Dropshipping = almost zero upfront investment
Starting a dropshipping business has become extremely popular since it requires almost nothing in terms of capital investment.
Let’s see what you need and explain each step:
- A product to sell
- A supplier to dropship the product
- A sales channel (eBay, Amazon, Shopify, etc.)
Step 1: Find a product to sell
Selling is just the first step, it’s not the end goal. Your product must be reliable in order to retain customers, receive positive reviews, get recommendations and grow your audience and business. I’ve written a step-by-step guide to finding the best product to dropship, the most important guidelines are:
- Price range should be between $150–250 – this will give you enough margin so that you won’t need to sell thousands of items just to make the minimum profit to get by. Don’t sell low cost items for $10 since their margin will be too low.
- Lightweight – Shipping cost can become a huge factor for heavy products sales, especially if you offer express shipping options. An express courier will charge $70–100 for a 10kg package to be delivered from China to United States. When you sell a product that costs $150, paying an extra $70 for shipping is a conversion killer.
- Simple to use – This is very important in terms of returns. When a customer receives a product and is not able to figure out how to use it, then he is likely to return it and you will have to pay the return shipping cost. These costs can pile up and lower your bottom line profit significantly.
Step 2: Find a reliable supplier
In the dropshipping business, one of the most important aspects is to deliver the products on time, without faults, as described.
This means that your suppliers have to:
- Be available when you need them, at your hours.
- Process orders within 24 hours, preferably on the same day.
- Use fast shipping methods with full online tracking (FedEx, UPS, DHL).
- Understand the importance of quality items and take responsibility when sh*t happens.
- Keep you informed when products go out of stock, or when there is any other potential delay – Since you completely rely on them, this one is crucial.
Step 3: Upload your product to eBay
Once you have found the right supplier and product, sign up for an eBay account and list your product. It’s crucial to have a professional looking listing that is also mobile optimized since over 50% of eBay sales are done through mobile. Use CrazyLister to easily create professional listings that will outsell your competition by being mobile-optimized.
Many people try to start a dropshipping business and give up too soon. You can avoid crucial mistakes if you learn from others who’ve made them and still been successful. This YouTube series teaches you how to sell on eBay and includes great beginner tips that will jump start your business: