Are you looking for a small business idea that you can start online?
Or a business where you don’t want to invest in the inventory or storage space?
If yes, read this guide until the end as we will discuss one of the most amazing business ideas. With this business, you do not have to worry about product inventory, storage, shipping, etc.
You need to bring orders for your store and all the above-mentioned processes will be taken care of by the supplier itself.
If you have not already guessed then let us share the name of this small business idea: It is called dropshipping.
In this article, we will be taking a look at how you can start a dropshipping business from scratch. But, before that, let us take a look at what dropshipping is and how it is different than a regular eCommerce business:
What is a Dropshipping Business?
Dropshipping is a popular business model where a store doesn’t keep the products it sells in stock.
Instead, when the store gets an order, it purchases the item from a third party (usually a wholesaler or manufacturer) and gets it shipped directly to the customer.
In simple terms, the store only works as a mediator selling the item without handling the physical product.
Here are some differences between dropshipping and regular eCommerce include:
- Inventory Management: In dropshipping, you don’t need to invest in inventory or manage stock levels. In traditional eCommerce, you purchase and manage inventory directly.
- Low Initial Investment: Since you don’t buy inventory upfront in dropshipping, the initial investment is typically lower compared to traditional eCommerce where you have to buy inventory in bulk.
- Logistics and Shipping: Dropshipping eliminates the need to handle shipping and fulfillment as the supplier takes care of it. In regular eCommerce, the seller is responsible for shipping logistics.
The above points show why dropshipping is a better business idea in many cases. Though there are some disadvantages too they will not be a concern for someone who is just starting in this field.
💡Also Read: Start a Biscuit Production Business
Business Idea: How to Start a Dropshipping Business?
Below are some of the most important steps that you need to take to convert your business idea into a working business model:
1. Market Research
As we always say, market research should be your very first step before you start with the process. You should research various other dropshipping stores, your target audience, different product categories, and more.
2. Choose a Niche
A niche means a specific segment of the market. For example, ‘kitchen appliances’ is one of the most popular niches for dropshipping stores.
Based on your market research, choose a specific niche that interests you. You can consider various factors like profitability, competition, and audience size.
3. Create a Business Plan
To make your dropshipping store a success, you should create a detailed business plan. You can include various things like your business strategy, budget, marketing plans, and more.
4. Select The Right Products
You will need to invest some time in the product selection process. Understand your market, see what products are trending, and research your competitors to find product ideas.
You can also consider various factors like profit margins, shipping times, quality, and demand.
5. Set Up Your Online Store
To sell your products online, you will need an online store. There are various platforms available to set up an online store including Shopify, WordPress, BigCommerce, etc.
Shopify is one of the most popular platforms for dropshipping as they have various plugins to connect with suppliers directly.
6. Prepare a Marketing Plan
To make your business idea a success, you need to prepare a solid marketing strategy.
Below are some ways in which you can market your dropshipping store initially:
- Run advertisements on Facebook and Instagram showcasing your product features
- Collaborate with influencers in your niche and pay them to promote your products
- Create short videos for your audience and publish them on YouTube, Instagram, TikTok, etc.
- Publish and share quality content related to your products answering user queries
- Organize contests and giveaways for your brand
Apart from that, you can also organize workshops and seminars to market your products initially.
So, this was a small guide on starting a small business of dropshipping items online. This business idea can succeed only if you focus on choosing the right products, marketing them well, and providing exceptional customer service.