Starting a dropshipping business can be one of the most accessible paths into entrepreneurship. Not only do you get to work practically in any industry you want, but you can also make some serious money with it. And if this has been an avenue you’ve been looking to take, then there are a few solid tips you should consider. Check them out below:
If you’re going to be launching a dropshipping business, then one of the first steps you need to take is putting together a savings account for your efforts. Although with dropshipping the objective is that you’re able to reduce costs on inventory, that’s not without having to potentially increase your efforts on marketing, as eCommerce can be one of the most competitive industries out. Because as noted by the SBA, with the average small business costing between $1,000 to $5000 to start, with dropshipping, those numbers can vary tremendously, which is why it’s imperative to establish a budget.
In looking at your budget, draw out all the different items that you’re going to need, no matter how significant. From hiring a graphic designer to paying for an LLC, it’s better to be more conservative with your efforts than it is to try and run on the fly. Furthermore, depending on if you’re trying to make your dropshipping business a full-time gig or a part-time hustle, also assess for the financial time-lost for getting your shop off the ground. Remember, this is an investment you only get one shot at, so be mindful of providing yourself with the best foundation at first to ensure success.
Look Out For Logistics
Once you’ve established your budget, the next step you should consider is setting up all the logistics to ensure both efficiency and the best ROI. As noted by Entrepreneur, companies lose on average 20 to 30 percent of revenue due to inefficiencies, which could destroy your dropshipping business if you’re not careful. However, that’s why setting up a solid system of logistics is so crucial to ensuring you’re getting the best numbers back.
To begin, look at what dropshipping suppliers you can access, as well how efficiently they are operated. For example, if you’re looking to put up an item you know will sell and can buy it from a supplier that’s cheaper, but a further distance from your customer base, then weighing the overall value of that will be clutch. This equation isn’t always the easiest to hash out, but once you do, will assure you both the best value and most likely, more customers. And as a core function of your business, genuinely doing your research on what suppliers will become the best partner long-term.
Hop On Social
As it goes with most eCommerce operations, advertising on social media will be one of the best marketing channels you’ve got. Not only will this allow you to showcase your products for practically free, but also a medium that enables your customers to buy whatever you’re promoting directly. Yes, the opportunity with social could be one that brings about serious revenue if you know how to play your cards right, which will come with a blend of persistence as well as intuition.
Your social audience will most likely be those that you naturally considered from your use at first, but needs to extend further beyond from there. For example, as noted by Smart Insights, there are over 400 million active users on Instagram, where a lot of that is a younger demographic. Getting them to gravitate towards your store will require quite a bit of legwork in looking at what hashtags and social strategies that are the most intuitive to your business. Because as the name of the game is engagement, honing in on cultivating a community via social will be a top priority.
Don’t Forget About SEO
Finally, as one of digital marketing’s best tools out, SEO is an absolute must for your dropshipping business. As noted by Search Engine Journal, 93 percent of online experiences begin with search, which goes to show how much opportunity is at that point of entry. However, being able to capitalize off of it will be a whole different story.
With SEO, the name of the game is niche. The goal here is to find the keywords that will give you the most advantage per what people are looking for online. For example, if I sell tools for at home bartending, then owning the term “home bartender” might be advantageous to bring on traffic. Brainstorm which solutions you think would be best for your search terms because while SEO is a great strategy, it also requires quite a bit of foundational building; but once you find it, you’ll be off to the races.
What are you most excited about in starting your first dropshipping business? Comment with your answers below!