Dropshipping is an online retail business wherein the retailer does not own any inventory of the products the website displays. Once the customer orders a product, the retailer processes the order and sends it to a third-party seller. The third-party seller acknowledges the order received, packs the item, and delivers it to the customer.
Consider the following statistics:
• According to the data published by Statista, retail sales in 2021 crossed INR 419 trillion.
• Over 266.7 million online shoppers in the USA are estimated to buy in 2022.
This should give you an idea of the immensity of the online sales category, and it will only grow further from here.
These are exciting times, and if you wish to start a retail business and do not have a lot of money to invest, then an online dropshipping business is the way to go. Follow the below five steps, and you can build a thriving dropshipping business.
Follow these steps to build a successful dropshipping business
- Have a plan
So, now that you’ve decided to start an online dropshipping business, make a plan; having a plan keeps you focused on the path.
o Goal Setting: The first step in a plan is to know what you wish to achieve. By defining the end goal, you can work backwards and list all the steps you need to take to reach your final objective.
o Availability of Time: Decide how much time you are willing to spend on the business. Are you planning this business to be a side hustle with your full-time job, or will you focus entirely on the business? Fortunately, a dropshipping business can be run as a side hustle if you are not averse to using technology. - Figure out Your Niche & Product
You should focus on one niche. If you have a hobby and are passionate about it, then great! However, that should not be the only factor in finalizing our niche and product. Making profits is even more essential.
Here are a few things to keep in mind before finalizing your product:
o Decide on your target audience. Are you targeting youth or working professionals (particular age groups), parents (newborns or teens), and the like? By deciding the target audience, you can quickly evaluate whether your niche and the product will be popular or not.
o Choose a niche: Go online and research how popular your chosen niche and product are. Also, shortlist successful products. Browse through customer reviews and understand why they are successful. See how your products stack up against these hugely popular products.
o If you cannot decide on your niche, then researching the trends online and keyword research will throw up interesting niches and products. You could also decide on a niche and product by identifying your target audience’s needs. - Find a Supplier to Source Your Product
It’s time to look for suppliers for sourcing your products. Here’s how you can do this:
o Search online for suppliers. You must ensure that the suppliers shortlisted are reliable, offer competitive pricing and have reasonable shipping charges.
Connect with other dropshippers to carry out this due diligence. Talk to each supplier, shortlist the candidates matching your requirements, and finalize a few.
o Another way to identify suitable suppliers is to use Shopify software, like Roposo Clout, which links you and your store to hundreds of suppliers.
- Set up your Web Store
There are various ways to set up your store once you have decided on your store name. The easiest would be to set up and run a Shopify store.
Ensure your store is designed aesthetically and user-friendly. Display the pictures of the products you wish to sell in your store. Shopify offers multiple themes. Before finalizing, take a demo of the theme – this will give you a preview of your site of how it appears to the visitors.
Also, make sure your site is transparent and updated with the product pricing, shipping terms & conditions, customer support, and returns policy. - Marketing
Before getting into marketing your store and product, analyze your competitors. Successful online competitors can provide actionable insights into market trends.
Check out your competition by Googling your keywords and seeing which sites rank high. Also, subscribe to your competitor’s mailing lists; you may get vital information.
Develop your marketing plan based on these insights to bring visitors to your web store. You can do so in several ways – social media marketing, content marketing, email marketing, paid ads, influencer marketing, and various SEO tactics.
In addition to the above, engage with your customers on social media and ensure outstanding customer service.
Conclusion
Writing down every step necessary to attain the goal is an excellent strategy for achieving any professional or personal objective. Prioritize the steps in order of importance. Checking the steps completed will keep you focused, despite your fears and doubts.