If you’re a beginner and know nothing about drop shipping business, you want to read this. The same as other folks, I was searching online how to earn money on the internet. Well, out of all of the options, drop shipping appeared the most profitable.
But sadly, I knew nothing. Nonetheless, it’s been now over a year, I am successfully running a drop shipping business from India. From scratch to a few million bucks, conducting a drop shipping business is simple and manageable.
To begin with, you require a business plan. A very simple program on what you wish to sail, who is the target marketplace and where from you will ship.
Drop shipping is essentially a business where you are the middleman. You don’t do anything, you contact the supplier, pick the merchandise that you need to market, pitch them for your audience and they do it all for you. You will be like an Amazon in which people come to purchase your products and they’re directly shipped by your preferred supplier.
Here is a 10 Step Guide On How To Start A Drop Shipping Business In India
1. Choosing What To Sell
First, you need to pick your category. It’s really important. You select your suppliers and list their products on your drop shipping site. So, first choose what you wish to sell. Don’t go for something common, like a mobile cover.
Instead go for something like Marvel Avengers Endgame mobile cover, or PUBG mobile cover. Choose a niche over a common category.
2. Understanding The Competition
You need to study the market and your competitors properly. If you will follow the crowd, hardly you will have an impact unless your products are very cheap. For instance, I sold special edition backpacks. There was already a market for backpacks, but special editioned Deadpool backpacks had only a couple of sellers.
This helped me cater to an audience who are actually interested and I am reaching to the right traffic.
3. Finding The Supplier
Once you choose a product category, now you need to find the seller. You just can’t randomly wish to sell something that may not even have been produced. So be practical, see what’s in demand, and choose the products. Go through possible suppliers. It’s always better to go with sellers who stock a wide range of products.
See if the supplier has any drop shipping experience or not. It’s important for the seller to understand the process and why he needs to ship them in time.
4. Choosing The Supplier
Before you choose a supplier, go through all the details. Check for how long he has been in the drop shipping business, how will he ship the product, how long will it take to deliver it, shipping methods, payments and more. Also, wholesalers charge to offer drop shipping services, they generally add a fee to cover the costs like international shipping and packing.
The costs may be between ₹100 to ₹500, or maybe more. This varies from product to product and countries from where you want to drop ship.
5. Choosing A Platform
You need to choose a platform where you wish to sell your products. You can opt to sell on various platforms like Shopify, Amazon, Banggood, etc. You need to complete your registration process, there are free trials available, but you will have to pay to continue using the services.
You have to list your products. Enlist all the details and photos of your products after you take them from the supplier.
6. Working On The Keywords
To make your drop shipping site SEO friendly, you need to work on the keywords. As I said before, you need to target a few niche products. A niche will offer you better search results and higher are your chances to be successful in the e-commerce market.
It’s not easy to rank on the keyword backpacks on Google or any other search engine, but Liverpool backpacks will have one-tenth of the same competition.
7. Managing Your Product Listings
Now you need to list your items accordingly. Listing a product properly is very important. You must disclose all the product details in your listing. This will help you to sell your product to all the potential buyers. And most importantly show from where you are shipping your product. Like if your supplier is in China, you should list that the product may take longer than expected to reach.
Drop shipping is different than other e-commerce orders or other regular wholesale orders.
8. Payment Integration
You need to choose a payment gateway. There are different options available via which you can accept the payments. Again understand that you are the middleman, so you have to accept the payment on behalf of your supplier and then pay the charges to the supplier.
Paypal and Stripe remain one the most used and easy to integrate payments options. Paypal is now available in India while Stripe is available on request.
9. Deciding The Prices
You will be adding your commission to the supplier’s pricing and decide the final pricing. Study the market properly, see the competition available and pricing of other similar products. Also, do keep in mind that international shipping does add up to a lot of charges, so decide the pricing accordingly.
It’s better to go through other websites and see how they are charging their products. It will help you choose a better price for your product.
10. Making Money
Once an item is sold on your site or platform, you will collect the money from the buyer. Then you pay your supplier and keep the profit. Now you order the item to your supplier you have just sold from their website and provide the shipping details. The supplier will now ship the item you have sold via your platform directly to the buyer.
Within a few days, you can start to work out on your best-selling products. You can start to list products in the future based on the sell-through rate and delete the products which don’t sell.
Drop shipping offer you the advantage to sell products without going into production or manufacturing, making it a profitable business.