What to Look Out For Before Starting a Dropshipping Business

Starting a dropshipping business can seem like an exciting undertaking. You’ve heard about the ‘juicy profits’ to be made and the whole idea of not creating or shipping products but still making money with barely any work seems too good to resist.

While the business model on the surface does seem that way, let’s just say that reality is quite another story.

There are several important points you MUST be aware of before even buying a domain for your ecommerce store. Let’s see what they are!

Budget

Ideally, you should have about 2k-5k before you begin a dropshipping business. It’ll take you time to find a good product to sell and finding the right creatives for your ad will require trial and error.

During this time, you’ll be losing money on ads until you can find both a winning product and a winning ad. This magical combination in most cases, will only be discovered with testing and tweaking.

Whatever the case, you’ll be losing money during this process. Marketers often like to sugar coat it by saying that they’re ‘buying data’. While this is true, losing money still can make you feel the pinch.

So you’ll need to have some cash reserves to tide you through the testing phase and approach the process with logic and not emotion. Once you find a winning product, you’ll be able to scale up and your profits will cover any earlier losses you made and you earn much more than you initially invested.

Platforms and themes

You’ll need to decide if you’re going to use Woocommerce or Shopify. Or if you’ll use Facebook ads or Google ads. Or AliExpress or U.S. suppliers to dropshippers.

Even the theme you use for your dropshipping store will matter. You want a store that looks attractive and legitimate.

There are many decisions to be made when choosing the different platforms. Do your research and pick what suits you best. Nothing is perfect and there are pros and cons to all the different options. Ultimately, which one you choose will depend on your preferences.

Time frame

No matter how intelligent and capable you are, if you’re new to dropshipping, you’ll need to go through a learning curve – which will take time. So don’t be too quick to quit the day job.

Work at your day job while working on your ecommerce business. Once your online business takes off and you’re earning double than what you make at your day job, you may quit and focus solely on your business.

Domain and type of store

You’ll need to think of a good domain name for you store and decide if it will be a niche store or a general store. If you’re a beginner, you’ll definitely want to go with a niche store. For example, a store that sells mini art sculptures.

Picking a general store and trying to be like Amazon is difficult and requires a much bigger budget. A more conservative approach is better here and focusing on one niche will improve your conversions too.

In conclusion, you’ll want to enter this business with both eyes wide open. Unlike affiliate marketing or other business models which require a lower cash outlay, dropshipping can rack up your bills because of the advertising costs.

So you have to be alert and learn the business well… and proceed cautiously. If you persist and keep testing and tweaking your actions, you’ll discover what works for you and have a 6-figure dropshipping income.