What is dropshipping and how to do dropshipping explained
Before starting our topic about dropshipping you should be clear that why would you want to start a dropshipping business? Is it because of your research over the internet on how to earn money online from home? If you are starting dropshipping because you saw someone saying that it is the best way to earn money online then you are wrong. Yes, you can earn money from drop shipping but you should keep in mind that 90% of the drop shippers fail in this business.
Dropshipping provides you with the freedom of working from anywhere you want. If you want freedom in work then dropshipping is one of the best choices. But you should keep in mind that 90% of the drop shippers fail not because dropshipping is hard but the reason is they choose dropshipping business blindly because of the sports car they saw in some online gurus “how to earn money online with drop shipping” tutorials.
This is the reason today I am going to tell you about my personal experience and practical knowledge you should have about how to do dropshipping business. This article will not contain some over motivational imaginary tips but the practical knowledge from my experience of dropshipping.
In this article, I will answer all of your questions regarding dropshipping such as:
- What is dropshipping and why is it popular nowadays?
- How does dropshipping work?
- What are the pros and cons of dropshipping?
- Is it still possible to make money online with dropshipping?
- How do I start a dropshipping business?
- Where do I find dropshipping suppliers?
- How and where do I choose dropshipping products?
What is dropshipping?
Dropshipping is the form of retail business where the seller opens a store but doesn’t keeps products or goods in stock instead provide order details to third party suppliers who ship the order to the customer. Dropshipper doesn’t have control over quality, storage or shipping of goods but they do marketing of the products and find buyers. Doing that they take a small cut from the products they sold. Opening drop shipping store decreases the cost of the warehouse. This is the reason behind the growing popularity of the dropshipping business.
People also use amazon, Shopify, Aliexpress, eBay for dropshipping nowadays. This help to minimize the cost of setting up your own store online.
Is dropshipping still a good choice in 2020/2021?
Well without question, of course, dropshipping is still a good option for doing online business. You just need some prior knowledge and ask with drop shippers about telling you their experiences. So, if you want both then you are in the right place. Competition is everywhere and it increases with time and so does techniques. In this tutorial or step-by-step guide, we will discuss how to start a dropshipping business in a professional way to avoid getting lost. This guide is for the beginners who want to get into the dropshipping business.
How to do dropshipping explained
I will try to answer your every query regarding dropshipping as a beginner. Dropshipping might even change your life as it did with me. It doesn’t guarantee success in dropshipping business, but if you are really going to take my advice and till seriously and put efforts, then you will have a better chance of success than most. How to do dropshipping? Here are the 14 points which I have separated to make you understand about dropshipping in a simple way.
Step 1: Mind makeup – Are you ready to start?
Before you even start, you need to have the right mindset. You should make the mindset of showing consistency and patience. Knowledge is power but the mindset is the tank that holds that power. So, be sure if you really want to be drop shippers and start dropshipping and then only start the next step.
Step 2: Take time learning
You can’t expect to be successful at a business if you know nothing about it. You should take time learning about the dropshipping and how it really works. Find as much as online courses you can and never ever buy the courses. You will get the main theme and general knowledge about dropshipping for free from any sources like youtube or google. Rest skill and techniques you will acquire yourself while doing dropshipping. Never stop learning.
Step 3: Analyze your competitor
It’s important to research and analyze your competition before you enter your niche. Find the best sellers of your sector. Research how they attract customers and what sort of store design, marketing techniques they use. After that point out their flaws and improve them and add in your store including the techniques they used to get success. There is no ending for competition if you dunno how to give up. You can rapidly grow if you choose correct rival.
Step 4: Unique and different
It is good to sell a trending product if you are looking to earn money for the short term. People craze and choice changes per time and trending goods arent always trending. It is better to sell trending products along with a product which makes you recognizable in the market. For example, You can establish yourself as a pickles shop and your name should be in everyone’s mouth if they are looking for pickles. Choose a unique niche and don’t forget to sell trending products too.
Step 5: Choose a suitable niche
Your passion is your key to success. Don’t open a store of books if you love fashion and clothes. Find the correct niche on which you have high knowledge.
Step 6: Choose the right products
Choosing the right products is the hardest part that arises in dropshipping business. You need to consider quality and study market need. It’s really hard to find what sort of goods people buy. So, study the market first before opening the store.
Step 7: Finding the right suppliers
After finding the correct product you need to find the right suppliers. Suppliers should not only be cheap but also trustable and reliable. Establishing long term relationship with the right suppliers and cutting off ties with unreliable one is a crucial factor. You must be bold while finding the right suppliers because this is the step which determines how much profit you can make from the dropshipping business.
Step 8: Building yourself as a brand
Nowadays you find hundreds of online store and only 2/3 of them you can remember. Building your name and impression is an important step in dropshipping business. People must remember your name when they are thinking of buying a product. Advertising, proper name and logo and attractive web design play an important role in establishing yourself as a brand.
Step 9: Offer great value for products
You should follow up with legal procedures for establishing yourself as a powerful and big business. You should be updated with local and international tax. Provide offers to your customers so that they can find you a great deal provider when they visit next time. Providing discounts attract customers and make them regular.
Step 10: Have a proper plan and strategy
Make a template or set up a flowchart on how you are planning to start your dropshipping business. For example, Your first step is always market analysis to find out trending product. Use social media or feeds to get peoples opinion. Then build a store and choose correct products. The proper strategy is 50% success and 50% success is determined by your efforts. This is another crucial step on how to do dropshipping business.
Step 11: Build your store
Your first step of dropshipping is building store but we are placing it in 11 number. You must choose the proper niche, find a correct supplier and have research on the competition at first. Competition research really helps you to establish you faster as you not only learn difficulty but also learn the way your competitors follow. After that, you should build your store. Choose the proper name, niche and follow all the upper discussed tactics.
Step 12: Marketing and advertising
Marketing and advertising is the most important factor in the dropshipping business. Advertising on Facebook and Instagram, email marketing, ads on google or youtube platform really plays a great role to reach the correct market. Tracking features of these media help you to find the customers really fast. So, don’t be greedy about spending some money on advertising because advertising is an investment.
Advertising not only promotes your product and find customer but also helps to spread your store name. This help inflow of customers with the time and helps to reach more.
Step 13: Be realistic and have patience
You should be more realistic and have patience. Success doesn’t come overnight. Dropshipping is a really hard business to be realistic as there are about 30 million online stores and only 20% of them make some good sales. That is the reason behind telling don’t get fooled by some tutorials given by online gurus on how to do dropshipping.
You should set realistic goals. Setting high goals like having $1 million sells in the first year will give you demotivation only and make you disappointed. Breakdown your goals and make them small. Your first 6 month- 1 year is going to be really tough. Never lose hope and have patience. I had sell of less than $50k in my first year but gradually it increased with time. You will understand the market and gain more knowledge with time and experience.
Step 14: Now decide if you want to do dropshipping.
After you have gone through the steps I have mentioned you might have found out if you actually want to do dropshipping or not. I hope you read this not only a way to gain tips but as a case study. Don’t do dropshipping because you saw it attractive on some videos or articles. If you are really willing to put effort and do dropshipping business then you must have positive attitudes and patience. Gain as much knowledge as you can and don’t ever pay for the courses. I think my guide helped you to setup mind about how to do dropshipping. If you have any queries then feel free to contact us or leave a comment below.