Wondering how to start a dropshipping business in 2020? If you need to know how to start a dropshipping business then we got you covered.
Many people get discouraged from starting an eCommerce store because of the high costs of running an online store. But imagine if all of your inventory costs were paid upfront and your shipping and fulfillment operations were managed for you. It would be much easier to get started, don’t you agree? Welcome to the world of dropshipping!
In this guide, we’re going to explain how dropshipping works, show you how to find the best dropshipping suppliers and the most profitable products to sell in your store.
We review the pros and cons of dropshipping to help you avoid common mistakes associated with dropshipping so you don’t waste time or money. We show you how to start dropshipping on Amazon and with other popular eCommerce retailers.
You get an inside look at a list of the best dropshipping suppliers and the best dropshipping niches. Many people don’t realize that there are so many dropshipping business opportunities out there and you can even buy a dropshipping business for sale. Let’s get started!
What is Dropshipping?
Dropshipping is a business model that allows you to sell a retail supplier’s products through your online store without ever buying or storing any inventory because everything is fulfilled directly by the retail supplier. Now, let’s take a look at the pros and cons of dropshipping:
Pros of Dropshipping
- Low Startup Costs – It requires a low cost to start a dropshipping business because there is no overhead.
- Low Cost of inventory – You don’t need to keep any inventory, so you can eliminate the cost of storing products.
- Low Fulfillment Costs – Since fulfillment is handled by a third party supplier, you never see or handle the products.
- Automated business – Products can automatically be imported to your eCommerce store and orders can be processed automatically too.
Cons of Dropshipping
- Highly Competitive – Barriers to entry are an important consideration for entrepreneurs when deciding whether to pursue a business venture. Since very little capital is needed to start a dropshipping business, there’s is a low barrier of entry, resulting in a highly competitive market. You need to make sure that you find a low-cost product to sell so there is enough room to make a profit.
- Limited Retail Wholesalers – Not all retail wholesalers allow dropshipping
- Marketing Knowledge – If you are unfamiliar with marketing, then you’ll need to spend time learning search engine optimization (SEO) and driving traffic to your website, so you can convert more visitors into sales. I don’t see this as a bad thing because the dropshipping business can be automated, so you’ll have more time dedicated to driving traffic and generating sales.
Step 1: Choose a Dropshipping niche market.
A niche market is a small segment of a market in which you focus all of your marketing efforts in order to minimize competition and increase profitability. Here are some popular markets that you can research to see if it’s best for you.
- Clothing & Accessories – Men or Women’s clothing
- Jewelry – Watches, bracelets, necklaces, and rings.
- Home & Garden – Pillows, Garden tools,
- Beauty & Health – Makeup, fat loss, yoga mats, meditation accessories
- Mothers & Kids – paternity products, baby bottles, newborn items
- Sports & Entertainment – football, basketball, and soccer.
- Electronics – Phones, Laptops, etc.
- Toys & Hobbies – Videogames, action figures, dolls,
Step 2: Find a Dropshipping Supplier.
The next thing you want to do is find a dropshipping supplier. Below is a list of the best dropshipping suppliers and these are also some of the best dropshippers for Amazon.
- Worldwide Brands
- Wholesale Central
- Dropship Direct
- Sunrise Wholesale
- National Dropshippers
Step 3: Choose an eCommerce platform.
Choosing the right eCommerce platform to start a dropshipping business can be challenging, especially when there are so many options available. To make things easy for you, we narrowed it down to the two most powerful eCommerce platforms, WooCommerce and Shopify. In comparison, Shopify vs WooCommerce, but which is best for you?
Here’s a quick overview of each platform.
What is WooCommerce and How Does It Work?
WooCommerce is a free WordPress plugin that transforms your WordPress website into an eCommerce store, so you can easily sell digital and physical products online.
If you’re unfamiliar with WordPress plugins, they’re simply applications that you integrate into your WordPress website to enhance its functions and capabilities. As an example, this is similar to the apps you download to your phone for more functionality. It’s important to know that the WooCommerce plugin cannot function without WordPress or web hosting.
To illustrate the power of WooCommerce, we’ll be using one of the most popular WordPress hosting providers called SiteGround. SiteGround’s considered one of the best WooCommerce hosting providers for eCommerce stores and you don’t need any coding knowledge to get everything set up.
SiteGround WooCommerce hosting can help you easily build beautiful WooCommerce stores with professional looking storefront themes to match your startup business brand. With WooCommerce, you can create any type of eCommerce store, such as Facebook Stores, Amazon Stores, Dropshipping, Affiliate Stores and more.
Facebook Stores – WooCommerce has a Facebook plugin that makes it easy for you to launch a store on your Facebook page
Amazon Stores – You can easily integrate Amazon’s products into your online store using Amazon’s API with WooCommerce
Dropshipping – The dropshipping plugin will allow customers to place orders in your store and also notify suppliers of new online orders.
Affiliate Stores – The Affiliate store plugin allows you to refer and recommend customers to other companies for a commission, which is great for affiliate marketing.
WooCommerce is considered to be more versatile than Shopify, however, if you’re unfamiliar with WordPress then it will require a small learning curve to get up to speed. Now, let’s take a look at what Shopify can do.
What is Shopify and How Does It Work?
Shopify is the complete solution for eCommerce and online stores. You can purchase a domain with your account and they host your Shopify stores on their own servers. They provide eCommerce stores with a suite of services including payments, marketing, shipping and customer engagement tools to simplify the process of running a successful business.
If you’re looking for an out the box system then Shopify is going to be the best option for you. Shopify provides a catalog of free and premium themes you can use for your eCommerce store. Here is a list of some of Shopify’s industry themes: Art & Photography, Clothing & Fashion, Jewelry & Accessories, Electronics, Food & Drink, Home & Garden, Furniture, Health & Beauty, Sports & Recreation, Toys & Gamesa and more.
With Shopify, you can create all the same stores as WooCommerce such as Amazon stores, Dropshipping stores, Facebook stores, and Affiliate product stores. There are many people who want to know if Shopify is good for dropshipping? The answer is yes, many entrepreneurs are running successful Shopify dropshipping stores and you can too.
One way is to import Amazon products to Shopify then dropship Amazon products on Shopify with Shopify fulfillment by Amazon. You don’t only have to only use Amazon for dropshipping, you can use eBay, Alibaba and other suppliers.
Step 4: Dropship Marketing
Sometimes, setting up a dropshipping store can be time-consuming. If you don’t want to spend time creating your own dropshipping store, there’s also dropshipping stores for sale.
If you’re not comfortable with dropshipping, Shopify is also good for affiliate marketing. Many people are selling affiliate products on Shopify and doing very well. Whatever eCommerce business you decide to start with Shopify, the possibilities are endless.
How to Start Dropshipping on Amazon?
Before you learn how to start dropshipping on Amazon, it’s important to realize that you can only dropship through Amazon’s FBA Program. With Amazon’s FBA program, your products are stored in Amazon’s fulfillment centers, and they pick, pack, ship, and provide customer service for your products. This is great because this can help you scale your business and make Amazon dropshipping profitable.
Also, Amazon has two important strict rules you must follow if you want to drop on their platform:
- Ship through Amazon FBA – As stated before, you cannot purchase a product from another online retailer and have that retailer ship it directly to your customers. It must be shipped through Fulfillment By Amazon (FBA).
- No 3rd Party Information on Packaging – You must ensure that your business information is on all packaging sold to your customers and not the third party.
If you follow these policies and rules above, then dropshipping with Amazon is perfectly legal. Always be sure to check with Amazon’s current policies as they may be subject to change.
Ok, now let’s get to the good stuff. Here are the steps to start dropshipping on Amazon:
Step 2: Set up a professional Amazon seller account.
Step 3: Research Amazon’s products and identify the low-cost products that are in high demand.
Step 4: Search for the item that you’re selling on Amazon and double-check to make sure it’s the right product, then click on the “Sell yours here” button. You want to describe your product, set your price, shipping method, etc.
Step 5: Add these products to your Amazon store and start marketing!
Shopify vs SiteGround WooCommerce, which is better? Although Shopify is more expensive than SiteGround, it’s one of the fastest ways to get your online store up and running. Shopify has everything set up for you and there are many themes and templates you can choose from. This allows you to focus on more important things like creating content, marketing and most importantly making money. Also, If you’re not a big fan of using WordPress and need to set up an eCommerce store fast then Shopify is your best solution.
On the other hand, if you don’t mind using WordPress and need a more customized solution then Siteground WooCommerce can be a great option. SiteGround has an optimized hosting environment for WordPress that can handle any size WooCommerce store. WordPress and WooCommerce have hundreds of themes, templates, and plugins you can use to customize and make your eCommerce store the way you like. SiteGround WooCommerce is cheaper than Shopify, but there’s a learning curve with extra steps involved to get your store setup.
WooCommerce and Shopify are the best choices for eCommerce platform for startups and small business. Whatever platform you choose, we wish you much success in your business endeavors and remember that dreams don’t work unless you do! Visit SiteGround or Shopify to get started today.
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