Do you dream of having your own business but think you lack the funds to get it off the ground?
Don’t worry here is what to do…
It’s a common dilemma in the eCommerce revolution, but there is a solution. With a dropship business, you can start selling online without any startup money.
Sounds too good to be true?
Dropship businesses are on the rise, and with the right entrepreneurial fit can be…
a profitable business model.
Here’s how you can do it; a guide for starting drop shipping busines:
- What is a dropship business?
- How to do it well?
- Get started with NO MONEY
- Benefits of dropshipping
- Tips & Tricks for a Successful Dropship Business
What is a dropship business?
First, you need to understand exactly what a dropship business is – and is not.
The most understandable definition comes from Entrepreneur magazine:
“an arrangement between a business and the manufacturer or distributor of a product.
The business wishes to sell in which the manufacturer or distributor — and not the business — ships the product to the business’s customer.”
Essentially, this means that you don’t have to pre-purchase and stock inventory ahead of sales.
Isn’t it fantastic!?
The dropship business has the storefront – online, through mail order or as a physical location – where orders are collected.
These orders are sent to the distributor of the product who then ships them directly to the customer, eliminating the middle step.
As a business owner, dropshipping can save much of:
- your time
- expense of dealing with tracking inventory.
Maintaining storage space and dealing with shipping and delivery so that you can focus on sales and customer service.
Dropshipping is becoming a common practice, and one that customers rarely notice.
Package labels can be customized with a return address name for the business seller and direct shipping eliminates the need for you to box and deliver items yourself.
One of many distinct bonuses for business owners is that…
a dropship business does not require upfront cash and inventory.
YES, that’s for real!
items are delivered on order, there’s no inventory cost.
You don’t get stuck with leftover inventory, and changing product selection is as easy as updating your website.
How to make it work for you
While you can start a dropship business without any money, there are a few hurdles to cross:
You need to establish a relationship with a manufacturer or distributor.
This relationship will allow you to ask more about an agreement to sell and get more info about shipping and delivery.
you can get more information about return and the products.
Make sure you understand all relationship policies with the distributor before selling the first product.
A dropship business is great because you don’t need any startup money, but you do need to make sure all business practices mesh with cash-flows to ensure you have the best chances of success and profitability.
Get started without any money
Are you ready to take the leap into the world of dropshipping?
Here’s how to get started in easy steps:
You have two main courses of action:
- Establish relationships with manufacturers/distributors on your own.
- Find a company/tool that specializes in products for dropship businesses.
While establishing your own relationships is the tougher option, it can work for some small business owners.
Only you know if you have the right connections to make this work.
Without established partnerships with suppliers, it can be a laborious, time-consuming process to find dropshipping business connections.
Not every business is ready to allow anyone to start selling their name-brand items.
The better option for most entrepreneurs is…
to work with an established company that will provide products for your dropship business.
It will take some research to find the right product mix and profit margin ratio.
Companies that offer products for dropship businesses can make it easy for the business owner to find success with:
- reputable products
- integrated sales tools
- product imagery
- descriptions that are designed to drive sales.
Rather than having to manually create product lists, many of these options allow you to import hundreds of products with just a few clicks.
Once you have established how you will do business, you do need to set up a website storefront for sales.
Dropship business benefits
A dropship business can be a great and profitable experience for many entrepreneurs if they do their homework.
Here are a few reasons why MOST business owners LOVE this model:
- You can get started with little or no money since you don’t have to buy inventory in advance.
- Business is easy to scale up or down based on trends and results.
- The business can operate from almost anywhere (a particular advantage for people who travel frequently).
- Getting started – particularly when working with an established company – is not difficult.
- You can sell almost anything.
On the flip side…
a dropship business may not be for everyone.
It takes planning and organization to stay on top of things.
Some common concerns are:
- low profit margins for certain product types
- errors or inventory issues that are outside of your control from suppliers
- problems with shipping.
Before you leap into a dropship business…
think about what makes you most comfortable and do your homework.
Arm yourself with all the tools you’ll need before setting up a storefront so you are ready for success.
Tips for success
Here’s the most important thing you will read.
Starting a dropship business should not take a lot of money.
there are some costs
– you’ll need a business license and a website –
but you should not have to pay a supplier for inventory up-front to get started.
The benefit to this business model is flexibility for you.
Here are a few things to keep in mind as you go through the process of setting up your dropship business:
- Keep it simple. Start small and grow based on numbers and capacity.
- Be ready to go with the flow if things get complicated. It can be a little messy in the beginning, but as you learn more, the process only gets easier.
- Consider using multiple suppliers for larger product selection.
- Make customer service your key goal. Customers need a reason to choose shopping with you over other options. If you make a mistake, own it and do the best you can to maintain positive customer relationships. Respond quickly and courteously to all inquiries.
- Be diligent with marketing and search engine optimization (SEO) so your store is easy to find. The more specialized a storefront you have, the more streamlined this process can be.
Do you have the chops for this type of eCommerce business?
Dropshipping is a great model for entrepreneurs and online sellers that have a strong sales background and know how to connect with customers.
you can get started without a large initial investment.
Now that you have the tools and concepts you need to think about starting a dropship business…
get out there
find products that strike your fancy.
Establish a connection with a distributor or product company and take the leap into your first dropship business.