Dropshipping is one aspect of eCommerce that appeals to many people because of the low risk involved and the profit margins you’ll get if it’s done right.
However, as with many eCommerce businesses, this 3.5 trillion-dollar market requires financial investment. So, how can you start a successful dropshipping business with a limited budget, given the many logistics involved?
In this article, we’ll walk you through how you can start your dropshipping business with a very little amount of money.
Without further ado, let’s get right into it.
How to Start Dropshipping with Little or No Money
To have come this far, you must have heard a lot about dropshipping and how profitable it is, how you can run the business from the comfort of your house.
All of these are correct.
But to make a profit, even with a limited starting budget, you need to do the following things:
Pick A Product Niche:
Many people jump into dropshipping because they heard of its high profitability.
Quite right, dropshipping is profitable. But if you are selling every and anything, you’ll soon start counting your losses.
As a beginner, pick a product niche that you’re familiar with and a niche that has a high demand.
Yes, a niche is good, but if people are not searching for that product, then selling that product is a waste of your time and resources.
You can get the trending products in your preferred niche from websites like Lazada Top Sellers, Daily Deals on eBay, AliExpress (Weekly), Oberlo, and Amazon Bestsellers.
Set Up an Online Store:
You might be asking, ‘hey, I don’t have a lot of money to pay for an online store.’ Don’t worry, I understand.
Several platforms help you create an online store. With a limited budget, however, a Shopify store is your best bet.
Shopify allows you to own and run a functional online store on their platform for 14 days, for free. The 14-days free trial period provides you with enough testing ground for your dropshipping business.
When you have set up the Shopify store, the next important thing is selecting a unique shop name and helping with your dropshipping marketing.
What’s in a shop name, you ask?
An easy-to-remember shop name makes it easier for customers to see your shop online and buy from you. You also don’t want a generic shop name like DealDealers, or BuyFromMe.
Several free Business Name Generators, such as Nemelix, can help you generate business names fast!
After choosing a shop name, Shopify will walk you through how to add your logo and select a shop theme, which helps you categorize your products and gives your shop aesthetic appeal.
A successful dropshipping business is heavily hinged on a reliable supplier. If you have the most amazing Shopify store, the best product niches, and the Shop name, but your supplier is terrible, then nothing works in your business.
Therefore, finding a good and reliable supplier that will give you the best quality products at a fair price and quick delivery time is vital for your dropshipping business’ success.
To help you make this process easy, Shopify has an integrated suppliers’ database that connects Oberlo to your online store.
Oberlo makes it easy for you to find unique products to sell online.
With Oberlo being connected with AliExpress, you can find the best suppliers with reasonable product prices.
Market Your Business:
This is the part where many people miss it. This is where you need to put in the time and effort.
Marketing your business is the only way to grow your business, even though you started with nothing. With marketing, you need to understand that you will need to build organic leads and customers.
Paid adverts on social media are suitable – Facebook ads are the most profitable – but since you’re starting with a limited budget, you’ll have to put in the work with building your brand organically.
You can market your business with content marketing, creating valuable and relevant content that educates your leads.
Also, your social media platforms should be buzzing with the products you sell. Talk about what you sell, but not in a sales way, more like educating your social media followers and friends. You can also start email marketing, publishing your products on forums such as Reddit and Quora.
Remember when I said to pick a niche?
By picking a niche, you’ll become quite knowledgeable about the product, and before long, become a thought leader in the niche. This way, marketing your product becomes accessible.
Just like every successful business, starting a dropshipping business, especially with a limited budget, requires grit, determination, and consistency. The profits that you can make from dropshipping are massive if and when you’ve built a working system.
Devote your time, intelligence, and resources to it, and you’ll be happy you did.