In this article, I will be unveiling the easiest way to start your very own dropshipping business with little money, no inventory required before you start selling any product. You’ll also get to see how to start dropshipping with Shopify, how to start a dropshipping business with WordPress via AliDropShip WordPress Plugin, and how you can make money from your dropshipping business.
What Is Drop Shipping Business?
Dropshipping simply defined is a business model that allows business owners, wholesalers or retailer to sell products (usually physical products) without holding any goods, product, inventory or purchasing large quantities of product up-front.
What this means is that you sell goods that you don’t have. Funny right? I’ll explain this further.
How Dropshipping Business Works
The idea behind dropshipping is that you sell goods and product on behalf of another person but unlike affiliate marketing, you are the business owner. Dropshipping is a retail system where you sell a product you don’t have. When a purchase is made on your store, you order the product and deliver the product to your customer.
Still not clear? Let’s use a real-life example. You plan to sell an iPhone 7, your supplier is selling it for $740 but on your store, you can make the price $950.
Then someone makes an order, you have to buy an iPhone 7 from your supplier for $740 and deliver it to your customer and make a $210 profit or give him the customer’s detail to deliver the product himself.
Your profit is going to be the difference from the amount you sell the product on your store and buy from your supplier. For this to work, you have to create an online store, [like your preferred eCommerce platform i.e Jumia, Konga, Amazon, Alibaba, AliExpress etc] adding pictures and descriptions to your products.
You don’t necessarily need to own the product you are dropshipping. In essence, when you make a sale on your store, what you simply do is to buy that particular product with your customer’s money from your supplier who also sells the same product.
After purchase, you send your customer’s address and details to the supplier, so that the supplier can ship and deliver the product to the address of your customer. When this is done, the deal is closed and completed.
Advantages Of Dropshipping Business
There are endless advantages of setting up a dropshipping site but these are by far the best benefits of having a dropshipping business.
1. Low Investment
You only need a very small amount of money to step up your Dropshipping business. You can start the business with just $100 (₦36,000) and get yourself a nice dropshipping website.
2. Easy To Startup
Dropshipping business is not difficult to set up. You don’t need a college degree or university certificate to set it up. You don’t need to know how to code to set up your dropshipping site. The concept is simple. You create a store, redirect orders and make money.
3. Easier to Make Money
Just imagine, selling products with profits, no taxes when you make a sale, no shop rent, no need to spend money importing or delivering products, no need to rent a store in a mall and no need to rent a space in a warehouse.
Unlike the usual retail store, your online store is active, day and night, all through the year. And every sale is automated. This is surely one of the best passive income ideas in Nigeria.
4. Super Lucrative
Dropshipping business is surely one of the most lucrative businesses in Nigeria. The profit in this business is enormous. Dropshipping business is one of the most profitable online business in Nigeria.
Dropshippers in Nigeria that shares testimonies of how they make $3,000 monthly from their store, selling products that they don’t have. You’re still there checking if this is a scam, why???
5. You are the Boss
As a successful drop shipper, you are a successful business owner, CEO, Salesperson and entrepreneurs. Including the fact that you don’t have a shop, you don’t go to work, you did not go for a job interview or complete university. You still make money even if you are sleeping.
6. Zero Waste
Remember you’re selling what you don’t have. So, no product goes to waste. You can’t overbuy a product, you can’t overstock your store, you don’t even have to go markets for shopping or windows shopping. You only need the product image and description.
Is dropshipping legal?
Yes, just because starting a dropshipping business is super easy, you are probably wondering “Isn’t this a scam? How can you sell something you don’t have”.
The answer is NO. Dropshipping is not a scam. In fact, it is one of the most legit online business to start. It is completely legal anywhere in the world. Dropshipping simply makes use of a third party is to order goods from a supplier or manufacturer handles shipping. Nothing is illegal about that.
What You Need To Start Your Dropshipping Business
Dropshipping is undoubtedly one of the most popular online business ideas because it’s easy to set up, small investment cost, and a wide market. By now you should have grasped the concept of dropshipping and you may be considering launching your own dropshipping business.
Before you get to start your dropshipping business, you should consider taking note of these important procedures:
1. Get a Product to Sell and Find a supplier
You should know how to source for great products that will be listed on your store. There are just so many to choose from Slim tea, waist trimmer, smartphones, home appliances, beauty products, clothes and accessories etc.
You should also vet domestic and international suppliers to see their product’s worth. You can use platforms like Jiji, Jumia, Facebook, Instagram, Amazon, Alibaba, Esty, Doba, SaleHoo or Nairaland to source for products from your preferred supplier.
Here are some ideas you should note when taking this step:
- Identify hot and highly demanded products.
- Focus on marketing and customer acquisition.
- Highly-demanded products are the products that bring you massive profits.
- Focus on a product with low competition.
- Get a reliable supplier.
2. Identify Your Audience
You should also to target a specific group of people who might be interested in purchasing your product. This allows you to meet up to demand and make far more efficient sales.
You also need to perform market research before you invest in this business. You need to know who your competitors are, their affiliates, what they sell, and how they sell their products. So you can easily handle setbacks. Here are some ideas you should note when taking this step:
- Use Social media platforms and Google Trends as tools to find products with high demand.
- Use Google Analytics to analyse your demographics.
- Use Alexa or Similar web to analyse the competition.
- Draw your sales funnel.
- Set up a marketing and financial plan.
3. Build Your Store
Since you don’t have a physical store, you need to find a digital store to market your product. Setting up one is super easy. You can use WordPress or Shopify to set up your online store.
Your online store needs a domain name, web hosting and good looking design. A responsive and mobile-friendly design will make users love your site. This is an added advantage for drop-shipppers who intend to keep their customers for a long-term.
Here are some ideas you should note when taking this step:
- Get a responsive theme.
- Get a webmaster or a web designer to support you if you need help.
- Watch video tutorials and walkthrough on Youtube.
4. Advertise and Promote your Business
The world needs to know about your business. You need to advertise to a point when people can rely on you to get the cheap and affordable product when they need one.
It is okay to have a good website and product but if you don’t have customers, you’re not going anywhere. Here are some ideas you should note when taking this step:
- Search Engine Optimization: Your site can receive more attention from search engines and you get free traffic from Google through your SEO skills.
- Paid Traffic: You can also pay to advertise and show your store to potential customers.
- Search Engine Marketing: You bid for certain keywords related to your store on search engines.
- Advertise on Forums such as Reddit, NairaLand etc.
- Social Media Marketing on your FaceBook page, Instagram handle, WhatsApp account is an added advantage.
- You can promote your dropshipping business on Whatsapp TVs, Telegram groups and Instagram influencers to get better results
5. Deliver Outstanding Customer Service
Develop an efficient and effective plan for supporting customers and turning them into brand advocates, referrals, affiliates or influencers. This allows you to have loyal and returning customers.
You should have a framework that allows you to return bad products, give feedback to customers and alert them when there is a new product in stock.
- Make your store a reliable brand.
- Setup a blog for your store.
- Setup a live chat support on your website.
- Have a ‘contact us form’ on your website.
- Setup helplines, support emails, phone numbers and office for your store.
- Set up social media accounts on popular platforms for your store.
6. Open For Business And Grow
When you follow the listed steps and open for business, always remember to identify your most profitable products, sales channels or supplier, so you can reinvest your earnings to grow your business.
If you intend to do dropshipping business for a long period, you should look out for mechanisms to gain the trust of people and grow your business.
You may have started on a small scale, but as time goes, you can become an authority in the industry and become relevant. Seize every opportunity to grow and improve the face of your business.
How To Set up A Dropshipping Store On WordPress with AliDropShip
WordPress simply defined is a content management system based on PHP and MySQL that is usually used by individuals and business to take their work and business online. While AliDropship plugin is one of the most popular plugins used to build individuals and business to build an online dropship store on WordPress.
The AliExpress Dropshipping Plugin For WordPress is s super plugin that allows you to get any product from the AliExpress store down to your own store. This plugin saves you the stress of adding a product image, description etc. With this plugin, you can change the price of any product to increase your profit rate.
If you want to set up a dropshipping store on WordPress with AliDropShip, You simply have to:
- Purchase a host on BlueHost and a domain name. (We recommend BlueHost because it gives you a free .com domain name when you buy hosting and the hosting is effective for dropshipping)
- Install WordPress from your Cpanel.
- Get the AliDropShip plugin and install other necessary plugins.
- Use The AliDropShip plugin to important products to your store.
- Advertise your store and start making sales
How To Set Up A Dropshipping Store On Shopify
Shopify is a popular website that allows individuals or businesses to sell their product online by creating a Shopify store. This is the easiest way to sell a product online if you don’t want to create your own e-commerce website.
Shopify also offers smart store services like hosting, domain name, payment gateways, themes, design, CMC that will help you own successful e-commerce. Shopify allows you to start your dropshipping business easily. This site was specially built for dropshipping.
Another amazing fact about Shopify is that they allow you to build your online store for free and you are allowed to use it for 14days before they start charging you. This is more enough time to learn Dropshipping for zero cost and sell your product before you invest.
AliDropShip Plugin VS Shopify: Which Is Best for Dropshipping?
This is up to you. I can design how your business should run only you have the power to do so. You should know that Shopify charges you forever purchase and transaction made on your store, this may affect the profits of your dropshipping business.
AliDropShip plugin is an ideal tool made for drop-shippers. It gives you enough room and flexibility to easily sell whatever you want on your store without touching your profit. Also, you only pay a one-time fee to purchase the plugin. This makes AliDropShip the boss of dropshipping.
How Profitable is Dropshipping?
Dropshipping is one of the most profitable online business models in the world. It is easy to start, cost-efficient, lucrative when done right. Plus, you are not responsible for the costs of shipping and manufacturing. Just sit back, make sure that your customer’s orders are delivered and make money.
What are the disadvantages of Dropshipping?
Just as dropshipping has its good side, it also has its own bad side. Some of the dark sides of dropshipping are;
- You don’t have control of product quality and inventory
- Difficulty in managing customer experience and expectations since you can’t confirm the quality of some products.
- Providing customer support for a bad product can be challenging
- Buying and selling in bits (One at a time) makes making profits slow
Is Dropshipping a Good Busines To Start?
A dropshipping business is a low-risk business with mouth-watering profit. This is one of the best business for online entrepreneurs. Everything is Automated. Just invest a little time and money then you’re good to go.
You barely have anything to lose. You make have to login daily to processing orders. After you set up this business the only thing spent is maintenance cost which may be paid once a year.
In this business, you cannot be overburdened with the cost of manufacturing products, storing the product & warehousing, costs of maintaining unsold inventory, and the cost of employees, packaging cost. and shipping.
Can I Make Money From Dropshipping?
Yes, you can make money and become rich fast from your dropshipping business. Dropshipping allows you to make profits easily by selling a product that you are passionate about, without breaking your bank or requesting for loans. Just get a good supplier.
Is Dropshipping Worth Trying Out?
Yes, Dropshipping is worth every penny, time and money you invest in it. If you don’t invest time into your online business, it will never grow. Just give it a little time and advertise in the right places.
Can I Buy a Dropshipping Business?
Yes, you can buy a dropship website for yourself. Alternatively, you can save yourself the stress of setting up an online store for yourself by buying a dropshipping business. This is one of the best ways to start. It will cost you to buy the store because it has already been designed and prepared for you.
If you don’t want to start a dropshipping business from scratch, you can easily find a dropshipping business for sale.
AliDropShip platform has a great collection of online stores, dropshipping stores, eCommerce site and much more with price ranges and niches that are already optimized for you.
What are you waiting for? Get started today. Dropshipping business is one of the best ways to make money online today. It’s very easy to start, scalable and requires little or no investment is required. If you can go through the guide again to get your facts right, I’m sure you will start your dropshipping business the right way.