Learn how to start a dropshipping business using WordPress, step-by-step. I'll show you what to consider and how to actually start the site.
Dropshipping has been a revelation for entrepreneurship. In this business model, you don’t hold any inventory to make a sale.
Dropshippers simply display the product to a customer, take the order, and relay the order to a manufacturer/ supplier.
The supplier sends the product directly to the customer, making some money for both themselves and the drop shipper. Therefore, dropshipping is essentially a marketing business.
It does not require any huge investment or incur much overhead cost. You can start a dropshipping business with as little as $100, so far you know the ways to start a dropshipping business.
Starting a dropshipping business requires some elaborate preparation. Typically, it includes:
You must get a few things right in each stage to prepare your business for success.
You need to narrow your idea to a category of products (i.e., business niche) to target a specific customer base.
You can choose a niche based on your passion or profitability. However, a good mix of both might be the most effective recipe for success.
You can use a product type (i.e., ceramic plate) as a keyword in tools like Google Trends or Facebook audience insights.
It will help to gauge the product’s demand in a certain market. Look closely at the search volume over various time frames to find something with sustainable interest.
Conducting product research on different marketplaces is another effective way to analyze demands.
You can use marketplaces like Amazon, Alibaba, or Facebook Marketplace to check the top trending products in your niche.
Look carefully at the search volumes to check if a portion of the current sales volume is good enough for you.
The product trend changes over time, so keep an eye on them regularly.
Dropshippers rely solely on the supplier to source or manufacture the product and deliver it to the customer, you must find a reliable supplier before settling on a product niche.
Your business concept won’t sustain if you can’t provide satisfactory items, no matter the demand or the sales volume.
This is why some experts recommend finding an order fulfillment partner even before researching demands.
You can utilize platforms like Dropshipping on Alibaba or DSers to look for suppliers or manufacturers for your product.
You can narrow your search based on delivery time, price, category, etc. Checking the verified and featured suppliers is also possible.
Initially, choose a few suppliers that match your criteria. Then contact them through chat, phone, or email to understand each other thoroughly.
Take note of the product price, shipping cost, and transaction cost to estimate a profitable selling price.
Finally, choose a supplier based on all this information.
Remember the product research stage where you looked for sales volumes of your niche product? You can return to the same platforms and look at the top-selling stores.
Which products are they selling? Which designs are selling the most? How much are they charging for each item?
The more you know, the better informed you will be before setting your offering.
Categorize your search based on your niche to find out specific results.
On social media marketplaces, you can also browse the comments section to get an overview of your potential customers.
This will help to determine your communication/ marketing strategy later.
Search in multiple marketplaces along with search engines like Google Search.
Look for common sellers that pop up on several platforms and inspect their marketing strategies.
Finding answers to these questions aids your marketing strategy immensely.
You can apply some of the best strategies yourself while formulating a plan to stand out from the crowd.
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It’s time to put into practice all the knowledge and strategies gathered in the preparation phase.
Setting up a dropshipping business requires working on two fronts:
You have to obtain a business license to run a dropshipping business. Separating the company from your personal assets is a wise idea anyway, as it helps to avoid various litigation.
You can register your company as a:
The registration requires some paperwork providing a name, address, and other information.
It varies from state to state, so check with the county clerk’s office in your location.
You may need to open a business account, especially to register as an LLC.
Even if you don’t, consider opening one so you can keep personal finances separate from the business. It helps to paint a clear picture of your company’s financial health.
US businesses also need to obtain an Employer Identification Number (EIN).
It’s similar to a social security number, except for businesses. You can apply for it online via the IRS.
You will need a storefront to showcase your product and make a sale. It is what you will advertise on social media and search engines to bring in customers.
If you can relay the orders directly from the website to your supplier, it’s even better.
Building an online store will require:
Different e-commerce solutions come with specific pros and cons. So do some research to figure out the best platform to create your web store.
If you already have a WordPress website, you can simply install the WooCommerce plugin to transform it into an e-commerce storefront.
Navigate to your site’s “Dashboard > Plugins > Add Plugins.” Then, search for “WooCommerce” to find and install it.
Then, you can customize it the way you want.
In addition to the product listing page, include product descriptions, customer reviews, contacts and return policies to help users make an informed decision.
You should also use high-quality product images. The simplicity of the buyer’s journey is another key factor in converting visitors into customers.
Your success or failure in the dropshipping industry depends largely on how well you market your store and products.
You must grapple for the attention of your customers amidst a crowded marketplace.
Suppose you have an underserved product in a specialized market, that’s half of the work done.
You still have to inform them about your store, convincing them to buy from you.
To market your business, you must have an omnichannel marketing strategy combined with:
Some of these marketing efforts cost money, while others don’t.
For example, building a thriving following on Pinterest doesn’t cost much money but can bring great returns over time.
You can post curated pictures displaying your products (i.e., ceramic plates) or an elaborate decoration while linking your dropshipping store.
The options are limitless, but the resources are.
So make prudent, cost-effective marketing decisions and always measure the results. You should always be prepared to choose and change your strategy based on the outcome.
Some resources that we suggest checking out to help you along your journey.
Learn about the best recurring revenue business and why they are great passive income investments.
Discover the process of starting a blog and take your dropshipping business to the next SEO level.
Find out why having a business license as a dropshipper is a good idea, and how to get one.