Introduction

Dropshipping has become a profitable opportunity in the eCommerce world, allowing people to start their own businesses with minimal investment and without handling inventory. 

Dropshipping is one of the easiest ways to start making money online. It doesn’t require any big investments, specific skills, or large spaces for storing the inventory. It’s a type of business that nearly anyone with some drive and just the right amount of knowledge can do.

So if you have the drive, we can provide you with the knowledge. In this article we’ll walk you through the steps to starting a dropshipping business and cover beginner possibilities bringing you closer to success.

What is dropshipping?

Dropshipping is an order fulfillment method that doesn’t require a brick-and-mortar store.

With a low startup cost, it’s a popular business model, enabling aspiring entrepreneurs to start their own businesses with minimal investment. The dropshipping model is easy to use, scale, and manage. With it, anyone can launch an online store without any inventory or logistical troubles. Dropshipping is a business process where you sell products without buying inventory. Although dropshipping has been around for decades, the internet only made it easier, and it is the internet that has given it a massive boom in recent years. In a nutshell, dropshipping means you sell someone else’s goods. Once a customer purchases from your online store, you notify the seller, and the seller ships the item to your customer.

How does dropshipping work?

With the dropshipping model, eCommerce store owners sell a third-party supplier’s products and take a cut for themselves without ever holding any inventory. The products move directly from the supplier to the end customer.

This is how dropshipping works:

1. You create an online store and partner with a dropshipping supplier like xyz – listing their products as your own.

2. A customer buys from you, paying you the retail price.

3. You forward the order information to the supplier, paying the wholesale price.

4. The supplier fulfills the order and ships directly to your customer’s doorstep.

How to launch a successful dropshipping business

If you’re planning to launch a successful dropshipping business, follow the steps mentioned to get set in the right direction;

1. Choose a niche/product

A niche is a specialization or a grouping of products. The first step to successful dropshipping is to choose one niche, as it is also the very thing that will dictate who your market is. 

An example of a niche is women’s shoes. As such, you will sell nothing but women’s shoes. However, you can also niche down, which means you can concentrate on selling only high-heeled shoes. Another example of a niche is toys, but you can niche down to educational toys only. There is no right or wrong niche selection, as the success of your business depends on how you handle the complexity of your industry. 

Here are some of my pointers in choosing a niche:

• Choose a niche that you understand and are passionate about
• Pick a niche where you are sure there is a market; it means you are sure people are willing to spend money on it.
• If you are a beginner, choose a niche that is not too competitive.

Choosing a big niche can be overwhelming, though, and you may find yourself so stressed. Think about it: if you choose to target women’s clothing, you must choose thousands of products for it. As such, you are stressing yourself so thinly. It is better to target blouses for now, and then simply add more categories to your store later. 

2. Look for a supplier

Do not build your store before testing a supplier. One of the worst mistakes you can make is to sell a product that you never tested.
There are factors you must consider when choosing a supplier. Some examples are:

• Product Quality
• Reliability 
• Refund policy

The best way to find a reliable supplier is by using dropship supplier tools. These are dropship directories that offer integration with Shopify. Some can integrate with WooCommerce. Like all dropship tools, each one has an advantage over the other. Remember to place an order with the supplier to test the product and shipping times. This process will tell you a lot about the supplier, and you can pick the best supplier to work with. 

3. Create your online store

The next step is to build your online store, which includes uploading the products you selected in the previous steps. Your two best options are: 

• Build a store with Shopify
• Build a store with WooCommerce

Here are some things you need to consider when building a store: 

• Website design
• Legal compliance such as GDPR and cookie usage
• Payment processors
• Marketing applications
• Dropship supplier integration

There are other options, like Wix, BigCommerce, Shift4Shop, Squarespace, etc. However, Shopify and WooCommerce are the biggest players in the e-commerce industry. The advantage of Shopify is that it is easy to use. It is so easy that you can build a store in as short as 30 minutes.

4. Market the product

Marketing is one of the toughest aspects of dropshipping. Now that you have a dropshipping store, how will people find it? Most importantly, how will you convince the people to buy? There are several ways by which you can market your products both online and offline.

5. Accept and fulfill orders

The last step is to fulfill the orders. It means that once a customer places an order on your website, you must contact your supplier and pay them. Only then will they ship the item to your customer. Dropship directory tools make this process easy. All you need to do is click some order buttons, and the supplier will do the rest. 

Also read : How To Integrate Payment Gateway in Wordpress Using TransFi Bizpay: Complete Step By Step Guide

Why start a dropshipping business?

Still on the fence about dropshipping? Here’s why this business model is so popular among entrepreneurs:

• Low startup costs

Dropshipping lets you skip the upfront costs of buying inventory and managing logistics. You can start selling without needing to produce or store products yourself.

• Low risk

Since you’re not paying for inventory, you can list various products and easily swap out poor performers for new items to sell.

• Flexibility

You can run your dropshipping business from anywhere with an internet connection. Just keep up with communication with your suppliers and customers.

• Scalability

Since your suppliers handle shipping, it’s easier to manage an increase in orders as your business grows without taking on extra work.

That said, dropshipping isn’t flawless. Here are a few downsides to consider:

• Less control

Since dropshippers rely on suppliers for production, packaging, and delivery, issues like mishandling, poor packaging, or shipping delays are out of your hands. If something goes wrong, you won’t be able to fix it directly.

• Stock shortages

Suppliers don’t always give a heads-up when products go out of stock, which could lead to listing unavailable items in your store. Regularly checking in with suppliers helps prevent this.

• Assuring quality

Not being able to see and handle the products doesn’t let you ensure they are of the highest quality. That’s why it’s crucial to buy the products from the supplier and see them yourself before you begin selling them in your store.

If you’re set to start your dropshipping business, you should explore the financial needs for the business and compare Transfi's offerings with its digital assets wallet, multiple payment options, various currencies and stablecoin payment options. To make wiser financial decisions for your dropshipping business and to expand your range of approach across your country and even the globe, try out Transfi Bizpay and make the best out of your business goals. 

Conclusion

The dropshipping model is perfect for those wanting to start an online business with less experience and a limited budget, as it requires no inventory management.

With the right niche, reliable suppliers, and a solid website, you’ll be on your way to success in no time. Remember to do your financial and legal due diligence before launching your online store, and continuously monitor and adapt your strategies for optimal results.

Frequently asked questions (FAQs)

1. What is dropshipping?

Dropshipping is an order fulfillment method that doesn’t require a brick-and-mortar store. With a low startup cost, it’s a popular business model, enabling aspiring entrepreneurs to start their own businesses with minimal investment. The dropshipping model is easy to use, scale, and manage. With it, anyone can launch an online store without any inventory or logistical troubles. Dropshipping is a business process where you sell products without buying inventory.

2. How does dropshipping work? 

With the dropshipping model, eCommerce store owners sell a third-party supplier’s products and take a cut for themselves without ever holding any inventory. The products move directly from the supplier to the end customer.

3. What are the steps required to launch a dropshipping business? 

• Choose a niche/product
• Look for a supplier
• Create an online store
• Market the product
• Accept and fulfil orders 

4. What are the advantages of dropshipping?

• Low startup cost
• Low risk
• Flexibility 
• scalability

5. What are the disadvantages of drop shipping?

• Less control
• Stock shortage
• No assurance of quality