How to start your Dropshipping business Detailed Guide?

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Are you looking to start a dropshipping business? But still confused about how to start, where to start, where I can find the best Supplier, which Platform is better, So hats off these are questions. Don’t worry In this guide you will get the full knowledge about the dropshipping business.

What is Dropshipping?  How to start Dropshipping Businesss?

Dropshipping is a business model that allows entrepreneurs to start an online business and sell products to their customers without ever having to stock items themselves.
In dropshipping store, instead, of purchasing its products from a third party, and ships them directly to the customer.

How Does Dropshipping Works?

With this basic definition in your mind, let’s break down how dropshipping works in a little more detail.
Overall, there are three parties involved in the dropshipping business model of eCommerce—you, the retailer, the consumer, and the supplier or manufacturer.

In summary, dropshipping consists of:

  • A customer buys a product from your ecommerce website.
  • Dropship suppliers receive the order information.
  • Suppliers pick up, pack, and ship the goods directly to their customers.

These are a basic factor that works in the Dropshipping Business Model, I hope you have enjoyed it.

How to start a dropshipping business in easy 5 steps?

However, you should decide whether dropshipping is the right business model for you.

Some Business person Says- “Without investing by the hooks and crooks you can’t get the instant profit to your Business”.

if you do decide to invest in the dropshipping business you have to learn some of the important facts & figures about it. Before Stating any dropshipping business you have to know these points:

  • Identify your market and choose a niche.
  • Build your ecommerce website.
  • Figure out the logistics.
  • Find the right supplier.
  • Optimize and market your site.

Step:1 Identify your Market & Choose a Niche

Once all of the standard steps are complete, the next step you will need to know your Market & Choose a Best Niche which suited to your Business Model.

According to our research on the best dropshipping products, these are some of the best niches for 2021:

  • Health and personal care
  • Wardrobe and accessories
  • Kitchen and grocery
  • Home and bedroom
  • Office products
  • Tools and home improvement
  • Camera and cellphone accessories
  • Gaming
  • Car accessories

In dropshipping, you and your competitors all have access to the same products and work with suppliers that provide similar service levels. Therefore, your marketing efforts will be a great difference between your business and your competitor’s business. The major key factor to market successfully, you need to identify your targeted audience and sell products according to their need.

How to find a niche in dropshipping Business?

Work on your Interest:
It’s easier to sell what you like most. Consider your own interests, when looking for a product to sell. It may be 10% to 50% Chances to Sell. So that work on your Audience interest in what they want to Buy.

Identify a specific market: When you are at the starting end, then you have to focus on a smaller subset of visitors because you can tailor your business to meet their specific needs.
An example of a specific market people who practice tae kwon do, or pescatarians. Because they have an interest in the tae kwon do. And they selected the right path to learn and practice.

Keyword research:
To find a perfect niche for your Business, you should perform keyword research via Google Adwords and Trends to see if there is any search volume around the products which to wish to sell. Search the higher the search volume, & find Is there any higher demand for that product?

See top selling products: Another way to find products in demand is by checking “best selling” or “top Selling” product lists on major eCommerce marketplaces like Amazon, eBay, Wish, Walmart, etc. You can also perform a simple Google search or utilize keyword tools to see how many people are searching for the product or niche you’re considering.

Social media engagement: Check to see what people in your niche are engaging with on major social media platforms, like Reddit, Facebook, Pinterest, Twitter, Linkedin, Snapchat, and YouTube.

Competitor research: Once you think you’ve found a niche market, research your competitor in that space. You’ll want to consult with the top Market Analysts. Market Analysts help you to research your Niche where you want to sell in your Local Area or Globally. And The platforms like—Google, Amazon, eBay, Etsy, Wish, Walmart, Shopify, social media, among other sales channels—to see how competitors in the space are selling your product. If your Competitor is already selling your Choice of products then it will be difficult for you.

Evaluate profitability: Finally, once you have already identified a market and a product, and now you’re going to evaluate the profitability of your concept. As dropshipping margins are so low, you want to make sure you can actually make money in your niche.

A dropship supplier directory SaleHoo recommends selling a non-seasonal product that is not dominated by major brands, is cheap to ship, and retails for at least $15.

Step:2. Build your eCommerce website:

At this point, we’ve identified a market and we have already aligned with a supplier. Now, the next step to building the actual website/Store where we will sell our products online.
There are two ways to make your online presence:

  1. E-commerce Market Place:
    By the Ecommerce Market Place you can sell your product directly to the third party Platform like amazon, Etsy, Flipkart. With creating the Partner Account on their and Start selling with the Recurring Commitions.

2. Ecommerce Platform
In the eCommerce platform, you will be the only owner of your Website. No third-party fees will be required. In my opinion, it’s the best option to start your Dropshipping Business Online.
Ecommerce platforms like Shopify, Wix, WordPress, Magento, etc.
We will recommend Shopify because it is easye to use and user-friendly as Comparison to other eCommerce platform.

Step:3 Figure out the logistics:

Overall, We have achieved the Two steps. To start a dropshipping business it’s actually needed the paperwork, Under the Government Policy, Rules, and Regulations, and other necessary steps to start a business.
The Paper word is necessary to start any business so confined that.

There are the following requirements when you’re setting up your business:

  • Select and register your business name and DBA (if applicable).
  • Decide on a business structure that best suits your needs (sole proprietorship, LLC).
  • Get an employer identification number (EIN) for tax purposes.
  • You may need business licenses and permits from your federal, state, county, and local government depending on where you start business and what you sell.

Dropshipping business licenses

In addition to the general operating license that may be necessary for you to start a dropshipping business in your particular state, there are a few other business licenses you’ll need to sell online.

  • Seller’s permit: In most states, if you are selling products that may be taxable, you must have a seller’s permit. 
  • Sales tax license: Similarly to a seller’s permit, you need a sales tax license in order to charge and collect sales tax. You should consult local government agencies to ensure you’re following the proper guidelines for sales tax and license requirements in the state and city where you live.

Step:4 Find the right supplier.

In this step, you have to find the right Supplier for your Dropshipping Business Model. We have covered almost and it’s also important to know anyone who is Starting their own Business.

Check out the work Experience of the Supplier:

You have to ensure that your supplier has a proven track record in the dropshipping business model and also provides good customer service. Before contacting them, review their NPS Score and see what people say about them on review websites like TrustPilot, Clutch, and Other Better Business Bureau.

Because the margins are low, so you want a dropshipper that won’t charge unreasonable fees.
SalesHoo says- “you shouldn’t pay more than $5 per item for stocking, packaging, and shipping.”
Some manufacturers and suppliers will also charge you a small monthly recurring fee for working with them.

Fast shipping Services:
Dropshipping products are expected to arrive within one to two weeks (most dropshippers are based in China). Any longer and your customers are likely to back off.

Product samples:
One of the hazards of dropshipping Businesses is low-quality suppliers. Before contract with any supplier, you should request and receive samples of the products which you want to sell.

Referrals & Rewards:
A reliable supplier will offer you referrals to other businesses they work with. If they refuse, consider that a huge blunder bull shit Guy, or a fake person. Now you have a clear understanding of what’s important while finding a dropshipping supplier.

Top Plugins and Apps to Start Dropshipping Business

  • Oberlo: Free service that integrates with Shopify
  • AliExpress: Free service that offers one of the largest dropship product marketplaces(Shopify and Woocommerce).
  • Wholesale2B: Costs $24.99 per month and integrates directly with BigCommerce and Shopify
  • Dropship Direct: Free service with over 100,000 available products
  • Doba: Costs $29 per month and integrates directly with Shopify and Volusion

Step:5 Optimize and market your site.

Finally, you’ve created and launched your dropshipping site, now you need to do everything in your power to attract customers.
Email marketing:

Commonly, eCommerce platforms have a plugin/Apps for an email marketing tool like MailChimp. Get in touch with your customers every week, highlighting new products, sales, and content on your site. Contact Your customer with the proper Mail targeting with Seasonal Offers and Deals.

Facebook and Google ads:
You can use Facebook and Google ads to create ads that will help you to make appearance for long terms on Google. In both cases, you can reach out to a large audience and targeted sales for your niche. You can also pay extra to ensure that your ads are seen by the audience which you want.

  • Social media: Posting content related to your business on Facebook, Instagram, Twitter, Pinterest and other major social media platforms is an effective method of organic reach.
  • Search engine optimization (SEO): SEO should be the backbone of your all marketing efforts. The purpose of SEO is to improve the ranking of your website in search engines like Google, Yahoo. You can improve your ecommerce SEO by working with a website builder that prioritizes search engine optimization (such as WooCommerce), engaging in keyword research-based content creation, and establishing backlinks to your website.

Looking for an Ecommerce Solution.

Zworthkey is a software development company that works on PHP and markets other Businesses and Startups to boost their business.

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