Step 1: Get yourself mentally and emotionally committed
If you really want to start dropshipping, you need to commit to the prospect of doing so. Even though it is possible to make a lot of money dropshipping, it is not going to show up in your bank account overnight. You need to invest heavily using either your time or money.
It will take some time to get your business off the ground, particularly if you do not have a lot of capital to invest. If you are willing to put in the time, you will learn how your business operates inside and out. This will be important for managing different aspects of your business as it continues to grow. You also don't want to waste your capital on areas of your business that will not help your company grow.
Step 2: Choose a business idea
Figure out where you want to position your business. Even though you probably want to sell just about everything, that is not going to be possible. You need to do your market research, figure out where the opportunities are, and position your business accordingly.
For example, if you want to open a retail store, you will probably try to figure out what to sell and where to build your store. With a dropshipping business, the process is the same. You need to think carefully about what products you want to sell. You may want to look at what is trending to find opportunities.
Step 3: Research the competition
Once you have figured out what you want to sell in your dropshipping store, you need to research the competition. What are other people trying to sell? How are they doing so? When you take a look at the competitors, identify the biggest brands in your space. This could include Walmart and Amazon. You may want to start with a simple Google search to figure out who is at the top of the list. Then, make sure you track their websites closely. When they make adjustments, you may want to make adjustments as well. Look at social media to see what people are saying about different companies.
Step 4: Choose your supplier
If you want your business to be successful, you need to get your products to your customers as quickly as possible. That is why you need to think about which dropshipping supplier you want to use. Always look at reviews before you choose a supplier. Look at what other companies say about that specific supplier. If the reviews are positive, there is a chance that you will have a good experience as well. You may want to reach out to that dropshipping supplier to ensure they can meet your deadlines.
Step 5: Build your online store
You also need to use a platform to build your online store. That is where you will direct your traffic, sell your products, and process all of your payments. Figure out which domain name you want to use. Pick something that is relatively easy for people to remember but avoid domain names that are already taken.
Consider the different widgets and plug-ins you want to add to your website. These are important because they will make it easier for your customers to find what they want. That way, you can keep your cart abandonment rate as low as possible.
Step 6: Consider your business structure
Next, think carefully about how you want to structure your business. Will this be your primary business entity? Or, do you plan on keeping this as a side hustle? If you have questions about the legal process of forming a business, it is important for you to reach out to a lawyer who can help you.
In general, there are three separate business strategies and entities you should consider. For example, you might want to keep it as a sole proprietorship. This is the easiest option, but it doesn't provide you with any personal liability protection. Another option is to form an LLC, which has some protection but requires some filing fees. If you think you will have a major corporation on your hands, you may want to become a C corporation.
Step 7: Create a separate business bank account
Designate a separate bank account for your business. A common mistake people make is blending their personal and business finances. You do not want this to happen, and it is a very big red flag for the IRS. The easiest way to keep them apart is to have a separate bank account.
Step 8: Market your store
You need to market your store as well. If you have an e-commerce business, take advantage of a wide variety of digital marketing tactics that tell people about the products and services you provide. For example, use email marketing to keep in touch with some of your most loyal clients. Take advantage of social media as well. You do not need to have a profile on every social media platform, but you do need to figure out where your target market hangs out. Then, consider having a profile on those specific social media platforms.
Step 9: Track your KPIs
Once your store is operational, keep track of your key performance indicators, usually shortened to KPIs. That way, you can figure out what is working, what is not, and what needs to improve. For example, look at the channels that are performing the best and why. Also, look at your advertising channel to figure out what is working and what is not. Do not forget to figure out how people are purchasing products as well. Are they using desktop computers or are they using mobile devices?