Everything You Need To Know About Drop Shipping Business
In Drop shipping business, you mostly sell an item/product without keeping the complete stock of the products with you. When a client purchases a product, he pays you the cost for the product he bought. You deduct your commission from this cost, send the remainder of it to the manufacturer and say them to ship the product to the client.
There are numerous reasons why you should choose Dropshipping Business:
- A cost-effective initial investment is required
- Easy to start
- No inventory required
- Easier to scale
- Flexible location
- And numerous more reasons.
Is Drop shipping Business suitable for everyone?
Dropshipping business is not suitable for everyone. It is only for those persons who are:
- Having patience
- Must be kind
- Must know that the dropshipping business has an extremely high failure rate
- Hire a virtual assistance
- Must know the initial investment cost
What are the Expectations of a drop shipper?
Dropshipping is a tricky type and quite different from other businesses. 90% of the drop shippers globally fail in this business. One must remember that the success chances are extremely low but if one is greatly confident and have the knowledge of this business, he/she can start the business. It is a very profitable business and one can succeed if he has patience.
Let us talk about the profit margin and investment required
One must know about the 2 types of stores:
Wix, Shopify, etc stores: For such types of stores, one has to pay the subscription fees, domain fees, store theme fees, etc. One must have a good amount of money for investment.
eBay, Amazon, etc stores: For such types of stores, one doesn’t have to pay the upfront fees like the domain fees, store theme fees, etc. In this case, you will just require an initial investment. You can expect your profit at maximum.
Focus on the following things when Dropshipping
Your focus would be divided into 4 parts:
- A 40% focus must be on searching for winning products.
- 30% focus must be on creating your website
- 20% focus will be on the creation of the ad.
- 10% focus must be on marketing.
e.g. In the first month, if you’re spending about 100 hours for a successful business, then 40 hours must go in searching winning products, 30 hours must be on creating your website, 20 hours focusing on the creation of an ad, and lastly, 10 hours must be for marketing.
How can you automate the Dropshipping business?
For that, you should hire a virtual assistant. Your virtual assistant will work with you for the complete month. They will hunt a product/item, listing the product, managing your website, etc. Make sure to get complete details of work from this virtual assistance. And you must be the one for the product approval, product description, etc.