Dropshipping Online Business is an idea of selling products online without owning or operating a physical store. It’s more of a sales agent but with all decisions upon you. This model works in such a way that you will be the middleman between the company and the buyer.
All you do is sign an agreement with a company that is, the supplier. Then use your various channels to advertise and push traffic to your site for orders. By doing so, the buyer reaches out to you order the product in your site. Then you as the seller forwards the order to the company. Then the company ships the item directly to the buyer.
As a seller doing dropshipping, you get your cut by inflating the price. This means if the item’s wholesale price Ksh 300, you can propose it to your audience(buyers) at ksh. 500. This is known as adding profit margins. Most people who do dropshipping prefer a 20-30% profit margin. You’ll keep the Ksh. 200 when placing an order for the buyer.
This business model can be lucrative to university students or jobless youths who can access the internet with a phone/laptop or even both. Because it doesn’t really need a start-up capital, physical store or packaging expertise. It doesn’t also incur much losses because you only order for goods paid by your customers.
How do you start this dropshipping business?
Choose your business niche. This is done by choosing the business you want to offer. The goods you want to sell. May be electronics, fashion, jewellery or any other niche you want. Ensure you choose a niche that is on demand and can get you frequent orders.
Identify various suppliers in your niche and choose the most preferable to you. This is in terms of trust and reliability. This will leave the customer always satisfied by your services through efficiency by the company.
Designing and build an online store with your brand. This is by creating a name, logo and attractive colours to represent your store. Build an online store by choosing an host provider and a platform to make your website.
Register your online business legally by getting the necessary permits and licences to run the store. Proceed to open bank account with the business name. This makes everything about the business as legitimate as possible to avoid any second thoughts by your customers.
Start driving traffic to your website which then will translate to more orders and with more orders comes more money. You can use SEO, advertising your website and services or even doing social media marketing to drive traffic.
Most of the time, dropshipping online business will depend on your marketing expertise and a platform to do your marketing. You can also invest in marketing because traffic is what will translate to oders.
Related:
1 Comment
link