How to Kick-Start A Successful Dropshipping Business

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Modern technologies have changed the way that we buy and sell online as we move from traditional retail to e-commerce marketplaces. But while selling products online can provide a ton of opportunity, there are also a ton of questions for those who are thinking of making the digital leap onto the e-commerce seller space.

  1. What is dropshipping?
  2. How does dropshipping work?
  3. What are the benefits of dropshipping?
  4. Who is dropshipping for?
  5. How much does it cost to dropship?
  6. How MyyShop can streamline your dropshipping Business?

To answer these types of questions one would need to look only at the dropshipping model. But what is dropshipping, and how can dropshipping kick-start a successful e-commerce business? Well, to fully understand the benefits of dropshipping, first we need to understand the dropshipping model and just what makes it work.

What is dropshipping?

Dropshipping is an order fulfillment method that does not require a business or seller to keep products in stock. Instead, the store sells the product and passes on the sales order to a third-party supplier who then ships the order to the customer.

Dropshipping helps you build your business with very little investment.

Dropshipping helps you skip heavy inventory requirements and instead, lets you outsource inventory management and order fulfillment to third-party suppliers.

Dropshipping helps you sell products directly from the wholesaler and straight to the customer.

With dropshipping, every time a customer places an order you’ll forward it to your supplier, who will then ship the product directly to the buyer. There is no need to worry about packaging or shipment as the supplier will take care of this for you. Furthermore, you can export all product details from the wholesaler to your e-shop and start selling immediately.

How does dropshipping work?

  • The customer places an order on your online store for a product of 100 RMB.
  • You send the order to the supplier by paying the supplier RMB 60 (wholesale price).
  • The supplier ships the product to the customer by your name and you keep RMB 40 as the profit amount.

Supplier, store, and customer

The three important factors in a dropshipping business that you should always remember are the supplier, your store, and the customer.

Supplier – First, you need to find a supplier/wholesaler. The supplier will be responsible for your order fulfillment and holding the physical inventory.  When choosing a supplier, it is always recommended to be very cautious since some may be very slow in logistics, and even run out of stock which can badly harm your reputation and even prevent you from further building your brand.

That’s why we came out with MyyShop, your one-stop dropshipping platform and the best way to kick-start your successful e-commerce business.

Your store – This is the actual e-commerce store at which the customer will place their order. All you need to do is upload your product catalogue, including product images, item details, and a unique description.

Customer – After an order is placed, you will get a notification of the product purchased which will then directly go to your supplier who will fulfill and ship the order. You only need to pay your supplier when the customer makes the payment.

What are the benefits of dropshipping?

Easy to set up: it essentially involves just 3 steps – find the supplier, set up your website, and start selling the goods!
The low setup cost: All you have to pay for is the associated costs of running your website (hosting, theme, apps, etc.)
Low overhead costs: The fixed costs of managing the website are all that a business owner has to worry about.
Low-risk business model: If the business doesn’t sell products, it still doesn’t lose anything, so there is little to no pressure over having to sell your inventory.
Virtual location: No office, no warehouse, no employees, and no hassles.
Huge variety: There is a dropship supplier for almost anything that you would like to sell! You can rely on one great product, sell several products at once or mix it up; it’s all up to you.
More time to scale your business:  With shipping and inventory taking care of, you have more time to scout for more products, while working on the fun things such as marketing and ways in which to grow and promote your business.
Reduced losses on damaged goods: Since product shipment goes directly from the supplier to the customer, there are fewer shipment steps involved which drastically reduces the risk of damaged items while moving from one physical space to another.

Who is dropshipping for?

Dropshipping is an awesome business model for:

Traditional retailers – Believe it or not, traditional retailers and those whose businesses are heavily based on day-to-day earning are some of the most common adopters of dropshipping. They already have a store but would like to try new products to test the market.

E-commerce specialist retailers – While some e-commerce retailers do use a wholesale model in which they hold and ship items themselves, most of the high-performing online shopping sites like Amazon are built around dropshipping. They can sell many products without investing more money.

General merchandise retailers – For big-box retailers like Wal-Mart and Target, dropshipping is an essential part of their online business. They can sell lots of items without inventory management.

Entrepreneurs – People who want to start a new business at a very low cost can adopt dropshipping to their business model.

Influencers – Dropshipping is ideal for influencers on social media who have a large number of followers to monetize their traffic.

How much does it cost to dropship?

Starting a business is a great idea only until you realize you’ve run out of funds from your budget. This is the second biggest reason why most start-ups fail, and it makes sense because you need money to make money, and if you don’t have the right amount of money your business will flop before it even has a chance to start.

When building a dropshipping store, there are three major areas that you will need to budget for.

Building your store – This is the most important expense because without your store you can’t sell your product. However, using MyyShop, you can create a professional and crisp-looking store in just a few clicks and most importantly, for FREE!

Marketing your products 80% of your budget will be spent on marketing. Marketing is crucial for increasing traffic to your website and generally has no limit to what you can spend. However, for effective reach, it is recommended that at least $500 of your budget should be enough to test about 20 products.

Money to purchase items – Since the actual money from a customer can sometimes take a while after a completed purchase, it is important to have cash upfront to buy products to be able to ship them.

How much money could you make with dropshipping?

  1. The typical margin in dropshipping is around 30%.
  2. But it also depends on product selection, some products like line cloths can yield a profit by around 80%.
  3. The profit margin can be increased from 30% to 50% if you start buying directly from manufacturers.
  4. Dropshipping puts no limits on your profits.
  5. It’s not necessary to have any experience in dropshipping or e-commerce.

How MyyShop can streamline your dropshipping Business?

How much money could you make with dropshipping?

  • The typical margin in dropshipping is around 30%.
  • But it also depends on product selection, some products like line cloths can yield a profit by around 80%.
  • The profit margin can be increased from 30% to 50% if you start buying directly from manufacturers.
  • Dropshipping puts no limits on your profits.
  • It’s not necessary to have any experience in dropshipping or e-commerce.

What is MyyShop?

MyyShop is a Software-as-a-Service (SaaS) based platform and has been incubated by DHGate, China’s leading e-commerce platform.

MyyShop provides a one-stop trustworthy, convenient, and accessible solution in online store creation and advanced dropshipping services.

MyyShop is committed to shaking up the global B2B e-commerce market and allows people to start a successful e-commerce business with ease.

MyyShop can help you to grow your business by connecting global suppliers with overseas B2B buyers. MyyShop provides AI-based product recommendations and direct access to verified manufacturers, strict store control, and global warehouses with fast delivery and shipping.

Benefits of using MyyShop

MyyShop has diverse and varied product categories with millions of products.

MyyShop also has over 8,000 Chinese suppliers from over 2000 industrial belts.

MyyShop has warehouses based in China, the USA, Spain, Poland, Belgium, and many other countries which means when you place the order, MyyShop can ship products directly to your customers from the nearest warehouse wherever they are in the world.

How to use Myyshop for your business

MyyShop Lite lets you create a store and share products to social media with just a few clicks.

Select Products – MyyShop shows you hot selling products so you can easily publish them straight to your store.

Create the Store – Personalize the site domain of your e-commerce store. It’s absolutely FREE!

Decorate the Store – Personalize your shop by choosing your cover and change your display picture and logo to establish your brand.

Share with Your Audience – Find the products of your site and with one simple click, share them on your social media accounts such as Facebook, Twitter, Pinterest, and many more.

You can also connect your MyyShop store to other stores and websites to increase the traffic of your products.

Find out more about MyyShop, and how to kick-start a successful dropshipping business HERE.

Summary

The key to the success of small businesses is finding and choosing the right niche. Myyshop can help you to avoid one of the most common mistakes business owners make. Additionally, Myyshop helps in finding the right supplier and products.

If you have a bad experience with dropshipping, you can guarantee it’s either because of the supplier, product, or both. This is why it’s really, really worth doing your research. If you’re new to dropshipping or unsure what to look for, Myyshop is your friend. It just makes the whole process super easy. You can find it at MyyShop. Once you get that ball rolling and have some success, you’ll be having your own shop called “MyyShop”.

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