Starting Your Dropshipping Business


Amazon, Jeff Bezos’ giant Internet company, at worst didn’t pay any federal income tax or at best paid very little on its $11 billion revenue. That discussion has a lot to do with politics. You’ve admired Amazon as a company, or at least, it’s business model and how it has become one of the most known platforms for e-commerce. You’ve monitored the progress of Amazon, Alibaba, and similar online businesses.

You’re about to finish business school, and your goal is to set up your enterprise, along a similar line as Amazon’s. It’s not going to be a massive warehouse operation requiring a large inventory of items and racking inspections. It’s a bit the opposite. It’s called drop shipping business.

You’ve glanced over some materials online but don’t have a full grasp of how it works or how to start the business. Here are some ideas for you to consider:

Background of Dropshipping

There is a debate going on right now whether it’s still an interesting business proposition since its inception sometime around 2014. Google Trends offers proof that based on the interest in the subject matter within five years, the business model remains valid. But the interest in AliExpress, where the start of online dropshipping could be partly rooted, has declined during the same period.

Be that as it may, young entrepreneurs are undeterred by this trend.

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Key Ideas

Dropshipping is when you have a store, online or physical, but you do not keep stocks of goods your customers buy. Instead, you connect the contact details of your customer to a wholesaler, and the wholesaler ships to the customers your product. As far as the customer is concerned, you are the one shipping the products. Here are more ideas that you should take note of when going into this business.

  1. Go hard on marketing. This business model is all about reaching out to as many prospects as possible and converting them to customers. You need to be crafty in making those ads that direct traffic to your website, to turn those visits to clicks on the “buy this now!” button. If you haven’t mastered this bit about digital marketing, you need to optimize your website immediately.
  2. What’s your passion? You can’t sell everything just to have something in your store. Selling something must be rooted in something that you are passionate about. And that passion will help carve your niche in the market. Are you a Star Wars aficionado? Why not source unique t-shirts that are all about Star Wars characters? With this example, you have a very defined target audience that numbers in the hundreds of millions around the world.
  3. Know your cost. Weight matters. One container of something substantial can house several lighter items. The heavier your items are, the higher your shipping cost is. Similarly, your effort is the same whether you’re selling a $10 item or one priced at $500. Find a product that will yield a higher profit.
  4. The right partner. Find the right supplier for your products who can guarantee your customers’ satisfaction. Avoid suppliers providing sub-standard products. You are going to be embarrassed in front of your customers, not them.

Your branding must stand out. You need to offer those great discounts that attract customers. Your website needs to be in pace with the latest tools and technology. There are more ways to make your dropshipping business a success. These four points will surely help.

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