With the evolution of internet and eCommerce, drop shipping has increased multi-fold. Even many of the prominent manufacturers worldwide are going into drop shipping business and opening huge opportunities for investors and business starters. Since there are no inventory costs, drop shipping allows those with even the smallest budget to get started selling online. It offers the opportunity to make unlimited income with very little risk on your end. For obvious reasons, drop shipping has become a very popular form of eCommerce. But it’s not as simple as it sounds. The popularity of drop shipping has made it a prime target for scammers and middlemen.
Like any business, a drop ship business will also require efficient execution and some of the best level of pre-planning. But here, in this article, we’ll discuss how to start a smart drop shipping business. If you are really keen to go for a drop shipping business, this article may be a guide to you to start your drop business much efficiently and that too without many hurdles. You just need to commit your little resources, effort and time and all will be well. Below are some tips on how to start a drop shipping business.
Plan Your Budget
This is the very first step for any business venture. You need to allocate your resources to various categories, such as website development, getting associated with a supply chain, marketing promotion and some overhead costs for business listing and associated expenses. Always remember, a good plan results in good and systematic return. Hence plan must be thorough with a review of all possible aspects of starting a business. If you are worried about how to plan, you may take a couple of hours to search on the internet about planning a drop ship business.
Start Building an Attractive Website
Once you plan your budget, your next move should be to start from the very basic requirements of a website. The website should be a responsive one, with space for integration of products, space for description and a good backend CMS system. Also, you should host your website on a good hosting server with the best uptime guarantee so as to run freely with loads of concurrent users.
Search for a Good Supply Chain
There are quite many good drop ship companies around the world. When searching for a drop shipper online, you’re more than likely to come across a slew of middlemen and MLM product sourcing sites. Many of them are run by the same companies and operate under multiple aliases. They often claim to offer thousands of designer wholesale products that you can sell and make 75% or 100% profits. Often, they will charge you a monthly fee to access inventory.
Regardless of the places you go to look for suppliers you also need to pay attention to the red flags that might point out that a supplier is not that great. It’s crucial for you to find helpful and reliable suppliers in your drop shipping journey. Here are some simple tips to show you that you’re dealing with a middleman:
- They charge monthly fees
- They try to sell you anything other than wholesale goods
- They don’t ask for a tax ID or resale certificate
- They offer similar product lines as another site or operate under multiple names
Once you have made your website ready, fixed the supply chain to deliver your orders, the next important thing you’ll need to do is marketing. Start campaigning for your site through your friends and associates. Use Social Media to reach out to people, use paid advertisement such as Google Ads for instant reach to target audience. Plan with content marketing strategy; sit down to write some useful and unique content for your website. This will be beneficial over a long run. Try to email your contacts introducing your new web store.
With these simple steps, you can start your drop ship company hardly within a week. You just need to plan adequately and move with online marketing to get good exposure and good reach to your target customers.
Building your own eCommerce store is easier than ever thanks to all the free shopping cart software out there. Many of them are highly customizable and don’t require any programming on your end. Try to find other ways to get your products in front of customers besides eBay. Think outside the box, and you’ll achieve much better results. Don’t do what everyone else is doing. Come up with a solid marketing plan and follow through. As you need not bother about the shipment of the products, you can operate your drop ship business from any corner of the world without much worry and can generate some significant returns on such a lucrative business. Click here Ecommerce Tips: How to Sell Online