If you’re on the fence about dropshipping solutions, this is completely understandable. There is a lot of feedback about the practice of dropshipping, some good and some bad. Whether or not you utilize this unconventional shipping method depends on your specific business-related needs.
Dropshipping might not be ideal for your ecommerce business model, but if you want to work remotely and don’t have much money to get started, it is an amazing option. Dropshipping involves shipping a product from your online store to a customer without tangibly having that product.
Instead of coming from your personal inventory supply, you don’t have any inventory at all. The products are shipped directly from the wholesaler or another vendor to your customer. It sounds easy, and truth be told it really is. Of course, complications can arise when you don’t actually have access to your inventory, but with the proper dropshipping software this is unlikely to happen.
The basic steps involved in dropshipping
The entire process is fairly simple and has 5 main steps. The most challenging is step #1, which requires you to apply and register for an EIN. An EIN is an employer identification number that is required by the government for tax purposes. Before you partner with your suppliers, they’ll want to see that you have an EIN. Applying doesn’t take long and the process is free.
The next step is to research products to sell (if you don’t already have one in mind). It is a great idea to sell something that is targeted to a specific niche. This niche should not be something that you consider yourself passionate about. This is OK, but some dropshipping experts believe that throwing passion into the mix can complicate things.
Step #3 is to actually decide on that niche and choose products accordingly. The fourth step is to make connections with suppliers, which is becoming more and more easy in the world we live in. However, be sure that these suppliers are OK with the practice of dropshipping. Remember that you need to trust these people to get your products to the customers – it is completely in their hands.
Step #5 is the fun part. This is when you get to create your online store in order to start collecting profits. Nowadays, anyone can create a website and ecommerce store. There are so many platforms available that make it possible, even for someone that isn’t tech savvy.
Tips for Success in Dropshipping
There is so much competition in the world of ecommerce, so don’t expect for everything to just fall in place without much effort on your part. As you start building your business, you need to be focusing on marketing strategies like search engine optimization and social media marketing. This will help to get your ecommerce store name out into the world. The advantage is you are starting out, so you can try out relationships to settle on the ones that favor your business. As your business grows, you can get on efficient truck load boards and expand even into more remote areas.
Here are a few more helpful hints when starting a dropshipping business:
- Conduct keyword research and incorporate those keywords into your site
- Do not choose products based on passion, but rather what your target audience loves
- Invest in a dropshipping software that can help to fulfill orders
- Find suppliers you can trust who are supportive and responsive