How To Create A Dropshipping Business Worth Millions
Are you looking at starting a new business venture? If so, then you might want to consider using the dropshipping model.
One of the benefits of the dropshipping trend is that anyone can do it and when we say anyone, we really do mean it. In fact, one student managed to establish a dropshipping business worth just $1.2 million in just a few months. Do you want to get started with this venture yourself? Well, first you need to know what dropshipping is!
What Is Dropshipping?
Dropshipping is a supply chain management method where the retailer or person selling the items does not actually have them in stock. Instead, when the customer places an order, the retailer will send the request directly to the manufacturer or the wholesaler who will then take care of the shipping. The goods will be directly shipped to the customer by the manufacturer which makes the entire process easier for the retailer, and more secure for the recipient.
This is a common practice among online stores, especially those that are just starting up. The entire management system makes it easier for online stores to get the products to the customer, as they do not then need to order the items in. It also means that the items are less likely to be out of stock if the purchase is going straight to the manufacturer.
Success Will Not Be Overnight
You might not find success immediately dropshipping. Remember that student we mentioned who now owns a $1.3 million business? Well, he actually started by making a loss of $15,000. As such, it can be trial and error, as his second attempt was far more successful and took off.
Does this mean that it all comes down to luck?
Well, no, not quite, because you do need to first think about the product that you want to sell. You need to ensure that there will be a high demand or that you can create high demand. Since you will still be running an online store, you also need to think about systems and hosting of your website and online store.
There are clear pros and cons for both on-premise versus cloud-hosted software and you’ll want to make the right decision for your business. What are your storage, speed, security, requirements and then there’s also the marketing and promotion. These days, it’s important to focus on digital marketing like SEO.
Finally, you need to make sure that you locate a manufacturer willing to work with you, dropshipping the products you sell. This can be quite complicated and will typically involve negotiations. Don’t settle on the first manufacturer you find and instead, look for the one that perfectly matches your business model and can provide to your requirements.
You will also need to select a selling platform. A selling platform needs to be user-friendly and easy to manage. Countless options are available on the market, so research a few before settling on the right one for your business model.
Best Selling Categories and Products
You may be wondering what products sell well online and which are the best-selling product categories. Well, there is no one answer as it can vary depending on the region, market trends, and time of year. However, here are some of the most popular product categories and items that consistently perform well online:
Products such as smartphones, laptops, tablets, and smart home devices are always in high demand.
Clothing, shoes, and accessories are also top sellers online. This category includes both luxury and budget-friendly items.
Home and Kitchen: Home appliances, furniture, and kitchenware are among the top-selling items online.
Beauty and Personal Care
Skincare products, makeup, and hair care items are also popular online.
Health and Wellness
Products such as vitamins, supplements, and fitness equipment are in high demand.
Toys and Games: Board games, video games, and other toys and games are popular online purchases, especially during the holiday season.
Both physical and digital books are popular online purchases.
Some of the top-selling items within these categories include:
- Apple iPhone and Samsung Galaxy smartphones
- Amazon Echo Dot and Google Nest smart speakers
- Nike Air Max and Adidas Ultraboost sneakers
- Instant Pot and KitchenAid stand mixers
- Dyson vacuum cleaners
- Estée Lauder Double Wear Foundation and Glossier Boy Brow
- Peloton exercise bikes and Fitbit smartwatches
- LEGO sets and board games like Monopoly and Settlers of Catan
- Harry Potter series by J.K. Rowling and The Hunger Games trilogy by Suzanne Collins
These are just a few examples of the best-selling product categories and top-selling items online, but consumers regularly purchase many more popular products online.
Keen to create a side hustle or startup try the drop-shipping model.
You too now know how you can create a successful dropshipping business that could be worth millions! Take the chance and start your company today for this opportunity.