Dropshipping is one of the most popular business models for eCommerce entrepreneurs. It allows you to start an online store without having to invest in inventory or overhead costs, which makes it a great option if you’re just starting out. However, dropshipping is different than traditional eCommerce because you never actually own any of the products that are sold in your store – instead, they’re shipped directly from the supplier to your customers when they place an order.
What is dropshipping?
Dropshipping is a business model where you don’t keep any inventory, but instead source products directly from manufacturers or wholesalers to sell online. You simply list items for sale on your website and when an order comes in, you purchase the item (or have it purchased for you) and have it shipped directly to the customer.
To get started with dropshipping, all you need is some basic knowledge of how to use a computer and be able to follow directions. There’s no need for expensive equipment or software because everything can be done online through the various marketplaces that support dropshipping (more on those later).
How to get started with dropshipping
Start by finding a product to sell. This can be as simple as searching for popular products on Amazon or eBay, or it could mean reaching out to local businesses to see if they have any items that would make good dropshipping products. Once you’ve found some good products, find a supplier for them and create your store.
Once you’ve got those two things lined up, it’s time to start marketing your store! This is where things get really fun because there are tons of different marketing strategies that can be used in order to make sales and bring in new customers (but we’ll talk more about those later). The important thing at this point is just getting people interested enough so that they visit your store.
If everything goes according to plan then hopefully by now people have started visiting your site and making purchases! Congratulations—you’re officially running an online business!
Dropshipping and wholesale: Key differences
In dropshipping, the retailer doesn’t hold any inventory and simply buys products from other wholesalers or manufacturers. The retailer then resells these products directly to customers. Dropshipping is a great way to test out products and make money at the same time—it’s a model that lets you start selling without having your own inventory or making upfront investments in inventory resources.
Wholesaling is a wholesale model where you buy products in bulk and sell them with your own brand on it (eBay, Amazon, etc). So instead of buying one item at a time (like dropshipping) you buy larger quantities of one type of product which allows you to sell them cheaper because there’s less margin between the buying price and selling price
How to create a dropshipping business plan
A business plan is a formal document that describes your company’s goals and strategies. It’s a key tool for both entrepreneurs and investors, as it helps you outline the steps needed to get your business off the ground.
A good business plan should include:
- A description of your company’s vision, mission statement, and values
- A description of how you’ll achieve your goals (specifics about how much money you’ll need and where it will come from)
- An explanation of any challenges or risks involved in achieving these goals
Finding products to sell in your store
- Find products that you are passionate about.
- Find products that you can source easily.
- Look for products that have a high demand and low competition, but also make sure they have a decent profit margin (you don’t want to sell something at a loss).
How to find the best suppliers for your dropshipping business
Finding the best suppliers for your dropshipping business will take time and effort. However, if you follow the steps below, you’ll be able to find a supplier that will allow your company to grow and flourish.
- Get recommendations from other sellers
- Check reviews of suppliers
- Ask for samples from multiple suppliers
- Check the supplier’s website for product quality and quantity information
- Check for shipping costs, delivery times, and customer service policies
Should you use Oberlo or an app like it?
- Oberlo is the best app for dropshipping. It’s free to use, and it has an enormous catalog of products that you can either source or sell on your store.
- If you want to start dropshipping but don’t know where to begin, start with Oberlo! Most people who use this app have found success in their business because of its large community of users and help guides.
In fact, there are many different guides available on the internet that teach readers how to use Oberlo as well as other similar apps like Shopify for example (though these two platforms are very different).
The biggest myths about dropshipping & how to avoid them
You would think that the number one question people have about dropshipping is:
- How much money can I make?
- Is this a get-rich-quick scheme?
I know you may be asking yourself this question right now. But before we dive into answering it, let’s do a quick overview of what dropshipping really is and dispel some common myths about the practice.
Dropshipping is all about low capital, and a high number of successful dropshippers have built successful businesses without huge upfront investment
Dropshipping is all about low capital, and a high number of successful dropshippers have built successful businesses without huge upfront investments. Why? Because dropshipping is a scalable business model.
It’s not just the fact that you can start with little or no money – but it is also one of the easiest models to get started with. The whole process can easily be automated, and there are many tools available to help with this automation process.
And it’s not just about getting started, but also making sure that your business will be profitable from day one!
The pros and cons of dropshipping
Dropshipping is a great way for you to get started quickly, and it’s also a lot easier than holding inventory. You don’t have to worry about managing shipping or handling returns. In addition, since dropshipping is an online business model, you can scale your business very quickly without having to worry about hiring more warehouse workers or increasing the size of your office space.
However, while the pros definitely outweigh the cons when it comes to dropshipping as an e-commerce business model choice, there are some drawbacks that must be addressed:
- The first con of dropshipping is that you’re reliant on your supplier. If they go out of business or change their terms and conditions in a way that hurts your ability as a seller (such as lowering prices), then this will affect both their relationship with customers and yours with them as well. This isn’t ideal because if one company goes out of business then all its customers might have no choice but find another supplier until someone else steps up with similar products at similar prices (which might take months!).
- Another con about being reliant on suppliers is that sometimes there are issues with quality control which means these items don’t turn out exactly how they should; this could result in lost sales from unsatisfied customers who refuse to purchase because they received subpar products instead! This leads me to my final point…
Q: What is dropshipping?
A: Dropshipping is a method of fulfilling orders by having the wholesaler or manufacturer ship the items directly to your customer. In a nutshell, it’s when you place an order for something and have it sent straight to your customer without ever touching it yourself. The biggest benefit of this system is that you can run an eCommerce store without having to buy inventory in advance.
This process can feel a little complicated at first, but we’ll walk you through each step so it’s easy! Read on for more information about how it works and how you can use dropshipping as part of your business strategy.
A 5-step plan for launching your first eCommerce store
- Choose a product to sell
- Build your website
- Get traffic to your site
- Sell the product and make money!
3 secrets to finding the perfect niche
Finding the perfect niche can seem like a daunting task, so we’re here to help! We’ve put together three secrets that will help you find the perfect niche for your dropshipping business:
- Find a niche with high demand. In order to be successful in dropshipping, you need to find products that people want and are willing to pay for. If you’re looking at an untapped market (meaning no one else is doing it), then there is more of a chance that customers will buy whatever product they see on your site!
- Find something you are passionate about. This may sound silly, but if you don’t love the things that your store sells then it won’t be fun running one! It’s important when starting anything new (especially an online business) that it makes sense for who YOU are as an individual–not just what might work best financially or logistically. By choosing something related to what interests YOU most–even if no one else has done it before–you’ll have more motivation when facing obstacles down the road.”
How to find the best products to sell online (in 2022)
The best products to sell online are the ones that are in high demand and have a low amount of competition. You can find these types of products by searching for items with a high average rating on Amazon or conducting keyword searches on Google Trends.
Once you’ve found a product that interests you, look at its profit margin. The higher the profit margin is, the more money there is left over after covering costs and manufacturing expenses (which can include shipping). A good rule of thumb is to aim for products with at least a 50% profit margin if possible–but remember it’s always worth checking out an item’s actual cost so you don’t get surprised later down the line when unexpected costs come along!
Dropshipping is a great way to get started in e-commerce. You can start with just a few hundred dollars and build up your business over time, without having to invest in inventory or other upfront costs. But there are also some drawbacks, so be sure to consider all the pros and cons before starting an online store!