How To Start A Drop Shipping Business – Complete Guide

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How To Start A Drop Shipping Business?

Do you know what is a drop shipping business? Did you ever think of starting an online e-commerce store?

Well, many of you have a misconception that starting a business means you need to invest immense amount. I agree with you but partially.

But what, if I say you that you can start a business with zero investment, will you believe it or not?

Well if you don’t, believe me, I’m not going to turn now to a sales person ūüôā but instead, I can provide you lot information on drop shipping that should definitely help you.

Complete Dropshipping Guide

  1. What is drop shipping?
  2. How Dropshipping works?
  3. Drop shipping with Shopify.
  4. How to find a drop shipper?
  5. Benefits of Dropshipping.
  6. Problems with Dropshipping.

What is Dropshipping?

Drop shipping is a technique where you act as a mediator between wholesaler & customer. You can call yourself as a retailer but you does not hold any products in your stock and also you do not ship products to customers. Your investment in purchasing products & shipping is zero.

You might be wondering how I’m going to earn money from this business & how exactly this technique works.

Let me explain you with a simple example how drop shipping works.

How Dropshipping works?

You will go to a wholesaler and make a deal with him saying that I will sell your products through my e-commerce site. If any customer placed an order through my website I will send you shipping details of the customer then you need to send the product to the customer for respective shipping address. So for doing this, I will charge some commission from the customer and remaining amount I will pay you.

This is the deal that you need to make with the wholesaler. If he accepts he will allow you to place his products in your website. Then after it’s your turn to promote your e-commerce store and generate sales.

HOW DROP SHIPPING WORKS

This is how drop shipping works. Let’s learn how to set up our e-commerce store for drop shipping.

Drop shipping with Shopify

Shopify is an e-commerce platform which allows you to create an online store. You can sign up with Shopify and start your drop shipping business. Shopify provides you many tools to set up your store. If in case you are facing any issue in setting up your e-commerce store with Shopify shoot me your queries in the comments section I will definitely help you.

As I said earlier once you had a deal with wholesaler place your products in your e-commerce store and start your business.

It’s so simple & hassle-free.

How to find a drop shipper?

Well, you might be excited to start drop shipping business but the only problem right now for you is the wholesaler. Where to find the drop shipper (wholesaler)? Do not worry I will give you a simple technique to find the drop shipper.

Steps to find drop shipper:

  1. Go to Alibaba website where you can find a number of wholesalers.
  2. Create an account in Alibaba.
  3. Now select the products you wish to sell in your e-commerce store.
  4. Select the wholesaler who has a good rating.
  5. When you received an order from customer place an order in Alibaba website with your customer shipping details.

That’s it from your side. The product will be delivered to the respective delivery address by the wholesaler.

Just google out for more drop shippers you will find many. You can even contact your local wholesalers and make a deal with them.

Benefits of Drop Shipping

  1. Zero investment.
  2. You can operate your business just with an internet commission.
  3. You don’t lose single penny even if your business is failed.

Problems with Drop Shipping

There will be problems for any kind of business & it applies to drop shipping too. Let’s take an example.

A customer placed an order from your website and product is delivered and he received a damaged product. Now he will place a return/replace order. So as a drop ship owner you need to handle the returns placed by the customer.

You need to contact the wholesaler and place a return order on behalf of the customer.

If your wholesaler does not accept returns then you need to answer your customers.

So you must be careful while selecting the drop shipper(wholesaler).

And you must always sync up with your drop shipper regarding stock availability.

If you can handle the above problems smoothly you can run a successful drop shipping business.

Final Words

Before concluding this article I want to give you an additional info about how to generate sales from your e-commerce store.

Read this article 10 Key Marketing Strategies To Grow Your Small Business.

It will help you how to bring customers to your website and generate sales.

And try to promote your online store on social networking sites like facebook, twitter, google plus.

Invest on advertising your store. The more you invest the more customers you get & sales you can generate. You will never lose your investment if you invested wisely.

Hope you liked the article (How To Start A Dropshipping Business – Complete Guide).

Thanks for reading.

If you have any queries please feel free to ask in comments.

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