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Are you planning to launch a dropshipping business but don’t know where to start? From finding a supplier to creating an online store, dropshipping can be a challenging business model.
Luckily, you don’t need a huge money investment to start selling. All you need is choosing the right niche, marketing to the right audience, and some patience to see things through. Wondering how to start dropshipping with no money?
Keep reading to find out the step-by-step process
Do Thorough Research
Dropshipping seems like the easiest business model that anyone can try, but in fact, it takes time, dedication, and doing thorough research. This is not a bad thing though; only those who are persistent, dedicated, and open to learning will succeed.
Start your research by finding out which niches have consistently been profitable. For example, one of the best niches is loungewear, leisurewear, and sportswear. This includes leggings, sports bras, t-shirts, exercise equipment, and even sneakers (unbranded). Another niche is pet products, specifically leashes, dog beds, and pet clothes.
Use Google Trends to discover profitable niches and look into projections for the future. Then, you can narrow down your choices and move on to the next step.
Register a Company
Before you start selling, you need to register a company in your country or state for tax purposes. You can either register an LLC or a sole proprietorship, but it’s best to consult a lawyer or a professional on the subject to make sure you’re doing things legally. Registering an LLC can be easily done by using popular LLC formation services (for example, Incfile). Or any other service you might prefer.
Also, research the dropshipping legal requirements for your state or country. In general, dropshipping is a legal business model, but you can’t sell items like guns or weapons, drugs, medication, explosives, designer knock-offs, and products that make health claims (such as weight loss products, face masks, or natural supplements).
Pick a Dropshipping Niche
The niche you choose is what will make or break your sales. If you choose a saturated niche, it’ll be harder to stand out from your competition. If you choose a niche that doesn’t have a big audience, you may end up with no sales.
The key is in finding a niche that’s always in demand, but not overdone. This can be tricky, and it may take some trial and error until you find what works and what doesn’t.
If you’re not sure how to choose a profitable niche, consider signing up for a dropshipping course. Experienced sellers know which niches have potential so you can try your hand at them without risking everything.
Open an Online Store
With dropshipping, you don’t need to have a warehouse to store your products. All you need is an online store to display the products and with each order, the supplier will ship them to your customers.
However, not all e-commerce platforms are created equal and in most cases, you need to pay a fee to use them. Most of them offer free trials and you’ll have enough time to learn how everything works. You can also use their free marketing tools to try and make a sale.
There are several options to choose from:
The availability of these platforms depends on the country you live in or run your business in. Also, the payment methods for your customers will vary based on your country of residence.
Find a Legitimate Supplier
Now that you have a niche, you need to find legal suppliers that’ll work with you and ship your products directly to the customer. This is the hardest part of every dropshipping business because in most cases, suppliers are from China so you might not be able to visit the factories in person to inspect everything.
You’ll have to rely on positive reviews and do in-depth research to find the right fit. Also, you can order samples from different suppliers and see which one has the best shipping time and highest product quality.
Some of the best places you can look for suppliers include AliBaba, AliExpress, Wholesale2B, Worldwide Brands, and MegaGoods.
The supplier must have a seamless order fulfillment process so the items can reach the customer on time. Note that your supplier will handle all returns and product replacements, so you need to make sure they have great customer support.
Test the Products Before Launching
Before you start selling products to people, make sure you order a few samples for yourself to see how they perform. Testing is crucial if you want to avoid negative reviews and unhappy customers, especially because you can’t see the products before shipping and can’t inspect them with your own eyes.
This way, you’ll see how the seller packages the goods, how the items perform in terms of quality and durability, and if they live up to their promises.
Market Your Business
Once your store is ready, it’s time to market the products and reach your target market. No matter what you’re selling, it’s important to know who your customers are in terms of demographics, income, and lifestyle. Then you’ll be able to connect with them on a higher level and sell them something they won’t hesitate to buy.
The best marketing method for dropshipping is paid social media ads. If you can’t afford to spend any money on ads, you can start attracting followers on social media by posting content related to your niche. Then, when you have good engagement, you can present your products for sale.
You can also start making videos related to the niche and mention the products you’re selling. Tell people how to use them, what benefits they offer, and why they’re a good investment. Upload the videos on YouTube, Instagram, and Facebook for free.
Start Dropshipping With No Money With These Tips
Now that you know how to start dropshipping with no money, it’s time to pick a profitable niche and start selling.
These tips will help you learn the ins and outs of the dropshipping business model so you can focus on marketing and promotion and attract new customers.
Want more tips on business growth and making money online? Check out the rest of the articles on our website and stay tuned for more industry news and updates.