[] Gistdeck small business ideas <h2>How to start drop shipping business</h2> | Gistdeck Business ideas

Tuesday, 7 November 2017

How to start drop shipping business

Drop Shipping entails not having to pay a supplier for goods before delivering them to customers. .Actually, you transact a business somewhat on behalf of a supplier. But in entering into such business domains, a number of factors must be considered: such as the types of goods you want to run the business on, then the suppliers of the goods and the ones that are willing to do drop shipping, the state permissions, and due formalities must be observed. 

If you are thinking about starting a drop shipping business, here are the steps you will need to follow to succeed in the business.

1.Choose a Niche and Specific Products

You would have to make a decision on which type of products you want to deal with; the products of your choice definitely have to be one that you are certain to add value. Experts hold the view that the niche you choose should not be one in which the products cost too cheaply or too high; a range of say $90 to $250 would do well in this business. 

When choosing a product, watch out for several indicators like the demand parameter of that product, as well the ease of conveyance to prospective customers; this would require you to conduct a market survey or feasibility study. 

Speak with individuals around to find out what products they are willing to buy at that moment—a sort of questionnaire approach.

2.Establish Connections with a Manufacturer or Supplier

At the early stages of this business, you would have to search online for suppliers and manufacturers that are willing to drop ship; it might be slightly challenging, but as the business matures, you would establish a quarter for yourself in the drop shipping world. Get contacts of these suppliers on the internet, and reach them. 

Conduct a pseudo-interview on them; enquire how long it takes them to make deliveries, how much they charge, their warranty status, their charges and fees, and the status of their warranty. 

Now, just to stay on top, you can also carry out investigations as to the suppliers that your competitors are working with, and possibly liaise with them. Most individuals that are new to this business often encounter the situation where the suppliers require you to provide a license or formal permit to resell the product.

3.You have to Decide on the Structure of the Business

Next, you must fundamentally sketch the structure of your business. Do you intend to run the business alone as a sole proprietor? In this case, you are solely responsible for the costs and profits. Different states and locations have their own registration requirements; you would find out and meet them. You could also go into partnership, especially if funds are a major issue, and as well do the registration as well. There is also the option of going into a franchise.

4.Get a Federal Tax ID

You would need a resell certificate, as it would afford you the privilege of not having to pay all the taxes paid by firsthand sellers. You get the right to resell what you ordered from your supplier. Another important thing is the federal tax ID. This is a number associated with your business that would set you’re your business as a legally recognized structure by the government of your locality.

5.Choose a Selling Platform

You have to consider which of the major platforms to employ in making your sales. There are major cyber structures, which include—Amazon, eBay, and a host of other online stores that give you the chance of doing your business online. All you need do is showcase your product and with the quality advertisement, you make your sales.

But more utilized are eCommerce stores like Shopify and SaleHoo that gives your customers the entire best feel they get from marketing. You would have to use a payment method in the course of doing this, as well as design your website in such a way as to provide customers a cart-structure that makes it possible to have the shopping experience. A good payment scheme is PayPal. 

6.Manage your Listings

You can ask your supplier if you can advertise their products on your website, and do so as soon as you get the consent. Guide yourself with the aforementioned tips: bestselling products, and price optimization. If you deal with multiple products, do well to organize your sales platform so as to allow for efficient navigation for your customers. 

List your products accordingly, and ensure that it is easy for their prices to be determined by your customers. Also, make it explicit what services you offer that makes you stand-out among your competitors; why you are their best choice.

7.Advertise your Business

Upon the launching of your drop shipping business, you would have to face the first stage of advertisement. Take a good advantage of social media and promote your business; Facebook, YouTube, Reddit, and Instagram are exceedingly useful in this regard.

I will suggest using paid advert on Facebook to direct traffic to your sales page. It works better and faster than free advertising or waiting for customers to land on your sales item.



  1. hi,
    thanks for sharing such a great article,
    keep on posting.

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