Drop shipping is the best possible way to start an e-commerce business on a shoestring budget. In drop shipping, you don’t buy anything from the wholesaler or manufacturer. You earn money when you sell their products online. With drop shipping, you won’t be required to stock up any inventory.
Trying to set up a store with your inventory and managing it is time consuming, tedious, and costly affair. It requires a huge amount of financial investment as well. Instead of spending money on buying products and then trying to sell them, you can choose the drop shipping model where you will be selling other people’s products and earning money in the process. Whether you are looking for low-budget business ideas in Tamil or elsewhere this will be the ideal choice.
If you want to start your own drop shipping business just follow along:
1. Selecting a supplier
If you have not been in drop shipping before then it may be a little confusing for you how to pick a good supplier. There are lots of suppliers which sell the same or similar products at different prices. Therefore, before making a purchase decision, you must do some research on the different suppliers who have what you need. If done correctly this research can increase your revenue significantly.
Keep a note of the following to select the right supplier:
- Choose a supplier that is manufacturing the products and not just selling it
- The supplier should offer you the best margins. Hence do proper research before finalizing a supplier
- Ask previous customers of the supplier about the delivery time and efficiency of the supplier. This will ensure your customers get the products on time.
- Beware of any hidden costs that your supplier may charge or any other hidden stipulations like a minimum purchase order.
- Ensure that the supplier sells white label and branded products of high quality only.
2. Select the product you want to sell
The next important thing is to check the availability of your products on the market. Some of them might be exclusive to your supplier and you should not try to sell them. Moreover, even if you manage to sell them, your profit will be very low as the competition on these products will also be high. The ideal choice would be to select a product made by the small scale industries.
If the product is available on other online stores like Amazon and Flipkart, you should create a research group and check for its current pricing. The same group will also help you decide which category to place your product in. If there are too many similar products already existing in that category, it’s better to choose another category or rename your product a bit so that it can stand out from the crowd.
3. Create a website
Secure a domain name based on your registered company name and create a website to sell the products. You can also use platforms like Shopify or Woocomerce. The website should look appealing to your customers. Moreover, it should be easy to use for placing an order. A website can make or break a drop shipping business hence you should put good effort into it.