Yes! It is possible to launch your online Dropshipping store without having a warehouse and inventory system and become profitable using an advanced boosting tool like Spocket!
What is Dropshipping? (Full Definition)
Dropshipping is a type of business where you can launch your online store that acts as a middle player between suppliers and customers. Meaning, you select and gather (import) the products from the suppliers’ store and show them in your store by adding your price in it.
How Does it Work?
When the customer buys a product from your store, you will receive the total amount of the ordered product with your customer’s shipping address included. This total payment includes your added price which is your profit. So the last step is to order this ordered product on behalf of your customer and pay the total price as stated in the supplier’s store.
For Example: (MUST READ)
- Let’s say we have a supplier called “Addidas Plc” and this supplier has an online store.
- Next, we have a Dropshipping store called “HABTAM“.
- Once we are ready to show products in our store, we will start selecting, gathering (importing) products to “HABTAM“ Store.
- Let’s assume that the supplier’s price for one of the products “Men’s T-shirt” is $30. This price might include shipping or not. It depends on the supplier. Many suppliers offer free shipping. So there is no need to worry about it. For this example, let’s assume that the supplier is offering free shipping for this product.
- Now, let’s add our profit. For example, if we add 15%, and the 15% of $30 is $4.5, so the total price that we use in our store will be $34.5 including free shipping.
- When the first customer buys this product (Men’s T-shirt) from our “HABTAM“ Store, we will receive the TOTAL PAYMENT of $34.5 and the SHIPPING ADDRESS of our customer.
- Once we received the total amount of the payment and the shipping address, we will order the same product from the supplier’s website by paying only $30 and by filling our customer’s shipping address.
- This customer will receive the product from the supplier. That’s it!
NOW, let’s calculate your profit for 50 orders of this product per month. It will be $225 just from this product. So, if you sell 10 products with $4.5 profit, it will be $225×10 = $2250.
Things to Consider After The Order is Completed
- Once we complete the order at the supplier’s store, we must send the status of the ordered product to our customer. This status can be a shipping status information, but should not include the supplier store information. This will help keep your customer to your store for the next purchase. But in case, if the supplier has a mechanism to send the status to the shipping address, there is nothing you can do.
Launching a Dropshipping Store – STEP BY STEP
Let’s have a look on how we can launch our first Dropshipping store in a very easy way or by showing a little effort.
1. Selecting a Good Niche
Do you want to focus on one category or do you want to sell mixed products in your store?
Indeed, it is up to you! But be wise on choosing one.
One best tip to choose the right niche is to know your target customers’ needs. Your customers could be local or international, so your niche could be a perfect fit for a specific product type or may even cover all product types. So knowing your customer’s needs helps you launch a better dropshipping store.
In case, if you already have a good name for your store and if you believe that this name is the best fit for your store to make you profitable, that is your niche and no need to waste your time in finding another name. But this doesn’t mean you will stop researching, because you may need these research tools in the product selection process.
2. Launching Your Store
In this step, as a beginner, you have two ways to choose. Either you build your store from scratch like using WordPress CMS and Woocommerce or you use platforms like Shopify and customize your store in an easy way.
Keep in mind, when we say “FROM THE SCRATCH”, we are just using a CMS (Content Management System) that can be used for many different purposes. So just by adding a Woocommerce Plugin on WordPress, you can start a dropshipping business.
In HABTAM, we have already set up our Dropshipping store using WordPress CMS and Woocommerce Plugin for different reasons such as unlimited customization, but if you are new and have no experience in, or budget for, designing and developing an online the store, you can start with Shopify.
The main difference between building your store from the scratch and using a well-made platforms is:
- If you build your store from scratch, you will be taking care of server & domain name setup, and of course, the design and development stage which is a hassle for most beginners who don’t have any idea about web design or who have no budget to hire a professional web developer. So most beginners are recommended to use platforms like Shopify for a small amount of fee. Shopify allows you to set up your store in very easy ways or steps. In terms of customizing your store, there is nothing good like building your store from scratch using WordPress CMS and Woocommerce.
Remember, even though we have built our store from scratch, since you are a beginner, we are still recommending you to launch your first Dropshipping store with Shopify!
Once you have decided which way you want to go to try, that’s it! You have an online Dropshipping store!
Two Ways of Product Gathering
Let’s have a look about how you can gather products. There are actually two known ways. And these ways are either Automatic or Manual.
1. Manual Products Gathering
Manual product gathering is an old way and is almost no one is using it nowadays unless for specifically selected products. Imagine, you have hundreds of products to gather from unknown suppliers’ store and you are doing deep research for each product type and price without even knowing your future success with it. Uhhh, that’s really NOT recommended! Don’t use it! You only have to use this method, if you have up to 10 selected products.
2. Automatic Product Gathering
This is the best and known method which almost many successful Dropshipping business owners are using nowadays. There are many tools online to boost this automatic product gathering process, and from all of them, we have selected our best-boosting solution. So, keep reading until the end…
Price Setting Tip – $1 Matters!
Meanwhile, most of the time, the suppliers may use different marketing strategies for the dropshipping store, so the price they offer to dropshipping stores could be lower than their selling price.
This will help them to boost their sales by attracting profitable dropshipping stores that already have many customers. But, we should also keep in mind that not all suppliers are using this method to increase their sales.
So we better be wise in setting the best competitive price for a specific product. Otherwise, the customer will be forced to buy the same product from another dropshipping store. Of course, unless he is your friend or one of your family members. 🙂
So, if you are selling the same product for an unfair $34 price while this product is being sold for a fair $33 price at another Dropshipping store, no one will buy you. So when you set your price, try to make it cheap that other Dropshipping stores. Do some research on the category of the product.
Use a boosting tool
Boosting tools are like profit magnets! There are different boosting tools online and each of them has different features they offer like product gathering and setting an automatic price. So since you are a beginner looking for an easy and reliable way to launch your first Dropshipping store, out of all boosting products, we have selected the best boosting tools called “Spocket“.
What is Spocket?
Spocket helps dropshippers around the world discover and dropship US/EU based products.
- Used by more than 50,000 entrepreneurs. So when you join Spocket, you are joining profitable dropshipping store owners who use Spocket to smoothly manage their dropshipping business!
- Branding! You can make your mark with a unique brand identity. So your invoice represents your brand.
- Find the right products! Spocket allows you to choose the best products to dropship from a variety of categories from suppliers all over the world.
- Heavy discounts ranging from 30-40% on all products. Exclusively on Spocket.
- Sell with ease! Fulfill your orders with one click. Spocket is synced with your store and all orders automatically appear in your app.
- Get faster deliveries! With 60% of our suppliers based in the US or Europe, shipping is quick, reliable and effortless.
And guess what?
- You can start using Spocket for free! No requirement of credit card details, or registration fees.
- Also, you can try the products yourself! You can order Product samples right from the dashboard in a few clicks. Easily test out the products and suppliers to build a reliable business.
What is the advantage during COViD-19?
We hope, you have heard about this CoronaVirus pandemic. And during this pandemic, in many countries people are instructed to stay at home, meaning they can’t go outside to shop or to do their job unless it is critical. So their only choice is to become digital and order products from the online stores.
So what are you waiting for, launch your first online Dropshipping Store today!
This article was published on HABTAM Magazine.
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