Drop ship has become an extremely popular form of business model for upcoming entrepreneurs these days mainly due to the fact that it requires very little setting up costs. Since there is no requirement for stock before you start selling, it has become very easy to start a drop ship business with limited startup funds.
So basically a dropshipping business is an online store that operates by purchasing items from a third party supplier or manufacturer who is in charge of fulfilling the order by sending it directly to the customer. This drastically allows you free time to focus all efforts on customer acquisition and also cuts operational costs.
If you believe you are ready to start a drop ship business and are a on a limited budget then all you need to do is follow the the six steps that are about to be mentioned below. Although this business model doesn’t require a heavy chunk of start up funds it will, however, require a lot of hard work being put into it.
Select a niche to drop ship
The niche that you decide to select needs to be something that you would be genuinely interested in selling. A product range that isn’t personally focused will fail when it comes to marketing. You will more likely be discouraged very quickly if you do not choose a niche you are not passionate about.
To select your niche:
- Make sure you aim to seek attractive profits.
- Make sure to keep your shipping costs to a bare minimum. Even though the manufacturer will be handling the shipping, if its cost is too high it won’t be very popular with the customers.
- The products you aim to sell should be the type of products that trigger impulse buying and should be able to appeal to the financially able to make a purchase right there and then.
- Create your own brand. By rebranding you will be raising the value of what you are selling. Make sure you give importance to custom packaging and branding.
- Try to sell something that is not locally available in the local market. Try to find something that your customer won’t be able to easily buy next time he is at the mall. It’s a good way to become attractive to your potential customers.
Perform your competition research
Keep in mind you shall be competing with other drop ship giants such as Amazon and Ali Baba. This is where many dropshippers go wrong by thinking they should sell a product that has little to no competition. If there is no demand for the product it probably shouldn’t be put up in your product list.
Decide on a supplier
Choosing the wrong supplier can potentially be the ruin of your business. Do your research. Try to order something before you decide to partner up. That way you can get a brief idea of their costs and shipping times.
Build your online store
The fastest way to launch a website that supports a dropshipping business is to head on over to www.dropshipwholesalers.co.uk. They have plenty of guidance available and make it really easy to start a dropshipping business in the UK.
Create a customer acquisition plan
Having a really nice online store is great, but without any online traffic you won’t really have a business. If you don’t have customers who are looking to buy there really is no point in doing what you’re doing. So for that reason look for ways to attract customers. The most effective way would be to start a Facebook Ad Campaign leading people to your store. This will alow you to generate sales and revenue form the beginning.
Analyze and optimize to drop ship
You need to track all of the data and metrics available to make your business flourish. This includes Google Analytics. When you are able to track every single conversion from knowing where the customer originated from and what path they took on your online store that eventually led to a sale — it enables you to scale what works and eliminate what products don’t.