Starting a business means looking for that perfect location to set up a physical shop and reliable staff to manage the store. These used to be the old ways.
Gone are the days when it was necessary to have these essentials before you started your business operation. In this age, anyone can start a business as long as you have a stable internet connection, the equipment, a reliable high-risk merchant accounts provider, and a trusted supplier through dropshipping.
The tremendous growth of e-commerce fueled by modern technology and new purchasing trends paved way for entrepreneurs to start dropshipping. In fact, the value of the dropshipping e-commerce market is expected to increase to $476.1 billion by 2026 (Coppola, 2021). Here are some basic steps on how to start your own dropshipping business.
6 Steps to Start a Dropshipping Business
1. Develop a Business Concept
Creating your business niche can be challenging; it can be based on your passion or a sales trend.
Research and experiment with different concepts and choose products that will provide solutions and answer your customers’ needs. Note what’s selling online and check Google trends.
2. Source Products and Supplies
Source your products based on location, quality, reliability, and return policy.
The location plays a major impact on shipping fees and speed. Most dropshipping suppliers are based outside of the United States, so look for suppliers that have quick and trackable deliveries.
Check the number of sales or marketplace ratings to judge the quality of items or products as well as the supplier’s reliability. Also, look into the supplier’s refund policy since marketplaces operate differently.
3. Build an Online Store
Build a user-friendly online store based on one of two models: content-focused or product-focused. The store model is also based on your choice of eCommerce platform.
A product-focused online store is best for products that do not require pre-requisite knowledge or if you sell a variety of goods.
On the other hand, if you sell cooking equipment, for example, content-focused allows you to provide information on how the product is used as well as its advantages.
4. Choose an E-Commerce Platform
Choose a platform with an easy setup and a user-friendly layout. A good e-commerce platform must have the capability of integrating several marketplaces easily and speedily. WordPress, Woo Commerce, Shopify, and Volusion are popular e-commerce platforms to consider.
Set up a business account to easily deposit all revenue and draw expenses from this account. Having a separate business account makes it easier to handle the finances of your business.
High-risk merchant accounts are suitable for merchants selling regulated products, adult entertainment, cannabis products, computer hardware, medication, among other items.
If your business belongs to the high-risk category, it is recommended to speak with the appropriate payment processing provider to assist your high-risk business needs with a high percentage of approval and reasonable rates.
6. Market Your Products
Market your products to attract buyers and shoppers. Create your business accounts on different social media platforms; regular posting of products and customer engagement are basic marketing strategies that work.
SEO-optimize your website as well as your content to rank higher in online searches. Boost your store’s visibility through paid ads on Facebook, Google, Pinterest, and Instagram.
A dropshipping business is an opportunity to earn a lot of potential income. The steps may look easy but it takes months of research, marketing, and management to launch a successful dropshipping business.
Coppola, D. (2021, September 17). Estimated value of the global dropshipping market size in 2020, with a forecast from 2021 to 2026. Statista.