Drop shipping is a popular business model for new entrepreneurs, especially millennials. If you are ready to start a business with a limited budget, then it’s possible to start an online dropshipping business. You don’t need to stock or handle the items you are selling – everything is done for you. Follow the six steps below to launch your online dropshipping business:
1. Decide what you want to do
Online dropshipping business is really wide and you have to decide what you really want to do. The area that you select needs to be something you are genuinely interested in. A product range that isn’t focused will be difficult to market. Here are some points to consider when selecting your business model:
- Focus on marketing and customer. When you are running a dropshipping business model, you need to find higher-priced products to get attractive profits.
- Even though your supplier or manufacturer will handle the shipping, shipping cost will affect your customers. Low shipping costs will attract more customers to choose your product and you also have the option of offering free shipping.
- Create your own brand. Your online dropshipping business will have more value if you can rebrand whatever it is you are selling. Look for a product or line you can white label and sell as your own brand with custom packaging and branding.
2. Research on the market competition
Online dropshipping has stiffer competition. You are not only competing with smaller business but giant retails too such as Lazada and Shoppe. If your business shows little to no competition, it is a sign that your products do not have demand. So, look for products that have competition so the business model is sustainable.
3. Secure a supplier
Find the right supplier, partnering with the wrong supplier can ruin your business. So it’s important to take your time and do research. If you are not confident with the supplier, move on and continue your search. If you are dealing with international suppliers, make sure you both don’t have any communication barrier.
4. Create a plan
There are several ways to atract potential customers, but the most effective option is to start a Facebook ad campaign. Facebook ad campaign allows you to generate sales and revenue, it allows you to place your offer directly in front of a highly targeted audience. It’s an easy way to leverage your existing customer base and generate revenue without additional advertising and marketing spend.
5. Analyze and optimize
Track all of the data to grow your business efficiently. You can utilise Google Analytics traffic and Facebook conversion pixel data. You need to constantly test new opportunity and fine-tune current campaigns, which allows you to know when to optimise or shift campaign spend.