How to Start a Dropshipping Business?
If you’re starting small with your business and want to rely on a well-established business model, dropshipping is your best bet.
The dropshipping business model only requires retailers to act as a channel between the wholesaler and the customer. Dropshippers only collect orders from customers at the retail price and convey them to suppliers who sell to them at the wholesale price – dropshippers profit off the difference.
Unlike in traditional retail stores, dropshipping retailers don’t need to own inventory, and that is why this business does not require a hefty capital commitment from you at the onset.
Here’s a step-by-step guide on how to start your dropshipping business, courtesy of WalletMonitor eBay dropshipping software.
1. Deciding on Your Business Logistics
To start off with a business, you first need to have a business structure in mind. What kind of a company do you want to create? Will it be a sole proprietorship, partnership, or LLC? You also need to come up with a name for your business and have it registered. Next, you need to apply for an Employer Identification Number (EIN) for tax administration and an appropriate business license under your local government.
2. Identifying Your Market
Like any business that is easy to start off, the dropshipping business is highly competitive. It is likely that the market for most of the best-selling products on e-commerce platforms is already saturated when it comes to dropshipping.
In a situation like this, you need to identify a market that is still unexplored. When trying to find a niche market, your best option would be to start off by selling products that interest you. This will let you have your feet on the ground when you start selling.
You may also gauge the market for a product by looking at its search volume on conducting keyword research on it with the help of Google adverts and trends.
Use social media and your natural networking channels to identify what people are willing to spend their money on.
Walletmonitor’s automated product scanner makes this entire process effortless by handpicking the high-demand and high-profit products from a wide range of suppliers.
Also Read: Technology Resolutions for a New Business
3. Setting Up the Interface
To set up your business, you need to decide on the interface you would like to use to buy and sell products. Creating a new website and branding for your business will require a hefty budget and a substantial amount of tech prowess.
You can always choose to start small with WalletMonitor’s dropshipping software for e-Bay that only requires you to register yourself and set up an account to start your business. For someone who’s new in the business, this is a good idea as it demands less time, effort, and capital from you.
WalletMonitor lets you focus better on growing your business by handling your business on autopilot.
They also let you create listings easily by copying product images and descriptions automatically, with a single click. The dropshipping software places orders from suppliers automatically and also updates the stock status of products without requiring any involvement from your end.
4. Finding Suitable Suppliers
To find a reliable supplier who will suit your business, you need to ensure that they are not only experienced but also provide good customer service. It is always a good idea to bank on reviews when it comes to choosing the right supplier.
If you’re choosing a supplier without significant experience, make sure to assess the quality of his products first by asking for samples. Your supplier shouldn’t demand an unreasonable amount of time for shipping products, as this is bound to create customer backlash.
Since the dropshipping business already has a very low-profit margin, you shouldn’t be spending an exorbitant amount on your supplier. Make sure to tally the market rates when agreeing on a price with your supplier. Some suppliers also demand an extra fee if you’re looking to work with them over a long period.
If you’re a newbie in the dropshipping business, it is recommended that you start off with marketplace suppliers instead of manufacturers or importers.
WalletMonitor’s automated dropshipping software automates eBay compliance and protection, which means that it will let you buy and sell smoothly on marketplaces like Amazon, eBay, and Aliexpress without violating their guidelines.
5. Build a Marketing Plan
You may have a full-proof business model, but it will only thrive with marketing and advertising. Improve the visibility of your business with the help of Search Engine Marketing. You can even advertise on social media or mobile apps.
Lastly, do not forget to be flexible with your business. Try out new ideas, invest in unexplored markets, and be prepared to fail. Analyze your business at regular intervals and brainstorm new improvements.
Start your dropshipping business today with WalletMonitor’s trial plan that lets you access all features for only $1.