So you want to make money online? If you have been looking at drop shipping, you’re on the right track. It’s mind-blowing how lucrative it can be.
Think about it.
No inventory and no accounts receivable. Every time you make a sale you get paid long before you need to pay for the product. Done right, dropshipping is a business that finances its own growth (something you’ll need if you’re about to start your own online business).
So why haven’t you started already? What’s stopping you from launching your dropshipping business?
The correct answer should be: nothing.
There’s really no good excuse not to launch your own online store today. Even if you are working full time, you can manage a successful business on the side.
Whether you are a working mom who wants an extra little income or whether you are unemployed, you should start drop shipping as soon as possible. Who knows; perhaps you’ll even be able to quit that day job and become a full time entrepreneur.
But how do you start your drop shipping business? Here’s a step by step guide that will help you.
1. Decide what to sell
So what are you going to sell? Quite a hard question, right? Don´t worry, just start with what you know best.
Let’s say that you are a mother for example. Then you probably know about other products mothers would want to buy. Look at this mom. She tips other mothers on how they can buy cheap products and sell them more expensive on Amazon. It is the most basic form of making money online and there’s really no reason why you can’t do it too.
We have written a step by step guide on how to find amazing products that will kick start your dropshipping career.
2. Choose the right platform
There are many different platforms where you can start selling your products. Here’s what you need to know about
According to Venturebea, almost half of all product searches are done directly on Amazon. You can basically run a dropshipping business without using anything but Amazon.
Just don’t forget that with great traffic comes great competition. That’s right, count on lousy margins if you choose to dropship generic products on Amazon.
Nevertheless, Amazon can be a great start if you are just starting out your drop shipping business on the side of your day time job. It’s also fantastic if you are going to sell something nobody else can offer, such as homemade items.
Both Shopify and Magento are great tools if you are about to start your very first Ecommerce.
They are intuitive and come with loads of plugins that make them highly customizable. You can even make your website and blog directly on these platforms. If you choose one of these, you’ll be able to create that special experience you want your customers to feel. This in turn will allow you to charge higher prices.
If you are not sure of which one to use, check out this comparison between Shopify vs Magento.
You can run your store on several platforms of course. But if you don´t want to lose your marbles doing it, you need to be sure you have everything else in order first.
3. Get traffic
Your target audience is crazy to see what you have to offer. But they don´t know you. You are like a kind of gemstone buried in the ground. You need to go out there and say “hello, welcome to my site”. Whether you like it or not (and you don´t), without traffic nobody will buy from you!
Here’s a basic guide on how to get traffic.
4. Scale up
Once your business is up and running, it’s time to scale it up to make the big bucks.
Make sure you can do this without going nuts. I mean that you want to be certain that more sales doesn’t equate extra hours of your time. You need to create systems that help you take care of business as you grow.
Read this if you want to know how to scale your dropshipping business on budget.
5. Automate from the start
If you want to start your online store on the right foot, you need to automate everything from the start. You´ll need a drop shipping software that takes care of administrative tasks. A drop shipping software will take care of your inventory management, placing orders with your vendors, shipping to your customers, etc.
You can try Jetti for free right here if you want to get this step done instantly without any hassle.
6. Be profitable
You need to be profitable or you’ll be screwed from the start.
Remember you want to make an extra income first and quit your day job later. If your business is not profitable, you’ll have neither of these results. You will need at least a 20% margin but the more the merrier. It all depends on how high your sales volume will be. If your margin is low, you’ll need to sell more products and vice versa.
And don’t forget the overhead costs!
Overhead costs include platform costs, software costs and your own salary for example.
Even if you you’re not planning to pay yourself any salary in the beginning (which you shouldn’t), you’ll want to make sure your business is generating what an hour of your time really costs. I’m not talking about the hours you invest in starting the website etc. I’m talking about the extra hours it’ll take you to run your business once everything is up and running. If you make less per hour handling orders than working for someone else, then why on earth would you want to handle orders?
Will your business be profitable? Check out this free profit calculator that we have made for you to make sure you are profitable.
Drop shipping is no doubt a lucrative business to make money online.
If you do it correctly, you can enjoy a hands-free growth from home.
By following this steps you can launch an online store and enjoy the luxury of working from home.
Are you ready to start your dropshipping business? If you are still doubting, let me know what’s keeping you from doing this and I’ll help you sort it out. Just write in the comments' section below.