When we talk about dropshipping business, the first thing that comes to our mind is how profitable it can be. Since you are selling other people’s products and not your own, there are a lot of scopes to cut down on costs and thereby increase your profits. But is it as simple as it sounds? Let’s find out in this blog post.
Table of Contents
When starting a business, the initial investment and setup costs are usually substantial. If you’re thinking of launching a dropshipping business, you can reduce those costs by a significant degree while still making a profit.
With the right eCommerce platform and supplier partners, you can get your business off the ground with little upfront capital. Here, we will tell you the easiest and cheapest way to set up a dropshipping business. Let’s know the 5 steps process to create a dropshipping business.
What Is Dropshipping Business
Drop shipping is a wholesaling model where you don’t stock inventory, but rather sell products directly from an outside vendor. You only have to order the product once it has been sold and not store it in your warehouse. This way you can save on storage costs, time, and materials. Hence Drop Shipping business comes with its own pros and cons that need to be understood before getting into such a business setup.
5 Steps Process to Set up a Dropshipping Business
The important 5 steps to set up a dropshipping business are:
- Branding
- Finding a wholesaler
- Payment setup
- Domain and website
- Marketing and remarketing
Branding
The first step to setting up any dropshipping business is branding. We need to understand how to do branding of your business. The most important factor in branding is planning. You should do the planning of your business before even starting it. The planning is done through market research, after which execution is done. The 7-step process of branding are:
1. Selecting product category:
To select the category of product you want to sell, you should analyse 3 things and that are demand, supply, and profit.
2. Target audience:
The next step in setting up a dropshipping business is deciding who would be your target audience to sell products to. Also, select the age bracket.
3. Location:
In the next step, you would select the target location where your target audience belongs to.
4. Brand name:
Here you need to select the brand name which should be unique, attractive, and should have keywords. The brand name should contain the keywords product, location, etc.
5. Tagline:
Choose a tagline that is unique and attractive.
6. Brand logo:
Brand logo plays an important role in creating the dropshipping business setup in India.
Finding Wholesaler
Now, the very critical thing about dropshipping business is where the drop shippers could get products at the wholesale price to sell. Most of the drop shippers find difficulties in finding suppliers for the products. Well, you can search for genuine and trustworthy suppliers at Indiamart and Instagram. Wholesaledock is also a good platform for drop shippers from where they can choose products to sell, create a dropshipping business, and earn money.
Create a Payment Page
In the next step, you need to create a payment page for your dropshipping business. Razorpay is one of the best payment gateways to create payment pages. It has many features that users can take advantage of. Create a Razorpay link for each product. Connect those links with the website.
Domain and Website
Godaddy is the best tool to create websites. You can easily buy a domain from Godaddy. Now, create a website by following the steps given below:
Visit the “My products” section of Godaddy and click on “Create a Website”. After that, choose whether you want to create a personal website or a business. Then, click on start a new website and select the category. Choose the name of the business and click on “Next”. Now, select the theme of the website and fix the settings by going through the “Settings” option. There are many features that Godaddy provides to its users.
Marketing and Remarketing
Now, to do marketing of your dropshipping website, visit Google and type manage ads. Click on the first link of Facebook ads manager and then hit the “Create an ad” button. You will be asked to inform the objective of the campaign. Select the traffic option and hit the “Continue” button. Write the name of the campaign and click next. Write ad set name, choose a daily budget, select location, age group, gender, etc.
You can narrow down the audience based on interest. Also, you can select the language and placement of ads. For placement of ads, choose only Facebook and Instagram news feed as you will get a maximum click from there only. In the end, click on publish. Add images and videos from the add media option. Write primary text which is the text which compels the audience to take action, write a headline, select the website, and put the URL. For “Call to Action”, select the “Shop Now” button.
You can see the performance of ads by clicking on the “Console” and then on “View Chart”.
Frequently Asked Questions
Q. Is Dropshipping legal in India?
Yes, dropshipping is completely legal in India.
Q. How can I start a dropshipping business in India with no money?
Select your niche or product, find a genuine supplier, create a brand, do social media marketing, create a social commerce website (at the initial level), connect with the customers through WhatsApp, do selling, and earn money.