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Starting a dropshipping business can be an excellent way for budding entrepreneurs to step into the realm of running a business without a lot of the hassles, but it can still be a daunting journey. Here are some things to consider before you get started.
What is Drop Shipping?
Dropshipping is a business model in which the owner of the business doesn’t need to own or stock any inventory or even ship the products to the buyer themselves. The owner is responsible for promoting the products and making the sales, after which the products are shipped directly from the manufacturer to the customer.
This means that the product never even has to touch the business owner’s hands, eliminating the need for inventory management, stocktaking and other niggly elements of e-commerce.
What Do You Pay for?
This business model allows for a lot of cost-cutting when it comes to running an online store, so what expenses are you still responsible for as the owner? First of all, you need to organise and set your own shipping costs, even though the products aren’t coming directly from you. Since it is an element that’s within your control, choosing to work with a local courier service like Texas Couriers can help guarantee quick and cost-effective delivery, boosting the customer experience and saving you money at the same time.
You will also naturally be paying for the products you’re selling. It’s important to be aware of the price that the manufacturers set so that you can consider what price you need to mark it up to. You want to be making a profit without setting the price so ridiculously high that your customers aren’t interested.
Some other costs you will need to keep in mind include a subscription with a dropshipping company like Oberlo or Shopify, as well as the costs of your own website. Other than this, the marketing of your products should form an important part of your business expenses.
What Do You Sell?
With drop shipping, the options are endless. You could sell anything from phone covers to personalised T-shirts, sports equipment or beauty products, it’s really up to you. However, this makes it important to choose something that is going to sell well. Like with any business, it’s in your best interests to choose to work with something that you’re personally passionate about.
Getting involved in selling fitness attire or gym equipment when you don’t know (or care) anything about exercise is not likely to flourish into a successful business for you. Instead, focus on products that you like or are knowledgeable about. This will help make sure that you find fulfilment in your journey and will also help you out when it comes to marketing within a specific industry or niche. Overall, the opportunities are endless and though there is a lot to consider, dropshipping is a great first step for entrepreneurs to get a taste of running a business and find their place in the industry.