Entering the world of entrepreneurship, a drop shipping Business of your own is a great initiative. The motto behind it will entirely base on your preferences. Starting from the selling of the products, to the product prices, to the marketing of your very own brand. Everything will be under your control. It will also save you from paying the inventories, until the product has been sold to a client. If you are adamant and willing to put in the effort, you can set up a successful business. For all the newbies out there, we will give you all the information that is required to start a dropshipping business of your own.
Start a Dropshipping Business
What is Dropshipping?
A business model, enabling you to run your own store, without being liable to inventories. Once the sale has been made, the supplier of your company will directly ship the products to your customer’s door step. The hassle of storing, shipping or even packing of your products is eliminated.
Is it a Good Idea to Start a Dropshipping Business?
Dropshipping business has the least of drawbacks when it comes to the risks in a business model. You have to pay only for the products that you will sell to the customers, and no other extra payments are your responsibility. The burden of inventories, creation of products, packaging and employee costs are all eliminated. All those who have just graduated from business school, with some or no incentives to begin with. It is a great opportunity for them to start a dropshipping business of their own. Moreover, the processing is not a hassle either. In this world of modern technology, everything is just a click away. However, some time is required by you on a daily basis and the only difficult part is the motivation to initiate it, everything else including opportunities are endless.
The niche does not necessarily have to be related to what the audience demands. Focus on what you are interested in genuinely. Lack of focus will lead to difficulties in marketing. A lot of effort is required to run a dropshipping business. Everything widely depends on how passionate you are about something, and a niche apart from your interests will be discouraging. A few factors need to be taken under consideration while selecting the niche. Some of which are listed below:
- A dropshipping business revolves around selling a cheap priced product just how you would sell an expensive one. So, select a niche with products of higher prices.
- Choose products that have a lower shipment cost, despite it being the responsibility of your supplier.
- Your products should cater to the upper socioeconomic class. Those who have the budget and potential to buy products on the spot. Offer the highest possible conversion rates.
- Sell products that are not already available in the local market.
- Rebrand whatever you are selling. Make sure your brand is self-named and has a customized packaging.
One of the most important key factors of a dropshipping business is a persuasive offer. Don’t be that store which never goes on sale. Lack of sales and bundles will demotivate clients who buy your products. Moreover, presenting the right deals with the right products will help you in converting them easily.
The most difficult part about a business is asking people to invest in your products. Fortunately, if they love your product, they would want to buy more of it. So, include similar category products in your bundles for a bigger sale at once.
Get your Finances Sorted
One of the biggest and most common mistake entrepreneurs make while starting a new business is blending their business finances with their personal ones. Leading to difficulties in accounting and immense confusion. It can cause misunderstandings in the business liabilities, which is a big “NO” if you are ever audited by IRS. The best way to do so is by opening a separate account under your name! Other things that need to be taken care of as well are:
- All business finances should be taken care of through one primary account. Be it monthly deposits, or withdrawal of expenses. It makes accounting easier.
- It is wise to make a separate PayPal account
- Make sure that your credit card is only for your dropshipping and business expense purposes. Moreover, more than normal usage of credit cards would help you get some rewards as well. So, stack up as many benefits as you can.
Last but not the least, it is very important to hire a trustworthy supplier. A notorious supplier can make your business go down the drain. Be vigilant about your suppliers, and communication with them is also very important, when it comes to the response speed and mutual understanding. Any doubts related to your supplier, stop right there and look for a new one.