Starting a dropshipping business is one of the easiest ways to make a living online right now. The rapid growth of platforms such as eBay, Etsy, and Amazon means that these days, starting an online store is easier and cheaper than ever for anybody. If you’re thinking of starting a dropshipping business either on the side of your career or as a full-time job, keep these top tips for getting started in mind.
What is Dropshipping?
Dropshipping is a method of supply chain management where a company doesn’t keep their own products in stock, but instead, sends customer order details and shipping details to a third party – either a wholesaler, another retailer, or the manufacturer – who will then ship the goods to the customer directly. This means that as a dropshipper, you don’t have to purchase and store stock in bulk, which allows you to save a lot of money upfront. It also helps you avoid the risk of purchasing stock in bulk and being unable to move it all. Dropshipping is a popular model because it requires minimal investment with all the benefits.
What You Need to Get Started
You’ve got a good worth ethic, a desire to succeed, a positive attitude, and you’re committed to making your new business venture succeed. So, what else do you need to start a successful dropshipping business? First of all, you’ll need a product to sell and a supplier who works with dropshippers. You’ll also need to get a sales tax ID and a suitable platform to sell your product on.
Finding a Niche and a Supplier
Choosing a niche is the first step to starting your dropshipping business. Bear in mind that the increasing popularity of dropshipping means that it is getting more and more difficult to find a niche that isn’t saturated already, but there are new products emerging on a regular basis. Choose a niche where you have knowledge of and passion about the product. You might want to consider choosing a niche that has solved a problem for you; chances are that others will have the same issue and be looking for solutions. You should also spend some time researching the competition. Ideally, you should opt for a niche with low to medium competition.
Choosing a Selling Platform
Once you’ve figured out your niche and have a supplier lined up, you’ll need a place where you can sell your product and make a profit. Choosing the right online marketplace or selling platform is imperative to your business’ success, but with so many out there, which is the right one for you?
Online marketplaces like Amazon and eBay are often ideal for beginners since it’s easy to set up and start selling, and they are already trusted by consumers. However, you have limited control over things like branding and will be charged fees for each sale. On the other hand, creating your own online store can be cheaper in terms of fees and while it may require more upfront investment, it gives you complete control over branding, customer service, and much more.
Starting a dropshipping business is one of the simplest ways to become your own boss in 2020, with unlimited opportunities available.