How to Start a Dropshipping Business from Scratch in 2023

Always wanted to start your own business but didn’t know where to start? If so, a dropshipping store could be a great – and convenient – option for you. Dropshipping business Read on to learn how to get started.

People looking to start a dropshipping business are more likely to want a more convenient and “passive” way to make money.

Yes, doing business is hard. But dropshipping makes starting a business much easier. It has low startup and maintenance costs and is easy to scale. We’ll find out later.

No wonder about 33% of online stores have adopted the dropshipping model.

Now you can spend your money on the best dropshipping books and soak up the wisdom of successful drop shippers that have come before you. Or you can bookmark this free article.

We provide beat-by-beat instructions on how to start a dropshipping store, even if you’re a beginner.

let’s start!

Contents

Introduction: Why start dropshipping?

Google Trends shows the search term “how to start a dropshipping business” is quite popular.

Source

That means you’re not the only one looking to start a dropshipping ecommerce business right away. So why take the train?

Well, here are four reasons.

1. Lower startup and maintenance costs

Again, the dropshipping business model is easy to start. A realistic figure for starting a dropshipping business is a mere $288, which includes:

No digging deep into finances to get started.

And since we do dropshipping, we don’t manufacture the products. You don’t have to pay for packaging, warehousing, and warehousing. Just set up your website with Magento or similar, get managed Magento hosting, and start selling.

Less capital means more potential for a profitable business.

2. Location-independence

Once you’ve created your store on a platform like SellKer, you can start selling right away. You can place an order if you have an internet environment and a laptop.

Also, the product does not have to be in the same country as you. No problem as long as you have a reliable supplier.

3. Product flexibility

Dropshipping allows you to sell whatever you want on your online store. And if the market crashes or demand changes, you can easily change what you sell.

A successful dropshipping business can move with the times!

4. Low time commitment

Setting up an ecommerce platform for the first time will take some time.

But once you get the hang of the system, you can relax and watch your profit margin grow steadily.

At most, it’s time spent dealing with customers who run into logistical issues (which must be resolved with the supplier). Therefore, it is necessary to thoroughly check the supplier.

Is dropshipping right for your business?

\Before you start, you should first ask yourself if dropshipping is actually right for you.

So…how do you know?

Dropshipping is perfect for:

First-time small business owners who can’t afford to risk a lot of seed capital
Entrepreneurs looking to sell a variety of products (if you can’t find a niche)
Traditional companies looking to expand into new markets without investing in inventory
If you are an established company that already has a name and a well-known product, this may not be for you.

why?

Due to the nature of dropshipping, items may be sold together with unrelated items. This will only confuse customers.

The pros and cons of dropshipping

Dropshipping is not all about fun, games, and counting your money. Let’s take a look at the good and not-so-good things about it.

Pros of dropshipping

  • You don’t need a lot of capital to start and maintain your business.
  • Because you don’t have to stockpile inventory, you avoid common problems like stale or low inventory.
  • You can sell and test your products with less risk. For example, you may have heard about a product that works well with another drop shipper. You can immediately start offering the same product to your customers. Just update your ecommerce site with this article and you’re good to go.
  • No need to worry about storage, organizing items, tracking, labeling, etc. Suppliers handle all of this. Your only job is to forward the order to them.

Cons of dropshipping

  • You can’t expect high-profit margins anytime soon. You make less money because you pay for each item sold instead of receiving the wholesale price. If you want to make more money, you have to sell… a lot.
  • Due to our dependence on suppliers, we may encounter inappropriate and unreliable suppliers. So if they make a mistake, they end up dealing with dissatisfied customers.
  • They have no control over product quality. This means that if your supplier’s product quality suffers, your brand will be held accountable.
  • You deal with a lot of back and forth. If you have a problem, you should talk to the customer first, wait for the supplier to contact you, and then talk to the customer again. Playing a middleman can be boring. If you’re still determined to make your dropshipping business model work, read on.

How to start a dropshipping business in 2023

Every business needs a plan and a guide on how to start and how to run it effectively. The same goes for dropshipping businesses too.

Below is an 8-step guide on how to start a dropshipping business from scratch.

1. Choose your niche

Typically, every business plan starts with finding your niche. Of course, there are general stores that sell a lot of random products.

However, it’s better to start by narrowing down your target market and focus all your efforts on gaining an edge there.

Many young entrepreneurs prefer the dropshipping model because of the low overhead costs and not having to worry about warehousing and shipping products.

However, the competition is fierce and unless you find a competitive advantage. It is difficult to survive in the market. If you don’t know what your niche is, this simple method can help.

Suppose you plan to sell coffee makers using the dropshipping method. The first thing to do is identify the demand for coffee maker. There is no better source than Google to find this out.

So if you search for the term “coffee maker,” Google will return about 1.9 billion search results. The competition here is too big.

But when you narrow your search to say ‘drip coffee maker’, the search results are about 86 Million, which is a huge difference!

Narrow is further down to ‘single cup drip coffee maker’ and the search results reduces furthermore to 8 Million.

And then there is your niche.

Using the right marketing techniques will help you rank for that search term.

Even if you choose to run paid ads, the CPC for this keyword will be lower than the term “coffee maker.”

So this is basically the easiest way to find a niche based on demand and competition.

However, when approaching the niche, make sure it is not too narrow. Even if you plan to sell one drip coffee maker, try to offer at least 5-6 variations in your store. These variations may be based on product appearance or price.

As your business grows, you can add products to your store that are themed around your main product.

example:
If you sell a single-cup drip coffee maker, you can add products such as coffee mugs, travel mugs, coffee filter sheets, and even coffee beans if you find the right supplier. ☕

2. Do market research

The entire dropshipping business model relies on your ability to find products at a lower cost and sell them to your target market at a higher price so that you can make as much profit as possible.

This may seem like an easy task in theory. However, if you are selling your product at a higher price, you should also make sure that your target market is willing to pay that price for your product.

This requires doing market research at every step of the product and target market search.

E-commerce has made it easier for people to sell products to customers around the world from anywhere, so there is no doubt that a huge market exists. However, your target market is a narrower version of your overall market, and this section should include people who are likely to buy your product.

example:
If you’re dropshipping winter jackets, your target market should be people living in cold climates, not those in the tropics!

Google Trends for winter jackets in Malaysia – show very irregular trends which cannot be banked upon.

Google Trends for winter jackets in Canada – show a constant increase in trends, especially during the winter months (Sep-Dec).

Google Trends can be of huge help in identifying the search trends for your product in your target location.

Ideally, while starting a business, market research should begin with identifying and researching your competitors.

Who are they targeting?
How do you get customers?
How do customers behave in your store?
What are their marketing strategies etc? With all this information, you can easily find your target market and potential customers. Now you have to do better than your competitors and you are ready.

3. Choose the right products

Good news: You can be flexible when starting a dropshipping business in terms of choosing the products to sell. However, you must remember that not all products will sell and make a profit. You had better start selling products that people buy.

For that, you need to do market research. Before you start selling, let’s take a look at some considerations.

1. Find products that are trending

If you don’t know what to sell, why not check out the trend items? That way you can still take advantage of the hot conditions.

There are many ways to find trending items:

Get inspiration from the best dropshipping products to sell here.

Visit websites KickstarterWishAnswerthePublicTrendhunter, and Google Trends. These websites can tell you, well, what inquiries or products are trending. Find ones that are suitable for your niche.

Look for hashtags like #viralproduct on Instagram. We recommend going to the latest section. From the results, you can find product ideas. Do the same for other apps that use hashtags, such as Pinterest and Twitter.

use google Type in a search like ‘most interesting articles of 2023’ and you’ll get a lot of answers. After reviewing the search results, you may find a great product to sell. Example case:

Join online communities related to your niche. For example, Discord has a dedicated server dedicated to gardening. If that’s your niche, it’s a treasure trove of product ideas.

2. Sell a product that solves a problem

Let’s say your niche includes people who cook a lot and have a lot of kids on their feet. What do you think is one of their problems?

Well, you can keep knives and other metal utensils within easy reach, but we say they’re not accessible enough for children. So what’s the solution?? Magnetic sticks like this:

How to Start a Dropshipping Business From Scratch in 2023 on Amazon

The pole keeps the knife within reach. Also, the magnetic properties allow for quick storage and retrieval.

In other words, the product doesn’t have to solve a big problem. If you can solve the problem, you can sell it. Find the weak spots in your niche to find out the problems they have and the products you can sell as solutions.

3. What are your competitors selling?

Honestly, the niche you were thinking of? You’re not the only one selling to them. There are competitors in this niche.

So why not take a look at what they sell? Find out how your main competitors source and market their products and their pricing strategies. Competitor tracking tools can be used to spot patterns faster, discover new products you plan to sell, and even outperform them.

Of course, we do not encourage unethical marketing practices. Competitor research is simply going to your online store, looking at the products they sell, and deciding what you can sell based on those products.

Companies do market research all the time. why not you?

4. Use a product research tool

Simply put, a product research tool is a tool that uses various market data sources to help you find the right products for your business. Evaluate the sellability of different products from data such as order counts and sales history.

There are many on the market such as Sell The Trend, Niche Scraper, Split Dragon, and Dropship Spy.

5. Make sure you have reliable suppliers of that product

We can say that we have a successful product only if we have a reliable supplier. It is a problem even if the product is already decided, and it is also a problem if the supplier tells us the delivery date and stock status.

Don’t worry about looking for good suppliers: read our list of best dropshipping suppliers here.

4. Find a reliable supplier

Now that you have an attractive product and a target market to sell it to, the next step is to find a reliable supplier.

How to Start a Dropshipping Business from Scratch with Warehouse 2023

As mentioned above, Aliexpress is the most reliable provider when it comes to dropshipping.

Many entrepreneurs run profitable businesses by finding products at lower prices on Aliexpress and selling them at higher prices through online stores.

Another advantage of choosing Aliexpress as your supplier is that they are an established e-commerce company and have a strong customer service team.

Any issues such as misdelivery, delivery of damaged items, returns, or refunds are easier to handle through Aliexpress compared to other smaller vendors. However, you can always rely on local vendors or suppliers who can offer you products at competitive prices and ship them directly to you at a profit margin.

This system is ideal for selling local crafts and cultural assets to customers in other countries.

Example:
People all over the world are crazy about pashmina shawls, which are basically trademark products of Kashmir. So, if you are looking to sell authentic pashmina shawls, finding a local supplier becomes a necessity.

5. Create an online store

If you want to start a dropshipping business, you will need to create an online store.

It’s impossible to have a physical store because we don’t have a physical inventory of the products we want to sell.

Dropshipping business is done entirely on the Internet. So we know how important it is to have a professional and representative online store for your business.

However, we are here to make your decision about the right platform easier. The biggest advantage of choosing the dropshipping business model is the small investment to start your business.

Creating an online store with SellKer is as easy as starting a WhatsApp group. No technical or programming skills are required. This video can guide you through the process.

After you create your online store, you can add products to your online catalog and provide SEO-friendly product descriptions to help people find your products.

Please try to provide as accurate information as possible about the product. Marketing basically starts with product images and product descriptions. So learn to click for better product pictures.

Once your store is set up, you can go ahead and start promoting your store and driving traffic to it.

6. Market your dropshipping store

A good dropshipping business plan includes a lot of marketing. As I said before, you may have a dropshipping shop, but if no one knows it exists, there will be no buyers!

Here are some ways to get your business noticed.

1. Build a high-converting dropshipping website

A high-converting website has an attractive design, a clear message and value proposition, and lots of eye-catching call-to-action buttons. These factors work together to turn website visitors into paying customers.

Rookwood is one of the websites considered to have high conversion rates. As you scroll through your website, you’ll see that you’re hitting all the conversion factors mentioned above.

Rookwood website

And when you invest in your website, invest in your product photography as well. You can’t have an attractively designed website with bad photos, right? Speaking of websites, don’t forget to invest in search engine optimization and SEO marketing as well.

What you want is for your website to appear on the first page (or preferably the first result) when shoppers Google your products.

That way people will stay on your site and have more reason to explore further. Ultimately, it may lead to a purchase.

SEO marketing may not be the fastest way to attract potential customers, but it’s a good long-term investment.

In summary, an attractive website gives people a reason to visit. By getting relevant information through blogs, they stay.

2. Do email marketing

Studies show that the average website conversion rate of eCommerce websites or online stores is 2.86%.

This means that a potential customer’s first visit may not immediately lead to a purchase. They may be interested in your content, but they won’t buy it right away.

So if you’ve been working on getting visitors to your site, you don’t want to lose touch with them when they’re done browsing your site. This is where her email marketing power comes into play.

But how do you get their email address? We invite you to sign up for our newsletter for discounts. See Whyte Moka Hair’s method for an example.

If a customer is interested in your wig, why don’t they sign up and get a big discount on your product? Plus, if you have their email address, they’ll always be reminded about your product and kept up to date on your offers. can provide.

Not only does it give you the opportunity to reach out to your customers, it can ultimately convert them. 

3. Choose what social media platform you should use for marketing

There are many marketing strategies that always say to use social media. (Hey, we did that earlier in this article too.) But just because there are so many available, and many of them are free, doesn’t mean you should use them all.

It’s best to focus on one or two platforms where the market exists. For example, if you sell clothing, you could build your audience on Facebook and Instagram. But if you’re dropshipping furniture or crafts, you might want to spend more time on Pinterest. Also, consider the social media platforms you are familiar with. After all, time is of the essence, and having to take the time to learn a new app takes time away from sales and marketing. Plus, with regular updates to all our platforms, you’ll learn more and spend less time on other areas of your business.

Find the perfect platform to reach your goals. Find a platform that helps you increase sales and build trust with your customers.

4. Join online communities that would be interested in your products

You know the saying, “Where there’s fish, there’s fish”?

It only makes sense if you’re where your audience is. In the online world, it means finding communities with similar interests. For example, Reddit has a community dedicated to embroidery.

Reddit online community

If your product is an embroidered product, does it make sense to search for potential customers here? It’s not just Reddit. Facebook groups, Discord communities, forums like Quora, and more.

Join us and let us trust your information and suggestions. trust us Contributing regularly will be worth your time. Nurture relationships, find what you need, and ultimately win new customers.

5. Start YouTube marketing

Did you know that 90% of people base their purchase decisions on embedded videos? Videos have also been found to increase user engagement and can even stop people from scrolling past products.

If your product can be demonstrated on video, why not make one? And you don’t even have to do it professionally. For example, Naturally, Nanyamka obtained a video from one of her reviewers and posted it on her official YouTube channel.

Videos can help people understand what you’re selling and how you’re using it. This will make people trust you more and buy what you sell.

Additionally, you can ask YouTube users to rate your product, as Naturally Nanyamka did. Because these creators are trusted by their audience, their trust in your product will double with him. As an added incentive, we promise these creators an affiliate fee every time someone buys something based on a product review.

Be sure to explore YouTube marketing trends that work for you to have a perfectly effective YouTube strategy.

6. Invest in advertising‍ your store

All of the above tactics are so-called organic marketing. They will generate traffic for your business over time. But this is a very slow method.

If you want faster marketing results, you should use Facebook, Instagram, or Google Ads. They help your product immediately catch the eye. Consider the following Google Ads example.

How to Start a Dropshipping Business From Scratch with Google Ads in 2023

Advertisements will make your website number one in no time. who wouldn’t want that?

The same applies to Facebook ads.

Additionally, Facebook and Google also offer retargeting. This means that you can remind potential customers of your product even after they have left your website.

Of course, just because you posted an ad doesn’t mean you should just leave it alone. There is no guarantee that it will work. You should test and optimize your ads and run multiple ads to see which ones work best.

For higher conversion rates and less wasted advertising dollars, it’s a good idea to research how to get sales from Google Ads or Facebook Ads.

7. Use social media for dropshipping

We always say how you can promote your store via social media.

Here are 5 popular social media platforms. Let’s take a look at how you can use each one.

1. Facebook

Facebook is a good place to start as it has 2.93 billion monthly active users.

Create a Facebook page so people can find you. You can post details about your products and services and keep your followers up to date with your latest item.

This image is a screenshot of SellKer’s Facebook account.

You can also create a customer-only Facebook group so your customers can connect directly with you. Make them feel special by sharing exclusive offers and insider information on new products.

Finally, you can use Facebook Ads Manager to place ads to increase your reach.

2. Instagram

Instagram has around 1.386 billion users, making it the 4th most-used social media platform worldwide.

Instagram is a highly visual platform, that lets you post photos, stories, and videos or reels for your eCommerce store. It’s best used if your products in your dropshipping business are visually appealing or luxurious items like clothes or jewelry. Take @shopvalley.in for example.

There are many ways to sell on Instagram, B. Using hashtags. The most well-known aspect is working with Instagram influencers. Work with them to drive more traffic to your Instagram page and build trust in your brand.

3. Pinterest

Just like Instagram, Pinterest is a visual platform.

Users go through it for inspiration for clothing, jewelry, furniture, and even food. So if your image can get noticed, they will click through to your account and even more! You can see the image of

Let’s say your client is looking for “streetwear inspiration” and this particular photo caught their eye.

When the customer clicks it, they are redirected to the next page

You can see her NU-TNG, the owner of the photo. When users want clothes or want to see big pictures, they go to the site and buy. Or check other styles.

By creating a great-looking image, we actually led people to our online store.

Of course, that’s just one aspect of her Pinterest marketing. The platform also allows you to create videos and place ads on them.

Finally, it’s worth noting that 77% of her Pinterest users are women. So if you’re looking for the women’s market, Pinterest is worth following.

4. YouTube

YouTube is definitely evolving. It used to be a video-based site where people just uploaded videos of themselves for fun.It is now a place people visit for both entertainment and serious study.

YouTube has over 122 million daily active users. Video marketing is becoming part of the marketing plans of large companies. The best videos are product videos that show how the product is being enjoyed. If you can entertain your customers and address their concerns through these videos, that’s great too.

For example, our YouTube channel talks about things like digital marketing or how to sell online. It’s centered on helping them and not on selling our platform.

Include a call to action at the end of your video to encourage people to visit your store.

5. Twitter

The microblogging site Twitter has also received a lot of attention. It is a bustling place where entrepreneurs also make money.

That’s because 53% of Twitter users are likely to be the first to buy a new product.

Also, most Twitter users are above-average income users, and many are not just based in the United States. It just means another chance to spread your product to the world.

In case you’re wondering, we also believe in the power of Twitter. That’s why we have an account.

While you can easily launch a Twitter ad to start, you can also just as easily do organic marketing on Twitter if you don’t have the budget for it.

There are many ways to get traffic to your store via Twitter, but start with these:

Have a well-thought-of bio with a link to your main eCommerce site
Have good or even professional-grade visuals which should include in your Tweets
Include product links
Use hashtags to be discovered
Tweet valuable and entertaining information
Retweeting others’ Tweets that are still relevant to you and your users
Pin the most important Tweet
Follow potential customers so that they see who you are and check out your profile
Whatever social media platform you plan to use, you can drive organic traffic to your store and generate sales. And when you build an engaged and loyal audience, you’ll get amazing word-of-mouth marketing, as long as you deliver good products and services, of course.

8. Provide top-notch customer service

\One of the biggest drawbacks of the dropshipping business model is the time it takes to ship and deliver. In today’s e-commerce market, where orders are delivered in one day, this can be a big problem.

But if there’s one way to make up for this shortcoming, it’s top-notch customer service.

In any kind of business, the customer is king and you need to make sure your customer feels like royalty. This is true more than any other dropshipping business model!

Providing excellent customer service includes:

Answering questions and inquiries
Provide tracking information
Provide regular updates on broadcasts
Make sure the order reaches the customer
Ask to share your review
Respond to post-purchase inquiries
If an incorrect or damaged product has been delivered, as is often the case when you were not involved in the packaging and shipping process, please handle your returns and refunds professionally.

Dropshipping makes running your business easier and hands-free, but you must remember that it’s your business. You can grow and scale your business and build an entire brand from it.

If this is your business goal, take responsibility for orders and keep your customers happy.

These are 8 easy steps to start your dropshipping business and manage it like a pro.

Conclusion

Now that you know all about dropshipping and how to start your own dropshipping business, what are you waiting for?

If you think you have a passion for business and an entrepreneurial spirit, starting a dropshipping business might be the easiest way to test it.

For less than $100, you can set up your online store in SellKer and start your business.

FAQs about dropshipping

What does dropshipping mean?
Dropshipping is a business model of running a business without an actual physical product. Once the sale is complete, the supplier ships the goods directly to the customer. You don’t have to worry about storage, packaging, and shipping.
How do I start a dropshipping business?
First, you need to decide what products you want to sell. We then look for potential suppliers of these products. Once you’ve secured a deal with a verified provider, you can start building your online store. Finally, put your products on your website and then start marketing your store to attract customers.
Can I make money with dropshipping?
Dropshipping can be profitable as long as you’re working on it. Because you don’t have to worry about inventory, you can spend your money on other things such as marketing. As long as you keep your profit margins low, you can make money.
Should I buy and store products?
No, it’s not. The only time you need to buy something is when a customer order is received.
Does this have to be registered as a business?
Yes, especially if you are selling. Feel free to register your business as most providers require business registration if you want to receive payments online.
How much money do you need to start dropshipping?
A bit. All you need to spend money on is a dropshipping platform and marketing.
Whether you want to enter a niche market or sell common items.
If you’re a beginner, sell something in your niche first. This method won’t dive you completely into the dropshipping pool, but it will give you plenty of experience. If you establish yourself in a niche market, there will be less competition.
Need to offer many products at once?
Since this is your first time, please try uploading your main products first. A good starting point is 10 to easily see which ones are selling and which ones are not. You can then replace the poor-selling items with new ones.
Can I use supplier product images?
For your safety, ask your supplier. However, suppliers sell to other suppliers like you. So take a picture of yourself and stand out from the crowd.
How can you ensure that your sales increase?
There are many ways to increase sales. Once your store is set up, you can use social media platforms like Facebook, Twitter, and Instagram to attract people to your store. You can also try influencer marketing or run Facebook and Google Ads.
As long as you consistently strive to drive the right traffic to your store, sales will occur.
What if the supplier delays shipping the goods to the customer?
Even if you meet customer expectations for delivery times, they may not respond. Failing that, you have to consider frustrated and angry customers. The best way to do this is to simply under-promise and over-deliver.
Can I sell my products anywhere?
Sure if you want. That’s the beauty of dropshipping. However, since it’s your first time, I recommend that you focus on one or two countries. It makes it easier to plan your expenses, come up with a great marketing plan, and build a loyal following.

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