Dropshipping is a business model in which ecommerce entrepreneurs sell products without having to carry any inventory. When a store owner receives an order from a customer, they simply contact the supplier, who will then ship the products directly to the customer’s door. Dropshipping apps like Oberlo let you add products from various suppliers into your shop to fuel your product offering.
Benefits of Dropshipping
There are many advantages of drop shipping which is why it’s such a popular model for new ecommerce entrepreneurs. You can get started quickly and cheaply: All you need to start a dropshipping business is a domain name, hosting, and an ecommerce platform like Shopify. You don’t need to invest thousands of dollars in inventory.
You can test products without investing in inventory: When you dropship, you can add products to your store without ever having to see or touch the physical product. This is great for testing new product ideas quickly and cheaply. If a product doesn’t sell, you can simply remove it from your store. You have less financial risk: Because you don’t need to invest in inventory, your financial risk is much lower when you dropship. This means you can start your own business with very little money.
What You Need to Start Dropshipping
Now that you know what dropshipping is and the benefits of dropshipping, you might be wondering what you need to start a dropshipping business.
Here’s what you need to get started:
A domain name and hosting: This is where your website will live. We recommend using Shopify as your ecommerce platform as it includes hosting, a customizable platform, and support. You can start a free 14-day trial of Shopify here.
An ecommerce platform: This is where you’ll create and manage your online store. We recommend using Shopify as it’s the most popular ecommerce platform with all the features and resources you need to start a successful online store. Plus, it integrates with Oberlo so you can easily add products to your store. You can start a free 14-day trial of Shopify here.
Oberlo: Oberlo is an app that lets you find products to sell online, add them to your Shopify store, and ship them directly to your customers. You can start using Oberlo for free here.
A supplier: This is a person or company who creates and ships products on your behalf. You’ll find suppliers by using Oberlo’s supplier directory or contact them directly to see if they offer dropshipping.
How to Start Dropshipping
Starting a dropshipping business is one of the cheapest and easiest ways to launch an online store. You don’t need to worry about manufacturing, packaging, or shipping products as that’s all taken care of by your supplier. All you need to do is add products to your store and market them to your customers.
Here’s a step-by-step guide on how to start dropshipping:
1. Choose Your Niche
The first step to starting a dropshipping business is finding a niche, or an area of focus. When choosing your niche, you’ll need to consider the following:
- What are you passionate about?
- What products are in demand?
- What can you realistically sell?
Your niche should be something you’re interested in as you’ll need to spend a lot of time researching and writing about your products. If you’re not interested in your niche, it’ll be very difficult to sell your products.
It’s also important to choose a niche that’s in demand as you’ll need to find customers for your products. If there’s no demand for your product, you won’t make any sales.
Finally, you need to make sure you can realistically sell your products. This means your products need to be priced competitively and you need to be able to find suppliers who are willing to dropship your products.
2. Choose Your Suppliers
Once you’ve chosen your niche, it’s time to find suppliers who are willing to dropship products for you. You can find suppliers by using Oberlo’s supplier directory or contact them directly to see if they offer dropshipping.