5 Easy Steps on How to Make Money Dropshipping

Do you want to learn how to make money dropshipping online?… then you are in the right place.

Many people are currently searching for ways to produce additional income streams or build passive income. Dropshipping has become increasingly common in recent years, but most people who start this form of business fail due to low profits, difficulty in finding quality suppliers, or the stress of handling orders.

Dropshipping is an e-commerce business model that allows you to sell physical goods online without having to worry about inventory, owning a warehouse to store your products, or dealing with shipping and handling.

Essentially, the supplier is in charge of all of the product delivery requirements. You contact your drop shipper when an order arrives, and they send your goods directly to the customer on your behalf. This is basically how you make money dropshipping online.

As a result, starting a drop-shipped online store is virtually free because you don’t have to spend any money on the cost of goods sold. With a free open source shopping cart like WooCommerce, you can start to make money dropshipping for under $25 per year. You only need a website and free credit card processing to start taking orders right away.

The drop-shipping business will pay off handsomely for the owner, but the most critical dropshipping tip is to take care of the business and customers and ensure that any buyer concerns about poor product quality or delays between payment receipt and delivery of products are promptly addressed. Any failure to provide required after-sales services and respond to customer concerns will tarnish the company’s reputation and result in a loss of revenue and potential orders. It is critical to choose a reputable supplier when learning how to dropship and how to start a dropshipping venture. A poor choice can have catastrophic consequences. Before you start this form of company, make sure you follow the steps below.

Here are 5 steps on how to make money dropshipping

1. Choose a dropshipping niche

A product niche is a subset of a larger market. Bluetooth speakers, for example, are a common niche in the home audio segment. Outdoor, waterproof Bluetooth speakers may also be considered a sub-niche of the Bluetooth speaker segment. Do you get my drift? Your niche should be as narrow as possible.

The first phase in starting a dropshipping company is deciding on a niche. Because of the growing popularity of dropshipping, finding niches that aren’t already crowded is becoming more difficult. However, new products and niches emerge every week, so the possibilities are nearly limitless. Choosing a profitable niche is the ultimate path on your journey to make money dropshipping.

A popular misconception about dropshipping is that you can make money in any niche, but this is simply not true. You’ll have an uphill battle for your new company if you pick a niche that’s either crowded with sellers or dominated by big brands.

Start by performing keyword research. Google Keyword and Google Trends are free but popular tools you can use. Other paid options include Semrush, Ahrefs, Moz Pro, among others. Most of these platforms offer free trials for a limited time. You can try different ones before settling for one.

2. Find a dropshipping supplier

Finding a dependable supplier is the most difficult aspect of starting a dropshipping enterprise for many aspiring eCommerce investors.

You depend on suppliers to keep your inventory in stock, maintain product quality, and ensure that orders are delivered on time to your customers. Your supplier is your most significant business partner as a drop shipper.

Finding good dropship suppliers can be done in one of two ways. You can either conduct a manual search online or use a wholesale directory such as SaleHoo.

Online supplier searches: Simply type your product + “supplier” into Google and see what comes up. You can also use websites like Alibaba.com or Aliexpress.com to find your product. These websites are used by many Chinese manufacturers to sell their wares.

Using a wholesale directory will save you time and protect you from eCommerce fraud. More than 8000 suppliers have been vetted and checked on SaleHoo. You can contact them with a few clicks and have faith in their ability to provide excellent service.

3. Register your business

Register your business as soon as possible with your local government to make your business legal. This will also help you with branding needs. I recommend building a website as soon as you have a business name.

You’ll almost certainly need a sales tax ID (also known as a retail or reseller’s license, tax ID, resale number, resale certificate, or vendor’s license) if you’re starting a company in the United States or Canada.

Sales tax is a tax imposed on the sales of tangible products to customers, and it usually ranges between 6 and 9 per cent of the purchase price. Most states require you to have a tax ID, but Alaska, Delaware, Montana, New Hampshire, and Oregon are exceptions.

Although you must collect the correct amount of sales tax (or you’ll be kept responsible for the difference), not all eBay sellers need a tax ID. However, note that certain wholesale vendors will not do business with you unless you have one.

4. Choose a selling platform

So you’ve chosen a product and found a supplier; now all you need is a space to start selling and make money dropshipping. The right selling platform or online marketplace is critical to your business’s success, but which platform is right for you? You must choose between selling on a well-established site and launching your online shop.

If you are going to launch your online shop, Woocommerce will be a great choice. There are so many free and paid tools to get you started.

Many drop shippers go the route of opening their online shop. Although it necessitates a larger initial investment, this is the best long-term choice for making money dropshipping and growing a company online. There are numerous online tools, such as Shopify and SaleHoo Stores, that make getting started extremely simple.

If you are looking to start with Chinese suppliers or manufacturers, we recommend using the AliDropShip plugin for WooCommerce

5. Putting a Customer Acquisition Strategy in Place

You need to draw customers to your store now that you have a selling site for your dropshipping business. A consumer acquisition approach falls into play here.

Persuasion is the art of acquiring customers. It’s similar to ads and marketing. Isn’t it going to be costly? It doesn’t have to be that way, though. To gain new customers, you can go the fast (paid) or slow (free) path.

Fast results:

• Google Ads
• Facebook Advertising

Slow results: (Free)

• Blog or Forum Marketing
• Content Marketing
• Social Media Marketing
• Email marketing

BONUS TIP!

Do competitor research

Now that you know what you’re going to sell in your shop, you can analyze your rivals/competitors and learn how they operate. Your competitors may have valuable insights into success and can assist you in developing a more effective marketing strategy for your dropshipping company.

Limit your research to only five other dropshipping businesses, including one or two major players like Walmart or Amazon, if your market has a lot of competitors (which is a positive thing in dropshipping). It will assist you in remaining focused and planning your next steps and make money dropshipping.

Conclusions

We hope you found this guide to starting and make money dropshipping company helpful. Have you been inspired to make one? Leave a message in the box below. Also, don’t forget to forward this post to your business associates.