Dropshipping is a major eCommerce trend where you don’t have to hold any inventory. Your customer buys a product off of your store, you send the order to your supplier, and they ship it directly to your customer.
Basically, you’re setting up an online store/selling online without having the need to hold the products.
Here are some of its benefits:
- Dropshipping is a great way to make money with low start-up cost.
- Dropshipping isn’t very difficult once you grasp the basics. The hardest part is getting traffic to your store.
- One of the biggest benefits of dropshipping is the lack of inventory holding. You can literally work from anywhere with a laptop and internet connection.
- It’s also easy to scale, with a wide selection of products.
Some of the concerns:
- The two main disadvantages of dropshipping are that you are not in complete control over the inventory and the shipping process (which could also be a good thing).
Research your market & getting started:
- Research a product you want to sell. Typically, this should be a niche product without a lot of competition. Bonus points if you can sell it for under $100 and it’s lightweight and easy to ship.
- You can use tools such as SaleHoo Labs to help you out with finding the right niche and a selection of verified and trusted suppliers to choose from.
- Contact the supplier – found using SaleHoo Labs, sign up to sell their products, and get their prices and pictures.
- Upload the product onto your online store, including high-quality photos and descriptions. Videos are even better, if you can find them or shoot them yourself.
- Decide if you’ll be selling on your own hosted solution (Shopify, etc..) or on marketplaces such as Amazon/eBay…
Marketing your online store and generating sales:
- Now that you have your online store up and running, you can start promoting your products via social media, forums, or paid advertising. Typically Facebook ads are the easiest paid solution to get started with because they are simple, easy to understand, and affordable.