Starting a profitable dropshipping business as a newbie can be really challenging. But if you have the right information and guidance as a beginner, it could turn out to be the best decision you ever made.
This is because there are just very few low-risk businesses out there that are as profitable as dropshipping. And the fact that it affords you the time to give your full-time job or other businesses the attention they deserve, makes it even more appealing.
In this article, we’ll be discussing dropshipping business in detail and how as a newbie, you can start and run it profitably.
We’ll get to know what it is, how it works, the best dropshipping platforms, the best dropshipping industry in 2022, and many more. When you know the worst dropshipping niches and avoid them, you will create time to focus on the ones with a higher profit margin.
Trust me, by the time you’re done reading this article, you must have known all you need to run a profitable dropshipping business, even as a newbie.
Let’s get right into it, shall we?
What is Dropshipping?
Dropshipping is a business model where you can run a retail fulfillment business online without keeping inventory of the products you sell.
From the comfort of your home or office, you can receive and fulfill orders for products in your store without holding stock of them.
Dropshipping can be really profitable as you do not incur inventory, shipping or any other form of overhead costs.
How Exactly Does Dropshipping Work?
Dropshipping has a pretty simple business model. As a dropshipper, you only need to set up your online store, add your products and promote them.
Once a customer pays for an item in your dropshipping store, you have the supplier (the real owner of the goods) ship it directly to him or her.
The customer pays the retail price in your store, and you pay the supplier the wholesale and shipping cost. The balance becomes your profit from the business. Take a few minutes to look at Amazon FBA vs dropshipping vs affiliate marketing to fully understand the difference.
What Are the Best Dropshipping Platforms?
There are a ton of dropshipping platforms available to you, but the best among them offers numerous benefits that will help you succeed better as a dropshipper.
Some of these platforms are:
- Magento, etc.
Do I Need a PO Box for Dropshipping?
As a dropshipper, you do not need a PO Box to run your dropshipping business. In fact, it is advisable you use your home address.
This is because online businesses require a high level of trust. If your prospective customer is to trust you, they have to know you’re a genuine business person. And not one scammer out there trying to siphon their hard-earned money.
Now, that is where your home address becomes useful. It makes the customer see you as a real person. Someone they can easily reach when there is an issue.
However, even though some people use PO Boxes for scams, it isn’t completely a bad idea to set up one in your store. This is because PO Boxes make it easier for you to receive and segment payments from different sources.
How Do I Open a Dropship Account on AliExpress?
You can’t open a direct dropshipping account on AliExpress, however, you can open a store with Shopify or any other e-commerce platform and connect it to your AliExpress supplier. But first, you have to choose a niche.
You can use dropshipping apps like Oberlo or Dsers to connect your AliExpress supplier to your e-commerce store.
Is it Illegal to Dropship From AliExpress as an American?
Dropshipping is a completely legal business. So, it is not illegal to dropship from Aliexpress as an American.
However, it is advisable you work with the right suppliers. Some AliExpress suppliers have warehouses in the U.S., which will make it easier for your customers to receive their goods, and on time too.
How Old Do You Have to Be to Dropship on eBay?
To dropship on eBay, you have to enter into legal contracts with suppliers. And to enter into contracts, you have to be 18 years or older.
eBay put up this policy to protect both the community and the underage users who might have access to its platform.
Do You Need a Business Email for Dropshipping?
A business email is necessary for a dropshipping business. Remember, your customers may not know you’re dropshipping, so it is best you appear as professional as you can to them.
And one of the best ways to appear professional is by using a business email for your dropshipping communications.
But that is not all, another benefit of using a business email is that it comes with built-in features that can help you run seamless and profitable email marketing services.
As a dropshipper, one of the best ways to nurture customers and get them ready to buy your products is through email marketing. And believe me, running email marketing with a free domain is like settling for average when you know the top is achievable.
How Much Does an Average Amazon Dropshipper Make Annually?
An average Amazon dropshipper can make from $500 to $5000 monthly. That is $6,000 to $60,000 annually.
However, this is just an estimated average, as the income of dropshippers varies. Very committed dropshipping businesses make as high as $300,000 annually from Amazon.
Who is the richest dropshipper in the world? Beyond the Amazon platform, the richest dropshipper in the world by the name Irwin Dominguez from San Diego made $1,000,000 in profit within 8 months.
Provided you sell goods that are in high demand like these hot-selling dropshipping products with a good profit margin and your marketing is quite effective, there is actually no limit to what you can earn as a dropshipper on Amazon.
What Shopify Plan Do I Need for Dropshipping?
As a newbie in the dropshipping business, it is advisable you use the starter plan. This is because, from the start, you do not know the direction of your business.
So purchasing the most expensive plan might not be the best idea for a beginner in the dropshipping business.
How Many Dropshipping Millionaires Are There?
It is almost impossible to state how many dropshipping millionaires are out there. But this is because many are turning millionaires out there, on a daily basis, from this business.
As a matter of fact, Irwin Dominguez (the richest and most successful dropshipper in the World) was said to have made over a million dollars in profit in 8 months as a dropshipper.
Another millionaire dropshipping guru who started his business as an engineering student despite being a newbie is Cole Turner. Cole Turner made $2 million in just over one year of running his dropshipping e-commerce business.
In 2019, Andreas Koenig and Alexander Pecka made their first $10 million in a year having generated $500,000 per month in the pet industry. Facebook advertising and organic marketing were instrumental to their success.
Through influencer marketing, Sarah and Audrey made their first $1 million running their dropshipping business. Being a newbie
What is the Best Way to Learn Dropshipping?
While there are many courses and videos out there to learn dropshipping, I think the best way is to learn from an already successful dropshipper.
Having a successful dropshipper guide you from your very first step would help you avoid a lot of pitfalls. As a newbie, we recommend you take a comprehensive dropshipping course from an expert before starting the business.
However, if you don’t have access to one, do not be discouraged. It might be quite relieving for you to know that dropshipping is very easy to learn. A detailed e-commerce course or video on YouTube might be all you need to get started.
How Can I Advertise my Dropshipping Store, Free or Paid?
Just like every other business, you need to advertise your dropshipping store if you want to succeed in the business. And there are many proven ways you can do this.
Firstly, you have to start by designing a user-friendly and high-converting dropshipping website. Then you can use free advert platforms like social media and strategies like search engine optimization (SEO) to give your site the needed visibility. Ensure you build a strong social media presence for your store.
You can do this by sharing valuable information regarding the products you sell. You can also do this on YouTube. Videos are the best converting ad creative currently. Information videos on a free YouTube channel will give your store massive visibility. You may want to check out these YouTube SEO strategies and utilize them in promoting your dropshipping store.
Secondly, paid advertising platforms like Facebook Ads, Instagram Ads, and even TikTok are surefire ways to drive the right e-commerce traffic to your dropshipping store.
Lastly, but most importantly, never neglect email marketing. Email marketing is still the most profitable marketing method out there.
So, how do you really go about marketing your dropshipping business? I will tell you.
You have to start by building a robust audience on your social media pages, then turn them into leads. The fact that they are interested in what you sell proves they are the quality leads you need for a profitable dropshipping business.
The next thing to do is to channel them to your email marketing platforms and nurture them into consistent buying customers.
What is the Best Industry for Dropshipping Business as a Newbie in 2022?
The best dropshipping industry in 2022 is the beauty industry. People want to look their best wherever they go.
That is obviously why clothing and other beauty products like makeup products, creams and foot wears are selling out really fast. It will be to your advantage if you learn the impact of artificial intelligence on the fashion industry.
Other industries that are doing really well are the health and pet industries.
How Much Can You Make Dropshipping on Etsy?
With Etsy’s listing cost of 20 cents per listing lasting up to 4 months, you can make a ton of money dropshipping on Etsy. You can make from $500 to $4000 monthly dropshipping on Etsy.
As much as it is important to find a popular dropshipping platform like Etsy, it is also important you sell the right products.
With about 2,402 employees, this American company called, Etsy, Inc. is focused on giving you handmade or vintage items and craft supplies.
How Do People Lose Money in Dropshipping?
Even though you do not hold inventory in dropshipping, you can definitely lose a lot of money in the business. But that can happen only when you’re inexperienced or do not know how to promote your business using organic and paid marketing strategies.
You can lose money in a lot of ways while dropshipping. One sure way to do so is by running targeted ads to the wrong audience.
It is easier to sell water to a group of people who indicated that they are thirsty than to go offer water to a water seller. If you fail to target the right audience, you’d lose a lot of money in advertising.
Another way to lose money in dropshipping is via refunds and product listings. Knowing how to optimize your product listings as an expert can’t be overemphasized.
What do you do to stop losing money in dropshipping? To avoid losing money in dropshipping, you have to ensure you put in place every business strategy that will maximize your profit and minimize your costs.
Examples of things to fix to stop losing money in dropshipping: Proper product pricing, appropriate shipping and delivery costs, quality and effective marketing, and good customer service.
Generally, ensure your costing and marketing are spot on, and you’d rarely lose money in dropshipping.
Are TikTok Ads Worth it for Dropshipping?
Absolutely. TikTok Ads have been reported to be super effective, especially if you’re targeting a younger audience.
Lots of young people watch videos on a daily basis on TikTok, and where’s the best place to advertise your dropshipping business if not where your audiences are seen often? TikTok!
The work of a good advert is to draw your audience’s attention, get them interested in what you are selling, and eventually get them to respond to your call-to-action. To sell more dropshipping products, you need to start maximizing more TikTok marketing strategies.
How Do I Start a Dropship Medical Supply Company?
The healthcare industry is an ever-booming one. Dropshipping medical equipment is a business that is guaranteed to give you some good money.
So, to start a dropshipping medical supply company, just follow the simple steps below:
- Create a detailed business plan
- Choose a niche
- Find a trusted supplier
- Register your business
- Open a business bank account
- Choose a dropshipping platform
- Set up your store
- Market your products vigorously.
Dropshipping, when done well, is a very profitable business. You can run it as a full-time business or have it as a side hustle while you do your full-time job or business.
I’m sure you’ve learned a couple of things that could help you start and run your dropshipping business profitably, even if you’re a newbie.