Table of Contents
- 1 How can I start a Dropshipping business in 48 hours – Quick Guide
- 2 What is the Dropshipping?
- 3 How to start a Dropshipping company?
- 4 Finding Dropshipping products–Identifying a niche:
- 5 Here is my first sale of dropshipping as an example:
- 6 Sourcing your dropshipping products:
- 7 Setup of a DropShipping store:
- 8 Set up the Dropshipping Store–Additional Costs:
- 9 My strategy of dropshipping:
- 10 Dropshipping Marketing Strategies I use:
- 11 Learn lessons from Dropshipping:
- 12 Can you do dropshipping with good returns?
- 13 How difficult is it to start a dropshipping company?
- 14 How do I know?
- 15 Is it ethical to dropshipping?
How can I start a Dropshipping business in 48 hours – Quick Guide
You could find the term “Dropshipping” if you have ever looked for ways to make money online.
I always wondered if it would be a viable way to generate revenue to start a dropshipping business. I decided to open my own dropshipping shop after doing some research.
I set up my store within 48 hours, have added some 30 products, run paid Facebook advertising and have made my first sales. I’m looking forward to continuing my dropshipping experiment, but I wanted to share the progress made so far in This Online World with me. I am very happy to have this first time.
- This post is about what is dropshipping?
- Cost, logistics, suppliers and so on: how to start a shipping business.
- My concept for dropshipping.
- Paid ads and drop-shipping
- What I’ve learned as lessons.
Note: It is going to be a very long post, and I don’t know anything about dropshipping, too.
What is the Dropshipping?
Dropshipping is a retail strategy which requires your production and completion processes to be externalized.
You will never stock your products as a dropshipper. You will never. Instead, you buy your inventory from another dealer and producer who then ship it to your clients.
By shipping, marketing and sales are all you need to worry about. The suppliers from which you source your products are supported by manufacturing, order fulfillment and logistics.
Shipping drops does indeed require successful arbitration. In other words, you have to buy less than you sell your inventory.
You also have to reach your customers via commercialisation, as well as hope that they do not make too much price comparison or shopping all over the place before your competition (or supplier) takes place.
Finally, many dropshippers, such as AliExpress, use the needs of buying cheap stock to buy items in bulk.
Yours could be like this: AliExpress is a cheap supplier that provides you with a product. Say a couple of sneakers cost 20 dollars.
You create an online shop which sells this $60 pair of sneakers.
You pay $20 (the price) for the supplier to ship the sneakers to your customer when someone purchases those from your shop.
You cost 20 dollars, but you make a profit of 40 dollars.
How to start a Dropshipping company?
There isn’t an exact formula to start yourself. After all, you can make money, as long as you create an arbitrage situation (buy low, sell high).
There are however some unbelievably useful tips, tools and strategies that can help you make money online in the right direction.
This post will be rather detailed and covers these key concepts: carrying out research on the market for dropshipping.
- Your products are supplied from?.
- Set your shop up.
- You startup costs in the first place.
- Commercialization of your dry dog company.
Finding Dropshipping products–Identifying a niche:
Many shipping guides say you have to market a certain price point, product type or public to be successful.
But dropshipping is all about arbitration, ultimately. Do NOT make price comparisons or shopping around, your consumers have to rely on.
In other words, the price discrepancies between Chinese / cheap production costs and the expectations for product prices in North America / Europe must be utilized.
If you consider which niche you are looking for, your products should be significantly lower than their competitive alternatives.
If consumers see your product, they should immediately notice that they are the cheapest option for a particular commodity. Not so cheap that it’s alarming, but cheap enough for a clear deal.
Here is my first sale of dropshipping as an example:
A hunting-theme camouflage baseball cap, I’ve sold $11.76 + $10 to ship to $21.76 in total.
It costs me 7 dollars to buy from a manufacturer in China.
However, when the decent quality cap of my target market is only $21.76, it is actually far more affordable than many other caps or hats sold worldwide.
This is an excellent example of a good object. I can mark up the price and it’s still competitive.
If you think of a niche for starting your shipping business, consider your product list and ensure it gives the consumer a sense of excitement and value.
Also, avoid important purchasing decisions on products / niches.
You want to see a lot of consumers, to be excited and to buy. You might have difficulty selling highly costly products that require consumers to do their own research.
Sourcing your dropshipping products:
There are some guidelines for searching your dropshipping products from what I have read and am gradually beginning to experience: you need to find reliable suppliers.
- When your products are marked out, it should (roughly) remain between $20-$150.
- You can certainly market costlier items, but it could be hesitant for your consumers to spend that much on line.
- The prices of your product should be marked up by 100% to 200%.
- You must keep things straightforward. Find and adhere to your niche instead of being an all-trade jack.
In this example, I will use AliExpress because I will find my products and suppliers.
AliExpress offers a large number of cheap suppliers, a wide variety of products and not bad quality. The shipments, customer support and many other shipbuilding companies also provide decent rates.
Have a look at AliExpress and look for your product idea:
Let’s have more caskets available for sale in this case.
Sort by free shipping and orders: Aliexpress-products-dropshipping-guide
This displays products that were ordered often, and also offer free shipping Now, find products that: Have 4-5 stars. Sort by free shipping and order:
Have as many orders as possible (I want 50-100 orders at least).
Shipping ePacket offer-this is a shipping form designed specifically for fast and inexpensive eCommerce transport.
Even after a 100-200% increase in price, are cheap enough to keep up in the $20-$150 ball park.
Here is a good example:
It’s got good reviews, lots of orders, and it’s pretty cheap. I might add this hat to an army-themed clothes shop easily and sell it for 15 to 20 dollars.
- For further information about the product, please check the return policy for further information.
- If the provider provides information on tracking.
- How long it takes to manufacture / complete (the shorter, the better).
- How your product pictures look (your marketing efforts require good pictures).
Perform this process several times in every category of product you plan to ship.
Collect a list of approximately 20-30 items to ensure you have enough choice to start the initial release.
You are ready to start your company now!
Setup of a DropShipping store:
Personally I advise you to use Shopify as your dropShipping platform.
Shopify is affordable, provides slick designs to support eCommerce and some necessary dropshipping tools and plugins can be implemented.
Shopify is also great for dropshipping, since it allows you to process payments very fast, support customers and manage your shop efficiently.
In addition, you can pause your shop to hold your payments and the shop at all times.
So, it is not harmful to try a free 14-day Shopify test or even have your own shop for the month or two as you can always put it in the back burner!
Here is a way to set up your storefront once you have decided on your dropshipping niche:
- Go to Shop and register with me on my link to receive a 14 day trial!
- Create and store name for your account. Don’t overthink that. Don’t overthink that.
- Choose a free theme for your shopping cart.
- Start to import your Oberlo products
How to use Oberlo for Dropshipping:
There are plenty of manuals for how to use Oberlo and I will not go very far, as the process is actually very easy.
Just go to the Store and search for the Oberlo application and download it.
Then, the Chrome extension Oberlo downloads.
You may use this plug-in to import the product to your Oberlo dashboard: Oberlo-product-import The product to be dropship is now appearing on your Oberlo import list (accessed via https:/app.oberlo.com/import). This product is the product that you want to dropship on AliExpress and you want to import the product to your Oberlo table.
Here, the information, price, variants of the product and pictures can be edited.
As you can see, I have edited how the product appears to make it more attractive / logical in my shop. AliExperts suffers from keyword filler and bad grammar, so be sure to thoroughly check your information and remediate any errors.
In this example I decided to sell the cap for $16.10, which is also cheaper than the compare price of $19.32 (which I randomly made up). You can also choose your price and how large the’ common’ for your product is: oberlo-price-edit.
Just hit push to shopping when you are ready to publish a product in your store.
This is everything there is. It’s all there is.
You are responsible for designing your storefront and classifying your goods.
You may have to play with the shop settings to make your shop look appealing, but it’s not too hard.
You can import up to 500 products with Oberlo’s free plan. That should give you plenty of room to create a profitable dropshipping company.
Set up the Dropshipping Store–Additional Costs:
While Oberlo is free, you have 2 main costs to cover for your shipping company.
First, for your website, you need to purchase a domain name.
Your website URL will be yoursstorename.shopify.com if you keep a free store.
This is just inadmissible. You run a shop, and you must be professional.
Buy your domain name through the dashboard Shopify. It cost approximately $15-$18.
Secondly, a shopify plan must be purchased.
The Basic Shopify plan is sufficient to start a dropshipping enterprise.
You only have to sell 1-2 products to break every month, which is surely feasible.
I suggest you conduct your product / market research and create content for your site (like blog postings) until you are ready to purchase if you are currently unable to afford a domain name and monthly shop schedule.
My strategy of dropshipping:
Many dropshipping guides do not reveal their own products, market or progress.
I want to be transparent; I want to teach people something as usual. If you want to… I love good competition, feel free to copy my idea!
Buy Hunting Gear is my hunting business.
Unfortunately, since I am too busy with work / school, I put my dropshipping store on hold, but it will definitely return one day.
I have about 30 products at the moment and I am planning to add more products as time goes along: dropshipping products
Here is where I picked up a hunting niche for dropshipping
Hunting season has started. It is specialized in hunting apparel, accessories, spotters and accessories:
In the United States and Canada, hunting equipment is overpriced (in my opinion). Firms like Dick’s Sporting Goods have virtually a monopoly on certain products of hunting.
I can raise my products ‘ prices by 100% to 200% and continue to compete.
On AliExpress you have to choose from dozens of large suppliers.
These products are not purchases that are highly involved.
I also predict that in future sales of hunting products are going to increase.
As weapons legislation may become stricter and the sales of semi-automatic armaments may be limited, I believe that the rifle market and the hunting sector may see an increase in consumer spare-time.
Dropshipping Marketing Strategies I use:
Short, you have to use Instagram and Facebook.
The result of Instagram was my first sale within 48 hours. I suggest you create a business instagram page that describes what you are doing, links to your website and high-quality photos of products: I have been operating my page for 3 days and more, with photos with relevant hunting hashtags. Instgram is also already generating additional traffic.
I expect my Instagram page to grow slowly and finally drive some platform sales.
You can also configure your Instagram to automatically post on Facebook when you post, which automates your marketing process in Facebook efficiently.
Make sure you also set up your Facebook page to professionally represent your company.
I also spent 20 dollars on paid Facebook advertising, which produced a mix of results: ran an ad for some hunting caps. I have targeted men between 20 and 50 years in the USA and Canada with hunting-related pages like Elk Hunting and Deer Hunting.
Here are the results: Key points:
- No sales– someone’s got a cap in their shopping cart right now, but even if they buy I lost money in this ad campaign.
- 41 actions taken– 41 people interacting with the publicity
- Medium relevance score– I could have refined my focus or run an additional product that is more attractive to hunters.
Finally, I’m glad I tried paid advertising. I’m going to run one more $20 publicity campaign. I hope to drive some Facebook sales.
If you want to try advertising in your hand, please ensure that Facebook Pixel Tracking is activated prior to advertising.
This will enable you to target customers who saw your ads on Facebook before you visited your website, who are more likely to buy your products on a theoretical basis.
Before you get started to understand what works and doesn’t work for your target market anticipate you have to spend $50-$100.
Learn lessons from Dropshipping:
In 24 to 48 hours, you can start dropshipping: I’ve put about ten work hours before my web site is launched.
You will have to take A / B tests. Test your choice of product, advertisement efforts and marketing strategies until your science has reached its peak. I plan to further refine my second promotional campaign.
Don’t stop preparing. You can spend months researching dropship products, but this won’t drive sales. Plan and prepare, but don’t be afraid to pull the trigger.
Use coupons. Your profit margin is going to be massive, so don’t be afraid to create an Instagram / Facebook coupon. I’ve got a 5% off, but I could do that.
Can you do dropshipping with good returns?
There are numerous success stories which prove to be successful for the best people in this company.
Peter Koch from the Seller At Heart Website has a large series on how to start an Amazon business by buying Alibaba products. His own experiences, insights and results are shared.
Although this is not a dropshipping concept, it is a similar concept and I highly suggest reading its series.
In the end, if you know how to conduct product research, find reputable sellers, and efficiently promote your target market, a retail arbitrage business model could succeed.
How difficult is it to start a dropshipping company?
This post I’m editing since 7/3/2018 to update my views on the business model dropship and how viable this side trick is.
It works completely with dropshipping.
A dropshipping company can start with almost no startup costs and scale your business successfully by combining social media promotion, SEO and paid advertising.
How do I know?
Well, there are a lot of success stories, and I saw a lot of companies promoting their clearly Instagram AliExpress-sourced products (for months at a time) to know that they have some big business out there who spend a lot on advertising,… if they weren’t profitable they don’t really get so big advertising months at a time.
But it’s not easy to start an effective dropshipping company.
Now I have realized I was too covetous for Buy Hunting Gear in my first store launch.
The space for the dropship is packed and the days have elapsed in countless niches and products with easy 100% profit margins.
I would surely have reduced my margins on every item in my shop to remain competitive in price if I could do my dropshipping experiment.
I had dozens of customers adding or checkout their products, but I just converted them to 1 person. I underestimate how competitive the market is and what people are willing to shop and compare prices.
I think you have many valuable lessons to start your own online store and you can even get money by starting a dropshipping company.
However, for several months you need to put a lot of effort and time on the pilot (and, even if you’re sized, you’re going to work).
I currently have no additional hour or two a day to concentrate on dropshipping, and this is why I’ve put this store up for now.
I felt I owed everybody an explanation for why the money-making experiment stopped.
I hope I can crack another one in 2019 when I start a dropshipping business!
Is it ethical to dropshipping?
After making my first sale, I came across this question.
In the end of the day, the arbitration concept applies to all retail business models. No business could stay afloat if they didn’t.
So, even if the margin is between 100 to 200 percent, I don’t think it is wrong to be a “middleman” to mark your products up.
I believe, however, that transparency with regard to consumers must remain.
I give my brand names in Buy Hunting Gear, which I am ordering from a manufacturer, in my product descriptions.
I may not plaster the fact that the products are manufactured in China on the entire website but look at something’s brand name before you buy.
I also outline in my about and shipping sections additional information which explains what you can expect in terms of shipping time and returns and cancelation orders and how customers can provide feedback.
Dropshipping is an authentic model of business. I don’t think anything is wrong with the practice as long as you are honest and provide high-quality customer service.
I hope that this post is helpful and informative!
I just start dropshipping, but it will definitely become a new part of the Content of This Online World if this experiment works.
I’d suggest you see my phone farm guide if you would like to read some other moneymaking projects I have started!
I would also highly recommend Shopify if you want to start your own dropshipping business.
Thank you for reading! Best of luck with your adventures!