Are you bored with your regular office job? Want to be an entrepreneur and your own master,but afraid to try your luck. Seems like no end to your hectic schedule?
What if i tell you can be the boss of your own ecommerce without having to manage an inventory and with minimum investment.
Yes you read that right. No worries about shipping, storing, making inventory.
All you need to is sit at home and promote your products online.
Yes,this is called dropshipping and its the latest buzz in USA.
What is dropshipping?
Dropshipping is a retail fulfillment method in which the retailer which will be you, don’t have an inventory of the product he sells.
Instead the inventory is managed by the dropshippers(manufacturers and wholesalers) and whenever someone orders an item, you need to instruct the A dropshipper to send the products.
We need to dig deeper and learn about supply chain and the fulfilment process to understand dropshipping better.
You must be having a rough idea what supply chain would mean in this business. It describes the path a product takes from the manufacturing process to reaching the hand of their buyers.
Three group of people have stake in this supply chain. It starts with the group that is Manufacturing the product.
Manufacturers are the creators of the product. Most of the time, they dont sell their products directly to the market and instead distribute it to wholesellers.
Wholesellers are the middlemen between manufacturers and retailers. They buy products in bulk, raise its cost price a bit and sell it to retailer for resale.
Retailers are the people who sell products directly to the public at a markup rate. In your dropshipping business,you are the retailer.
Dropshipping in India
The idea of dropshipping in India isnt new. Its been around for some time. But there’s a catch right now.
The boom in the Manufacturing sector in China. What it did was lowered the price of the manufactured product and hence a higher margin of profit for the retailer.
Imagine making an electronic good for 1$ in China(Cheap labour, other reasons) and selling it for 15$ through dropshipping in India where the price is a bit high. A huge profit.
But before that you need to find an manufacturer who ships your products to your customers at a minimal price. Now how do we find a manufacturer in some other country or region? Seems like a pretty hard job.
Enter Alibaba group. Alibaba changed the ecommerce scenario in China.
What Amazon is in USA, Flipkart in India, Alibaba have achieved that Authority in China.
But there business model is pretty different than the other two.Alibaba acts as middlemen between sellers and buyers and facilitate the process.
Alibaba paved the way for more people and organizations to try dropshipping and succeed.
Alibaba was the first dropshipping retailer that conquered the market.
Lets see some more amazing advantages of the dropshipping model.
Retailers decide their own margins. They are not even bound by MRPs and decide their owm retail price.
No extra cost and labor needed for inventory. You dont need to have tie ups with delivery organisations.
Minimal investment and risk. You need to only pay when a customer orders something and which you’ll most likely retrieve. ( Make sure your manufacturers delivers the mentioned product at the right time)
You must be still thinking how can i start my own dropshipping store just by myself?
Enter the duo of Shopify and Oberlo.
The duet of Shopify and Oberlo is your starter pack for building your solo ecommerce empire.
You must have heard about Shopify.Its an online ecommerce shop builder. Shopify can ease you of all the troubles you need to go through to employ a developer for your Ecommerce.
Also you get your first month free which will encourage you to get started soon.
Here you can see some successful Indian ecommerce on shopify platform.
Once you get your ecommerce platform ready,you’ll need products to sell.As i’ve already said for a dropshipping business finding good manufacturers who handle the product well till delivery is very much needed.
You can find many suppliers yourself who dropship and talk to them. But that would require some work. You need to research your suppliers. Constantly be in touch with them,to ensure timely delivery of products.
This is when Oberlo comes in. It is an extension that works with Shopify and some other platforms.
Oberlo allows you to import products from Alibaba, oberlo and other such marketplaces to dropship products in India. But thats not the catch. It takes care of the packaging and delivery of the products too.
Oberlo is acting as another middlemen between two sellers but in the process ensuring that your dropshipping business is in safe hands.
Recently Zepo an Indian startup started offering similar dropshipping services and has paved way for more such companies offering dropshipping in India.
Remember, i told you the biggest hurdle to dropshipping is ensuring proper delivery of product. Yes Oberlo takes care of that, while you setup an ecommerce store and earn just by advertising online.
Imagine having the whole inventory of Ali express and setting your own price with it. Surely looks like an great offer. A
Must be wondering why doesn’t all dropshipping Oberlo stores succeed?
Dropshipping isnt riskproof.
The reason is product research and promotion of the product. Just importing random products wont get you sale.
You need to find products that are in demand.You have to create a perfect buyer persona. After that you have to setup and effective marketing funnel.
You still have to go through the above troubles. But those you can solve by just sitting at home.
Lets get back to your ecommerce drop shipping store.Should it be a general store or niche specific.A niche specific store can build an passionate customer base, but most run out of popular product ideas after some time. That is why ill advise you two setup an general store which would allow you to import popular products from every niches.
So now your store is setup. And you are ready to import products for dropshipping in India.
So how to do market research by sitting at your home in front of a PC? This is when we realise the power of the digital marketing.
There are many ways to get ideas about popular products.
1.Search Engine Results- Search for the product you’re looking to sell on your search engine. If the search engine result shows lots of paid ads, then you can be sure that the product have lots of demands.
2.Facebook for market research-Almost all of us have now realized Facebook’s importance as a marketing channel. Its an enormous platform and have more than 200 million Monthy active users in India.
Search ‘black shoes for men’ in facebook. It will return some related search which is currently trending.
This are some of the popular shoes. Now click each of them to find more such popular products.
So now you’ve filtered out some popular products to import to your site.
Find the champion dropshipping product in India
Now there are three types of popular products according to me.
The first one is that sells one or two products or nothing at all. You need to stay away from those products.
The second is a great products that sells well for 2-3 days but eventually demand dies. This products can still earn you good sale.
The third is the champion product. A product whose demand is very much stable for a longer time. This is type of product that can make you rich.
You’ll have to test your products in order to find the right champion product.
These can be done by promoting it in different channels like Facebook, Instagram etc.
But you are ready with your own ecommerce stote with popular products. Its time to put our marketing skills to for and setup an amazing store with dropshipping in India.
My next blog post would be about creating a perfect marketing funnel to promote your products on Facebook for dropshipping in India.
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