What Is Dropshipping? | Starting Business Basics
If you’re seeking an online business opportunity, chances are that you’ve come across dropshipping. Dropshipping is an online business model that can generate high returns for the aspiring e-commerce entrepreneur.
Dropshipping requires very little starting investment. All you need is a computer, an online store and a basic understanding of how to market the product that you have chosen to sell online.
In this Starting Business Basics video, we will be covering the business of dropshipping. What is dropshipping and how you can start your own e-commerce dropshipping store in a matter of days.
Video Chapters:
Intro: 00:00 - 00:36
What Is Dropshipping: 00:37 - 02:17
How to Market and Sell Online: 02:18 - 04:32
Outro: 04:33 - 04:49
We advise you look into:
Shopify: https://shopify.com
WooCommerce: https://woocommerce.com
Facebook Ads: https://business.facebook.com
Google Shopping: https://shopping.google.com
Printful: https://printful.com/a/startingbusiness
Oberlo: https://oberlo.com
Starting Business is an international community, online course platform and event organizer for entrepreneurs and business minded people. We help people to better understand how to start and run a business by offering resources, articles, and interviews that will help you get a better idea of what it means to start a business or be self-employed.
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Dropshipping requires very little starting investment. All you need is a computer, an online store and a basic understanding of how to market the product that you have chosen to sell online.
In this Starting Business Basics video, we will be covering the business of dropshipping. What is dropshipping and how you can start your own e-commerce dropshipping store in a matter of days.
Video Chapters:
Intro: 00:00 - 00:36
What Is Dropshipping: 00:37 - 02:17
How to Market and Sell Online: 02:18 - 04:32
Outro: 04:33 - 04:49
We advise you look into:
Shopify: https://shopify.com
WooCommerce: https://woocommerce.com
Facebook Ads: https://business.facebook.com
Google Shopping: https://shopping.google.com
Printful: https://printful.com/a/startingbusiness
Oberlo: https://oberlo.com
Starting Business is an international community, online course platform and event organizer for entrepreneurs and business minded people. We help people to better understand how to start and run a business by offering resources, articles, and interviews that will help you get a better idea of what it means to start a business or be self-employed.
Customer Support: support@startingbusiness.io
Platform Status: https://status.startingbusiness.io
Facebook: https://facebook.com/startingbusiness.io
Instagram: https://instagram.com/startingbusiness.io
Twitter: https://twitter.com/startingbusiness.io
LinkedIn: https://linkedin.com/company/startingbusiness.io
Join the community: https://startingbusiness.io
Transcript
00:00Right now, many people are looking for ways to create passive income or generate more income streams.
00:07Over the past several years, dropshipping has emerged as a popular option—but most people who venture into this type of
00:13business end up dropping out due to low profits, difficulty finding quality suppliers, or the stress of managing orders.
00:20But dropshipping can turn into a highly profitable business if you know how to do it the right way.
00:26In this Starting Business Basics video, we will be covering the business of dropshipping.
00:31What is dropshipping and how you can start your own e-commerce dropshipping store in a matter of days.
00:36So, how does dropshipping work?
00:39Dropshipping is a business model that allows entrepreneurs to sell products to their customers
00:43without ever having to stock inventory themselves.
00:47In this growing niche, the retailer is a middleman between buyer and supplier.
00:52An entrepreneur sets up a website or online store to sell certain products, but they don’t keep any of those products in stock.
00:59Instead, when a customer orders a product the dropshipper purchases the products from a third party,
01:04and has them shipped directly to the customer.
01:06Dropshipping requires very little starting investment.
01:09All you need is a computer, an online store and
01:12a basic understanding of how to market the product that you have chosen to sell online.
01:16First, you find what you want to sell from a supplier, then list that product on you website at a price you set.
01:21Next, when someone places an order for that product, your customer pays you the retail price that you've set,
01:27and you make a profit.
01:28Then you'll place the order with your supplier at their wholesale price and have it shipped directly to your customers.
01:33This way, there is a considerably smaller financial risk, as you don't have to pay manufacturing, warehousing and
01:40and fulfilment expenses up front and you are not left with left over stock, in case you fail
01:45to market the product and get orders from customers.
01:48Now, why wouldn't somebody just order the product directly from the suppliers website, you may ask?
01:53Well, there's a couple of reasons.
01:55First, it's a very big internet and customers may not know about the supplier to buy from directly.
02:00More often than not, customers will value ease of checkout and convenience much more than a lower price.
02:07Second, when people buy things, they're not just buying products.
02:11They are buying into the marketing, positioning, trust, brand and lifestyle of whatever it is they're buying.
02:18That's why targeted marketing and branding is the most important part of the process of launching
02:22an online dropshipping store.
02:25No matter what you are selling, marketing the product that you've chosen to dropship is
02:28what will make or break your online dropshipping business.
02:32So, how do you market and sell the product you've chosen to dropship?
02:35Every good marketing strategy starts with defining your target audience.
02:39Even if you’re selling commonly used products like soap, you won’t grow a successful
02:43dropshipping business by marketing to everyone.
02:46For one thing, you just won’t be able to come up with content that will equally appeal to different groups of people.
02:52For another, you’ll waste your advertising budget on ineffective ads.
02:56So, instead of casting a wide net advertisement, sit down and really think about who your ideal customers are.
03:03For example, let’s imagine you’re selling skin-care face masks.
03:07Like with all skincare products, there are multiple niches you can pick.
03:11For example, you can target teenagers who need a solution for oily skin.
03:15You may also target millennials looking for a dewy skin effect, or an average office worker who needs a
03:20quick moisturizing solution before an important Zoom meeting.
03:24You can actually sell the same moisturizing mask to all the three groups.
03:28The trick is to create personalized content for different types of customers to get their attention.
03:34Using targeted online ads, you can show the customer a personalized ad
03:37that is aimed at their exact target audience and is guaranteed to get their attention.
03:43In the case of dropshipping, products are sold using targeted online advertising, so it's important to recognize
03:48the target audience of the brand that you're building early in the process.
03:53Online marketing and advertising is a very broad topic with many tools and solutions available.
03:58You may learn more online on the Starting Business platform, but in the context of dropshipping,
04:03we advise you look into e-commerce platforms like Shopify or WooCommerce,
04:08online advertising platforms such as Facebook Ads and Google Shopping.
04:12It's definitely worth your while looking into Printful - the print on demand product fulfilment service
04:17that easily integrates with Shopify, Etsy, Amazon and other big e-commerce platforms.
04:24You should also check out how you can use the online tool Oberlo to automate product fulfillment
04:28 from the popular chinese online marketplace AliExpress.
04:33Thank you for watching Starting Business Basics.
04:36Hope that it's now a little bit clearer, what it means to start an online dropshipping business.
04:41Learn more about dropshipping, business and entrepreneurship by signing up and becoming part of the community at startingbusiness.io