For those of you who do not know, dropshipping has become quite a popular business model. Its practicing professionals are new entrepreneurs (among them being millennials and the Generation Z people) thanks to their internet marketing skills. These skills far outweigh their financial capabilities.
Since they do not need to stock in anything or handle the items they sell, they can start a dropshipping business without the need for a monumental amount for investment.
Dropshipping Canada is no longer a distant opportunity, regardless of whether you live in a Rocky Mountain village in Alberta, a farm in southern Ontario, Windsor, Hamilton, Burnaby, A small fishing village in Prince Edward Island or far north, any Canadian can take a step in drop shopping with relative ease.
If you, as a prospective Canadian entrepreneur, are looking to start a business ready to compete with shops, stores, and retail giants, and that too on a limited budget; then today is your lucky day. All you have to do is follow the following six steps.
It somehow does not take a lot of money to start a dropshipping business. But it does require a lot of hard work and you might consider putting your naps aside. Here are the steps you should follow to be a drop shipping expert
1. Choose a niche
The niche you will choose must have a laser focus, something you are really interested in. you simply cannot market a product range that bores you or that you do not understand. If you are not passionate about what you choose, you will be discouraged. It is obvious that drop shipping takes a lot of work to do.
Here are some points you must consider when you are selecting your niche.
- Seeking good profits
- Keep the shipping costs as low as possible
- Ensure the product appeals to instinct buyers with good income
- Ensure people are actively looking for it
- Making your own brand
- Sell something that is not locally available
2. Do some research on the competition
Keep in mind that you will be in competition with other drop-shippers in the business (like other truckers in the trucking business). You will also be up against retail big boys like Amazon, Canadian Tire and Walmart.
This is where most potential drop shippers go wrong because they are looking for products that have no competition. This indicates that there isn’t any demand for that particular product.
There are tons of loads of reasons a product might not have competition, like high shipping costs, issues with producers and suppliers, poor profit margins, product quality issues and the like. Looking for products with competition indicates that there is a high demand and the business model is worth sustaining.
3. Securing a supplier
Being a partner with the wrong supplier can destroy your business. Always conduct proper monitoring, research, and due diligence. Most dropshipping suppliers are often located overseas, and communication is hence important (in response and understanding).
If you aren’t confident in a potential supplier’s communication abilities, drop them and look for another one.
Apart from Alibaba, a lot of local producers and suppliers are present too. Do not hesitate in asking questions, learn about their capabilities and be certain that they can do business with you on sustainable terms.
4. Make your own eCommerce website
The fastest way to launch a website supporting drop shipping is through Shopify. This eliminates the need for a robust tech knowledge requirement. Other than that, Shopify has loads of apps to raise sales.
A plug and play option are wiser than investing in a custom web solution bundle, especially in the initial stages. Once the revenue flows in, then you can go in for additional customization features and investments.
5. Make a customer acquisition plan
It is no doubt a great thing to have a great product and top-class site, and to make a good sundae out of it; you need to have customers. Do not hesitate in starting a Facebook ad campaign (as recommended by professionals from digital marketing agencies in Toronto, Chicago, San Diego, and Mexico City).
This will help you generate sales and revenue right from the beginning. Other than that, Facebook allows you to place your offer directly in front of your customers. It then allows you to compete with bigger players directly.
Think long term for your success. Search engine optimization and email marketing should be a focus too just like email marketing.
6. Analyze and optimize for your business
Keep track of all data and available metrics in growing your business (including data from Google analytics and Facebook, if they are your main customer acquisition channels). Keep track of every single conversion, where it came from and how it led to a sale. It helps you determine what works and what doesn’t work.