When it comes to making money online, starting a dropshipping business is one of the simplest methods. It allows you to source a range of products from wholesalers or third-party manufacturers, selling them as your own via your own online store. Your chosen supplier looks after the logistics and inventory whilst you focus your efforts on marketing and growing your brand.
It sounds deceptively simple and with the right planning and strategy it can be. Read on to explore our ultimate guide that will explain just what you need to know when it comes to starting your dropshipping business.
When it comes to setting up a dropshipping business there are seven steps to follow.
Around 30% of existing online stores use dropshipping, meaning there is significant competition, and many of these stores sell the same items but under their own branding. Choosing your niche, the market you want to focus on, will help to counter this.
Once you have a shortlist, do some market research to see what the industry is doing. This allows you to make estimates on revenue, build marketing strategies and is much easier to do before you start the business.
Once you have chosen your niche; select the products you want to sell.
Having a reputable supplier is essential to the success of your dropshipping business. Use one of the many dropshipping platforms that are available to do this. Things to consider when choosing a supplier include:
A dropshipping agreement contract that outlines the business arrangement, including prices, delivery standards, etc is a good idea once you have found your supplier.
A good niche and strong branding will really set you apart from others in the same field. The more unique your brand identity is then the more likely your target audience is to remember you and return to make more purchases. These are the things to consider:
A strong website is essential for your business. It is possible to dropship via other online platforms but there are advantages to going it alone. These include being completely in control of your own branding and there are no platform fees, unlike on an eCommerce marketplace.
It is a good idea to opt for something with a good user experience that your customers will find easy to navigate, and that allows several payment options.
Your product descriptions need persuasive copy that is clear to read and great photographs from a range of angles. Don’t forget to add a contact form and also ensure that your website has mobile optimisation.
Business finances of any kind can be complicated. However they are essential, so it is important to get everything right when it comes to setting things up. It can be a good idea to contact a company like Your Company Formations who have the expertise to help you with all of the issues related to setting up this side of your business.
Taking time to make sure you have covered all the legal set up of your dropshipping business is important and can vary from one country to another so it is important to ensure that you have covered everything that you might need.
Finally, digital marketing allows you to promote the things that you sell through a number of channels. If you want to ensure that you are driving traffic to your eCommerce store, then you need to use SEO (Search Engine Optimisation) to help you gain the best visibility in search engine results pages.
Creating content through blogging is a great way to inform your target audience about your products and their benefits; you may want to consider how-to guides or listicles. Social media marketing will give you another platform to share your products and can help you to reach a completely different audience. You can of course link these back to your website.
Add a subscription form in your store and build up an email list to use for email marketing of discount announcements, new product releases and even to just bring products to customers' attention.
Following the steps above can help ensure you’re in the right position to benefit when you start a dropshipping business from scratch. If you need any assistance with the financial or legal setup, why not consider contacting the experts at Your Company Formations, who can ensure it’s all done correctly.
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