How does Dropshipping Works? Tips to succeed from dropshipping business in 2023

Introduction to dropshipping: Dropshipping is a retail completion method where a store does not hold an inventory of the products it sells in stock. Instead, when a store sells a product, it purchases the item from a third party and has it shipped directly to the customer. As a result, the drop shipper/Store owner never sees or handles the product. And if you are asking how dropshipping works and how to set up a dropshipping business then keep reading.

Dropshipping is claimed to be one of the cheapest and easiest ways to start an e-commerce business, especially when dealing with free dropshipping suppliers. However, if you are a newbie with little or zero knowledge about dropshipping setting up a dropshipping store could be way too overwhelming, but this article will reveal all you need to know about dropshipping and how you can start right away.

So how does dropshipping works?

Below is a step-by-step guide on how dropshipping works

1.Find a profitable niche

If you have decided to start dropshipping and consider it as a business, then you shouldn’t just go straight up setting up a store and promoting anything and everything, there are some due steps to follow and the first is finding a niche.

You have to sit, think, research, and decide on what product you want to promote, it could be “fashion”,”electronics gadgets”,”phone accessories”,”beauty products” etc. After picking up a niche then move on to the next step.

2.Find a reliable supplier

Finding a reliable supplier first is one of the most important steps in starting a dropshipping business. Although there are many suppliers out there, some of them are just out there looking for prey to devour, however, there are still some trusted ones among them, and there are many ways you can find good and reliable suppliers, they include searching wholesale marketplaces, supplier directories, and contacting manufacturers directly.

However, it’s important to thoroughly research potential suppliers and their products to ensure they are reputable and reliable. You can track their record by visiting online directories like SaleHoo , Better Business Bureau, and worldwide brands.

3.Set up your online store

After deciding on your niche and finding a reliable supplier, the next step is setting up an online store to sell the products. Many e-commerce websites make it easy to create and manage an online store, examples are Shopify and BigCommerce. However, it’s important to choose a platform that is easy to use, has a wide range of features and is friendly with your chosen supplier’s system. Shopify is a good one.

Would you like to know How To Start Dropshipping from China to Nigeria? See this Ultimate Guide For 2023

Marketing and promoting your products

Once your online store has been set up, then the next thing is to start marketing and promoting your products. You can do this by advertising on different channels, such as social media (like Twitter, Facebook, Instagram, WhatsApp, Linkedin, Tiktok, Medium, Reddit, Quora, etc), you can also promote using email marketing, and also if you are good with SEO (search engine optimization) then it’s a huge plus on your side, as you you will be needing little or no promotion via the latter channels as people can always find your store when they search for the products you are promoting on Google. However, it’s important to understand your target audience and direct your marketing efforts accordingly.

Completion and shipping

Now after the above processes, and orders are already coming in, you must contact your supplier and agree on how to ship the product to your customer. For example, when an order is placed on your online store, the supplier will ship the product directly to your customer. However, the supplier should provide you with information regarding shipping times and tracking information (Contact Information), so that you can provide this information to your customers.

Managing inventory and orders

As the merchant, you are responsible for managing the inventory and orders of your online store. This means that you should be able to monitor product availability, process orders, and update inventory levels. To make things easier for you, you can integrate with supplier systems, allowing for automated inventory management.

See How Much Can You Make with  dropshipping business in 2023

Dealing with returns and customer service

A return policy page is a very important page you must add to your store it shows professionalism and makes things easier and safer for you and your customers. You should also be able to handle customer service inquiries promptly and professionally. As a seller, you are responsible for communicating with the customer and coordinating returns with the supplier.

Measuring and expanding your business

The goal of any business is to grow and expand, so as your dropshipping business grows, it’s very important to often figure out ways to measure and expand your dropshipping business. To measure out and expand your stores, you should start by adding new products to your store and reaching out to more trusted suppliers, increasing your marketing strategies, and optimizing your store for a good rate of conversions.

Tips and best practices for success in dropshipping

• Make extensive research on potential suppliers and their products
• Choose a trusted and reliable e-commerce website like Shopify
• Understand your targeted audience and direct your marketing measures accordingly.
•  Discuss plainly with your supplier concerning shipping and tracking information
• Have an understandable returns policy and handle customer service inquiries as at when due and also professionally.
• Always look out for ways to measure and expand your business.

Discover Best Dropshipping business Ideas you can start with and succeed in 2023

Popular errors and pitfalls to avoid in dropshipping

It is a popular misconception that dropshipping is a get-rich-quick scheme, but that isn’t true anyway and the bitter truth is “if you are starting a dropshipping business to get rich real quick then you can’t succeed, you will fail wholly and this is because you will get tired and quit soon before you start seeing results”. However, starting a dropshipping business that will be successful requires a big effort, research, and hard work. It’s also very important to be conscious of real-time scams, such as fake suppliers and overpriced products.

Read Also Dropshipping Suppliers in Nigeria: Finding Reliable Partners for Your Business in 2023

Conclusion

Dropshipping is a retail completion method where a store does not hold an inventory of the products it sells in stock. Instead, when a store sells a product, it purchases the item from a third party like the manufacturer or distributor, and has it shipped directly to the customer.

To start a successful dropshipping business, it’s important to get a reliable supplier, set up an online store, market and promote your products on different channels, manage inventory and orders, and then handle returns and customer service.

Now that you have seen how dropshipping works, do you find this article helpful?