E-commerce is one of the fastest growing trends in Bangladesh. Since 2015, there are many e-commerce businesses that have been operating in Bangladesh. They mostly operate in Dhaka and few other cities. This is a good sign, and e-commerce will continue to grow in the days ahead. CLP is often contacted by people who need to obtain a trade licence/or a PLC in order to establish an e-commerce site in Bangladesh. The answer is yes. Every business in Bangladesh must have a trade licence. You might even consider establishing your own PLC to manage your e-commerce company.
Start an E-Commerce Business in Bangladesh
The study shows that Bangladesh is in its own demographic dividend. This means that Bangladesh’s proportion of young people will rise to the highest level in 25 years. This is an opportunity for Bangladesh to capitalize on the potential of ecommerce and create an ecommerce ecosystem that will change the country’s economic landscape. China, another Asian neighbor, has shown that ecommerce can be a key driver of the economy with favorable policies and government commitment.
E-commerce is the internet-based selling or buying of goods, products, or services. E-commerce purchases can include everything from online shopping and online media outlets to the more obscure things such as online retailing. The more important things like online payment, online banking, and procedures of public administration are all part of E-commerce. This article will focus on information required to open an E-commerce business in Bangladesh.
How to Start an E-commerce Business in Bangladesh
It is dependent on the nature of your business that the E-commerce company must be established in this country.
- Individual Businesses: If you are a customer-to-consumer (C2C) business and want to trade over the internet with others, you don’t have to go through too much formality. If you are selling any goods or services through a website, or page, and you are the sole proprietor of the company, you will need a valid trade licence and an E-TIN setup.
- Associations or Companies: If you are looking to establish a company to sell your products or services through a business model called Business to Customer (B2C), the laws in Bangladesh regarding partnerships, companies and associations will apply. To set up an e-commerce store in Bangladesh, you will need to follow the laws.
- Domain and intellectual property: Another crucial step in establishing yourself in the E-economy, is to buy a domain name. A valid domain name, trademarks, copyrights, etc. are all necessary to be able to start the E-economy. This will help you to protect your intellectual property.
- A typical Bangladeshi online business. A typical Bangladeshi online business begins with the creation of a website, or a public page on an asocial media network. The products or services that are to be sold will then be cataloged on the Customer’s website or page for customers to browse. This final phase involves incorporating a secure payment method. There are many options available for your e-commerce company in Bangladesh.
- Payment methods Most online shops offer a cash-on-delivery system that does not require any digital payment. On the other side of the spectrum, most mobile banking in the country is done through services like Bkash and Rocket. However, you have the option to accept other payment methods such as credit or debit cards or PayPal. It’s important to choose something that is easily accessible and has the most users.
A dropshipping business is a great way to get started in entrepreneurship. You will also be able trade products with buyers, set the price of your product and promote your business.
We will show you how to set up a dropshipping company online, what to do with your money, and all the other details you need to get started.
What’s Dropshipping Business?
Dropshipping offers you the opportunity to manage your business without any inventory. Your provider will ship your products directly from their warehouse to your buyer after you have made a sale. Your products are shipped directly from your provider without the need for packaging, storage, or shipping.
The dropshipping model has three layers: the retailer and manufacturer. In the dropshipping model, the primary role of the manufacturer is to create products, carry inventory, ship products to customers, replace faulty products and replenish them. You are the retailer. Sell the manufacturer’s products through your website. These products will be picked and promoted by you. You’ll be responsible for shipping costs and setting values that give you a profit. The customer ultimately purchases the products from the retailer. They can contact the retailer from which they purchased the product if they have any questions or concerns.
Dropshipping: How profitable is it?
You might be interested in how much you could earn before you jump into this industry. We are glad to report that Dropshipping continues to be profitable despite the increase in eCommerce activity around the globe. Dropshipping is booming and lucrative. Dropshipping and ecommerce profits have surpassed $4 billion. This is an increase of 7 percent over the past ten years. Small entrepreneurs have also seen a 30% increase in smartphone conversion rates.
These are the Examples of Calculations:
If you buy a product from AliExpress for $15 and sell it for $30, this is an example. Your original profit is $10 after reducing shipping costs and marketing expenses. You must sell at least 1000 products each month to make $100,000 per year.
$10 profit x 1000 orders = $10,000 per month
$10,000 per Month x 12 = $120,000 Per Year
To make $100,000 per year, you must sell at least 34 orders per day from your dropshipping shop.
Dropshipping can make a huge difference in your life.
You only pay for products you sell to paying customers when it comes to startup expenses. You don’t have to feel obligated about creating products, maintaining inventory, or paying for employees to pack and ship products. Dropshipping is a great way to get into entrepreneurship. You can do it all yourself, even on weekends and evenings. Processing orders will take daily effort. Most order processing steps can be automated and done in a few clicks. Dropshipping is a lucrative business opportunity. You just have to make the first step towards achieving your goals. If you can move in the right direction, success will follow.
Dropshipping: Can you make money?
Dropshipping is a great way to make money, and it has been proven by many of our businessmen.
Dropshipping allows you to search for products that you are passionate about and create a business selling them.
If you feel inspired to sell products you will be more inclined to invest in promotion and advertising, which can lead to greater returns for your ventures.
Dropshipping in Bangladesh: 6 Steps to Start a Dropshipping Company
Step 1 – Choosing a Dropshipping Business Idea
You need to spend some time researching the best dropshipping ideas. Experts will recommend that you choose a domain that you are passionate about. This isn’t the right view. It is a mix of passion and profit. Dropshipping is a business that makes a lot of money. It is absurd to try and enter a niche that has no competition. We are constantly watching the top online shops succeed in fitness, jewellery, fashion tech, beauty, purses and backpacks. Tim Kock, for example, created a dropshipping case-study where his pineapple business failed. However, his watch company made $7000 in just eight weeks. This shows that your niche is the most important thing. Spend some time researching different dropshipping ideas. The following information is helpful if you’re thinking of starting dropshipping.
- Use Google Trends for the latest trends: Google Trends can be used to determine if a niche is worth it. It’s not enough to determine if a niche is safe or not. While they may be more popular than others, few of them have enough search volume to justify their popularity.
- Keyword Research Tool to analyze your keyword: Use Ubersuggest Keyword Tool. What is the search volume for that keyword? Or its competitiveness? Ubersuggest’s Keyword Tool can help you assess the potential of your dropshipping business and make new plans.
- Find out about the competition. Check out successful websites in your niche. You will get an idea of their approach to business. If you take a look at a fashion retailer’s website, you will see that they often organize their shop by trend categories. This helps you identify the trends that you should add to your store. To help you find the best products, you can also take a look at top-selling products in a store.
- Determine the product volume. Look at the order volume of products to determine which product is driving more sales. Dropshipping is an option, even if the product volume isn’t as high as others. These products might be new.
- Make sure the niche is profitable: Profit is the main goal of any business. You must assess the viability of every dropshipping niche you create and each product idea you develop. You should aim for a profit margin of between 35-40%, after shipping and seller fees. However, it is not advisable to target margins greater than 100%.
- Search for the solution on your own: This is an old-school entrepreneurial tip. It is a common belief that if you are having difficulty in your own life, it is highly likely that others have the same problem. You might be able to identify a product that solves the problem and create a dropshipping niche.
Bonus Tip An online calculator can be used to determine the profitability of products you’re considering selling. This calculator reduces Amazon fees and estimates the number of items sold each month. It also provides an indicator of demand.
Step 2 – Analyze your competitors
Once you’ve decided what product to sell, it is time to learn about your competitors, their sales, and the ways they market their products. There are many ways to sell a product.
- Enter the name of the product you wish to sell in Google. Then, do a quick search to see who comes up first. You can get a good idea of the competition in your area by looking at the top ten Google results. Third-party tools can be used to collect data if you sell products in another location than your own. You can use tools such as A Href or SEMRush to find information about search results from different locations around the globe.
- SimilarWeb and Alexa can help you find niche competitors to the sites that do not appear high in search results. These websites will give you a summary of all the sites that you have searched for, along with their social media profiles and audience data. You can also see a list of potential competitors for your business.
- Explore the various social media platforms. People love to share their trends on social media. Regular social media surfing can provide valuable information.
- BuzzSumo allows you to see the content of your competitors and determine which ones work best for them. This tool will give you insights into which content is most popular on social media so that you can encourage others to share your blog ideas. If they share their blog content, signing up for their newsletters will keep you informed.
Step 3 – Find a Reliable Supplier
Every drop shipping company has its advantages and disadvantages. Before you make any decision about a company, it is important to do a thorough assessment. Once you have a list of at least five to six potential suppliers, you can move on to the next step. You will need to communicate with them to clarify important questions such as minimum order quantities or shipping times. To see the results, you can simply type “supplier” and your product into Google. You can also search for your product on websites such as Aliexpress.com and Alibaba.com. These sites are used by many suppliers based in China to sell their products.
A good dropship supplier should possess the following qualities:
Be a drop shipper
Dropshipping is not a service offered by every supplier of products. Some suppliers are only wholesalers, while others are manufacturers. It is important to verify that the supplier you are talking with is a drop shipper. This will save you time.
Choose an experienced friend
Dropshipping is a more profitable option if the supplier has a lot of experience. Dropshipping is a risky business and suppliers can be held responsible for it. You need to make sure you have their trust at all times. If the sales rep you are in touch with is friendly and knowledgeable, this is a good sign. You should not be concerned if they aren’t experienced.
China has a higher number of drop ship suppliers than the United States, so it is not possible to expect overnight shipping. You want to ensure that your customers receive their products as quickly as possible. You should check their shipping times to countries that you serve. Dropshipping is possible within one-two weeks. Customers can become annoyed if they are not allowed to ship in the same timeframe. They may leave negative feedback.
Quality is the king
To ensure quality, you should always request product samples before committing to a supplier. You should request images from the supplier that are high-quality so you can use them in your product listings. You have probably reduced the number of suppliers to a minimum of 2 or 3. It is best to order a sample product from each supplier and then analyse the results. While making a decision, compare the product’s condition, shipping time, and packaging. Keep in mind your customers and what they expect when placing an order.
Step 4 – Creating a Dropshipping Store
If you want to build a long-term brand, your domain name is crucial. A few name generators are available. It is a smarter choice to select a domain name that has a.com extension. Avoid using your personal name as your domain name. You can legally use the rights to your name if you sell your business.
Sign up for Shopify
Shopify is the best e-commerce platform in the world. Shopify is packed with new features, resources, tools, and apps that will make it easy to use the platform and conduct business. Shopify experts are available to help you with any questions or concerns.
Create your store
Once you’ve set up your Shopify theme, you can make changes to it. To make your shop stand out, you can modify the colours, fonts and text sizes.
You should at the very least:
- Choose the right typography for your headers and text
- Colors should be coordinated
- Place the logo at a convenient place
- Setup the menu (top bar, footer).
- Layout the product, collection, and front pages
This is where you will find the time that you have spent on enhancing your brand. How you edit your theme will depend on the choices you have made regarding colour palette, font, and photography style.
Step 5 – Promoting Your Dropshipping Company
Once you’ve found the product that you want, it is time to open your store. Next, you need to promote your store to potential buyers. To earn trust from search engines, it is important to keep your marketing strategy organic. It doesn’t matter if you are afraid to put yourself out there. It’s a great feeling to make your first sale. It is becoming harder to get attention via social marketing. You can still achieve success if you keep your eyes on the basics.
It is becoming harder to attract the attention of people interested in Facebook because of constant up-gradation of its algorithm. There are many factors that go into a successful marketing campaign on Facebook. Many new entrepreneurs believe they will make a lot of money from their first attempt. Before you post your first Facebook advertisement, it is important to thoroughly analyze your audience. You should understand your customers’ requirements and create the ad accordingly. You must also experiment to find out what works for you. Targeting is key. Create a World ad, but leave Canada, Australia, and the United States out of context. This will reduce your advertising costs. You can create separate ads for each country as your business grows or if you have more money.
Google is, by far, the most powerful search engine in the world. You want your online e-commerce shop to rank on Google’s first page. This can be done organically or by purchasing ads to have your store appear at the top of Google for keywords that you are interested in ranking for. Google ads can be a great option for the following reasons:
- Search appearances can bring you great exposure.
- It is the most well-known advertising platform in the universe.
- It is possible to target highly-selected demographics (languages, locations, devices, etc.).
- High volume keywords that are related to your niche will increase your ads’ exposure
You can save money by using retargeting. If your website has a lot of traffic, this can yield a good result. Customers are more likely to purchase the product if it is presented to them repeatedly. You can use retargeting to help with that. You also have the opportunity to find a permanent buyer.
One of the best ways to reach potential customers is to create an email list. It is necessary to have a way of conquering email addresses. This could be a request for sign-up at checkout, offering free ebooks, or any offer that requires email addresses. You can reach a large number of people easily by creating an elegant email list.
In recent years, influencer marketing has been a major part of customer acquisition in retail businesses. In 2020, it could be a key part of any buyer acquisition strategy. This can work especially well if your niche is popular. If you sell a trendy handbag style, you might reach out to an Instagram influencer to ask if she would share a photo of the bag with you, and tag your business. One post can bring in a lot of customers and new audiences. Influencer marketing costs vary depending on the fame of the influencer. Kim Kardashian’s post might be worth $250,000, but a post with 10,000 followers may only cost a few hundred.
Step 6 – Optimize
After you have completed your website, branding, and marketing strategy, it is time to start seeing the results of all your hard work. One marketing activity may be more successful than others. You can also compare your pricing to see if there are any ways you could make it more competitive. To calculate your online traffic, you can use tools such as Google Search Console and Analytics. Set up automatic reports for your third-party email marketing tools so you’re reminded to look at this data frequently. A quick snapshot of data from a tool can help you determine whether a campaign works or not.
Dropshipping: Is it Worth It?
Dropshipping is well worth the effort and time you put into it. You will not reap the benefits of your online business if you don’t invest time. Dropshipping is a time-consuming process. You need to set up a store and import the products. Then you have to decide on your pricing strategy and get started selling. If you aren’t willing to put in the effort, nothing will happen.
Dropshipping can be difficult to set up. If you take the right steps to scale your business, you can make unimaginable profits, even in Bangladesh.