You don’t need a physical store to sell products online. Thanks to the internet for presenting many opportunities like this. And with dropshipping, you don’t even have to worry about holding inventory and dealing with the products yourself, you’ll only have to focus on the fun stuff i.e., marketing your online store and products and building a good customer experience.
Here’s how dropshipping works: an entrepreneur (you) sets up a website or online store to sell certain products, but you don’t keep any of those products in stock. Instead, when a customer orders a product, the dropshipper (you) purchases the products from a third party (supplier), and has them shipped directly to the customer.
Dropshipping works in just four simple steps:
- Customer purchases products from your online store
- Their order goes direct to your suppliers
- Your suppliers ship the products to the customer
- You keep the profit from the retail price
Why should you start a dropshipping business today?
Dropshipping is a proven business model with a market that’s projected to reach a worth of $476 billion by 2026. It’s worth it to start today, here are reasons why dropshipping business may be good for you:
- Lower startup costs – the great thing about dropshipping is that you don’t need a lot of money to make it happen. The initial capital you need is the subscription fees to your domain (website name), an ecommerce platform/website, and any dropshipping platform you may choose to use.
- Scalability – you can scale quickly because order fulfillment is not dependent on the size of a physical location or the number of workers needed to ship out an order. For this reason, dropshipping can greatly benefit retailers that experience fluctuating sales due to seasonal factors or other reasons.
- Lower inventory management – by eliminating the need to maintain physical inventory, dropshipping reduces the management overhead retailers that face. You don’t need to spend time tracking inventory, managing the infrastructure that houses it, or managing shipping, which is outsourced to suppliers.
How and where to start a dropshipping business?
- Choose products to sell – Just like any other business, you need to have an idea about what products you are going to sell online. If you already have an online store and want to use dropshipping to boost your inventory, then you’ve probably got a clear idea of the products you want to sell. Make sure that they complement your existing stock and match your audience’s price range.
- Find a dropshipping supplier – finding great suppliers is the key to your business success. You have to connect your store to reliable national and international suppliers, with a broad catalog of quality products, who offer realistic and transparent shipping estimates. You can use dropshipping marketplaces like Spocket to connect with different suppliers.
- Build an eCommerce store – you have to build an ecommerce store made with customers in mind. Ecommerce store which will enhance your credibility, compel shoppers to browse, and make them feel secure when it comes to making payments.
- Market your dropshipping business – this is fun stuff you’re going to deal with. Competition is fierce out there, so you need to put much effort and focus on marketing your online store and the products you are selling.
Some of the best dropshipping marketplaces to find suppliers
Spocket is one of the best platforms for dropshippers. It offers branded invoicing and gives users access to thousands of dropshipping suppliers. It’s incredibly easy to use, and also works well with third-party marketplaces like Etsy. Click here to visit Spocket
Print-on demand supplier, Printify allows you to sell customized products with your own unique design or logo. You select from hundreds of products—from t-shirts to reusable water bottles, add your designs or logo, and then import the products to your online store. Printing, product fulfillment and shipping are handled by the print on demand supplier. Click here to visit Printify
This is a wholesale supplier directory that connects dropshipping companies with dropshippers supplier allowing them to grow together. Although it offers an array of products, it is not available for free. It costs $67 per year.
Doba gives you access to hundreds of different dropshipping suppliers and gives you access to millions of products through a discrete catalog. The best part is that you don’t need a credit card to sign up either.
AliExpress doesn’t need an introduction. It’s one of the largest platforms for dropshipping companies, offering millions of products with a free sign-up. You can buy a range of different products including electronics, apparel, footwear, DIY, accessories, cosmetics and much more.