The term “drop-shipping” is rumored by many who want to launch their own business on the Internet. Drop-shipping is the sale of foreign goods, and this differs from the usual trade. A drop shipper does not need to purchase goods, rent a warehouse and monitor delivery. His tasks are to promote goods and look for customers. The rest is done by the supplier. How to start your drop-ship business? You should understand its scheme for beginning:
1. The seller selects goods from the supplier’s catalog and downloads them to the trading platform – an online store, landing, marketplace or group in social networks.
2. Adds a surcharge to the supplier’s price, the size of which determines its earnings.
3. Promotes goods and finds a customer.
4. When a customer makes an order, the seller sends the information to the vendor.
5. The supplier packages the goods and sends them to the customer.
If the customer pays for the item online, the seller takes the margin from the money and sends the remaining amount to the supplier. If the customer pays for the item in the post office, the vendor discounts the margin to the seller.
Drop-shipping has many advantages, the correct work on this system provides excellent opportunities for business growth. Today, almost all manufacturers of small household appliances, clothing and other mass goods have a registration page on their sites and a support service for working with drop shippers. Thanks to this, you can choose exactly the producer who will suit you in all respects and cooperate with him without any restrictions.
Is drop-shipping still profitable?
How to start a drop-ship business for a beginner? Conditionally, the entire stage of starting and developing a business can be divided into several stages:
1. You are defined with the group of items you will trade.
2. Find the vendor for this item.
3. Create and fill the site with goods, promote and develop it.
4. You transfer the received orders to the vendor.
5. The vendor processes your orders, packs them, and sends them to customers.
The profitability of your business will depend on several factors. The main thing is the selected merchandise group. Remember that popular and popular goods in the middle price category are much easier to sell than expensive and highly specialized ones. Make sure that the margin on the item is higher than the cost of attracting a buyer. You should always have the opportunity, in addition to profit, to invest in the development of the site and its promotion. By the way, the strategy for developing and promoting the store is also very important. The number of sales will directly depend on where you bring visitors to the site and how many people visit it daily.
The quality of your site – modern customers are used to easy and fast purchases. Therefore, you should create the most comfortable site. Your store should be easy to understand and perceive, in every way to push visitors to check out. And, probably, one of the most important factors is the quality of service. You need to quickly accept orders, answer customer questions. Only high-quality service will allow you to keep old customers and constantly attract new ones. Besides these considerations, it’s important to keep in mind business expenses, including important financial aspects like LLC annual fees. Drop-shipping businesses need to manage their finances properly and stay on top of fees and costs.
Given all these factors, you will be able to predict and control the level of your income. Proper store maintenance and customer service are the foundation of your successful business.
Cost to Start Drop-shipping Business
The e-commerce sphere is becoming increasingly popular beyond any doubt, and the logical solution in the current period of economic “turbulence” is the opening of its online store. You want to begin, but you don’t know how to start a drop-ship business in 2021? Take one manufacturer and start selling its products. Using this model, you can sell physical goods around the world without having them available. You do not need to have your own warehouses, carry out an inventory and ship the goods yourself.
Despite the attractiveness of the business model, it is still necessary to start with a budget that will allow you to qualitatively assemble and launch an online store. Competition in the sphere is growing, and after it, the size of the necessary budget for the full launch of the drop-shipping store may increase.
So, in order to create a dropshipping store on Shopify, you need to take into account several objects of expense:
- Domain name
- Cost of site development
- Applications and additional services
- Advertising budget
- Accepting payments
- Inventory for cash gap
- Additional/unforeseen expenses
When you calculate the cost of each item, you will be able to make an approximate estimate for the launch of your online store. If this is your first experience, we always recommend slightly overestimating the amount of unforeseen expenses. Based on these costs, you can schedule the launch of a store with a completely different budget. An essential way to reduce your budget is to use a ready-made template to run your website. Then you will understand how to start a drop-ship business and how to create your site with minimal investments and do not waste time on its development, design and other technical details.
Drop-shipping Business: Pros and Cons
Dropshipping, like any other business model, has its advantages and disadvantages. If you have not previously worked on the dropshipping system, we recommend that you carefully study all issues related to the organization of work. This will save you from a lot of mistakes in the future.
Despite the difficulties, dropshipping is quite attractive, especially as a starting project. Let’s take a look at the benefits:
- Easy start. Registration is not required, complex procedures with numerous documents. At first, you can even work without a legal entity.
- Minimal risk. Engaged in drop-shipping, a businessman does not risk either his savings or his own property. Simply determine the amount you are ready to invest in the project and work according to the finished plan.
- A little start-up capital. You do not need to buy the item in bulk – you can pay for it after you receive money from the buyer. There is no need for investments in production – cooperation is carried out with already successful manufacturers.
- No warehouse is required. Therefore, there are no expenses for rent, maintenance, staff. Drop-shipped only needs a computer/smartphone and the Internet.
5. Collaborate with multiple vendors at once (if there is no contract restriction). Expanding both the assortment and the customer audience.
6. It is not necessary to deal with the design, packaging, delivery of orders. Everything listed is done by the supplier on behalf of the dropshipper.
7. Free employment. Drop shipper can engage in his online store from anywhere in the world.
Drawbacks of drop-shipping
If you look at the feedback of “experienced” droppers, you can also find the shortcomings of this attractive business scheme:
- Tough competition. In 2021, many people already realized how profitable drop-shipping is. To stand out against the background of numerous online stores, you need a bright serve, “tasty” prices, high-quality goods, running, current and exclusive assortment.
- Low income. Beginners do not soon reach a stable high revenue. We definitely need knowledge of basic marketing, product promotion on the Internet, social networks.
- The reputation of the store does not depend on the integrity of the drop shipper. Under the terms of the contract, the supplier acts on behalf of the store. If he delays delivery, sends defective goods, does not want to make a replacement, does not report the absence of an interested item in the warehouse, the drop shipper will be to blame.
- It is not possible to check what the vendor puts in the order. In their reviews, droppers share cases when a partner invested his advertising booklets in parcels.
5. In most cases, a full prepayment from the buyer is required. According to statistics, only 5% of consumers are ready to make a 100% down payment.
6. The customer base is in the hands of the supplier. If you stop working, he will have the names, phones, email addresses of your customers, which the former partner may well use for his own purposes.
7. There is no way to personalize the order. A birthday gift wrapper, a thank-you card, a small souvenir or the usual inscription “Thank you!” – these little things always highlight the store against the background of competitors. But if the supplier is engaged in packing and forwarding orders, the store cannot always convey its offers to it.
Why should you try to start a drop-ship business in 2021?
How to start a drop-ship business and earn well? If you are new to business, and want to try to earn your first money on the sale of goods, then this is a good start, provided that your starting capital is very limited. Many online stores are experiencing difficulties due to the fact that they cannot create a good and stable demand for goods, moreover, they sometimes lower money into the pipe due to inexperience. Immediately, the supplier carefully shifts these risks to your shoulders, sharing a small part of the profit for this.
It may not be possible to earn a lot of money right away, since you will be an integral part of someone else’s business. Independent online stores in this have more advantages, but also more risks, respectively. As you gain experience in e-commerce, you can slowly move away from this scheme and switch to the classic work of the online store, taking under your wing the main business processes, thereby removing many disadvantages that are characteristic of drop-shipping.
Drop-shipping gives access to a wide range of products that no, even the largest, hypermarket can ever provide. It increases the availability of goods and ensures equal market access for producers, minimizing prices and thereby increasing the standard of living of buyers.
Even beginner entrepreneurs can earn on dropshipping. Your manufacturer can be in one country and you are in another and it doesn’t matter. E-commerce offers excellent growth opportunities.
Drop-shipping Business Ideas
For many entrepreneurs, launching a drop-shipping store on the Shopify platform is a great way how to start a drop-ship business and your own eCommerce business. Purchasing, storing and managing inventory is a complex process, which is why creating a drop-shipping store on the Shopify platform is a great way to conduct business without having the product available. You can focus your precious time and resources on scaling your online store and increasing sales.
Drop-shipping is a flexible business model that is perfectly supported by the Shopify platform. Shopify is a leading e-commerce platform that allows entrepreneurs to open their own online stores. Shopify is easy to use, so knowing certain nuances you can easily manage your own store, even if you have never had experience creating sites. The platform is ideal for entrepreneurs who want to open their own online store with minimal investments in a short time. In addition, Shopify provides access to a variety of topics and widgets that help automate many processes and increase key business performance indicators.
This is the world’s most popular eCommerce platform. More than half a million entrepreneurs are already using this service to conduct business. The platform is characterized by numerous functions that greatly simplify the processes of filling the store with goods, changing the appearance of the site, receiving and processing orders and much more. In addition, if you need any features that are initially unavailable in Shopify, you will almost always be able to find the application you want in the Shopify app store or contact specialists who can work with code.
In fact, Shopify is the foundation of your business, which is a “skeleton” that is necessary for the design, launch and maintenance of business activities.
How to start a drop-ship business with Shopify?
Drop-shipping is an ideal business model for entrepreneurs who want to create their own business with minimal initial investments, and Shopify is the easiest platform you can use to solve this problem. Using Shopify, you will never have to worry about excessive inventory or lack thereof, since you will order the required quantity of goods immediately after placing the order and paying the buyer. This system differs significantly from the traditional business, which involves the production or wholesale purchase of goods.
Finding and adding goods, refining the store, creating creatives, setting up ads, sending orders, monitoring the operation of the payment system – all these processes require attention, and when traffic increases at your store, the question of finding an assistant will arise, so you need to keep it in mind. But initially you can do it alone, and if you have any questions, you can get answers from technical support or on forums.
Shopify gives excellent opportunities to promote the site on several channels at once. The integration of social media buttons, gray site optimization, will allow you to easily launch ads and promote your store immediately after its launch.
So that you can not only quickly launch your store, but also make it popular, it is worth carefully choosing a theme that will help you create a convenient and modern online resource. The best Shopify Themes allow you to easily find the perfect design. If you have a large assortment, you sell one product or just start, in this collection there is a creative template for each.
Functional aspects such as built-in sliders, mega menus and instant Ajax downloads, easy search and filters on the site will help you make your resource really convenient and understandable to everyone, which will have a great impact on your sales.
Roxxe – Responsive Multipurpose Shopify Theme
Everyone can create their own unique, successful online store using the Roxxe theme. Now you can easily create your own store without resorting to the services of a developer. You do not need experience in the development of the site, or special technical knowledge – everything works simply and intuitively. Thanks to this theme, you start the store quickly, and you can customize your individual design. This template will be a great solution for almost any online business.
This template is a versatile solution for creating the perfect online store for any business niche. The Roxxe Shopify theme features a unique design designed to accommodate current web design upgrades. All topics are designed with the need to present all the advantages of topics and the opportunity for each client to find something special and suitable for it, which allows you to create a unique online store. Thanks to Shopify Visual Builder, you can create as many Homepage layouts as you want by simply rearranging partitions to suit your business needs.
Shopify Roxxe’s adaptive multi-purpose theme is an innovative solution in web development. There is a huge amount of intelligent features and more premium capabilities to satisfy even the most demanding customers. Now, the Roxxe multi magazine includes more than 70 pre-designed layouts with finished sections. It offers dozens of possible combinations for the homepage for each of the topics.
Roxxe is also great for you if you already have an online store, but want to upgrade it. One of the main advantages of Roxxe is that it is completely responsive, so it looks great on a screen of any size. This multi-purpose e-commerce theme also allows you to create Retina-enabled pages. However, your content will not lose its quality when viewed on older devices – convenient, right?
Vendy – Multipurpose Shopify Theme for Fashion
Are you considering a Vendy Shopify theme? If so, you’re in the right place.
We will specifically consider Vendy, a new multi-purpose Shopify theme for online fashion stores if you don’t know how to start a drop-ship business in 2021. Nevertheless, although this topic is focused on fashion brands, it is suitable for almost any type of online store, including startups that may not have yet chosen the direction.
Vendy has a clean and minimalist design, so you can highlight products in the best way possible. The colors of your brand shine against the background of a large white space, where your clothes, accessories, and other items are elegantly presented. It pays tribute to users for its simplicity and usability.
The great advantage of this topic is simplicity; thanks to its elegant design, it will look as great now as in a decade.
The best thing is that Vendy is also one of the most affordable premium topics on the market, and, of course, has premium quality. It is well documented and includes all future updates. Pretty neat, right?
Vendy comes with several built-in integrations that make it easier to expand the functionality of your store. The features of the topic will allow you to share content on social networks, simplify the purchase process for your customers, better promote the store, and much more.
It is compatible with all major Internet browsers and is lightweight enough to load quickly on both desktops and mobile devices.
Vendy doesn’t have a very complicated menu. You can create a complex mega menu with multiple product categories and links so that visitors can find exactly what they are looking for in just a few clicks. You can even include images, favorite products, ad banners, and more in your menu!
The possibilities of Vendy’s theme:
1. 10 ready home page templates. All home pages are designed with clothing and accessories stores in mind and are suitable for universal e-commerce stores.
2. A library full of standard stock photos carefully selected to reflect the fashion space.
3. Five listing page templates
4. Five product page templates
5. Two-page templates about us
6. Two collection page templates
7. Three options for a pop-up newsletter
8. Fashion blog pages
9. This beautiful, modern, and minimalistic template allows visitors to hone specific details in photos of your products. For example, a stylish jacket was worn by your model!
The theme supports pop-ups and encourages visitors to subscribe to the newsletter, make a purchase in one click, and create a quick view of the item. This is a really great topic to help you grow your business quickly. There’s nothing impossible here for you. Work comfortably and increase your sales!
All the topics we have reviewed are of high quality and are perfect for your online store. They will help you answer the question of how to start a drop-ship business in 2021 and make your work easier. They will be a real find for you, especially if you have no experience in creating sites. Now you can not only launch your drop-shipping business but also confidently develop it, increasing your revenues and expanding your customer base. Themes, at first sight, cling to their cool design and look very professional.
Now there are so many premium responsive ones that it is difficult to make the right choice. Fortunately, Roxxe and Vendy are multi-purpose themes that are suitable for various niches and come with a lot of ready-made templates. This should make it easier to change the theme to suit your store, no matter what you sell!
Thanks to a wide range of additional features and integrations, topics are impressive with their capabilities. They definitely deserve your attention if you want to simplify your work and not waste time creating a store.
The modern site will allow you to start dropping business and develop it. Just choose a theme that’s right for showing your item and fill it with your content. This is a quick, convenient job that will bring you pleasure and profit. To check the features of the theme, check out the demo version. You test all the features of the template, its adaptability, and functionality, and then you can install it and get started.