If you have ever wondered how to start a dropshipping business, but aren't quite sure what to do, then the information on this page is perfect for you. This is a quick primer to the initial steps of starting a dropshipping business. We won't lie to you. Starting a dropshipping business is going to be hard work. However, if you are willing to put in that hard work, you can reap the rewards. Start dropshipping today by following this guide.
The Steps to Start Dropshipping
On this page, we are going to teach you how to start dropshipping. We will not be able to tell you absolutely everything that you need to know. That would take thousands and thousands of words. In fact, it would take a whole book. Instead, we just want to give you an overview of the various stages that you will need to go through in order to set-up a dropshipping business that has the potential to be successful.
Find out what you need to know to start a business in your country or state
A dropshipping business is a business. It doesn't matter how large or small your operation is, you need to operate it as if it is a business. This means looking into what your local area requires businesses that operate there. For example, you will need to determine whether you need to obtain a business ID or tax number for your company.
Even if your local area does not require you to do anything to set-up your business, it is still wise to go through the steps to set up a corporation. This is because most of the legitimate suppliers will refuse to work with anybody that is not a fully registered business.
Choosing your niche
There have been countless guides written on how to choose your niche. In fact, pick up any guide on 'how to start dropshipping', and we have no doubt that they will give you different ideas on niche selection than other guides.
For us, when we are choosing a new niche, we like to think about the following:
- Whether the niche is evergreen. It isn't ideal to choose a niche that may only sell products at a certain time of the year
- Whether you can niche yourself down further (more on this soon)
- How interested you are in the niche
To be honest, the niche doesn't need to be completely 'evergreen'. We doubt there is a single product out there that sells well throughout the year. At least not one that is good for dropshipping. However, as long as the product is selling well for the majority of the year, you should be fine, e.g. you should not opt for Halloween or Christmas decorations. Your business will only be running for a month or two per year.
If you are dropshipping, it is wise to enter a sub-niche. It will be far easier for you to carve out a name for yourself. It also gives you the opportunity to expand at a later date if you want to. For example, you can just say 'I want to sell stuff related to pets', which is fine. However, this is a broad niche. You wouldn't know where to start. So, for instance, you may want to say 'I want to sell cat toys'. There are still lots of people selling cat toys, not as many as 'all pet gear', but enough that you should be able to make money. You just end up with a bit of direction.
We do suggest that you have at least some interest in the niche that you have selected. If you have no interest, you will have no drive to really succeed. You will be working in this niche a lot, so you need to know that you enjoy your job. That being said, we would never select a niche based upon our hobbies. This is because you may get 'blinded' and try to make decisions based on the way that you feel as opposed to what is right for your business.
Checking out the competition
Once you have established your niche, you can start to check out the competition. This will enable you to determine whether it is going to be a viable niche to enter or not. This is a stage that many people seem to skip when they are thinking about how to start dropshipping. We wouldn't recommend doing that. It is vital to know whether there is a place in the market for you. Checking out the competition will also allow you to determine whether there could be an actual market for the products you are trying to sell.
We suggest doing a few Google searches here for keywords. See what sort of results pop up. You may even want to jot down the names of the most popular websites, plus the details of their most popular products. You can use this information later on.
In addition to this, we suggest that you use major eCommerce sites like Amazon and eBay to do a bit of research into your competition. These sites are packed to the brim with dropshippers. When you check out these sites, you may want to see how often products are selling. eBay will tell you the actual stats, while on Amazon you can look at reviews.
So, what are you looking for when you check out the competition?
- That there are actually people in the market who are selling the products. If there isn't, then it is unlikely there will be buyers. This means that the niche isn't profitable.
- That there aren't too many 'big players' in the market. If there is, you may find it difficult to enter.
- That there is a chance that you will be able to compete on price
- The unique selling point (USP) of these companies. The key to running a successful business is to be able to differentiate yourself from other companies.
When it comes to how to start a dropshipping business, this is a stage that is going to require a lot of time and effort on your part. This is where you can determine whether your business is likely to succeed, or whether you need to head back to the drawing board when it comes to niche selection.
Finding suppliers
Once you have a niche in mind, you can start tracking down suppliers to work with. There is a wealth of information out there, and tons of resources that list suppliers you can work with. We are not here to go through all of that information. We are just here to teach you how to start a dropshipping business. So, when looking for suppliers, think about the following:
- The reviews that they have. Does the company have a reputation for selling quality products and shipping out on time? If they don't, it will reflect poorly on your business.
- The prices that they charge. This not only includes the 'cost price' of the product but shipping and other fees that need to be worked into the equation.
- Their range of stock. The greater their range, the more opportunity you have to expand your business later on.
- How long their business has been around. After all, you don't want to work with a company that is liable to disappear next year.
Do not go overboard with the suppliers that you work with at the start. Work with one or two reputable suppliers at the most by referring to 10 Best Dropshipping Suppliers.
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Building your site
Once you have everything else done, it is time to build up your website. There are plenty of ways you can do this. We recommend that you use Shopify to build your eCommerce site. Yes. It is going to cost money each month, but it is worth it when you realize just how simple it is to get your website up and running.
When you are building up your website, don't forget to think about the aesthetics of your brand. The website is going to be a reflection of your company. It needs to look good. It may be worth purchasing a decent theme (or hiring a designer) at this stage to craft a site that looks amazing. If you are using Shopify, then there should also be a few free themes available.
One thing that we suggest you absolutely do when building up your site is to give your products unique descriptions. Do not just copy and paste what the manufacturer gives you. Do something unique. You stand a much greater chance of gaining traffic like this. It is also a 'USP' for you. If you do not know how to write quality product descriptions, then it may be worth working with SaleYee dropshipping platform, which follows the product differentiation strategy to work with the sellers and offers customized product service.
It should probably go without saying, but no matter what route you go down when you are building your website, you will always want to ensure that you have a dedicated domain name for your site. Without one, it is going to be very difficult to make any headway when it comes to starting a dropshipping business.
Attracting customers
Now it is time to start gaining customers for your website.
During the early days of starting dropshipping, you will probably want to work with paid advertising. It is probably the quickest route to gaining customers. Obviously, it will cost you money, but if you plan your campaign well, then you will make much more than you spend.
Over time, you can start considering other ways to gain your traffic. This includes:
- Social media marketing
- Search engine optimization
- Newsletters
- Creating a blog
- Guest posting
Honestly, there are a wealth of options available to you. It is likely that you will need to do your research to ensure that you are utilizing the best methods to reach your target market.
Please remember that you should always be analyzing the data from any marketing campaign you are running. You need to constantly be tinkering with your marketing campaigns to ensure that they are as effective as possible. Once your dropshipping business is up and running, this is where you will be spending the vast majority of your time.
Expanding your business
Yes. This is a guide that was intended to teach you how to get started dropshipping. However, once the initial cash starts to roll in, we know that you are going to want to expand your business. After all, the larger your dropshipping business, the more profit you will be making.
We are not saying that you need to plan all the intricacies of expanding your business right now. If you did, then we can guarantee that any plans you write down will ultimately change. However, when you are starting a dropshipping business, it is always wise to write down how you see your business expanding in the future. This could mean considering:
- Expanding the range of products you have available in the niche you are operating in
- Expanding to a different niche so you are not putting all of your eggs in one basket
- Finding ways to reach different markets, e.g., new marketing campaigns
- Finding new websites to sell products on, e.g., Amazon
A company that doesn't plan to expand in the future is a company that is unlikely to grow. So, while it is not going to be your primary concern when you start dropshipping, you should always think a little bit about future money-making options. You may even want to jot down a few ideas when you are selecting your niche or researching your competition.
Conclusion
As you can see, when it comes to how to get started in dropshipping, there are a lot of things that you do need to think about. This is not a business model that you should be getting into if you are lazy. You are going to need to work hours each and every day once you start dropshipping, but it is honestly worth putting in that effort. The rewards can be virtually unlimited.
