Dropshipping is a form of e-commerce whereby the retailer sets up a website from where he or she sells the products from. The seller does not have to keep the stock as it’s the supplier’s responsibility to store the stock. Whenever an order is made, the retailer will channel it to either the manufacturers or wholesalers who will then ship the products directly to the client. This form of business is ideal for business that deals with jewelry, apparel, books, or even electronics. It suits business that does not deal with perishable good.

What is dropshipping? This is a commonly asked question. This is because people want to know the guidelines to start a business.

This form of a business model depends on mediums to get the tasks completed on time. These mediums include:

1. The manufacturers are the people who will make the products to be sold to the wholesalers and retailers. They normally sell the product in bulk to retailers and wholesalers.
2. Once the manufacturers have generated the products, the wholesalers will buy the products from them. They normally buy products from different manufacturers.
3. The retailers are the individuals who will sell the products to the public.
4. The shipping company. The shipping company will ensure delivery of the commodities has been made by the suppliers to the customers once the order has been made.

Here is a guide on how to start a dropshipping business

1. Know your competitors

Before starting any business you need to identify who are your competitors, this also applies to dropshipping. After you have chosen the product you will sell, research to see how your competitors are marketing their brands. You can get this kind of information on Google. Search for the key words the clients use when they want to purchase a commodity. You can look for about eight competitors in your search. You can also spy on the competitors. Some examples of competitor spy websites include SimilarWeb.

2. Choose your suppliers

Since you have the type of products you will be handling, you need to select your suppliers. Sourcing your products from multiple suppliers is the ideal thing to do. This is because shipping logistics issues sand commodity shortages may occur. It is always advisable to confirm the shipping costs before choosing a supplier.

3. Develop your e-commerce store

Now it’s time to build your e-commerce store. You can opt to build it from either eBay, Shopify, Amazon, or another platform of your choice. Ensure the platform you have selected has a support team to help in case a need arises. Since most of the platforms have templates you will not have to design your store.

4. Market your store

Marketing your store will make it easier for you to attract more leads. You can opt for digital marketing which entails either of the following:

• Mobile Marketing
• Search Engine Optimization
• Online communities
• Influencer marketing
• Paid Ads

5. Analyze analytics and scale up

After evaluating your new business, you will get to know what features will need to add to your products. You will also get to know which slow-moving products are hence removing them from the line.

Wrapping up

In conclusion, dropshipping requires many strategies. The above article has illustrated some of the guidelines to commence the business.