How to Start a Drop Shipping Business
Drop shipping involves the shipment of goods from the manufacturer or wholesaler directly to the final consumer. Normally, goods move from the manufacturer to the retailer then to the final consumer. Drop shippers, therefore, bridge the gap between the manufacturers and the final consumers, though this is done without the prior knowledge of the consumer. With the ever-increasing storage and transportation costs, many retailers have opted for the drop shipping option. If you want to join them, I give you a few tips on how to start a drop shipping business here. In this post, you can also find valuable information information on how to dropship in 2018 and beyond.
Create a loyal clientele
As part of the feasibility study, determine the number of drop shipping jobs you can handle per day. Determine how many customers you will have starting off. What is the probability that the number of customers will increase from one year to the other? Remember that the number of customers you have is an indication of your net worth as a businessman. Therefore, as you think of starting a drop shipping company, get in touch with a good number of regular customers who will keep your business moving.
Do a feasibility study
It is always good to do a feasibility study of every business idea before implementing it. This is because a business idea may promise you milk and honey in the beginning but take you to the garden of rocks afterward.
As you perform the feasibility study, ask yourself these questions: is the business necessary? What value does it add to the customers and you? Is it legitimate in your country? Sometimes, drop shipping is necessary when you get a huge order from a regular customer, or where it is uneconomical to buy and store goods in your warehouse. The feasibility study should reveal the initial capital requirements, the setup process and growth prospects of the business. It will give you a roadmap to the success of the business.
Display your merchandise in various areas
As a drop shipper, your core duty is displaying the products you deal in. Customers will like the products displayed and make orders, then all you have to do is to get the goods shipped to them directly from the manufacturer, wholesaler or another retailer. For this reason, you need to display your wares in both brick-and-mortar stores and online stores.
Keep your business model a top secret
Every business has its trade secrets that if divulged to the public can lead to the closure of the business. In the drop shipping business, for example, customers should never know that you just run a display shop. They should never know that goods are shipped to them directly from the manufacturer. If they do, they may get in touch with the manufacturers directly. The result is that you will be eliminated from the chain.
Listen to what customers say
Finally, don’t ignore what your customers say. One way of generating business ideas is listening to what people say. As you run your business, listen to your customer’s complains and act on them appropriately. Make their wishes your commands.
