How To Start A Dropshipping Business In 7 Steps? [2024]
By now, I’m pretty sure you have heard about dropshipping a million times. Dropshipping has become one of the trendiest businesses in 2024. Therefore, people keen on learning how to start a business online ask the same question:
How to start a dropshipping business in 2024?
Starting a dropshipping business is more challenging than you think it is. Sure, it has lower overhead costs and capital investment. However, it requires careful planning and teaming up with the right people to make it work.
Therefore, if you wish to learn how to start a dropshipping business in 2024, read this post. Here, you will learn how the dropshipping business model works, its advantages, and how to start a dropshipping business in just seven steps in 2024!
How Does a Dropshipping Business Work?
Before diving headfirst into learning how to start a dropshipping business, you must first understand how the model works.
Dropshipping is an order procurement service where customers place orders on your website. However, unlike Amazon, which stocks products in their warehouses, dropshippers pass the order to the supplier. The supplier then delivers it directly to the customer.
Basically, a dropshipper acts as an ecommerce store connecting multiple suppliers to the customer base. Therefore, it works well for businesses that don’t have their ecommerce stores and find Amazon’s $40 monthly Selling Fees a bit too much!
In 2024, dropshipping has become one of the best small town business ideas you mustn’t miss out on!
What Are the Advantages of Starting a Dropshipping Business?
Now that you know how dropshipping works, why are people everywhere becoming overnight entrepreneurs by learning how to start a dropshipping business?
The answer is simple – it offers many unique advantages you will never get if you wish to learn how to start a small business.
Therefore, the primary benefits of learning how to start a dropshipping business in 2024 are:
1. Low Starting and Overhead Costs
The most significant advantage of starting a dropshipping business is its lower setup costs. Since you only need to create a website for order procurement – that’s the only cost you must make!
Unlike other businesses, there’s no need to set up a brick-and-mortar store. Moreover, since you are not selling your products, there are also no manufacturing costs!
Furthermore, unlike Amazon, you do not purchase and store products from the in warehouses. Therefore, there are no warehousing and inventory management costs as well!
2. You Can Sell Whatever You Want!
Another significant advantage of learning how to start a dropshipping business is that it allows you to see whatever you want.
Do you love action figures of DC and Marvel Superheroes? Or are you a boomer, fancying G.I. Joe and Masters of the Universe action figures? Or do you prefer the smell of burnt asphalt and nitro, like Hot Wheels?
Irrespective of what it is – you can sell them all if you learn how to start a dropshipping business!
3. Zero Delivery Charges
Since you are not hoarding the goods on your ecommerce store like a legal smuggler and delivering them to your customer’s doorstep, you incur zero delivery charges since the supplier does that!
Now you know why it’s called dropshipping – because the responsibility of shipping the products has been dropped!
4. Easily Scalable
Finally, dropshipping is easily scalable. When you learn how to start a dropshipping business, you can begin by listing only a few products on your ecommerce site.
Soon, as your business grows, you can start listing more and more products!
How To Start a Dropshipping Business in Just Seven Steps?
Now that you know so much about dropshipping, are you keener than before about learning how to start a dropshipping business in 2024?
I know you are. Therefore, all you must do is simply follow these steps:
1. Choose a Product Niche
Your first step must be to choose a product niche. Since you are starting to learn how to start a dropshipping business, it’s best to start a similar product.
For example, as a technology lover, I list smartphones, laptops, smartwatches, and speakers. Why? Because I have good knowledge about these products, which will help me list the right products in their category.
Therefore, I recommend choosing the product category you know most about. Choosing multiple different types of products will eventually confuse you.
However, I recommend choosing a product unavailable on Amazon, Alibaba, Walmart, or BestBuy. This will mostly lead you to new firms in the market that have yet to establish a firm’s digital presence.
2. Conduct A Competitive Analysis
After selecting the type of product you wish to sell, it’s time to do a competitive analysis.
Therefore, you must research other dropshipping businesses in your region that are selling the same product type. This will help you gauge how other dropshippers conduct their business and their challenges.
This will help you prepare a better dropshipping strategy where you can market your business differently than your competitors.
However, since dropshipping is becoming more popular, you must try to differentiate yourself by selecting a relatively uncontested product type.
3. Find A Suitable Supplier Partner
After conducting a competitive analysis, it’s time to find the right supplier to source your products.
Therefore, go around town and talk with various stores that sell the products. After talking and checking out their stock, you must try to strike a deal with them.
This is where you need to get your entrepreneurial lingo out. Tell them about the benefits your dropshipping business will bring to them. If you pitch it right, they will eventually show interest in collaborating with you!
However, while selecting a supplier, ensure their delivery service is good and can cater to customers in your region.
4. Build Your Virtual Ecommerce Store
Now that you are set with the type of products you wish to sell and their suppliers, it’s time to design your dropshipping ecommerce website or app.
Designing a good app or website is crucial for making your dropshipping business successful. If the customer doesn’t like your website or app’s homepage design, they will immediately leave.
Therefore, ensure you hire the right web/app designer for this job. Moreover, depending on the type of product they sell and their target audience, your designer must design your website accordingly.
Moreover, ensure that the order procurement system and all payment gateways are set up perfectly.
5. Register Your Business
Now, you must register your business with the head office of your State’s Ministry of Corporate Affairs. This is where you must go if you wish to register a new business legally.
However, you must select which business structure to follow before registering your business. Therefore, you must choose from any of these four structures:
- Sole Proprietorship: You are your company’s sole owner and bear all its liabilities. Do so if you believe you can make it to the top, having the qualities of a successful entrepreneur.
- Limited Liability Company: You are the company’s owner but don’t bear complete liability. However, you can’t issue stocks for funding.
- Limited Liability Partnership: You have another person as your business partner, owning the business and being liable for it.
Note: There’s another form of business structure – a corporation – that I don’t recommend choosing, especially when you are learning how to start a dropshipping business in 2024. A corporation is primarily meant for big companies.
6. Set Your Prices
Congratulations on making it this far regarding how to start a dropshipping business! Registering your business marks its existence, letting you start collecting orders!
However, have you decided on the prices of the products you will sell?
If you haven’t, now is the time to do so. Whatever product you list on your site, always add a profit margin.
In the USA, most dropshippers keep a profit margin of 15% to 20%. They do so because most dropshippers sell products in high demand but with low supply in the market.
7. Market Your Dropshipping Business
Finally, list the products on your website once you set your prices. Once they are all listed, it’s time to go live!
However, you mustn’t forget to market your business first! I recommend creating hype around your new dropshipping business.
Therefore, create posts that announce the launch of your business on social media. Moreover, start doing so at least two weeks before your business’s launch.
This is why I recommend working with a reputable marketer instead of a bad digital marketing agency!
Embracing Dropshipping – A New Way to Success!
That’s it! If you follow all these steps, you successfully learn how to start a dropshipping business in 2024!
Dropshipping is soon becoming the most-followed emerging trend amongst current startup entrepreneurs. This business is easy to set up and provides high profits in the long run!
Thanks for reading this post! Please comment below if you have any queries about starting a dropshipping business. Moreover, if you like this post, please share it with others!
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