Dropshipping
In simpler terms, in dropshipping, you get somebody else to pack and ship the product on your behalf, and you make a commission out of this sale. This model eliminates the need for a warehouse or even a physical store. After factoring in the shipping cost, the seller earns a profit by keeping a markup between the product’s original price and the selling price. It is easy to start a dropshipping business despite the mushrooming of e-commerce websites thanks to the immense technological advancement and ease of access to various tools and software online.
Dropshipping is a great way to start your journey into entrepreneurship. The global dropshipping market is worth billions of dollars, and you can try getting a piece of the pie. It helps you sell products to consumers where you can set your prices and create a brand name in the market. People who are willing to commit to long hours initially can create a successfully running business using the dropshipping model. Global e-commerce sales amounted to the tune of over 2 trillion dollars in the year 2019. So if you have a product in mind that can solve people’s problems, stop procrastinating and jump onto the dropshipping bandwagon.
Why Dropshipping?
Compared to regular e-commerce or even offline commerce, dropshipping has several advantages. It is a profitable business for aspiring entrepreneurs as it lets you operate the business your way without having to follow somebody’s orders.
Needs very little investment: You save a considerable amount of money in capital expenditure when you start selling online as the inventory of goods is not owned and stored by you in a physical place like a warehouse. Imagine setting up an offline store and the costs associated with it. Thankfully, no such costs need to be incurred in the dropshipping model.
No Inventory Cost: It is really easy to get started in the dropshipping business. You do not have to deal with the physical inventory of products. There’s less need to worry about maintaining a warehouse and related overhead expenses. You also save yourself the trouble of packing and shipping every single order. This also saves you from managing customer returns.
Since there is no stock in a warehouse, the operating expense is fairly low. Almost all dropshipping businesses are run in people’s homes, which means you simply need a laptop with a stable internet connection. A small technology-related recurring expense could be the only thing you would be doing every month.
How to start a dropshipping business?
- Choose your niche: Find out what interests you that can be sold online. You can make a list of things that you’re passionate about. Also, look at it from the point of view that the product being sold should be able to solve a problem. You can get several inspirational ideas from social media communities, Instagram, and other e-commerce stores.
- Defining the target audience: After determining your niche, you should start to define your target audience. It is important to understand who will most likely be buying your products. Start with understanding demographic factors like age, gender, geographic location, economic status, marital status, etc. Once this is done, you will have your ideal buyer persona.
- Start scouting for suppliers: You have created your ideal buyer persona; now, it’s time to start looking for suppliers. This process can get tedious as you need to sift through many e-commerce platforms to find a genuine supplier. You can still do some basic checks to identify if the supplier is genuine. Go through all the product reviews that buyers have posted, and check how long they have been selling through the platform, among other things. Specifically, check for buyer feedback on the platform. Proceed after thorough research has been done to determine the supplier’s credibility.
- Sell through Shopify using the Roposo Clout plugin: Once you’ve identified your niche and defined the target audience, you’re ready to launch yourself in the world of dropshipping. You need to sign up on Shopify and download & install the Roposo Clout plugin. Roposo Clout has a huge catalogue of products that you can choose from.
How to start a dropshipping with roposo clout?
Step 1: Create an account on Shopify
Step 2: Fill in more information about the business
Step 3: Add a drop shipping app. Follow these steps to install App –
- Click on Add App and type Roposo Clout App on the search bar
- In the Shopify admin, to authorize the use of the app, click Install App.
Step 4: Add products from the drop shipping app. Follow these steps:
- From the dashboard, click ‘Products’ on the left-hand side
- Select ‘More actions’ then click ‘Find more products to sell’
- Click on the Roposo Clout app.
- You will be taken to Roposo Clout app’s interface, where you can search for products and suppliers.
Step 5: Enter the retail price – On the product page, you will see the supply and shipping cost, along with a pricing field in which you will need to enter the retail price of the item (inclusive of margin).
Step 6: Edit product details – Based on the target audience, you must tailor the product description to help them make an informed purchase decision.
Step 7: Set up and design the Shopify store. Follow these steps:
- Go to Online Store -> Themes from the left-hand side of the Shopify admin dashboard.
- From Shopify admin dashboard, you will be able to select free Shopify themes or even pick a more premium theme for the look and feel of their store.
Step 8: Set up payment gateways
You will come across many people who have made it big in the world of dropshipping. Influencers on Instagram and other social media channels will boast about the millions of dollars they have earned through this business model. However, proceed with caution. While this is a lucrative option, you will have to invest considerable time and energy in building the business ground up.
Conclusion
Sometimes dealing with suppliers can be a frustrating experience. You might even end up spending 60-70 hours a week in the initial periods of setting up the business. But if you’re at it, committed, and show grit and resilience, it can be a beautifully rewarding experience. After all, you will be the sole business owner enjoying the fruits of your hard work and never have to be answerable to anybody.