Can I start a drop shipping store with zero budget? Yes, you can start a drop shipping business without capital.
All you need to do is look for free trials or a starter plan. Give enough time to look for quality products that you can add to your online shop.
This article will give you an idea of how to deal with the unavoidable cost during your startup. A detailed list of the cost is included for beginners and tips from dropshipping entrepreneurs on what you need to think ahead when starting a business such as drop shipping.
Online stores have lesser requirements and easy access when it comes to opening or starting a business. You can tap from dealers and suppliers in any parts of the world and advertise their products without the worry of having an inventory. It sounds great, right?
Many are interested in this business because it is low in cost while you can earn high. The truth is, there is no such thing as free especially for successful businesses like dropshipping.
What is Dropshipping?
Dropshipping is an e-commerce method that allows marketers to have an online shop and sell products. Items are purchased from a third party and then the product is directly delivered to the customer. Overload is one of the marketplace wherein you can join and connect your store to suppliers and products. You don’t need to have a physical product as well as no sweat when it comes to the delivery of goods.
What You Need Before Starting Your Dropshipping Business?
- Shopify Account
- Oberlo Account
You go for Shopify subscription due to its popularity when it comes to an e-commerce platform and it has a 14-day free trial offer and you only need to pay as low as $29 in the succeeding months. So your online store will be on Shopify and for your drop shipping consider using Oberlo. Obelo offers a free option but if you want to make money, you have to upgrade to the Basic package which is affordable price at $29.90. If you are determined with this kind of business, you have to buy a domain. It’s not a big problem, you can readily buy a domain through Shopify. The domain payment is only a one-time basis of $14. For each month you will be paying $58.90
Nobody is going to force you to order the products. You only need to order when a customer orders an item. The good thing about drop shipping is that you don’t need to handle the product itself. Your main concern is to advertise and market the products you have chosen in your store. In choosing the product, consider the quality, the delivery schedules and the appearance of the packaging.
Prepare a budget in case a customer orders a product from your store. What are the things that you need to ask the supplier when you order your product: the time of the arrival of the package (how many days) and if defective (possible return or exchange of product). Only order one item from every supplier or called test order. This will give you an idea of the purchasing, shipping process of the supplier and review the quality of the product. You can take a physical picture of the product.
Improvement Cost :
The total cost that you will be spending each month would be $72.90 but if you want your store to be customer friendly a brilliant solution is to install Shopify apps. In the Shopify App Store, apps are available for every improvement in your store. Here are the common features of using the apps:
Cross-selling and Upselling:
Cross Sell – recommends and suggest products, increase the average order value, upsell and cross-sell products
Cart Convert-recommends related products, increase average order value and Upsell higher value products or cross-sell
Bold Upsell –upsell and cross-sell anywhere, upsell and cross-sell funnels and make more money.
Wheelio – easy email collection, gather messenger subscription, other features, and options.
Spin-a-Sale – increase visitor involvement, increase email sign-ups and increase sales.
Exit Intent & Messenger Popups– upselling pop-ups, messenger and email popup and cart abandonment popup.
Any business has a marketing plan and strategies. How can you drive traffic to your store and convert? The average conversion rate is 2-3 percent depending on location and niche. Let us say the conversion rate is 2.5 if you can drive traffic to your store of about 200 people. The expected customer to purchase is 5. The question is how will you get a traffic of 200? One of the most popular marketing platform today is Facebook. In order to advertise on Facebook, you have to pay the cost per thousand impressions.
Recommended Blog Post You Must Read:
The money that you spend to start a business is already an investment. You are investing because you are expecting something in return. In e-commerce, money is free-flowing if you already mastered an effective marketing strategy. Learn through experts and experienced entrepreneurs on how they completely managed every aspect of the business.
To be able to increase the conversion rate of your store, you have to design a user-friendly product page (easy to navigate). You can also use the available apps mentioned above. Also, learn about email marketing, list building and how to drive organic traffic to your website.
Expecting to have a successful dropshipping business needs investment. You have to invest something in order to gain. There is no such thing a free business. Everything has a price tag. Always put that in mind that once you generate sales, use those earnings in the right way. Save extra cash for unexpected cost as the need arises It is quite hard to guess how much your returns will be or how long will it take to cope up
By improving your website design and upgrading to use apps that will help your business grow will also increase your conversion rate and repeat customer that can increase your profit. Make your advertising techniques aggressive to surpass your competitors.