If you are tired of your day job, you might be in the growing number of entrepreneurs quitting to start their own business. Through September 2021, Americans filed 1.4 million applications to start new businesses. Entrepreneurship is rising because being a small business owner gives you control over your own life and income.
If you are looking to take your first steps into business ownership, the eCommerce industry is a great place to begin. Thanks to the pandemic, eCommerce has seen tremendous growth. You can take advantage of this growth by starting a drop shipping business.
Read on to learn more about dropshipping and how you can start your own dropshipping company.
What Is Dropshipping?
Dropshipping is an eCommerce business model that allows you to sell products without storing or shipping them yourself. In the drop shipping model, you purchase inventory from a wholesaler who holds and ships the products for you. So when you make a sale on your website, they pack and send it to your customer.
Create a Business Plan
Before you start selling, you first have to figure out what you will sell. It’s best to pick a niche you are interested in but be sure there is a market for it first. Knowing what area you will specialize in will help you build your brand and marketing later.
You’ll want to research what products are selling to determine if your niche will be profitable. Next, see who else is selling the same products. Take a look at these competitors’ keywords and social media to see how you can improve their model and stand out in your marketing.
You will also want to hammer out the logistics of owning your own business. You’ll want to register your business, determine your organization structure, and get an employer tax number. Also, depending on what state you live in, you’ll want to have all the proper licenses and permits.
Find a Supplier
You have two options for sourcing your products when dropshipping: a dropship marketplace or manufacturers. A dropship marketplace specifically caters to drop shippers by buying a variety of products from manufactures and making them available to drop shippers. Choosing a manufacturer is more complicated but allows you to buy products directly and cut out the middle man.
When researching a dropshipping wholesaler, you’ll want to learn more about their experience, quality of their products, shipping speeds, and reviews. Keep your customers in mind when choosing a company to buy from.
Set Up Your Ecommerce Website
Now that you have your business set up and have picked a supplier, you need to set up a website to sell your products. You’ll want a website that’s accessible, user-friendly, and shows off your brand. Ecommerce platforms like Shopify make it easy to set up your online store through website themes.
Make sure to get a website domain that is easy for people to type in the search bar and relates to your business and connect it to your eCommerce platform. Set up your layout and payment processing information in your platform. Include important details like product photos, product details, support, and return policies.
Market Your New Business
With your website launched, start marketing to drive traffic to your website. Set up social media profiles for your dropshipping store and begin posting about your business and interacting with customers. Make sure your website is SEO friendly, so it is easy to find in search and run digital ads to get the word out about your business.
Starting a Drop Shipping Business Is Easy
Dropshipping is a great place to start as an entrepreneur because you don’t have to hold or ship your products directly. When starting a drop shipping business, be sure to do your research to choose the right products and suppliers. Then, build a great website and have a marketing strategy that sets your business apart to start selling.
Are you looking for more tips to turn your new dropshipping business into a success? Check out more business tips and guides on our website.