Starting a Dropship Business
Gealena – Starting a Dropship Business Success Tips. Starting a business without capital? Sounds a little suspicious, huh? Wait a minute. Before you were skeptical, maybe what is meant by a business without capital is a dropshipping business.
Dropshipping opens the opportunity for you to Starting a Dropship Business with just internet access. How to? Check out this article.
Whats is Dropship?
Starting a Dropship Business is a popular business model in the internet era. This business model involves a third party (dropshipper) who bridges the relationship between buyers and producers or suppliers of goods.
At first glance, the role of a dropshipper is very similar to that of a reseller. He sells goods from suppliers to buyers. The dropshipper can determine a different selling price from the supplier. The price difference is an advantage for dropshippers.
However, the way to Starting a Dropship Business with a reseller is very different. This business model makes the dropshipper not need to provide a place to accommodate the items purchased by customers. The dropshipper also doesn’t need to send these items one by one to the buyer’s address.
Starting a Dropship Business model asks the supplier of goods to send goods to the buyer on behalf of the dropshipper. It is as if the dropshipper is the first seller of the product. In fact, the dropshipper only promotes goods owned by the supplier.
Opportunities for Starting a Dropship Business are still wide open. No wonder this business model is in high demand. Anyone can start a dropshipping business without big capital. In a way, all that is needed to start dropshipping is the tenacity of the dropshipper itself.
To get to know more about the dropshipping business, in the next section we will discuss the advantages and advantages of this rising business model.
Dropship for Dummies
Lots of lure for Starting a Dropship Business. But before you believe it outright, you need to understand what kind of business you get from this kind of business. Here is the explanation.
You don’t need big capital for Starting a Dropship Business. At least you only need an internet connection. For the rest, you don’t need to restock merchandise. No need to rent a warehouse. No need to make packaging and calculate shipping costs. If you have this, you can say that the dropshipping business is without capital.
Instead of money, the things you really need are a matter of desire to learn and attitude. Starting a Dropship Business model that involves technology such as dropshipping. Of course, it has a technical side that needs to be studied. Starting from scraping data to promoting goods to customers.
In addition, attitude is equally important. As a dropshipper, you must respond to all questions from prospective buyers. Some of them definitely test patience. So, a professional, agile, and patient attitude are also important assets.
Compared to other business models or office jobs, Starting a Dropship Business is a much more flexible practice. No rigid office hours. No need to make up before meeting potential buyers. There are no other conventional business practices. As long as there is an internet connection, your business will run.
You can even run a business without leaving the house. You can split your time while cleaning the house, taking care of the kids, running the grocery store, or even on vacation. Because of the flexibility it offers, anyone can start a dropshipping business. Starting from housewives, employees, to students.
Large Selection of Products
Starting a Dropship Business, offering a wide selection of items to sell. Starting from beauty products, gadgets, clothing, household necessities, shoes, and many others. You could say that you can dropship anything that is sold on the internet.
You don’t have to worry about having too many rivals. Usually, dropshippers only delve into one or two product segments. Because if there are too many, dropshipping will not be very effective. Dropshippers are often overwhelmed by the wide variety of products on offer. In addition, the reputation of the dropshipper’s shop is not good enough.
Imagine when you intended to buy goods at an online store. You intend to buy a well-known brand of skincare products. Before long, you find the product you are looking for in a shop that also sells bedding and children’s clothing. Are you interested in buying the targeted product at the store? Um…. For myself, no.
Therefore, it is important to choose products that match your target market. Just select one or a maximum of two types of products. Also, if you choose two types of products, make sure they are related. For example, skincare products with cosmetics, gadgets with accessories, or sports shoes with a sports bag.
Dropship Business Plan
When Starting a Dropship Business, choosing one focus was a bit difficult. But that shouldn’t be a problem. Here are dropshipping business ideas as well as a few considerations why you need to choose one of them.
Cosmetics and Skincare
The cosmetic and skincare market seems endless. Many women are willing to invest their money to look beautiful with cosmetics and skincare. A large number of new products and new beauty trends have helped make these kinds of products never lose interest.
If you are indeed close to the market segment for adult women, young people to the elderly, it’s good to choose to make this the way of Starting a Dropship Business. Your ability to search for authentic products and predict future beauty trends will be of great use to businesses.
A healthy lifestyle is usually popular among young families to the elderly. As their metabolism weakens, they consciously choose healthy products to consume.
Not infrequently, health products have a higher price. But, you don’t need to worry. The prospect’s status as a young family or parent means they have more purchasing power than other segments. Therefore you can freely target potential customers and reap more profits.
Clothing and Accessories
Clothing, watches, bags, and other accessories are other strategic business ideas. However, it’s so broad that you need to target specific potential customers. For example, you will only sell clothes and accessories to female targets aged 30-40 years. Alternatively, you may decide to only sell children’s clothing.
Which target customer you want is up to you. But if you can give advice, it’s better to adjust it to yourself. If you are young, try selling things to “friends” your age. If you are an office worker, try to sell products that suit you. This way of thinking will make it easier for you to predict trends and get to know the psychology of potential buyers.
Accessories gadget is a business idea for Starting a Dropship Business which is also strategic. Because of their specific use and certain materials, many people choose to buy accessories online rather than in stores.
For this one business idea, you need to be smart in finding interesting products. In addition, it is also important to ensure that there is a clear mechanism for returning goods. Because products such as earphones, mice, or flash drives are prone to damage.
Household items such as beautiful dishes, home decorations, cooking utensils are also not spared from the potential for dropshipping. Because usually, products like this are mass-produced, you need to be careful about finding suppliers who offer low prices.
Because usually, people don’t really care about brands, you can run a Starting a Dropship Business without spending a lot of energy on branding. This is very different from the clothing and beauty business.
Starting a Dropship Business for baby products. Don’t get me wrong, baby products may sound trivial, but consumer demand for these products never stops. In 2017 alone, the value of this product turnover reached 88.1 trillion and is estimated to continue to increase every year.
Furniture dropship. Another type of product that could be an opportunity for your Starting a Dropship Business is a furniture. In 2017, the online furniture business accounted for around 16.9 percent of the world’s e-commerce transactions. Pretty high, right?
Of course, you need to take advantage of this opportunity. Especially considering that America has various types of quality furniture. You can even start a furniture dropshipping business overseas.
the Dropship Toolkit
After determining what type of Starting a Dropship Business you want to do, now is the time for you to learn how to start building a trusted dropshipping business. There are at least five Dropship Toolkits that you can follow. Check out the details below!
Conduct a survey to suppliers
As previously explained. Choosing a supplier for Starting a Dropship Business is a difficult, easy job. Again, you need accuracy and patience to conduct surveys and determine the right supplier.
This section will help you determine the right supplier for an online business that you start. So that determining a supplier is no longer an easy, complicated matter, but a tricky task.
Define a marketplace
For Starting a Dropship Business, the easiest way is to sell through an online marketplace. The online marketplace already has a clear customer base. In addition, various promos that exist every month can help customers find your business.
You can choose one of the many marketplaces in this country. However, some marketplaces that display clear information about dropshipping are eBay, Netflix, Walmart, and many more.
eBay and Amazon have similar dropshipping systems. You only need to buy goods as usual and click the dropship option. That way the goods will be sent to the customer without using the marketplace symbol. Instead, your name will be posted as the sender.
Create a brand and promote
A brand is your investment to keep getting customers. With a professional and convincing appearance, of course, the reputation will increase. In the long run, you can reap more benefits. Moreover, if you succeed in filling in the shortcomings that other competitors have.
To understand the main principles of creating a brand and running an online business, you can read Complete Digital Marketing for Beginners. In this article, we explain what the advantages of digital marketing are over conventional marketing strategies. Not only that, but we also discussed some practical matters regarding marketing. Some of them, such as SEO, content marketing, and social media marketing are very suitable for dropshipping businesses.
Then, to understand more deeply about marketing through social media, you can read Maximizing Social Media for Online Business.
Use supporting applications
Online business involves a lot of technical things to do. In the case of Starting a Dropship Business, this means entering data about merchandise into the marketplace. Imagine when you intended to sell dozens of items. Entering the data one by one and uploading the photos, of course, is tiring work.
To overcome the above, you can take advantage of various product scraping services. Many online developers provide marketplace product scraping services. In fact, it’s not just scraping, developers can also upload products in various marketplaces. It’s up to you to determine the product you want.
Challenges for Starting a Dropship Business
Like all types of businesses, the dropshipping business cannot be separated from challenges. So that you better know what to expect when dropshipping, here we explain the challenges that novice dropshippers often face. (Dropship for Dummies).
Choosing a supplier
You can easily select items to sell by dropship. But choosing the right supplier is another matter.
Choosing a supplier is an easy matter. Difficult because you need to be careful and careful. Because suppliers send goods directly to buyers, dropshippers find it difficult to monitor product quality. Hence, it is important to partner with reliable suppliers. It cannot be denied, the possibility of fraud could occur.
However, you could also say that choosing a supplier is an easy matter. Seeing a large number of supplier choices for selling online, let’s say you always have the option and opportunity to choose the best supplier.
Profits are limited
Generally, Starting a Dropship Business, don’t dare to make much profit from his business. Even though the supplier has given low prices, of course, the price difference is too far to be detrimental. Dropshippers run the risk of losing potential customers because there are many choices of sellers at lower prices.
If so, the most likely thing to do is to catch up on the number of sales. The dropshipper needs to make sure he can sell as many items as possible. Thus, profits can be maximized.
Build a reputation
“Trust is the currency of business”
Before you can make money from an online business, you need to have a good reputation. That way, more and more potential customers will buy through you.
However, building an online reputation is not an easy matter. You need to continue to promote on social media and marketplaces. The items being sold need to be continuously accurate, updated, and promoted again. You also need to increase the follower of your online store and get good reviews.
Luckily with the right strategy, you can do it yourself. We will also present tips and tricks for increasing your business reputation to become a trusted dropshipping business in this article. So, read this article to the end, OK!
The Difference between an Online Store and a Marketplace
The sophistication of #internet technology has made our lifestyle more practical and modern. Lots of things are now easy to do with the help of the internet, including shopping. If in the past we had to go to the market or shopping center to be able to buy the things we wanted, now we can do it easily and freely through the internet.
The world of internet business known as #ecommerce has grown rapidly since 2011. In fact, a survey stated that the development of e-commerce in the United States reached sales of US $ 200 billion that year. There are so many concepts that are carried out in running an e-commerce business, for example, online stores and marketplaces. Both of course have their respective advantages and disadvantages, both for sellers and buyers.
Then what are the differences between an online store and a marketplace? and what are the benefits of Starting a Dropship Business? Here is the review.
Get to know the concept of online stores
An online shop can be likened to a retail store that is operated virtually. The seller will provide goods in bulk and sell them in retail to customers through communication via the internet. As the seller, we certainly have to provide and count the stock of goods before promoting it through the website. In running an online store, we will get a gross profit from the sale of each product. Of course, this gross profit still has to be set aside for meeting shipping costs, packaging costs, and other details of costs.
One of the largest and oldest examples of online stores in the world is Amazon. With a gross profit of 20% to 25%, Amazon certainly must always make innovations and follow product trends that are popular with the community. The chance of success in running an online store is how skilled we are in utilizing #SEO (Search Engine Optimization).
The ability to take advantage of SEO and other analytical tools will make it easy for online store products to appear on the top lists of internet search engine results. So that internet users will certainly be more interested in looking at the products that appear first on the list of search results. The market share for online shops is indeed very large, but running an online store in the midst of competition from similar competitors is certainly not an easy thing.
Starting a Dropship Business often has problems with the concept of online shops. Given that it is only owned by one business entity and has to serve many customers. We can deal with this by buying directly and sending the delivery destination address. And don’t forget to ask for our label.
Get to know the Marketplace Concept
Apart from relying on the online store concept to get a number of advantages from the internet, the marketplace concept can also be the right choice and has minimal risk. A marketplace is a place on the internet where many parties gather to carry out the process of buying and selling transactions, there are those who want to find an item and there are other parties who are looking to sell goods.
Conventionally, the marketplace concept is analogous to a traditional market where many people gather at the place to make buying and selling transactions. The marketplace provider acts as a facilitator to facilitate legal meetings and transactions between the seller and the buyer.
By running a marketplace, we don’t have to worry about sharing gross profits which must be broken down to pay certain fees. In the marketplace, the profits we get are only deducted for the benefit of transaction fees. Starting an online business in the marketplace is one of the right solutions for online business people who do not have sufficient funds to keep stocks of various items.
The development of the marketplace business is also not only limited to product sales but has also begun to expand into the service sector and the provision of freelance personnel.
This marketplace concept is very good and very supportive of the concept of Starting a Dropship Business. Given the number of sellers in a marketplace. It is up to us to choose the appropriate supplier.
Apart from these two types of e-commerce businesses, there are still many other e-commerce business concepts that are applied to attract the attention of internet buyers and users. The auction concept implemented by eBay is one of the main attractions for internet users. Prospective buyers will certainly get their own satisfaction when they can get their ideal product through the auction system.
Although not as popular as the concept of online shops and marketplaces, the auction system is often used as a unique concept to attract the attention of internet users. Whatever e-commerce business concept we use, innovating and receiving input from customers is certainly one of the keys to its success. This can support us in Starting a Dropship Business. By getting products at low prices from the auction.
Are you ready to Starting a Dropship Business?
Starting a Dropship Business model allows anyone to start their own business. It turns out, starting a business without capital is real, huh! So what are you waiting for? Come on, start your business right now.
You can see tips for success in our article on Success Strategies to Become a Dropsipper from us.
Hopefully, this article about Starting a Dropship Business can help you to be ready and steady in setting your foot into the world of dropshipping. Keep trying and good luck!
For tips and tricks on Starting a Dropship Business and running an online business, see our articles on the Gealena Business Blog.