Starting a Drop Shipping Business: Who Should Do It?

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If you're tired of following the rat race and want to start making your own schedule and working for yourself, you're not alone. 57 million people in the United States are part of the gig economy.

This can range from folks who deliver food as freelance workers, to writers, ESL teachers, and many others. But what if you want to take matters into your own hands and develop your own company?

If you're an entrepreneur at heart, you've likely investigated other options and thought about the possibilities. Was one of them starting a drop shipping business? 

If so, get ready to learn more on what's involved and how you can turn this simple endeavor into a money-making profit that gives you the freedom and flexibility you're looking for. 


Understand What It Takes to Get Started

One of the appealing factors of dropshipping is the fact that it doesn't take much to get started. Unlike some startups where you need to invest money in products, the beauty of dropshipping is that a website is the biggest expense to get everything off the ground.

For optimal success, you can find websites that direct their focus toward e-commerce platforms (ie, drop shippers just like you). You often pay no more than $50 a month, at most, making this an effective business to start with low overhead. 

Secondly, you'll need a product. It's important to pick something that is not oversaturated and readily available elsewhere. Take time to investigate and find out what's out there before settling on what you want to offer to customers. 

Making the right choice can mean more money and less work for you in the long run. 


Know What Drop Shipping Means for Customers

Unlike traditional businesses where you would get a bunch of product and store it somewhere until customers purchase it, drop shipping simplifies your life by getting rid of this factor. 

Normally you'd invest in products and find someplace to store them, such as long term warehousing

With drop shipping, you'd set up an agreement with the company you're outsourcing from, where you promote their product and take a cut of the profits. The company then ships the product to the customer, and all you have to do is get the product out there in front of them.

No money changes hands between you and the customer, and you can avoid the mess of shipping and keeping inventory. What could be better?

It's important to understand that the customer could be waiting a while since products that come from drop shippers overseas take longer than most people like. You'll want some kind of system that allows customers to track shipping since that's what today's consumer is looking for when making purchases online.

Know these factors before getting started, and you can avert problems while having a successful drop shipping business people are happy to return to. 


Starting a Drop Shipping Business Means Knowing the Right Products to Offer

Sure, you might have big dreams of growing your company brand and making big bucks, but everyone has to start out small. Before you commit to a certain product, take a look at what's currently on the market and figure out what customers you want.

Since you're unlikely to find luxury items with the quality most consumers are searching for, it's best to limit your offerings to certain items. If you're really concerned, test drive a few by ordering them and see how they look and work. 

Is this something you'd sell to consumers? Do you think most people would have a use for it or want it? Is the quality there?

Is the answer is yes, you'll know you've found your product and you can start offering it right away.

There's several different products you can offer people that include:

  • Clothing (for men, women, and children)
  • Electronics
  • Accessories, such as costume jewelry 
  • Housewares
  • Toys

This is not a comprehensive list, but it can give you ideas for your target market and who you want to attract in the long-term. Finding the right customers depends on a mix of what's profitable, the types of people you want to serve, and what options are out there when it comes to buying.


Learn What You Have Control Over 

Unlike a traditional company where you have control over the products, shipping, and customer service, you won't experience this with drop shipping. But that doesn't mean you can't take initiative and help your new customers along.

You can provide contact information on your website, so if customers have questions about the shipping times or where their order is, they can get in touch with you. Put up a FAQ page and make it easy for them to find the answers to their questions.

It might not seem like much, but this level of transparency makes it easier for people to trust you. They're more likely to come back and purchase from your company again if they know they can believe in you.

Later on, when your company gets bigger, you can outsource customer questions to a virtual assistant. For now, being their main point of contact gives them a level of personal care they'll appreciate. 


Discover More 

Now that you know what goes into starting a drop shipping business, you can get started and begin the path to financial freedom. This costs you little money out of pocket compared to some other ventures and makes it possible to customize what you sell.

Looking for ways to save money? Check out our blog on 7 ways to cut costs when starting a new company. 

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