How to Start a Dropshipping Business: with No Money
By Chelsea Hall
Start a Dropshipping Business with No Money -
Are you looking to start a business but don't have the money to invest? Dropshipping may be the ideal option for you!
In this blog post, we will teach you how to start a dropshipping business with no money. We will also share a few suggestions on how to find dropshipping suppliers and market your business. Keep reading to learn more!
What is Dropshipping?
Dropshipping is a retail fulfilment method where a store doesn't keep the products it sells in stock. When a store makes a sale, they purchase the item from a third party and have it shipped directly to the customer. As a result, the merchant never actually handles the product.
This saves time and money because there's no need for extra staff members to help package and ship orders. It also helps online businesses avoid costly mistakes which can be made when buying inventory and managing warehouse operations (e.g., misplacing or spoiling products).
The name "dropshipping" comes from Walmart's early practice of marking items down for quick sale whenever their trucks were dropped off at a store location.
Is Dropshipping for Me?
Many people might consider dropshipping if they're entrepreneurs who want to start their own business but don't want to carry any inventory or spend money on expensive storefronts and advertising campaigns. People who like variety in their work will enjoy the freedom of having their own online store with no strings attached while working from home.
But what about making real money? How does one go from zero dollars to $1 million in revenue? Do you need a product of your own? Or is it possible to run an online store without spending a dime upfront and still make good money in return?
Let's get right into it…
Dropshipping is not a Get-Rich-Quick Scheme
Many people make an error in thinking that you can just open up an online store, put up a few pretty pictures, and then sit back as your products sell themselves. This industry requires hard work because there are plenty of other people selling the same items as you are. Unless your product is unique, you'll have to fight for every sale with competitors who are constantly undercutting each other's prices.
While dropshipping may seem lucrative because you don't have to spend anything to acquire new customers, you will still need to invest in advertising if you want to grow your business faster than everyone else around you. Are You Ready?
I recommend starting with something you're passionate about because the learning curve is much shorter when you love what you sell. It's also paramount to have a clear vision of what success means for you. Maybe it's financial freedom. Or perhaps it's being able to travel the world while working from your laptop. Whatever your end goal might be, having an image in mind will help keep you motivated even when things get tough. With that said, I will share my experience on how to start a dropshipping business with no money.
#1 Find a Niche Market
One of the biggest blunders I see beginners make is starting an online business without first figuring out their niche. People often think they can sell anything online because the whole world is their marketplace. But this is far from the truth! It's actually very difficult to make a living selling products that nobody wants.
A much smarter approach is to find an audience of people who are already searching for what you have to offer. That's why it's important to choose your niche wisely at the very beginning.
For example, TopDawg has over 250,000 items dropshipping from wholesale suppliers and distributors in the USA.
Here are some popular product niches you can choose from Fashion Accessories (e.g., handbags, sunglasses, watches), Pet Supplies (e.g., dog & cat beds, treats, toys, collars), Health & Beauty (e.g., essential oils, makeup, skincare), Sports & Outdoor Recreation (e.g., camping gear, yoga mats, bicycles), Home Decor & Furniture (e.g., lamps, organic cotton bedding, blenders, toasters, chairs) Consumer Electronics (e.g., cell phones, laptops, TVs) Kids, Babies & Toys (e.g., toy trucks, children's books, baby seats, kid's crafts)
#2 Find a Drop-Shipping Supplier
Once you pick a product to sell, it's time to find a supplier. You can choose your drop shipper based on the product category, but I recommend choosing them based on other criteria as well.
Here are some important things to consider:
1) Experience – It's important to work with someone who has experience in your industry because this allows them to make better recommendations for you. After all, they know what sells and what doesn't. For example, suppose you're interested in selling watches. In that case, a supplier with experience in the fashion industry will better understand which styles to stock than one that mostly sells to commercial clients.
2) Product Knowledge – Even if you're just getting started, I recommend working with a supplier that has at least several years' worth of experience in the market you're getting into. This way, they can answer all of your questions regarding product specifications, material descriptions, and other important details when it comes to selling goods online.
3) Shipping Fees – Wholesale suppliers that dropship usually charge extra fees for shipping the goods to your customers. Some suppliers will offer free shipping for international orders, but this isn't always the case.
#3 Launch Your Dropshipping Store
One of the biggest misconceptions about building a dropshipping business is having a website from day one. But I recommend starting with Facebook ads first because it's much easier to test new products this way. You can also use this time to get your store's design ready. All you need is a web store and a few graphic assets (e.g., logo, banner). TopDawg, for example, integrates with multiple platforms like Shopify easily to import products into your store.
#4 Get Your First Sales
Now it's time to start selling your products! I like to begin by running Facebook ads and closely tracking the results. This is a great time to test new product niches and ad copy to see what drives the most sales for your store. If you do this, you will be able to make more informed decisions about the best products and niches for your business later on.
Dropshipping is a great business model for anyone looking to start a business with little up-front investment, and it's been gaining in popularity lately. We hope this article has helped you understand the basics of how dropshipping works and given you some ideas on getting started.
Launching your online retail store can start you on the path to a successful business. At TopDawg, we support your success with a growing number of dropshipping suppliers with wholesale products, powerful store integration, order automation and shipping tools, along with higher profit margins.