Drop Shipping is a unique fulfillment method in which, when you get an order on your shop, your manufacturer/wholesaler delivers the product directly to your customer. You can just set up a shop and start selling without worrying about the inventory, storage space and investment. You just pay the manufacturer when a sale is made.
Your serving market determines your business future most of the times. You have to do your own research and zero in on a market category like Apparel, Electronics, Toys etc. Your market should be scaling up fast and the product should be fast moving items like T-Shirts or mobile phones. Select the product by searching for the buyer market, seller market, selling prices, competition companies, scope on future like product’s market after 5 years etc.
Search for drop shippers for your product. You should consider the following points while finalizing on a drop shipper, 1. The distance between you and drop shipper’s warehouse, You should do an occasional check on their delivery process and product quality. 2. Product Selection in your category, you may start with a single product but eventually, you will need more products in your category while scaling up. 3. Prices, obvious reason but compare the prices with the quality offered. Cheap product with cheap rates makes less sense these days. 4. Drop Shipping process, should be simple and you should not get daily headaches while transferring orders and getting reports. 5. Willing to take returns for defective products and offer a free replacement.
Register your company with the government, get a domain name for the business. Find a website provider like Shopify, Kartrocket, Zepo or set up your own website with WordPress , Magento etc. Finish the formal agreements with the drop shipper.
Get the catalog from the drop shipper and complete your website with the product selection. Or you can also sell from your facebook page. Initially order few products for yourself and get first-hand experience on the whole process. As your sales grow you should spend time in understanding your industry better, it will help you in launching new products which people will actually buy and scale faster.
This is most important! 99% drop shipping products are simply dispatched from drop shipper and delivers to the customer with a seller’s label. This has its own downside, other sellers who actually owns the product may offer a better price than you and sell on the same platform and to the same customer. Customer prefers lowest prices for same products. What is the differentiating factor for your product? You can make a unique drop shipping product in many more ways. Even if you are selling a common mobile phone model, you can make the whole experience better. You can do a paper insert with the product explaining easy return process, nearby service centers, specially made usage guide, hacks available, new unknown features of the product etc. Or If you really want to differentiate, do a real value addition to the product. Learn about on-demand printing and drop shipping providers, where-in the drop shipper will have quality blank products and digital printing machines. You can be creative and sell your creative designs on the drop shipper’s blank products. You can name your price for your designs. You drop shipper handles the printing the product with your brand name and dispatches to your customer with your brand packaging. There, you are creating a Brand which will last forever and will speak for its quality and creative design.