How to Dropship Your First Product

So you found the drop shipping business attractive and you are wondering where to start. Now you must have several questions running through your mind like how do I get started? How do I drop ship my first product? It could be a little difficult to have all the answers and you might need to learn more as you grow but here on iDONSABI.com you will find all you need to know to drop ship your first product. To make it easier, we have broken down the process into simple steps you can follow.

Step 1. Find the Product you want to Drop Ship

If you already know what products you will like to drop ship, then you can skip this and move straight to the next step. However, if you are just starting and have no idea what product to deal in, this is the time to decide. In choosing a product to drop ship, you should consider the level of competitiveness and profitability. Products that are highly competitive are not usually advisable for a beginner as it may be a bit hard to make sales. Likewise, a niche without any competition is also dangerous for a starter. Tim Kock story is a popular example of the competitiveness effect on drop shipping business. Once he had a failed pineapple business but when he switched to the watch business, he was able to make about $7, 000 by his 8th week.

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On profitability, avoid products with very low prices and turnover. Consider this scenario, if you decide to drop ship a product that sells for $100 at a turnover rate of 20 % , this means after making your first sale, you would have a profit of $20 . Now consider a different scenario where you choose a product that sells for let’s say $1,500 with the same turnover rate. This means your first sale will fetch you a profit of $300 compared to $20 from the $100 product.

Google Trend is also a great place where you can find products that are evergreen in terms of trends within them. An example is the artificial eyelashes trending within the beauty niche, this can be very profitable for a drop shipper.

Once you have found a product to drop ship, you are set to move on to the next step. .

Step 2: Create Your Online Drop shipping Store

Now that you have found a niche and products to sell, the next step is to build your drop shipping store. Building an online store is not as complicated as a lot of sources make it look. There are simple steps you can follow to successfully build your own drop shipping business store online. First. You need to choose a domain name this will be something like coffeestore.com or whatever you want you store name to be .com. It is highly advised that you get a .com domain name no matter what. Secondly, you should sign up on an ecommerce platform. There are a number of them that support the drop shipping business such as Shopify, Magento, BigCommerce, WooCommerce and so on. These platforms have great themes and are easy to customize. Some also have auto drop shipping plugins such as AliDropship and Dropified that make it easy for you to manage your store. Always research on what an ecommerce platform has to offer before signing up.

Step 3: Get a Drop Shipping Manufacturer, Wholesaler or Distributor

Since you will not be keeping inventory or having any physical contact with your products, you definitely need someone who does. This individual or business entity is your drop shipper, a manufacturer, wholesaler or distributor to partner with. The drop shipper will help ship your product directly to your customer after you’ve made your first sale. Knowing what product you want to drop ship could make it easier to find a drop shipper. You can simply contact the product manufacturer to inquire if they offer drop shipping services or can recommend distributors who do. Contacting the manufacturer of your product is the most preferred option to find a drop shipper.

If the manufacturer does not offer drop shipping services, another way is to use paid directories online. Paid directories are advised since the internet is full of fake low quality wholesalers who do not have much to offer and may just waste your time. Usually, paid directories have a list of screened wholesalers who are aware that you are into the drop shipping business and will make you job easier.  Example of a popular directory is the World Wide Brand. Despite the advantages of using paid directory, you still need to be cautious in choosing a wholesaler. As a rule, avoid wholesalers who require a monthly subscription fees for you to partner with them. It may be normal to have a minimum order or pre order fees but a monthly subscription is most likely a sign of a fraudulent drop shipper.

Important Note

Before you get in touch with your wholesaler, you have to ensure that you are well prepared legally. This depends on the part of the world where you intend to carry out your business. In the US, most drop shipping wholesalers will require you to have an EIN number and a sales tax certificate before they can deal with you. Drop shippers in the UK also requests similar documents to ensure you have a registered business.

Once you have found a drop shipper, you need to enter into an agreement and decide on the wholesale price for the products you choose to sell.

Step 4: Start Marketing

This is where the real work comes in. You need to start marketing your products as this is the only way to drive sales and make enough income from your business. Market your products everywhere you go and with every resources you have. Now is not the time to keep editing and changing the look of your store until it is perfect. It is never perfect. Just put yourself out and work hard at making your first sale. You can take advantage of avenues like Facebook Ads, Influencer Marketing and Retargeting Ads to drive traffic to your store and convert to sales.

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There is no better feeling as the feeling you get after you make our first sale. For beginners who are very tight on budget, you can consider influencer marketing where you will offer influencers an affiliate commission instead of paying their flat rates. This way, the influencer works towards converting sales for you and helps reduce the risk for your drop shipping business.

Once your first sale comes through, send the order to the wholesaler and they will ship directly to your customer. The difference between the amount the customer paid to you and the one you paid to the wholesaler makes up your profit. Be sure to follow up till you receive notification from customer of received order.

So there, you have successfully drop shipped your first product!

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