Dropshipping business: The ins and outs of starting a low investment business model
One of the easiest ways to earn money in 2020 is starting a dropshipping business. The popularity of dropshipping businesses has increased exponentially with the growth of Amazon, Flipkart, eBay, and other online marketplaces. Add to that an inexpensive entry point and an easy setup process, and the dropshipping business market has never been more competitive.
Despite the competition, the dropshipping business is extremely lucrative. If you’re planning on starting your very own dropshipping business, we’ve put together the perfect, all-inclusive guide to help you get started.
What is Dropshipping Business?
A dropshipping business is where the seller can sell products to their customers without maintaining any inventory, with support from a dropshipping supplier. Here’s a breakdown of how a dropshipping business works:
- The customer will place an order on the business’ online store
- The dropshipping supplier will automatically receive the order from the online store
- Upon receiving the order, the supplier will start preparing the order
- Once done, the dropshipping supplier will directly ship the product to the customer
Advantages of a Dropshipping Business
- One of the most significant advantages of a dropshipping business is that you don’t have to deal with physical products and the hassles of maintaining an inventory.
- Since all you need is to set up an online store, dropshipping business is decidedly cost-effective. Plus, you don’t have to worry about packing and shipping your orders.
- A dropshipping business is one of the rare few entrepreneurial endeavors that can be worked on entirely by one person, and even from their home!
- Finally, there are no location constraints to setting up a dropshipping business, a wide selection of products that you can list and sell, and the ease of scaling the business.
How to Set Up a Dropshipping Business
- The first step in starting your dropshipping business is zeroing in on the type of product you want to sell. Remember, given its popularity, most dropshipping business niches already have a lot of competition. Identify a dropshipping place that doesn’t have a lot of competition and is something you’re passionate about.
- Next, you need to find a dropshipping supplier to partner with. This is an essential aspect of your business, and your eventual success depends on the supplier you choose. Do a thorough research when picking a supplier since they’ll be responsible for everything from maintaining inventory to shipping products. Remember, partner with a dropshipping supplier and not just a regular one; the two are very different.
- Once you’ve your niche and dropshipping supplier locked in, it’s time to set up your online store. This is one part of your dropshipping business that you have complete control over. You decide everything, including how the online store looks, categorizing products, prices, and other aspects of the store. Given how significant the online store is to your business, it’s crucial to find an online marketplace builder that allows you to create a store that way you want to. That’s where Yelo steps in. With Yelo, you can create customizable online marketplaces across a wide range of niches. The many benefits of partnering with Yelo include a professionally designed website, fully responsive customer app, admin dashboard, numerous integrations, and more.
- Are you done with creating your online store? Now, it’s time to bring in the customers. Focus all your energies on marketing your business through every means possible; social media, influencer marketing, content marketing, emails, paid ads, and SEO. Your dropshipping business’s success depends on how well you market, and Yelo’s online marketplace builder offers tons of marketing avenues, including loyalty programs, search engine optimization, banners, and more.
If you decide to enter the exciting dropshipping business market, choose Yelo to build your online marketplace. Have questions about how Yelo can help you make your dropshipping business a success? Get in touch with us today.