The Covid-19 pandemic has a huge negative impact on the world’s economy. New-age entrepreneurs need to come up with out-of-the-box business concepts in order to remain competitive. Dropshipping is one such business model that may prove highly beneficial during COVID-19 and post COVID-19 world.
It is the simple operating model that makes dropshipping so attractive and a risk-free business model. As a business owner, you don’t need to have an inventory to store the goods, there is no overhead cost and no headache of shipping. Everything will be taken care of by the dropshipping vendor, you simply need to make people purchase from your site and place their order to the dropshipper. From getting the product to delivering the product at the doorstep of the customer, it is the sole responsibility of the dropshipping company. You’ll never need to worry about storing, packaging, or shipping your products.
Here’s a quick look at the five main steps you’ll need to follow for starting a dropshipping business-
- Find your niche and products
- Choose a supplier
- Sort out all the legal stuff
- Pick your sales channel
- Start marketing your products
Through a strategic online marketing plan, you need to make your store popular so that a greater number of people purchase products and goods from your online store. The formula of dropshipping is very simple, the more order you receive the more profit you make. Online promotion and advertising of your store are the areas where you need to put money and effort. From running Google ads to promoting your store on social media channels and YouTube, as a business owner, you need to take every possible step to promote your online store.
The success of a dropshipping business model depends on how popular the online store is. If you have a steady stream of customers, you can be sure of making a considerable amount of returns from your investment. The biggest advantage of dropshipping is its zero-capital beginning. Without spending a single dollar on purchasing and importing goods one can start a dropshipping business.
The average profit of a manufacturer that dropships is 18.33% higher than a manufacturer that uses traditional retail models. With eCommerce tagged as the only trillion-dollar industry growing at a double-digit per year, you have plenty of potential sales to leverage on by adopting a dropshipping business model.