Dropshipping is an extremely popular home-based business model among new entrepreneurs since around 2012. To develop it, you don’t have to learn rocket science. But obviously, if you already have some concepts in mind like creating a website and marketing its better so, you can save lot of money. Since there is no need to create a warehouse of the items you are selling, it is possible to start a dropshipping business with limited funds. Here’s how to start a successful dropshipping business.
How to start a dropshipping business
First of all, we suggest you to select one product that everybody focus on and something that people use on everyday. This means, more people use this product more orders you will have. The items, which will be sold through the dropshipping model, are purchased from a supplier or manufacturer. This not only reduces operating costs, but also allows you to focus all efforts on customer acquisition.
But be careful! While the dropshipping business does not require large funds to start, it will require an immense amount of hard work. If you won’t hire someone to manage your business, you will have to work from Monday to Friday from morning to night.
1. Choose a niche
“Start a successful dropshipping business” becomes just a dream without this option. The niche you select must be well focused. It also has to be something you are truly interested in. As it takes a lot of work, if you are not passionate about the niche you select, you will be more inclined to get discouraged. Here are some points to consider when selecting your niche:
- Look for attractive profits . In dropshipping, the amount of work it takes to sell a $ 20 item is essentially the same to sell a $ 1,500 item. Select a niche with your budget! We suggest to select an item that cost around $1 – $5.
- Low shipping costs are very important . Shipping costs that are too high keep customers away. Find something inexpensive to ship. You will then have the opportunity to offer free shipping.
- Make sure your product is targeting impulsive buyers. The products you sell must generate impulse purchases. They also need to attract those with the low financial capacity.
- Make sure people are actively looking for your product . Use Google AdWords and Trends to check out some common search terms related to your niche.
- Build your brand . Creating a successful brand is very important. Your dropshipping business will also have more value if you can rebrand whatever you are selling.
- Sell something that isn’t readily available locally. Pick something your customer can’t find easily within your country or something that other sellers take long to deliver.
2. Research the competition
Remember, you will be competing with other dropshipping companies and with giants like Walmart and Amazon. Looking for a product that has little or no competition isn’t productive at all. On the contrary, it is a sign that there is no demand for that particular product.
How to create a successful dropshipping business? Look for products that have competition , as this is a sign that there is high demand and the business model is sustainable.
3. Get a supplier
Partnering with the wrong supplier can ruin your business. As most of the dropshipping service providers are located overseas, communication becomes extremely important. Pay close attention to the ability to respond quickly and understand each other . If you are not 100% sure of the communication skills of a potential supplier, go ahead and continue your search.
For research, you can use Alibaba, which has become one of the largest online resources for identifying and communicating with potential manufacturers and suppliers.
4. Create your e-commerce site
The fastest way to start a dropshipping business website is to use a simple ecommerce platform , like Shopify . No particular technological skills are required to use it and it has many apps to increase sales.
So, especially in the beginning, if you don’t know how to start a dropshipping business, it is recommended to use one of the plug-and-play options. Only later, you can proceed with the customization of the web page.
However, we recommend to use customized websites so you can save lot of money. If you are going to use websites like Shopify and Squarespace, you have to pay for domain name, host and for useful plugins. Instead, we suggest this website maker RFOXWEB.COM, they make e-commerce websites for a reasonable price. From the other hand, if you don’t have a brand name or brand logo they will make it for you and furthermore, they have a great marketing team. Once you pay them, you will have to pay just $200 once a year to renew domain name and host. This is why you shouldn’t select Shopify or Squarespace because you will end up paying around $400 to $1500 every year. You can save these amount of money with RFOXWEB.COM. Another good reason to select RFOXWEB is because, they will help you to select products if you are not sure on what you are trying to sell.
5. Create a customer acquisition plan
There are several ways to attract potential customers. The most effective option is to start an advertising campaign on Facebook. Facebook allows you to place your offer directly in front of a highly targeted audience.
You also need to think long term, so SEO and email marketing need to be the center of attention. Through emails you can, for example, offer discounts and special offers for your customers. If you will use RFOXWEB.COM, they will manage everything for you.
6. Analyze and optimize
The final move on how to start a successful dropshipping business is to keep track of all available data and metrics. Only then will you be able to grow your business. This includes traffic data from Google Analytics and Facebook. Being able to track every single conversion allows you to improve what works and eliminate what doesn’t.