Do you want to dip your toes into
online business but do not know how? Or do you already have a physical business
but want to venture into e-commerce? Dropshipping might be the perfect way to
start your online business. Have you ever heard of a dropshipping business? If
not, do not worry, this article will enlighten you on how to start a
dropshipping business, how it works, why you should venture into it and the
steps of creating the business.
What is Dropshipping?
Dropshipping is an online business
model where you sell products to consumers without keeping any stock. You
advertise products on your online store, and when a customer makes a purchase,
a third party—such as a wholesaler or manufacturer—ships the product directly
to the customer. The customer pays the price you have set for the item, and you
pay the third party the wholesale price, keeping the difference as your profit.
Why Start a Dropshipping Business?
Dropshipping is a low risk-business.
You do not need to have or create the product, package goods, store inventory
or even ship the goods. All you have to do is sell the product and pay the
third party their cut. If the customer has a problem with the product, they can
reach out to you. However, some suppliers deal with customers whenever there is
an issue with the product.
Steps To Start a
Dropshipping Business
Build an online store. You can build
your online store by creating a website to publicize the products you intend to
sell. Alternatively, you can use already–made platforms such as Jumia or Amazon
to sell.
1.
Decide On a Niche/ Products You
Want To Sell
Research the viability of the products
you want to sell before deciding on the product you wish to trade in your
online store. You should choose products that you are familiar with. Also, it
would be best if you establish the profit margin of the products.
2.
Look For Reliable Suppliers Who
Will Dropship for You
After deciding the type of products you
want to sell, you should locate wholesalers or suppliers willing to ship the
products. The factors you must consider for a drop shipper are their
reliability and delivery span. It would be best to choose suppliers with a
shorter span of delivery to avoid conflicts with the customers. You can check
the suppliers' performance and deliveries through discussion forums, reviews or
on social media platforms.
3.
Get Product Information
After you have chosen the suppliers and
the products you want to sell, get information about the products. The
information should include a description of the product, prices and images.
This will help you publicize the products in your store. Sometimes, e-commerce
platforms have features on their website that help with the process.
4.
Register with your Dropshipper
You should sign an agreement form with
your drop shipper. Having terms and conditions in your business will help the
corporation become more efficient.
5.
Advertise Your Products
Make your store known to your potential
customers. You can advertise your products through paid ads on social media
platforms such as Facebook and Instagram. Another efficient option is starting
a blog related to your products. A blog will help you generate website traffic,
leading to sales.
6.
Order Placement
Customers will visit your store, check
on the product listings and place an order for the products they want to
purchase.
7.
Contact Supplier
When a customer orders the item,
contact the supplier immediately. Provide the supplier with the customer's
information, product details and shipping address. The information will help
the supplier drop ship the product to the customer.
8.
Make a Follow-Up on the Order
After the supplier ships the order to
the customer, make a follow-up to ensure that the customer is satisfied with the
product. Just because you have made a sale does not mean business has ended.
The customer might have some problems with the product, which you need to
resolve. Also, making a follow-up creates a rapport with the client, which
might make them buy from you again. Ensure that your supplier provides you with
a tracking code that will help you monitor the product's delivery.
Final thoughts,
Dropshipping offers a great opportunity
to launch an e-commerce venture. With minimal tasks such as owning a physical store,
packaging products or managing stock movements, you can focus more on earning.
It is crucial to establish agreements with your suppliers or dropshippers to
ensure consistent product quality, thereby minimizing customer complaints.
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