There are lots of online businesses that bring in huge revenue which anyone can do and drop shipping is one of them. I am sure you have seen top Ecommerce websites such as Jumia, konga, yudala etc. and you would like to setup your own online store but the cost of logistics and having to purchase the goods you will be selling has made you slack back then starting a drop shipping business is something you should consider going into.
The cost of having to run your own ecommerce website is very high as you have to get a space for storing your goods, employ staffs, get vans or bikes that will deliver your products to customers etc. but with drop shipping all you need is a supplier and your laptop.
I am sure the word drop shipping is not a new thing to most people but for those who do not know what drop shipping is, let me explain below.
What Drop Shipping Means
Drop shipping is the act of retailing products for wholesalers (suppliers) that has the products without you having to purchase the products. In a drop shipping business, you serve and the middle man between the supplier and the consumer
Let me explain further, unlike a normal ecommerce website where when a customer purchase a product, you will have to be the one to package and deliver the products to the said customer but in drop shipping your job is to display the products on your website and when a potential buyer makes an order, you transfer that order to the supplier who stores, package and delivers the products to the customer and you get paid.
Talking about getting paid, let’s say you want to retail a product like a smartphone and the supplier puts the price at ₦100,000 as a drop shipper when you put the image of the phone of your website you can fix your own price let’s say ₦110,000 so for every sale of that phone you make ₦10,000 sounds cool right?
How To Start A Drop Shipping Business
If I have been able to convince you that drop shipping is a business you should consider doing then here are the steps you can follow to start
Pick A Niche
The first thing you should consider doing before starting a drop shipping business is to find out the niche you would be venturing into. What would you be selling on your website? There are lots of niches to go into which includes: fashion, health, fitness, gadgets, home items etc. you can search Google for more niches. Always make sure that the niche you will choose has low competition and high profit. There is no need to rush when it comes to picking a niche, take your time and do a research on various niches before settling for the right one. You can also visit top ecommerce websites to get ideas.
Get A Supplier
Your business will revolve majorly on your supplier so getting the right suppliers is vital. It would be a waste of time and effort if you don’t pick the best suppliers. There are things you should look out for when it comes to picking a supplier which includes: how long it would take them to deliver any product, if their products carry warranty, the shipping method they use etc. Aliexpress is one of the ways to locate supplier. You can also use doba.com, worldwidebrands.com, salehoo.com to search for suppliers.
There are different ways you can start a drop shipping store which includes
Other Ecommerce Website: You can sign up for a jumia merchant account and upload the pictures of the products you want to sell so when people order for the product you can then contact your suppliers. Using this method has its own down side as you are not in total control of what happens on the website and you would have to pay to get your products to the front of their page. You can also use konga, amazon and other ecommerce websites.
Shopify: Using shopify to create an online store to promote products is also good as they provide you with an ecommerce store that you can access once you sign up to their website. You can customize your store the way you want and can input any payment receive method you choose. When using Shopify, there is a monthly fee you would have to pay to keep your store running on the platform.
Create Your Own Website: To me I consider this the best method; the easiest way to create your own website is to use wordpress. What you would need to create your website is a domain name, hosting plan and a wordpress theme. The best wordpress theme for ecommerce store is woocommerce. If you are not able to do it yourself you can hire a web designer to create it for you.
People need to know about your ecommerce store so they can start browsing for products on it and buy and they won’t know you exist if you don’t promote. Using newspaper, TV, radio and other local means to promote is vital and make sure social media is also on the list. You can use websites like Facebook, Instagram, Twitter etc. to promote your online store.
With these methods you are sure to keep off your ecommerce store in no time but there are some things I would like to make you understand.
When you create an ecommerce store, you will also have to input a payment method so you can easily collect your money when customers make a purchase. There are so many payments method you can use PayPal, Paystack.
There are other ways you can use to generate money from your online store even without selling a product. You can input Google Adsense, Propellerads, media.net, popads.net etc. and earn when people click on the adverts they display on your website.