Starting an online dropshipping business is a terrific way to tap into the business world. You can decide on your services, set your prices, and sell your brand to your potential customers. You don't even have to pay for stock until you sell it to a consumer. If you are determined to put in extra work, you can build a successful brand.
If you're still undecided about starting an online business, you might be interested to know that eCommerce sales totaled roughly 3.5 billion dollars globally in 2019 and 4.9 billion dollars last year. So, if worldwide eCommerce data is to be believed, starting an online business has become a more profitable alternative right now.
Here are 7 steps on how to start a Dropshipping Business in 2022:
Step 1: Select a Niche
You should devote some time to researching the top dropshipping company ideas. Most people advise you to choose a specialty in which you have a strong interest. But that's just half the story.
It's about a mix of business and passion, with a slant toward profit. The truth is that the most successful dropshipping company ideas are generally the finest. When you're generating money, it's much simpler to be passionate.
True, they are the ones that people flock toward, but that's because they've shown to be winners. Fitness, clothing, jewellery, cosmetics, technology, handbags, and backpacks are just a few of the evergreen sectors that top online retailers continue to explore and flourish in.
Tim Kock, for example, recently presented a dropshipping case analysis in which his pineapple business collapsed but his wristwatch business generated approximately $7000 in only 8 weeks, demonstrating the importance of your specialization. So, spend some time researching various dropshipping company ideas.
If you're determined to come up with your dropshipping company ideas rather than using ours, here are a few things to consider:
- Google Trends is excellent for determining if a niche is trending higher or downward. However, this alone is insufficient to evaluate whether or not a niche is feasible. Some niches may be on the rise, but there isn't enough search traffic to justify their popularity.
- Examine prominent websites in your field. For instance, if you go to a clothing retailer's website, you'll see that they frequently organize their merchandise into trend categories. This assists you in determining which trends you should be incorporating into your shop right now. You may also go through a store's top-selling items to identify the greatest stuff to offer.
- Examine the product's order volume. You should also explore goods based on order volume to get a sense of how popular a product is. Don't dismiss dropshipping company ideas because they aren't as expensive as other things because those products may be newer.
Trends aren't the most successful dropshipping business concepts. They, on the other hand, have patterns within them. In the cosmetics industry, fake eyelashes are a fashionable trend. In the phone case industry, stone phone covers are a trendy trend.
If you're developing a long-term operation, you'll want to get the trends as items but not as the complete shop. So keep it in mind while you develop your dropshipping marketing strategy.
Step 2: Competitor Analysis
Once you've selected what to deliver, you should research who your rivals are, what they deliver, and how they promote their items. You can use the following methods:
- Put the name of one of the items you wish to sell into Google and perform a fast search to see who ranks first. The top 10 results on Google or any other web search will offer you an idea of your competitors in a certain place. If you are selling things at a place other than your own, you can collect data using third-party solutions. To obtain information on search results in various places throughout the world, use programs such as SEMRush or Arefs.
- Search Alexa or SimilarWeb for specialty rivals who may not appear high in general search engine results. These websites will provide a summary of the websites you are looking for, comprising their social media accounts, any marketing they are doing, demographic and traffic data for their website, and a list of rivals for that firm.
- Investigate social media. I came up with dropshipping business ideas after conducting competitive research. I'll look through Facebook advertising in a certain category as well as social media profiles for well-known businesses.
- Use Buzzsumo to learn about your rivals' content and what works best for them so you can imitate it. This tool will provide you with insight into which material receives the most social shares, allowing you to discover inspiration for new blog concepts. Signing up for a competitor's newsletters might help keep you up to date on their blog posts if they publish them this way.
Step 3: Find a Supplier
On AliExpress, it might be simple to identify a reliable provider. Once on the site, you may search for items and select vendors from the results. For each provider, you can check reviews, ratings, and how long the vendor has been on the site, which should influence your decision on which source to select.
When you have a shortlist of 5 or 6 suitable suppliers to pick from, you can proceed to the next step of approaching these vendors and asking key questions such as minimum purchase quantities and shipment schedules.
You've probably narrowed down your list of potential providers from 5 to 2-3 by now. The easiest method to decide right now is to place a trial order for an item and analyze the results.
While making a selection, compare eCommerce delivery times, quality of products, and wrapping while keeping your consumer in mind and what they will anticipate from you when making a purchase.
Step 4: Build Your eCommerce Website
There are a few elements to developing a successful dropshipping eCommerce business.
Your domain name is important, especially if you intend to develop a long-term brand. You may simplify the process by using a free company name generator. No matter what, always buy a .com domain.
If you want to include your specialization as a keyword in your new domain, keep it wide, such as beauty, jewelry, or clothing, rather than highly particular, so you don't have to modify your domain name later.
Also, don't use your name as the domain for your shop. If you ever sell your company, you may be able to legitimately use the licenses to your name.
Choosing the appropriate domain registrar will help you avoid future issues. This not only helps you secure your trade mark, but it also makes switching to a different host or service provider a breeze.
Step 5: Create a Customer Acquisition Plan
So, now that you've discovered your product and established your store, it's time to advertise your dropshipping business with a boost. This is an important phase in your dropshipping company strategy. So don't keep tinkering with your store's design and pretending that you're making progress.
If you're just getting started, you're presumably working on a shoestring budget. Here’s how to get started:
- Paid, online advertising: Put your adverts in front of potential clients on websites they already frequent. Set targeting choices depending on age, income level, geography, and hobbies.
- Email marketing: Send emails to your mailing list with fresh announcements, offers, and advice. Additionally, get your items in front of consumers who placed them in their baskets but did not purchase them. You can go for ConvertKit and Klaviyo for best in class email marketing for eCommerce.
- Content marketing: Create blog posts, tutorials, eBooks, and other content to demonstrate your knowledge and encourage others to buy from you.
- Search engine optimization: Reach out to consumers who are actively searching for your products or services on search engines such as Google.
- Social media marketing: Use blogs, live videos, or sponsored advertising to interact with followers or potential consumers.
- Influencer marketing: Use the influencer's power to engage a completely new audience that follows that person's suggestions.
Step 6: Optimize
After you've invested time developing your website, branding, and marketing strategy, you can begin to evaluate the outcomes of your efforts. You may discover that certain marketing initiatives are quite successful while others are not.
Alternatively, you might compare your price to that of rivals and see if you can make any changes to make things more reasonable.
You may assess your web traffic using tools like Google Search Console or Analytics to ensure that it is rising rather than declining.
Set up weekly or monthly automated reports if you use third-party platforms for email marketing or social media monitoring so that you are prompted to review this data regularly.
Even a fast glimpse of data from software can be enough to determine whether or not a campaign is effective.
Ultimately, the most crucial aspect of running a successful online eCommerce company is testing and optimizing to boost online income. This ensures that your website does not fall behind quality standards and that you stay ahead of your competition.
Step 7: Deliver Excellent Customer Service
A dropshipping how-to tutorial would be incomplete without a discussion on customer service.
Customer service is crucial in differentiating oneself from the competition. And, because you won't be able to manage shipment, you'll need a strategy and a crew in place to keep consumers informed and satisfied if something goes wrong, even if the error is your vendor's fault, customers will expect you to make things right.
Dropshipping, like any other business strategy, has several problems that you should consider before going for it. However, it is worth trying to start a dropshipping business on Shopify or Amazon.
It is, nevertheless, an excellent business plan for people who are fresh in the eCommerce industry. You will easily succeed in dropshipping if you pick a successful niche, find the correct supplier, sell your goods well, and provide excellent customer service.