. In today’s topic, we would be covering on the in and out of what a Dropshipping Business really is.Contents hide1 A Dropshipping Business2 REQUIREMENTS FOR YOU TO START A DROPSHIPPING BUSINESS2.1 TIPS REQUIRED TO START A DROPSHIPPING BUSINESS IN 20202.5 You can obtain it by just your local county clerk’s office or online – just Google “[your state] + sales tax ID”.4). Choose a Platform for Selling (A Dropshipping Store)
A Dropshipping Business
Let’s start by breaking the words down into two forms: Dropshipping and Business. Alright, now let’s begin by what is Dropshipping? and what is a Business? Then what is a Dropshipping Business? Sounds cool right? Ok
What is Dropshipping?
What is Dropshipping? Mind you, we can also be fair and more precisive hereby still breaking down the word “Dropshipping“, so we can have: Drop and Shipping. So now Drop, means to put something down, in a place or somewhere, while Shipping is to obtain a product from somewhere and then deliver that product to a preferred destination? Simple to understand right? Note a person who does dropshipping is called a Dropshipper.
So now What is Dropshipping? Dropshipping in simplest terms is simply a process whereby a Dropshipper obtain specific products from a supplier and then transfers the purchase of such product to a particular destination (a customer’s) and most times without having the product at hand or even seeing the products physically.
In more formal terms: Dropshipping is a supply chain management method in which the retailer does not keep goods in stock but instead transfers its customer’s orders and shipment details to either the manufacturer, another retailer, or a wholesaler, who then ships the goods directly to the customer. Source: Wikipedia.
So I suppose the meaning of Dropshipping is now crystal clear to us? So talking about BUSINESS, this is obviously not a new word to us, however, Business can simply be referred to as a commercial activity or a trade engaged in for profit-making.
A DROPSHIPPING BUSINESS: A dropshipping business is system whereby a dropshipper sells goods or products to customers without having any inventory.
A customer purchases an item at retail price from your store and then you forward the order to your supplier who sell to you in wholesale price and then you gain your own profit.
Now we all can accept that the word Dropshipping business is much clear to us now?
So the immediate time your supplier receives your order, he then ships the product directly to the address provided by your customer all under your business or store name.
The next info you’re going to be receiving is a concise step by step method to starting your own dropshipping business
How to Start a Profitable Dropshipping Business
It is often said that every successful business is bounded by some plans, theories, or models behind it. So also is a dropshipping business. Talking about how dropshipping works, dropshipping is bounded by a model, and this model is called the Dropshipping model or Dropship Model.
The above picture is very explanatory as it has already explained vividly how the dropshipping model works.
So what is the dropshipping model talking about?
Dropshipping works in this manner:
- A customer purchases an item from your store at retail price
- You as a dropshipper forwards the order to your supplier (you pay wholesale price)
- The supplier ships the item directly to the customer under your business name
That’s all the dropshipping model is talking about, that’s how dropshipping business works.
Benefits you derive as a dropshipper:
- You don’t have to buy and store bulk stock, which saves you having to invest a lot of money upfront.
- It also eliminates the risk of buying in bulk and not being able to sell all of the products, leaving you out of pocket.
- Dropshipping only requires minimal investment but reaps similar benefits to traditional retail models.
REQUIREMENTS FOR YOU TO START A DROPSHIPPING BUSINESS
I can perceive how anxious and excited you’re to start a dropshipping business right away and start making your own money. Since you’ve understood what a dropshipping business and you’ve also understood the dropshipping model, then let’s continue by giving us the requirements needed to startup a dropshipping business.
To start up a dropshipping business you’ll need:
- A product you’re willing to sell
- Supplier to supply you the products
- A store (dropshipping store) to sell those products
- A sales tax ID
In more detailed terms
- You need to find products niches which you want to base on
- A supplier who allows dropshipping services
- Obtain a sales tax ID
- Have a Store for selling your product (e.g Shopify)
- Promote your store and make it known to the public
TIPS REQUIRED TO START A DROPSHIPPING BUSINESS IN 2020
1). CHOOSE A UNIQUE NICHE
What is a Niche? A niche is a specific category of products or goods. For you to be successful in dropshipping, you need to choose which categories of products you want to focus on which niche do you want to base on? READ HERE ON MOST PROFITABLE DROPSHIPPING NICHES
Implementing uniqueness in everything you is what makes you different and special, there are lots of people who are into dropshipping, and I tell you, lots of people are selling lots of different things, so you need to be specific on what you really want to base in selling. Find your NICHE!
- Start with what interests you and what you’re passionate about: It is always said that it is very rare to see one get tired of what he/she loves doing. Grab your way into your hobbies, things you love, and at some point have basic ideas about, e.g travelling, fashion, music, health e.t.c, then work on them as to get what’s the latest trends on them, and so for yourself products you can try selling.
- Scratch your own itch, Be a problem solver: This is old school entrepreneurial advice. Problem-solving is the sole of being relevant in this world and in anything you do, so try identify problems and ways you can solve them, products you thing can solve some problems which you’ve been able to identify.
- Find out who’s into the competition with you: Are there lots of geeks like you on a niche you have interest in? Is that niche up into climax already? If yes, can you beat this competition easily? Is this competition worth trying? Or Do you need to find another niche? Find answers to all these questions and work your way out.
- Make sure the Niche is Profitable, Be profit-oriented: Nobody will dispute the fact that the objective of any business is to make money isn’t it? So, all you need to check out is how profitable and worthwhile is this niche you’re trying out, be sure that it is much more profitable up to a fair standard and worth trying out amidst other miscellaneous and expenses.
EMBRACE THE BRAINSTORMING OF PRODUCT’S IDEAS
Since you’ve been able to get hints on dropshipping niche, what’s next is being specific of what product or brainstorm product ideas to work on a particular niche.
Brainstorming about 10-15 products ideas to research on and start trying out are good steps for a great start.
Using Product Research Tools
As easy as a dropshipping business is following up with a dropshipping model, there are some tools which lessen the burdens of having to search for the right products to sell for dropshipping.
Below is a list of Dropshipping Market Research Tools which can ease product research and analysis
2). FIND A TRUSTWORTHY SUPPLIER
Finding a trustworthy supplier for a dropshipping business is one of the hardest things to do. Obviously, Suppliers are one of the soul and essence of what makes a dropshipping business a dropshipping business, without suppliers the dropshipping model is incomplete and dropshipping is not achieved.
The Dropshipping model has made it crystal clear that dropshipping is not complete without a supplier being involved. Finding a reliable supplier for dropshipping is very hard and most times discouraging.
But don’t worry, we already have prepared a complete guide on: HOW TO FIND A TRUSTWORTHY SUPPLIER FOR DROPSHIPPING
3). GET A SALES TAX ID
If you’re planning on setting up a dropshipping business in the United States or in Canada, you’re required to have a Sales Tax ID, it is also known as a reseller’s ID or license, tax ID, resale certificate or ID. The Sales tax levied on good charges 6-10% of every physical good sold to consumers.
Obtaining a sales tax ID is very easy and inexpensive, all you just have to do is:
You can obtain it by just your local county clerk’s office or online – just Google “[your state] + sales tax ID”.4). Choose a Platform for Selling (A Dropshipping Store)
The next step to take after choosing a niche and a supplier is to find a platform for selling your products and this is a dropshipping store.
There are two options you can decide on when sourcing a platform to start your dropshipping business:
- Selling on an already established platform OR
- Having your own person dropshipping store
CHECK OUT THE PROS AND CONS OF SELLING ON AN ALREADY ESTABLISHED PLATFORM
PROS AND CONS OF SELLING ON YOUR OWN DROPSHIPPING STORE
- You have complete control over branding, design, layout etc.
- You’re building a business independent of a third-party platform
- No fees and higher profit margins
- No direct competition from other sellers on the same platform
- It costs money to set-up and designs your own store (web hosting etc)
- You miss out on the guaranteed traffic (customers) from established platforms
- It takes time to rank on Google and you’ll have to invest in SEO and marketing
5). LASTLY, MARKET YOUR STORE AND GET ENGAGED WITH CUSTOMERS
If you’re selling on established platforms or on your own personal dropshipping store, you still need to provide strategies to get customers engaged with your products, I with what you’re selling.
Without time we would be sharing the fastest means with some cost and Slow but affordable means for getting your store and products marketed
FAST BUT COSTLY THODS
- FACEBOOK ADS
- GOOGLE ADS
- INSTAGRAM ADS AND MARKETING
- SOCIAL MEDIA INFLUENCER MARKETING
- YOUTUBE ADS
FREE BUT SLOW METHODS
- CONTENT MARKETING
- BLOG METHODS
- EMAIL MARKETING
In conclusion, Dropshipping is easy and profitable only if the right approaches are followed.
We hope you enjoyed this article from dropshippingguy
However if you need help in creating your own dropshipping store, we’re are your service you can contact us on:
FOR YOUR PROFITABLE SHOPIFY DROPSHIPPING STORE
CONTACT US ON: SHOPIFY WEBSITE BUILDER
FOR YOUR PROFITABLE COMMERCEHQ STORE
CONTACT US ON: CHQ STORE BUILDER