Are you looking to start drop shipping online? Read more to find a handy guide on how to jumpstart your online drop shipping business!
Drop shipping was basically unheard of just a few years ago. Now, it’s one of the fastest growing e-commerce models, and everyone wants to get into it! But first: what is drop shipping, exactly?
What Drop Shipping Is
Drop shipping is a retail model wherein you don’t keep an inventory. The traditional methods of selling are usually:
- Making your own products and selling them; or
- Purchasing items in bulk and resell.
In drop shipping, you partner with a wholesale company that houses inventories of various products. You get your customer’s orders, and then give these to your wholesale supplier. Your wholesale partner will then ship the orders straight to your customer!
The Pros and Cons of Drop Shipping
There are many advantages when you decide to delve into drop shipping. Some of these include:
- No more worries with inventory and stocks of products;
- A wider product offering;
- Less capital needed to start the business;
- Easy to test out new products and product lines; and
- Efficiency and convenience for the business owner.
However, of course, drop shipping also comes with its disadvantages. For one, you might not have all of the product information that you need. This is especially important if your customers ask about product details! You might also encounter problems with complicated processing systems and issues with customer service. Finally, since you’re only selling items from a wholesaler, you’ll definitely find great competition.
Still, many have earned great profits from drop shipping. This is the main reason why many people still flock to drop shipping!
How Do I Start Drop Shipping?
Drop shipping is one of the simplest and easiest businesses to start. Here are the most basic steps on how to start your very own drop shipping business:
- Research and find a good wholesale supplier. There are many online directories with reputable wholesale suppliers. Make sure that they are professional and trustworthy! You should look into their quality control, warranties, shipping methods, and delivery efficiency. You should also consider their fees and costs.
- Choose the right products and work on your marketing. You can do lots of research methods and use tools to find out which products to sell. You can look at the customers’ demand, trending searches, and your own competition. You should also select the correct target market to sell your products more efficiently!
- Get your papers straightened out. This will really mark the start of your business! Get your papers ready and file all the requirements. These include papers on taxes, employer identification, and yes, even your bank accounts. You’ll need a separate bank account for your business for smoother transactions!
- Pick where you want to sell. There are lots of available platforms online! The most popular ones include eBay, Amazon, and Bonanza. What’s great with these platforms is that they’re already very efficient and systematic. But you could also start your very own online store. This is great for those who want more control with their business. You also get to avoid big third-party fees!
- Manage your products and sell, sell, sell! Once you’ve done all the previous steps and listed all your products, you’re now good to go! Make sure that you provide great customer service so that people would keep coming back to your store.
Good luck, and we wish you success with your drop shipping business!