Dropshipping & 6 best basic questions
1. How to start dropshipping business or a dropshipping company?
Below queries and their replies will help you understand the basics of dropshipping, these details will help any beginner, however, if you need more help then always feel free to reach out to us through our contact form.
2. What is dropshipping? what is its process?
Dropshipping is an e-commerce model under which online retail orders are fulfilled by online stores without keeping the actual stock.
These web stores take the order directly from the customers and place back to back orders to suppliers who ship products directly to the end customers. Under this eCommerce business model, the web stores don’t keep any stock or inventory of the selling product. They just showcase product pictures on their websites, takes orders & fulfill these orders directly from suppliers who can be wholesalers, large retailers or even manufacturers. Dropshippers simply take away the chunk of profit from the selling products on their web stores.
3. How to decide the dropshipping niche?
It can be started in any niche however to zero down on a preferred niche one has to do online market research to understand contemporary market trends, product competition, customer buying habits, supplier availability, local government policies including taxation. Understanding these trends, habits and market scenarios helps in deciding which product to sell, selling price & the profit margin which forms the basis of any business.
4. Is dropshipping legal?
Yes, dropshipping is legal until clearly specified as illegal or fraudulent activity in the law of land from where you are going to operate. It’s always good to check your local law before proceeding.
5. How to define the business plan?
Following highlights can be considered to define the dropshipping business plan –
- Understand the above-given process & check your local laws.
- Decide the target product & business niche,
- Select the online platform for your web store. This can be WordPress ( WooCommerce), or Shopify,
- Identify the best backend supplier platform – Aliexpress, Amazon, Walmart, or any other easily available platform,
- Identify the best product supplier available over the selected backend platform.
- Identify the best shipping method for your target country & the product you are going to dropship.
- Define your business policies like refund & return policy,
- Product Promotion & Advertising media – What kind of advertising media like video animation or picture you would like to have in your advertisements. If you are not sure on this, look out for a digital marketing company that can assist you. Selecting a good digital marketing company heps you in gaining more sales under less budget. This is going to add to your overall profitability.
- Advertising platform – FB ads, Instagram, Google Ads, youtube, TikTok & others,
- Hiring Virtual Assistant Team: Hiring VA team to support order fulfillment process and customer support – tracking order number, refund, customer query, handling refund, reviews, and feedback. One can always use customer support or help desk software to manage VA and customer service. Look out for a virtual assistant services company that specializes in droshipping customer service or dropshipping virtual assistant team. A cost-effective & experienced team will certainly add to your bottom line and more happy customers.
- Once you are sure of above 10 points, register a company and start your business.
Hire Dropshipping Virtual Assistant click here
6. types of Dropshipping web stores?
Depending upon budget and technical skills one can select the web-store platform out of the given two –
WooCommerce – One time cost in a year however user needs to be technical to manage & update it. There are numerous tutorials over web to build on. If you are techy and want to limit your budget, WooCommerce is a good choice when you want custom design and technical customization.
Shopify – Recurring cost, good for non-techy as well as good for those who want to kick-start very fast.
From the supplier point of view, there are multiple options available. One can select –
Walmart, & a few others.
Bonus Question – Sometimes people ask, is dropshipping dead? The reply is simple, No it is not dead. It is an eCommerce business model widely accepted across the globe and can never be dead.
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