Are you looking forward to making a considerable amount of money this year? Do you have a knack for business but really do not have the capital or the knowledge to start from scratch? Or, do you simply want an easy way to earn money online? The answer to all these is simple – dropshipping.
What is Dropshipping?
When you look online, you will see a number of results about how dropshipping has taken over the e-retail space but before discussing anything about it, we must understand what it means.
Dropshipping is a business model that does not need you to stock any of your products. The shipping takes place directly from the seller and reaches the buyer without qualms. You won’t ever need to see the product, either! You are just enabling buyers to reach the sellers and getting a profit cut.
Is Dropshipping Legal?
The short answer is yes.
Most online shopping portals such as Amazon and eBay allow dropshipping. So, you can start your business without worrying about the legal hassle. However, I recommend that you go through all the terms & conditions and policies of different platforms before getting started.
How to Start a Dropshipping Business in 2020
Now, let’s get to the point and walk through the steps to start your very own business:
1. Choose a niche
You may think this isn’t important because you aren’t going to create the products, but unless you are interested in the niche you will not be able to make sales.
Promoting a product requires interest and belief in the product. This only comes with niches that you are familiar with and love working in.
2. Eye the shipping costs
If the shipping costs are high, buyers will not want to purchase. Sales will be low, and the profits will go down. This is why, even though you are not incurring shipping costs, you must consider them while choosing the products you want to promote and start dropshipping.
3. Eye the competition
Remember, products with no competition will not sell. They do not have demand. Investing your time and patience in such products is a waste. Always choose products that are in demand so that you have a chance of making sales.
4. Find a supplier
Don’t go with the first supplier you find. Do your research, talk to various suppliers, and do your homework. Going blindly can harm your business and cause unnecessary headache. It may also result in losses.
5. Create a website
To start promoting your products you must have a website that’s clean, informative, and attractive. If you cannot afford a developer or do not have the technical knowledge to do it yourself, you can choose sites such as Shopify to give you a ready-made website.
6. Start running ads
This is the most crucial and the most time-consuming step. All your efforts will go here. Identify the platforms you want to advertise on. These could include Facebook, Google, Instagram, and LinkedIn. You could also look at other platforms depending on the type of products you are marketing.
For some products, you will only need to focus on Instagram. For others, LinkedIn may be the best bet. Start with a small amount of money with a customized audience and then start tweaking your strategy based on the results. Remember, this is not a one-time exercise that will yield results. You have to be on your toes around the clock.
7. Do not forget analysis
One of the biggest blunders I have come across in dropshipping is ignoring the analysis. If you do not analyze your data regularly, you will not be able to optimize your strategy. In other words, you will be shooting in the dark continuously to no avail. That’s not how you do any business, least of all a dropshipping business!
Follow these steps religiously, and you won’t have to break your head or worry about losing out.
3 Major Risks Involved in Dropshipping
Before ending this article, I would like to shed light on some of the risks that may be involved in dropshipping. Business always comes with risks, and dropshipping is not devoid of them. Let’s see what the most popular ones are so that you are on the lookout:
1. Getting fooled
It is easy to fall into the trap suppliers spin. They may scam you and make you lose all your money if you are not careful. Choosing a supplier comes with a number of risks that you can minimize by being on guard and practicing due diligence.
2. Not being able to handle it
Success in dropshipping can be slow, and at times, you may feel like it is not worth it. Please take our word for it – it is. It just takes some time and a lot of effort.
If you are not up for it, may be try something else. But, if you choose dropshipping, you cannot give up within weeks or months. It is a long-term commitment.
3. Being disappointed by the profit margins
Profit can be really thin in the beginning, as is the case with almost all businesses. Again, giving up or being disappointed will not help. The beginning is always the toughest, and once you get the hang of the process, the profits will start going up.
There you have it! I hope this guide helps you start your dropshipping business soon. Hope you reap great benefits! All the best!
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Author Bio: Niki Tech is professionally associated with the dropshipping business. After successful two years in the field, she started sharing her experiences and outcomes of the dropshipping. She learned many things both personally and professionally in this business and wanted to help people in some way who are interested in the same. That was the main reason she started writing blogs and publishing them on different platforms.