Dropshipping is an entrepreneur’s dream, especially since the business model requires little marketing or advertising skills. Not only that, but it requires limited funds and little knowledge on the subject. Still, it’s good to be prepared so you can make maximum returns. Here are six easy steps to follow to start your own dropshipping business.
Find your Niche
Being a general seller may seem like a good idea, but Amazon’s Fulfilment by Amazon program makes you pay a fee. Selling goods that have a similarity will make it easier for your customers to find them. Also, look for higher priced items with low shipping costs. Other things to consider: create a brand, sell things based on trends, and sell items that aren’t available in a specific region (that are legal, by the way).
Create a Website
Get yourself a website that’s specific for eCommerce, like Shopify. You won’t need a background in web design to start building your shop. If you already have the skills to make your own website, it’s usually better to do this for more customization. If you don’t know what you’re doing or you’re a beginner, it’s cheaper and faster to use an eCommerce platform. Once you have money coming in, you can upgrade, or you can use other e-commerce websites like eBay. This article on dropshipping on eBay can better explain how to work both websites to your advantage.
Research your Competition
You’re not just competing with other dropshippers; you’re also competing with other brick and mortar establishments like Walmart. You’d probably think that you should sell items that have little competition, but there’s usually a reason for this. These items may have manufacturing and supplier issues, poor profit margins, or high shipping costs. High demand products are the way to go.
Places like eBay can seem like your competition at first, but other eCommerce can help with your dropshipping business.
Get a Trusted Supplier
Take your time with this step, because the wrong supplier can destroy your business. It’s likely your suppliers will be overseas, so communication is absolutely essential, especially with the different time zones. It’s important to be comfortable with your supplier – if you aren’t satisfied with them, or their business model pull out immediately.
If you don’t have any customers, you won’t make any sales. Amazon does some of the marketing for you, but it’s twice as effective to do some advertising on social media. Have a budget for advertising and start on Facebook. This will help sales from the start while targeting a specific audience at a low price. Start collecting email now so you can create an automated email sequence.
Use an Analytic Tracker
Advertising is about knowing your audience. Google Analytics tracks your traffic to your website. It also determines who is clicking what on specific pages. More complicated trackers can even track the movement of your customers’ mouse clicks. An analytic tracker is the easiest way to determine what works and what doesn’t so you can better determine what will lead to a sale.