Dropshipping Guide: Meaning, Process & Steps to Start Dropshipping Business

Recently, a survey made by Statista revealed that the market is expected to grow by about 476.1 USD. The potential growth in the dropshipping market grabbed the attention of many entrepreneurs. It is because dropshipping is quite affordable and involves fewer risks. It is the process where there is no need for a separate warehouse as consumers can directly deal with the supplier. Here, a business owner of a local store plays a crucial role in marketing the products and offering customer support.

Dropshipping utilizes a great business model so that entrepreneurs can keep shipping costs as low as possible and focus more on the marketing process. If you are coming up with launching a new dropshipping business, you should decide what to sell online and how to deliver it to your customers.

Once you get off the mark, you may require robust marketing techniques, inventory management, and an easy-to-adopt shipping process. To make your job easier, here is the dropshipping guide that will help you simplify the entire process. Let’s discuss more on this topic in detail.

What is Dropshipping?

In simple words, it is the process that connects the business owners to the manufacturer or supplier in order to fulfill the orders. The dropshipping process helps business owners get rid of extra workloads like inventory management and the shipping process. As a business owner, you can just pass the orders to dropshippers and let them take care of the entire shipment process. 

Moreover, it has advantages like low overhead costs and minimized risks involved in the process. This is because a dropshipping business model adopted by dropshippers, relies on a robust internet connection. The E-commerce giants like Amazon and AliExpress use a similar model for shipping products from one country to another. If you have a well-developed company that wants to enable process, it won’t be difficult for you. This is because you would no longer be managing sales and also outsourcing most of the supply chain parts.  

How does it work?

In order to learn about the process, you must know its essential elements and uniqueness in dropshipping products. This is why potential customers find them desirable and engage in the online shopping process. You can purchase any item at the price of up to $10-$30 without spending too much time on it.

On the other hand, you should keep a tab on your dropshipping store to meet your desired conversion rates. Also, you should give your customer an enhanced shopping experience. After all, it is the shopping experience that guarantees potential future clients. 

The process is all about pleasing your buyers by simplifying their online shopping process. It is an essential part of the dropshipping process that connects the buyers and suppliers.

Yes, dropshipping is considered a legal process across the US, Canada, and many other countries. But at the same time, you should get in touch with the right suppliers. This is because not all suppliers follow the legal procedure, and some of them might get involved in illegal activities. Thus, you should ensure your suppliers are following legal practices to avoid any facing legal issues during the process. 

Pros and Cons of Dropshipping

Here is the list of upsides and downsides of the dropshipping process that you should consider before launching a new online business.

Pros
  • Less money investment
  • Minimized overhead costs
  • Opportunity to expand your offerings
  • Hassle-free shipping process
  • Collaboration with new suppliers
Cons
  • Difficult to manage logistics
  • Managing tight profit margins
  • Packaging could be time-consuming
  • Complex fulfillment process
  • Chances of losing inventory control

How to Start Dropshipping Business?

Below are the 5 easy steps to be considered while planning for your own dropshipping business.

1. Introduce your store name

When it comes to introducing your new dropshipping business, firstly, you should give a creative and appealing name. While giving a name, you should give a simple and understandable name to your new venture. It helps the buyer to keep in mind whenever next time they want to make a purchase. Plus, you can use advanced online tools to find a unique name. This will help you in attracting more clients in the future. 

2. Know your target audience

In whatever industry you are associated with, you must know the target audience before developing a business strategy. Knowing your client’s behavior means you will learn more about their likes and dislikes. This would give you a brief idea about the market scenario and beneficial ways to boost your sales channels. Ultimately, your marketing team would not have issues in handling online clients or promoting your products. Thus, it is an essential step for new business owners like you.

3. Find dropshipping suppliers

Currently, there are plenty of suppliers available to join hands with you and start a dropshipping process. Make sure you get in touch with the right suppliers to legally start your business. These will be your third-party suppliers who will look after the entire shipping process. Suppliers can use a completely automated process to mark the delivery status online instead of doing paperwork. Apps like Upper can help you stimulate the delivery process by finding optimal routes.

4. Open an eCommerce online store

Following the deal with suppliers, you can virtually open your own online store so that online users can take benefit from online purchases. Once done, you can import your products by using an online tool. A reliable delivery route planner can help you streamline your delivery process once you have started accepting online orders. This will chop off your route planning time as well. 

5. Market your products

When you are aware of your target audience, you should have a well-developed marketing strategy in place. A robust marketing technique will help you lure more clients to your online or offline eCommerce store. A benefit of launching such strategies is that you can get more time to analyze your team’s performance. If you are using an automated delivery process, you will have more than usual time to market your products. 

Accelerate Your Dropshipping Process with Upper

Upper can help you facilitate the shipping process with its plenty of unique features. It uses a fully automated process to perform timely deliveries. Dropshippers can get on-road assistance for the fastest routes and receive accurate notifications in the driver app as well. On the other hand, the admin user can monitor the process and analyze the driver’s performance. With Upper, you can even track your drivers to know their exact locations.

Upper ensures your shipping process takes place in the minimum time and your drivers hand over the parcel in a timely manner. You can schedule your deliveries in advance for months and get a reminder at the time of the actual day. Upper Route Planner makes sure you spend less time in route planning and perform delivery 3x faster.

If you have newly launched your dropshipping business, you can ask your delivery partners to switch to the automated delivery process. This will help them boost the shipping process, which will eventually help you accelerate your dropshipping process.

Let Upper Eliminate Your Route Planning Hassles

Skip the long routes and follow the optimized routes during the dropshipping process. Create your multi-stop delivery schedule in advance and achieve your same-day delivery targets.

FAQs

It is a widely used business that allows customers to directly get in touch with reliable suppliers. In this process, the seller accepts the purchased orders regardless of stock availability. Basically, it minimizes the owner’s job and lets the dropshipping supplier take care of the shipping process.

Business owners associated with dropshipping businesses are likely to earn 20-25% profit from approx. $100,000 annually. They may spend the remaining amount on supplier expenses, dropshipping fees, and marketing as well. Prices may vary as they depend on the types of products they sell and their partners.

In dropshipping, business owners may hardly face risks like managing store inventory regardless of guaranteed sales. Some of them may need to manage warehouse space, the shipping process, and order fulfillment. Hence, there is less chance of risks during drop shipping.

Conclusion

Referring to the guide to dropshipping, we understood what are the pros and cons of the dropshipping process and the essential steps to start a new eCommerce business. Also, we understood how the process works and what are its basic requirements for an eCommerce platform. At any point in the shipping process, you can take advantage of the Upper Route Planner and carry out faster delivery operations.

Upper was introduced to tackle the delivery issues and help the dispatchers boost the shipping process. In case you want to start a fully automated process, Upper can help you get the right start. Book a demo with us to explore more features of Upper Route Planner.

Author Bio
Rakesh Patel
Rakesh Patel

Rakesh Patel is the founder and CEO of Upper Route Planner. A subject matter expert in building simple solutions for day-to-day problems, Rakesh has been involved in technology for 30+ years. Looking to help delivery businesses eliminate on-field delivery challenges, Rakesh started Upper Route Planner with the ultimate goal of simplistic operations in mind.

https://www.upperinc.com/guides/dropshipping/