How To Start A Dropshipping Business: The Ultimate Guide

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Drop shipping guide

Drop shipping is a business opportunity that offers many entrepreneurs an affordable way to be part of the retail sector. It allows retailers to sell products without buying them first. As a drop shipper, you will also act as a service provider who stores and ships items.

Although you do not need to put up a substantial amount of money to establish a drop shipping business, it takes a lot of hard work and dedication to make the first sale. It also requires a good understanding of fundamental things like fulfillment, marketing, and logistics. If you work alone, drop shipping is an ideal business for you.

Here is an ultimate guide on how to start the drop shipping business:

Step# 1. Choose the best niche for you and determine your products to sell

Find best niche for drop shipping

As a drop shipper, you do not only compete with other drop shipping companies. You also compete with large, established retailers. Although an established retailer has much of an advantage over any drop shipper, they sell all types of products.
Even so, they do not have an expertise on all products that they sell. This is where your advantage lies. You will focus on specific products and over time, offer your expertise on them. Referring to a group of focused products, being niche focused makes the aspects of finding suppliers, building your e-commerce store and generating traffic easy.

Step# 2. Identify your competition

It is best to know that you are not the only drop shipper in your niche. If you do not have any competition, it is because other businesses found out the hard way that there is no money, customers or suppliers in your niche. Whatever the reason, you cannot afford to waste your time on a niche that is not lucrative.

Step# 3. Identify top tier suppliers

You are completely dependent on suppliers to fulfill your orders. Only work with suppliers who are highly reliable, ship products when they say they will and get the order right. Websites like ryviu.com will assist you in finding a review of the top suppliers.

Step# 4. Build your drop shipping website

In order for a supplier to agree to partner with you, you have to establish a drop shipping store. Even suppliers know that talk is cheap. They need to know that you are a partner who wants to execute. Worry not, building a drop shipping website does not require a high level of expertise.
You can work with e-commerce platforms like Shopify, Wocommerce that make it easy. Remember to take a special note of your competitor’s sample pages, in order to understand how you will update products, optimize the layout and add new features. A good drop shipping site should have these four basic features:

  • Sample product listings and brand pages
  • Third party trust and reviews
  • Clear shipping return policies
  • An about us and contact page

Step# 5. Find Ways to Generate traffic

get more traffic drop shipping

Generating traffic for your site can make or break your business. Suppliers want to work with a drop shipper who has a good customer backing. Traffic can be generated using Google Adwords, Facebook advertisements, and niche blogs.

Step# 6. Register, Register, Register!

Before talking to suppliers, it is important to ensure that your business is registered. While this may sound like an easy task, many people fail to register their business with the right government agencies and file all the relevant tax returns. Ensure that you have an Identification Number and Sales Tax Permit before being approved as a shipping partner by most suppliers other required documentation may include home state registration documents.

Step# 7: Secure agreements with suppliers

Suppliers will not be knocking at your door. Therefore, it is important to personally reach out to them, for you to successfully achieve this, patience is truly a virtue. It is wise to call and email, pay upfront, organize launch dates and firm timelines in order to impress the suppliers.

The Challenges Drop Shippers Face

While drop shipping sounds like a simple business because of its inherent scalability without you having to do a lot of work up front, it does not come with its difficulties. Here are a few challenges that many drop shippers tend to face.

High product prices

Many people establish a dropshipped online store with the misconception that they will be receiving affordable wholesale prices for their products. However, this could not be further from the truth. Dropship distributors often pay extra fees and/or track these fees onto their quoted wholesale prices. As the distributor is taking on all the work, this will be reflected in your wholesale price. Unless you take a good sized profit hit, you will not be able to compete effectively on price.

Higher shipping costs

In order to effectively run a dropshipping business, you will be required to use several distributors. Two or more drop shippers may make separate shipments to your customers. This is because a single distributor may not carry all the breadth of products that you need. As each shipping company charges its own shipping costs, these costs will be higher.

Logistics challenges

Contrary to what you may think, the drop ship distributor does not do all the work. When using several drop ship distributors, getting time-sensitive orders to different customers can be a logistical challenge. Also, different distributors work with different shipping times.

Where Ryviu.com comes in

Starting a drop shipping business is a lengthy process that requires the proper investment of time. Ryviu.com will provide an application that will allow you to get relevant drop ship customer reviews that you can display on your online store. This way, you will be able to get the validation that you need and find confidence in the services that you deliver. Ryviu.com makes the job easy for you!

Conclusion

Despite the challenges, drop shipping offers a good money-making opportunity for many entrepreneurs. It comes down to this easy three-step process:

  1. Choosing your products from a supplier and list them on your e-commerce site
  2. Selling your items and collecting the money from the buyer. Afterwards, you will be able to pay your supplier and keep the profits.
  3. The supplier will then ship or deliver the items that your buyer has purchased.

Congratulations! If you have gotten this far then you have learned all you need to know when you start the drop shipping business. Now it’s time to establish your store and get the work done!

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