E-commerce field is thriving. The growth of social media, mobile shopping, digital payments, artificial intelligence, big data, and personalized experiences are changing this business.
In particular, dropshipping business grows really fast globally. It has a huge potential because it is easy to start and run. People with any education and skills can do it. This is why we decided to give it a try and see what we can achieve. We hired an expert for our dropshipping store
Step 1. Dropshipping business research
We started our journey with an analysis.
- Can we run dropshipping business?
- Who will be our suppliers?
- Will we find customers?
- What do we need to launch this business?
- What technologies we need to learn?
These questions are crucial. Without them, it is impossible to understand where to go next. You will need to do a detailed research. As a result, you should get a clear view of your goals, opportunities, and challenges.
Step 2. Learning from competitors
This is tricky because not all the ecommerce store owners openly say they are drop shippers. Still, any online store is a source of knowledge. Understanding how the store is designed and advertised can help beginners a lot.
We were inspired by the experience of Zappos. This is the biggest shoe and clothing webstore on the globe with great profit margins. It was an ordinary dropshipping store at first, but in 10 years Amazon said it would buy Zappos for $1.2 billion. This store was built by our Shopify expert.
Looking at others, you can learn a lot. For example, you can use someone else’s experience to improve your product page. Or, you can learn how someone promotes their store in Instagram and other social networks. This type of information helped us a lot. It is important to rely on it when you have no experience yourself.
Step 3. Understanding the legal part of dropshipping: registering a company
Most of businesses should be registered. For dropshipping business, this is not always necessary. It all depends on the country where you run this business. As a beginner, you can start selling online with no registration.
We learned it when we talked to AliExpress sellers. We wanted them to be our dropshipping suppliers. They don’t mind if you are a private individual and not a business.
As a rule, buyers also don’t ask about it. But it is important that you provide them with money back guarantee and free shipping worldwide. These options should be offered by your suppliers, so check if they can do it.
Step 4. Understanding the legal part: dropshipping taxes
Taxes are a vital part of every business. Dropshipping taxes exist in the form of custom fees. Custom fees are added to the cost of item, and it is a buyer’s responsibility to pay them.
Custom fees are different in every country across the globe. This is why you need to notify your buyers about it. Ask them to check what are the custom fees in their own country. Your potential customers must be aware of the local laws and regulations, and they must pay custom fees if necessary.
Step 5. Choosing the dropshipping suppliers
To create a dropshipping store, you need to find products to sell and their descriptions somewhere. But these products and their sellers should be really special. It is important that they meet some criteria.
The sellers, for example, should be ready and glad to work with you. They should deliver items to any place in the world. Also, they should agree to deliver orders without putting their own promotional materials in the packages.
After a long analysis we decided to choose AliExpress. We think it is the best platform with dropshipping suppliers.
It is really important to choose the right niche. It means a lot for the success of your dropshipping store.
We have a lot of webstores, and all of them sell different products. Every niche for these stores was chosen with the same algorithm. It is a special mechanism we have developed ourselves when we started selling online.
Step 6. Understanding own interests
It is much easier to run a dropshipping store if you are deeply interested in it. So, we recommend you to think about your passions first.
When you have deep knowledge of your niche, you provide a better customer service. If you like and understand your niche, you can pick the best items for your store. You can provide these products with top quality descriptions.
Your clients feel that you are passionate about your business, so they trust you. Also, they know that they can get professional and detailed consultations.
Step 7. Defining target audience
Who are your potential customers?
It is important to know your target audience. This is how you will promote and advertise your store more effectively.
It doesn’t matter what countries they are from. Dropshipping has a global reach, so you are not limited by a region. Instead, you need to know what they are interest in, and how you can attract them to you store.
Step 8. Exploring social networks
You need to know what online channels are the best for promotion. Do your potential clients use forums, blogs, and social networks? For example, if you know that your buyers prefer Facebook, you can efficiently advertise your dropshipping store in Facebook groups.
Step 9. Searching on AliExpress
When we choose a niche, we always go on AliExpress to check its potential. It means that we look at the number of products offered on the platform, the reputation of suppliers, and buyers’ feedback.
It is necessary to understand if we can find enough offers from this niche. These offers should meet some criteria (a big number of orders, positive feedback on the quality, good reviews about the seller, etc.). We need to fill a store with lots of items, and we need to update our product range from time to time because it keeps our target audience interested.
Step 10. Checking the marketing potential
Can we promote this niche in social networks? Can we do something for its search engine optimization? Is the niche good for paid ads?
It is necessary to answer these questions when you choose a niche. If it has a good potential for promotion, you will be able to attract more customers, and earn more.
We have developed a detailed algorithm to check SEO potential of a dropshipping niche. It will help you find best dropshipping opportunities from the point of view of promotion.
Thanks for reading. Talk to an expert to know more about dropshipping