In this article we will review what dropshipping is, how it works, the investment of time and money it entails, and what its advantages and disadvantages are.
How to do dropshipping
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How to do dropshipping: step by step
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How to do dropshipping: step by step
Decide if canada phone number dropshipping is the right business model
Choose a dropshipping niche
Research the competitors
Choose a provider
Select products and set prices
Create an ecommerce store
Choose a legal structure
Organize your finances
Market your dropshipping business
1. Decide if dropshipping is the right business model
Dropshipping is just one way to run an online store. Before you jump in, take your time to make sure it's the right business model for your goals.
Typically, dropshipping is suited to people with marketing knowledge who want to run a store with minimal initial investment. Since you don't have to stock products, you can get started with a laptop and an internet connection.
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However, this accessibility has its trade-offs. Dropshippers often have less control over the products in their catalogue, and since other retailers are likely to sell the same products, competition can be tough.
If you plan to focus on marketing and aren't looking to build a business around a flagship product, dropshipping might be right for you.
2. Choose a dropshipping niche
A niche is a segment of a market. You can target a niche with your store, brand, and product selection. Selecting a dropshipping niche helps you identify a target audience. With specific customers in mind, it's easier to research products to dropship.
There are two general methods for choosing a niche:
Select a niche that you have knowledge of or are passionate about.
Select a niche based on market demand.
The goal of the second method is to find niches with high customer interest but low competition. Dropshippers assess market demand through keyword and product research.
Find a niche with keyword research
Keyword research shows what people are searching for online. Tools like Google Trends , Facebook Audience Insights , and Keywords Everywhere reveal popular searches related to products that an online store could service.
When evaluating search demand, you can look at historical interest and search volume to find a niche with sustained or growing popularity.
Evolution of interest in ebikes over the last five years
For example, eBike Generation founder John Murphy used keyword research to build a $3 million dropshipping company by identifying an underserved niche: e-bikes for hunters.
Find a niche with product research
Product research helps you discover trending products and understand consumer tastes across different product categories.
Dropshipping apps like DSers allow you to see the order volume of products on marketplaces like AliExpress to gauge the potential size of your business.
Use both types of research together to get a complete picture of a dropshipping niche. Consumer habits change quickly, so check keyword trends and product popularity regularly.
To align your business with product availability, you can also choose a dropshipping supplier before selecting a niche.