An Easy Way To Start A Dropshipping Business With The Best Guidance And Tools
An Easy Way To Start A Dropshipping Business With The Best Guidance And Tools
Do you want more than ever to start your own online store and get a little extra cash every month without leaving the comfort of your home? Well dropshipping is the amazing technology for you.
Well, imagine you set up a lemonade store but don’t actually need to buy the cups, lemons, sugar, or juicer. All you have to do is market lemonade and get the orders. Your supplier will deliver a glass of lemonade directly to the customers.
This is Dropshipping !
We know what you’re thinking, ” Maybe I should become a web developer to do this .” This is what we thought, too. But the good news is that you don’t need any technical experience, you just have to know where to start.
This guide will explain the following points:
- Explain what is dropshipping?
- How to find a supplier and start getting paid by dropshipping.
- We’ll show you the best free platforms to start Dropshipping .
Even before you find a dropshipping supplier that you are comfortable and happy with, you need to choose the best way to present your products to customers.
That ‘s why we’re going to show you your best options for creating a dropshipping business , including using Amazon, eBay. And why would building your store on a platform like Shopify be a better option for you.
Our top-rated best online store building platform is Shopify as it currently offers a free dropshipping tutorial to help you get products and start selling. To get the free webinar, click on the link below.
FREE SHOPIFY TUTORIAL
If you don’t have good technical knowledge, but are just trying to get a little bit of passive income, then this guide will show you how to achieve it the easiest way.
Whereas, one in three online retailers now uses dropshipping as the main method of profit and by the end of this guide you should be able to join it.
Overview of this discussion
In this topic, you will get to know all the details related to Dropshipping, through the following points:
- What is dropshipping?
- The pros and cons of dropshipping.
- Is dropshipping legal?
- How to start dropshipping – 4 main steps.
- How to find a dropshipping supplier you can trust.
- What products should you avoid?
- Dropshipping on Amazon and eBay.
The best online store building platforms for dropshipping
What is dropshipping?
In short, here’s how dropshipping works:
You receive an order with payments for a product listed on your website.
You can pass that request, along with shipping details, to the supplier, usually the wholesaler or manufacturer with whom you have built a relationship, and you pay the cost of the product at a price lower than the price you’re offering.
Starting from now the supplier will take over the task completely and send the product with his brand and contact details to the customer.
You never need to purchase stock of products – you don’t need to invest your money in order to get out of the ordeal that you are in.
You also don’t need to see or deal with the product yourself, so you won’t have to worry about managing inventory, stressing yourself out to sort out storage space or spending time and money in order to make sure orders are delivered on time.
You can profit on the difference between the sale price and the purchase price – good for you, good for the supplier, good for the customer. Everyone is a winner here .
Simply. Generally the customer will not even know that you have dropshipping because private label shipping allows you to deliver products from the wholesaler with details of return address and custom invoice.
This will be as if you hand over a cold glass of lemonade to the client yourself.
This means you can be your own brand – because this allows you to build a trustworthy reputation among customers (and even buy from you over and over again). It also means that customers cannot go directly to the wholesaler to find out who is supplying the products to you. Protecting your business connections is important in the competitive world of dropshipping.
The infographic below summarizes the dropshipping process:
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- How to create a WordPress site in 20 minutes with important tips to market it and profit from it
- How to create an online store.
- 20 of the best ways to make money from your website
What are the pros and cons of dropshipping?
The positives of dropshipping
- The Cheap Process To Start With – You can start an e-commerce store without spending a lot of money. This option gives you financial security as you don’t have to purchase products until you receive payment from a customer.
- Easy to do – you won’t have to deal with physical products, stock levels, and warehouse inventory.
Well then what? This gives you more time to continue improving your platform and fine-tuning your store design.
- You can have great flexibility – do your work from your bedroom, coffee shop, or library – wherever you can get an internet connection. You don’t have to spend money to rent a workplace or hire employees.
- Scalable process – If your business is successful, it is the supplier that will be the one who will be tasked with handling the surge, not you. So you can focus on growing your brand with better designs and improving customer service.
- Large and Diverse Products – Since you can view products before purchasing them, this means that you can offer a wide range of goods. You can jump in and out of the markets where and when you find the hot opportunity.
- A decrease start -up costs – with no stock to buy or warehouse to pay for it, you can start Aldrobesepeng with very little money. Perfect if you are looking to start an e-commerce website as a side business.
GET STARTED DROPSHIPPING WITH SHOPIFY TODAY
The downsides of dropshipping
- You are the one taking the blame – it will be you who is at the shop window, know that customers will blame you when a supplier makes a mistake while arranging their orders. This means that you will have to deal with customer complaints, even if it is not your fault.
- Shipping issues – Working with different suppliers can complicate shipping costs. For example, if a customer orders two items that are available from different suppliers, you’ll get shipping fees from both. Passing costs on to the customer is risky, so you may have to raise your shipping fees, or limit yourself to a single supplier for your business and reduce the risk of selling your range of products.
- Staying aware of stock availability – Staying aware of items actually available to your suppliers takes time. You have to do this frequently, or you may end up like advertising products that cannot actually offer anything. Here’s a quick recipe to make an angry customer!
- Low Profit Margins – The downside to lower store start-up costs and lower overheads are lower profit margins. Often times you have to compete to set the lowest price, and you will feel pressured to sell cheaper than you expected.
Is dropshipping legal?
This is a common question so we thought we were going to remove it.
Yes, dropshipping is legal. The number of different people involved in this process – the store owner (you), the manufacturer (the supplier), the platform (Shopify, for example) and the customer , to name a few – means there is unavoidable confusion about where the blame and responsibility are. There are a number of things to consider when starting an e-commerce website.
- Do you comply with anti-spam laws? You’re probably working on collecting customers’ email addresses and marketing dropshipping products to them, so make sure that any email marketing is on the map.
- Have you registered your trademark? Or your copyright? Remember, in competitive dropshipping, your brand name is one of the things that helps you stand out, so look to do it!
- Looking for your customer data? Just because you haven’t touched the product doesn’t mean you aren’t collecting important data.
- Laws change all the time – not to mention they differ depending on the country or state you are in – so it’s important to make sure you check the latest legislation periodically. Running a dropshipping site without checking the rules first would be like buying a car without a valid license. Not a good idea! Make sure to always check the rules and regulations of your country before starting any e-commerce activity.
Is starting dropshipping easy?
Are there any hindrances?
Thanks to the drag and drop feature of website builders, you don’t have to be a web developer and a Harvard education certificate to start an e-business anymore – you need to know where to start.
Once you have set up your e-commerce site (if you need advice on how to do so, follow this link ), the first step is to find a supplier that offers you the opportunity to start your business and start receiving orders. Although dropshipping is relatively uncomplicated (we did this very quickly when testing our e-commerce ideas), it pays to do your research before shipping to all regions around the world.
Find a dropshipping supplier
There are several ways to find a wholesaler or manufacturer that works on dropships:
- Contact the manufacturer directly – once you find the product you prefer to market, contact the manufacturer using the details listed on the product and request a list of wholesale suppliers. Then ask her if these suppliers support dropshipping. Make sure your language is simple and professional – there will be less chance to work with you if your email is dirty!
- Using an e-commerce website – There are some plugins that enable you to automatically import products into your store from dropshipping suppliers. We recommend a plugin like Oberlo from Shopify (we’ll learn more about this later).
Attending a trade fair – a great way to find suppliers, but it will cost you time and money, and you will need a clear idea of the products that you will sell. Meeting with your supplier face to face is a great way to build the perfect relationship. Who knows, it might lead to a better rate or an improvement in the payment terms. You need to do a quick Google search to find suppliers through trade shows.
Buying from your competitors – that’s a bit of an industry hack. Suppose you struggle to find a wholesaler for a specific product; Buying from a competitor that you think works on the dropshipping model, use Google to obtain details of the return address to locate the original supplier.
Things to do before you start dropshipping
The legal requirements to run a dropshipping company vary from state to state, so check, check and double-check that what you are doing matches all standards in your country. This can rid you of more unexpected troubles. And remember, laws change all the time, so you should stay up-to-date, such as submitting an annual report, to ensure your compliance.
Most of the true wholesalers and manufacturers will not do business with you unless you can provide an EIN (Employment Identification Number). If you pay taxes, you need one if your country requires it. Even if you don’t have any employees, you need this number.
Having an EIN is also really helpful for maintaining a distance between personal, business and financial taxes. Getting a contract is simple and inexpensive – just check the IRS website.
Registering your business name and domain name with the relevant authorities will protect your premium company name from being reused.
It’s very important to get the right attorney if you are not sure which boxes you need to check to run your dropshipping business.Distinguished advice: You can use cashback sites when making purchases to obtain a financial return from them and reduce the cost from the price of the product, thus making sure that you will sell at the lowest price, the best cashback site is MegaBonus .An example of this: Suppose you want to buy a product at $ 100 from the Aliexpress website and want to sell it on eBay for $ 125. Profit.
Get visits to your dropshipping e-commerce site
Successfully marketing an ecommerce store may mean that you need to become familiar with tools like Google Ads and Facebook Ads.
Without the traffic to your page, how do you go about getting any sales? This would be like writing a great novel but not set in any libraries.
You need to gain an elementary knowledge of tools like Facebook and Google Ads, and develop your skills in improving your site’s appearance in search engines , which drives a lot of traffic to your site. This takes a little work, but it is doable.
Marketing expert Neil Patel has a step-by-step guide for Google Ads and Facebook Ads providing guidance on running ads. Also, checking the integration of store building platforms with available apps and social media is worth it.
Other useful pages:
- 6 creative ways to get more money online
- How to invest in the stock market using the eToro platform
4. Who gets into a dropshipping business?
So now you know how to find a supplier so now is the time to learn to take control of any dropshipping business.
- Wholesaler – buys in bulk from manufacturers and sells to retailers or the public with his own brand. Usually its stock consists of a wide range of products from manufacturers. Many times it will only sell to retailers.
- Supplier – in this directory means the organization / individual who is able to provide you with the products you need.
- Manufacturer – manufactures the product and usually sells in bulk to wholesalers and retailers.
- Retailer – You! If you sell products to consumers in small quantities, you are a retailer.
How to find a dropshipping supplier you can trust
Dropshipping isn’t just about finding a supplier, it’s about finding the right supplier.
Your dropshipping business will only be good if your supplier is good.
An unreliable supplier can cause all kinds of headaches, from late shipment and poor product quality to communication problems, ineffective payment methods and delays.
Any of this will reflect poorly on your branding, not to mention consuming valuable time you could spend honing your website design or the payment verification process.
It would be like putting all your effort into creating the best lemon squeezer, just to work with a grocer who uses rotten lemons.
Worse yet, the supplier may be a fraudster and working with him can cost you much more than an unhappy customer. You may take money out of your pocket.
The most important tip: Before entering into an enduring relationship with a supplier, be sure to request a sample of the product to test its delivery time and quality. Think of this as taking a car to test drive before taking out your checkbook and handing the money to its owner.Related: Explanation of registering with Bitgold Bank, requesting a Mastercard card to reach all countries of the world, and activating PayPal for free
Finding a fraudulent dropshipping supplier
One of the biggest challenges is sorting the real wholesalers from the fictitious – the companies or individuals who act as middlemen between the retailer and the wholesaler, who pop up in search results and who pretend to be the legitimate wholesalers.
Why is this important? After all, I still got the product I needed.
True, but the wholesalers make the purchase directly from the manufacturer, and they will be able to offer you the best prices.
With a lower price, you can sell your product at a lower price which enables you to win customers easily. You have to be able to purchase more quantity for less money.
For the broker, at the same time, it will eat off your profit margins.
Here are the warning signs you should consider while evaluating a dropshipping supplier:
- He asks for ongoing fees or fraudulent fees to do business with him. A true wholesaler will make nine out of ten of their money by selling their products to you, instead of the normal fees.
- It has the minimum spend – perhaps its best to avoid even if it looks legit as mistakes can happen with too many requests.
- Show the products to the public at “wholesale prices” – most likely the retailer inflating their profits.
Not every supplier you work with will be deceptive and mess up your plans. Don’t worry, you have to benefit from trial and error and this is part of the process.
Find a trustworthy dropshipping supplier with 6 questions
Different online store building platforms have different mechanisms in place to help you identify a reliable supplier. We’ll showcase them later, but for now, here are 6 questions you have to ask your supplier that will help you find a good dropshipping supplier:
6 questions to ask a dropshipping supplier:
- Do you offer a dedicated sales representative?
- Are your techniques good? For example, does it have a real-time update of stock status and order history for searching online? This will really help you ensure that your business is doing well.
- Can you receive requests via email? this is important. Submitting each order over the phone or manually on the site will take the time you could spend arranging your site or improving your sales channel.
- What is the estimated delivery time? Is it reasonably fast? The shopper hates to be kept waiting and short delivery times help your brand to stand out. If the supplier is located specifically in the United States, for example, then he is more likely to be able to deliver products to anywhere in the country in a reasonable number of days. If you use wholesaler from other country or foreign manufacturer like China supplier Aliexpress , check if seller supports ePacket shipping. ePacket is an agreement between the United States Postal Service and Hong Kong that allows products to be delivered super-fast from China to other countries.
- Do you have a powerful tracking system? Not only does the proper tracking information relax your mind, it also means you have to have accurate updates to give to your customer about their product’s location.
- Can I use your product photos? Using high-quality product images will make your site look more professional.
If the answer is yes to most or all of these questions, you may be the winner.
What dropshipping products should I sell?
The dropshipping business is very competitive because it is so cheap and easy to start, so the products and platform you choose needs deep thinking.
Profit margins (the difference between the selling price and the cost you paid to the supplier) vary by product, but are usually in the 10-15% range. High-end electronics tend to yield smaller profits. For example, if you buy $ 100 accessories for an iPhone, you can expect to receive between $ 100 and $ 115 (or local currency equivalent) in earnings.Top Tip: Identify a product that you know and who you’re interested in. The customer will be able to know if you are selling something that you have no idea about. If your product area is a specific field (electronics), the better.
You also need to check there are enough “hungry customers” for your product to make it profitable.
How to research the right products for your e-commerce business
Doing keyword research in your content and determining the number of advertisers can help you gauge whether or not there is a market for what you offer.
Use Google Trends (a tool that measures the popularity of different search topics over time) to find products that have seen a sudden surge in interest. Enter a generic term such as “ Buy Online ,” and set the time to the past 90 days and search for inquiries or related topics. There could be potential product ideas. This is less of an exact science, but a useful starting point.
For example, put ” Buy Online ” in Google Trends, and specify the country, the United States, and the time period during the last 90 days . Here are three product suggestions that came out of the “ Related Searches ” section of our experience (related queries are terms used that were searched by entering the original text, “ Buy Online ”, into Google’s search engine):
- Electronic games
- school books
- the glasses
These terms are rising in popularity and are being searched for by people searching for ” online purchase ” on Google. It clearly shows that there is demand, so you might want to consider creating an offer!
How to check bad products
Here’s a quick checklist to help you avoid bad products:
- Is the profit margin suspiciously high?
- Is the product different on the wholesaler’s website compared to the manufacturer’s website? Find colors, patterns, etc.
- Did the manufacturer check the wholesaler? To be completely sure, contact the manufacturer and ask if the supplier is selling genuine goods. Selling fake products can be a fatal blow to your business. Customers will not trust you and you may face serious legal problems.
I prefer to act safely to avoid the word sorry. That is, to investigate the error
After setting up an e-commerce store, it is imperative to make your products look as eye-catching and attractive as possible. If you don’t know why you chose your products, or why people should buy them, how will your customers react?
Dropshipping on Amazon and eBay – Willingness to Let Go of Control
Amazon and eBay are the two largest shopping sites in the world.
We think you’ve heard about them. Both platforms help connect you with customers (although Amazon also has a store and sells its own).
And both come with widely similar benefits if you are looking to dropship online:
You don’t need to spend a lot of time and money on marketing or SEO (search results) optimization. Amazon and eBay already have a lot of traffic.
You can set up your store very quickly – just create an account, add the product and you sell your products.
Having a customer service team means you’ll get help when things go wrong.
Fulfillment by Amazon – the company’s warehouse service – allows you to speed up the delivery of your products.
Well, why not use Amazon or eBay?
Well, when you use either one you will instantly give up control of your business. From how your products will appear to your store design, you’ll be playing with the rules of either Amazon or eBay.
With online store building platforms like Shopify, this isn’t the case. You have more control over your business.
Because both platforms look positive to users with the DropShipping business, selling on Amazon or eBay can feel restrictive. Because it limits your creativity because you won’t be able to list as much of your design as you like, and it will affect your profit because they both contain a list of signup fees that will eat up your profit margins (which are really insignificant because you are dropshipping). Amazon fees vary by product type but are usually more than 10%, while eBay charges at 10% on the total amount of the sale.Related: An explanation of how to more than triple your profit through AdfLy for the year 2020
Sellers also complain that PayPal is withholding money earned on products they sell through eBay because it believes the risk of a buyer being dissatisfied is higher.The big downside to dropshipping on Amazon or eBay is the lack of freedom to build a business with your personality. Your branding, UX (user experience), marketing, color scheme and everything else when doing it should follow Amazon or eBay’s guidelines.
This isn’t a very exciting prospect for someone like you trying to create a business and brand, is it? If you couldn’t express your business personality, how could you stand out and make yourself memorable?
Online store building platforms provide a lot more flexibility if you’re looking to launch a custom dropshipping business.
Another reason you might think twice before using Amazon or eBay is the potential difficulties in managing inventory. Without any kind of inventory management tools available from some online store builder platforms, you may have to put in a lot of multiple sourcing sources for the same product to ensure that you can actually deliver customer orders.
The seller doesn’t want to tell the customer who made them pass along the purchase of ‘ Sorry, the item is out of stock ‘. It reflects poorly on your branding and can cost you refunds and lost sales.
It doesn’t hurt the wholesaler, it hurts you!
See the comparison chart – for general information, including the cost per eCommerce customer website.
Best Online Store Builder Platforms For Dropshipping – The Easy Way To Dropship
Online store creation platforms also enable you to set up your e-commerce store inexpensively, quickly, and without any programming knowledge, but unlike Amazon and eBay, they allow you to build the store that matches your personality.
You can populate the online store with content from experts, create a distinct and seamless sales process, engage in personalized outreach and easily integrate with apps that connect you to social media channels and suppliers, help you manage payments and provide a marketing guide.
You may want to choose one of the 3 best online store builder platforms if you are ready to go.
When it comes to dropshipping, stores aren’t created the same way, how, and professionally on all online store building platforms. Some are better for dropshippers than others.
To help you make a decision, here are all the main features of each of the online store builder platforms.
We highly recommend Shopify , which is why it has the highest rating in our online store builder platform comparison in our chart.
We’ll take a closer look at what makes Shopify so great in our detailed review, but here are five main features we love about this platform:
- Integration with Facebook – and more recently Instagram – and Amazon.
- A collection of free and paid apps – so you can add all the features and alert options to your dropshipping service.
- Professional storefront templates.
- Store Protection and Security: Most pricing plans offer a free SSL certificate at no additional cost.
- Email and newsletter integration – so you can send personalized marketing messages to your clients.
We also find that the instant messaging support service is really useful because it means that any problem can be resolved as quickly as possible, thus allowing focus on building the store.
Dropshipping on Shopify
As we mentioned earlier, Shopify currently offers a free tutorial to help you get started dropshipping. The webinar teaches you how to set up a profitable dropshipping business, from sourcing products to competing with Amazon, to getting the perfect deals, press the button below:
FREE SHOPIFY TUTORIAL
The best service you’ll be interested in is Oberlo .
Oberlo is a Shopify app that enables you to easily add products directly from wholesalers to your Shopify store. Oberlo will ship products to your customers and update your inventory details automatically.It’s like having a full time business partner!
By linking your shopping cart with a supplier database, apps like Oberlo help you break through one of the biggest barriers in dropshipping: out-of-date inventory details and customers placing orders for products that you can’t ship.
The real benefit is peace of mind. Shopify told us that any reseller offered on Oberlo has been vetted. Oberlo makes physical visits to make sure the supplier is legitimate and approachable before allowing their products to be featured on the platform.
While Oberlo doesn’t 100% guarantee product quality or shipping speed, it is a great safety net. To stay on the platform, the vendor has to meet Shopify’s guidelines. It’s like using a filter with your coffee grounds to remove any unwanted things.
You won’t have to spend your time sorting trusted wholesalers from the unreliable ones, and Oberlo has actually done a lot of useful work for you.
Oberlo is really a lifesaver, it’s easy to use and lets you search for products from a wide range of industries. It connects you to Chinese websites – such as Aliexpress which is one of the largest retail suppliers in the world -. Suppliers on Aliexpress have a review and rating system, so you have the power to choose a good supplier.
Try Shopify for free
This platform was mainly chosen because you can integrate your store with wholesale suppliers like Alibaba and services like Inventory Source for free. As with Oberlo, you can import dropship products directly into your BigCommerce store with the click of a button. On the left dashboard, click Channel Manager to integrate Amazon and eBay, and apps to add tools that connect you to dropship wholesalers.
Inventory Source is similar to Oberlo. It’s a savior, it’s easy to sync suppliers with your store and lets you choose a dropship supplier from the application directory. Every supplier on the list is vetted, so you can be sure it’s reliable, and inventory details are monitored so you don’t have to worry about making an order that your supplier can’t do.
The design of Inventory Source isn’t as smooth as Oberlo and the process of adding products isn’t as intuitive.
We just haven’t found it easy to work with.
For example, Inventory Source connects you with suppliers, not products directly. You have to select the supplier to upload their products and images and this extra layer is annoying compared to what Oberlo provides when looking to populate your store with products. However, it does give helpful guidelines for the wholesale prices and margins you can expect to get with specific products.
BigCommerce offers many paid tools that you can try for a certain period for free, so you have to experiment and find those options that are right for you.Try BigCommerce for free
3) Wix eCommerce
We tried Wix eCommerce but nowadays it still lags behind Shopify and BigCommerce in dropshipping functionality.
It is not currently possible to link Wix stores with dropshipping.
Wix is growing slowly. We spoke to her and she is partnering with a leading third-party company that offers a complete product shipping solution. It looks like this platform will work in a similar way to integrating BigCommerce with Printful.Try Wix eCommerce for free
Conclusion – time to start dropshipping!
We hope this discussion gave you a clear idea of how dropshipping works and how you don’t need much money and time to start a dropshipping business.
Now some of the doubts you had about dropshipping must have melted away.
If you haven’t decided to start dropshipping, we hope that this guide and resources we’ve included will help you do so successfully and safely, avoiding some of the classic hurdles along the way.
There is a good investment to make when finding a supplier. The tools available from e-commerce platforms like Shopify and BigCommerce provide invaluable help.
A smooth dropshipping process is only the beginning on top of a thriving e-commerce site ; You still need to design your store, choose the right products, start selling and produce the highest quality content to attract customers. Choosing a highly rated online store builder platform is essential.
If you pick the wrong product, all that dropshipping work will be useless.
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