Contents
Many people want to embark on a new entrepreneurial adventure. It has to be said that becoming your own boss has everything to appeal to you. Among the solutions available is dropshipping, which involves opening an online store without owning any stock of products. While this may seem like the ideal solution, it must be properly supervised , otherwise you risk not achieving your objectives. Here's everything you need to know about dropshipping and our advice on how to launch your business with peace of mind and every chance of success.
Dropshipping: what's it all about?
Considered a unique sales model, dropshipping is an alternative to traditional e-commerce. Here, the seller can offer products without having the necessary stock. This solution is simplified by the fact that you simply need to list your suppliers' products before selling them. The retailer, also known as a dropshipper, buys the product he's selling from a third-party supplier, who then ships the product to the customer. The dropshipper never sees or handles the products. The supplier takes care of stock and logistics.
How does dropshipping work?
In concrete terms, a dropshipper has a store that doesn't differ significantly from a classic online store. Here, customers can choose the items they want and simply place their orders. Products are listed on the site, with photos and fully-formatted product sheets. A price is set for each item sold. So, when a customer buys an item on the site, he pays the price indicated on the online store and only has to wait for his order to arrive.
On the merchant side, the customer places an order for the product on the dropshipper's website, creating a sale. The retailer receives payment and order details, generating a purchase order. Once this has been done, the retailer places an order with the third-party supplier, providing them with all the details required to ship the package. The supplier then dispatches the product to the customer. Once delivery has taken place, the supplier generates a customer delivery note.
What are the advantages of dropshipping?
Dropshipping is an attractive business model for many people wishing to start an online business. Here are the main advantages to consider if you want to start this new entrepreneurial activity:
- No stock of products to buy in advance, which means low start-up costs. Unlike the classic sales model, you can get started with a limited initial investment,
- No warehousing space is required, which further reduces costs such as product storage,
- No unsold stock, which reduces financial risk. In fact, you buy the product once it's sold, which reduces any risk of unsold products,
- Product diversification, not least because you don't have to worry about storage space,
- High adaptability, allowing you to add and/or remove products from your store. This means you can test new strategies with different products, and modify the composition of your store as required,
- Logistical simplicity, since third-party suppliers take care of packaging and shipping,
- Scalable business and growth opportunities without logistical constraints. You're free to increase your sales volume without having to worry about all the logistics, which are handled by your suppliers,
- Consistent quality and customer experience, even as you increase the volume of your orders,
- Geographical flexibility. You can run your dropshipping business from anywhere, as all you need is an Internet connection,
- Expand your business internationally. In fact, you're perfectly capable of reaching international markets without any logistical worries,
- Automation is possible, particularly for orders and stock updates,
- Dilution of responsibilities. Your workload is considerably reduced, allowing you to concentrate on high-revenue activities such as sales optimization. In the event of returns, suppliers take care of the management.
All the steps to launch your dropshipping business
While it's true that dropshipping offers many advantages, there are a number of steps that need to be taken, from initial planning to ongoing management of the business. Here's a guide to help you make the most of this potentially lucrative new business.
Market analysis
The first step is to study the market to identify the main trends. You can use tools such as Google Trends or Amazon, not forgetting social networks, which give a global idea of the latest sales trends. Similarly, it's a good idea to analyze the competition to determine who your potential rivals are, the prices they charge and the marketing strategies they favor.
Choosing the best niche to position yourself in
The second step is to target your niche. It's advisable to carefully choose your niche market, in other words, the main theme of your store. This could be selling gardening products, home decoration or women's plus-size clothing. A buoyant market with which you have a strong affinity is ideal for getting started. Before getting started, make sure that the market in which you intend to position yourself really does offer good profit margins.
Finding the right suppliers to launch a viable dropshipping business
When you start dropshipping, you need to find reliable suppliers. There are many dropshipping platforms, such as AliExpress or Oberlo, integrated with Shopify. In all cases, you can evaluate suppliers before committing yourself to them, in particular by taking note of their reputation (reviews and ratings) and the quality of the products they offer. Don't hesitate to buy a few samples to test the level of quality. Similarly, your supplier's reliability should also be reflected in the delivery times and return conditions applied.
Create your online dropshipping store
You have several choices for creating your online store. You can use Shopify, WooCommerce or another alternative like BigCommerce. The advantage of Shopify is its ease of use, in addition to the many quality applications it offers for dropshipping. For its part, the WooCommerce platform is an interesting solution, since it integrates directly with WordPress.
Once you've chosen your platform, you can easily configure your store. This includes the choice of domain name, theme, design and the creation of the main pages (home page, product pages, terms and conditions, privacy policy and return policy). Don't hesitate to customize your store to reflect your brand's DNA.
Import all products and configure their prices
Your online store needs to contain a sufficient number of products to attract visitors and make them want to place an order. Don't hesitate to import products using applications such as Oberlo, and create attractive descriptions by adding high-quality images. When setting the prices of the items you offer for sale, don't hesitate to take into account the various costs (shipping and platform fees in particular) as well as the profit margin (the sale must generate a profit).
Set up payment and delivery options
Internet users who can choose between several payment and delivery options will tend to place orders more easily. For example, you can integrate payment options such as PayPal or Stripe, as well as more local solutions depending on the geographical area concerned. In any case, your payment options must guarantee a high level of security for risk-free online transactions. The same goes for delivery options, defined according to clear and transparent policies. To reassure your customers and build loyalty, don't hesitate to offer an order tracking option.
Launch your marketing strategy to promote your dropshipping business
Now that your store is up and running, it's time to get your marketing strategy right. To achieve this, don't hesitate to optimize your site in terms of SEO and/or add paid advertising with Google Ads or Instagram Ads, for example, which will enable you to attract as much relevant traffic as possible. You can also create a blog or eye-catching videos to engage as many customers as possible, in addition to creating targeted email campaigns and social network profiles based on your niche market. Don't hesitate to interact with your audience and share as much relevant content as possible.
Continuous management of your dropshipping business
A successful dropshopping business requires constant monitoring. In addition to regularly testing your store to ensure that everything is running smoothly, you can track the performance of your business using specific analysis tools (tracking sales, traffic and customer behavior). As the life of your store progresses, don't hesitate to make improvements and optimize your marketing strategies, particularly in the light of market trends and customer feedback.
I activate payment of marketplaces sales on D+1
