How to Start a Dropshipping Business with Zero Capital

How to start a Dropshipping Business with Zero Capital

To start almost any business anywhere in the world, you need capital or money, no matter how small. But what if I told you there is a way to start a dropshipping business with zero capital?

Have you ever heard the name, Justin Wong? This guy earned $12,000 monthly from his dropshipping ecommerce store, So Aesthetic. For a period, he worked full-time to pay for his studies. Unfortunately, that wasn’t enough to cover his expenses. He tried a lot of income-generating options before hitting the jackpot with e-commerce.

Guess what? Justin Wong launched his e-commerce store with no upfront investment. This might seem like a one-off instance. But what if I told you you could also start an e-commerce business without capital? Yes, you can create a dropshipping business with zero money, and this is how. But first of all, introduction.

what dropshipping?

If you are unfamiliar with dropshipping, here is a quick definition. Dropshipping is one of the most innovative business innovations of the internet era. Shopify define Dropshipping as a fulfillment method where a store does not have to keep the items it sells in stock to fulfill the order.

Instead, stores purchase items from third-party suppliers and have them shipped directly to customers. In this way, the seller can see or handle the product indirectly.

Dropshipping stores differs from the standard retail model in that the merchant selling the items does not stock or own the goods. Sellers typically buy inventory as necessary from third parties – usually a manufacturer or wholesaler – to fulfill orders.

Is dropshipping worth it?

  1.  Setting up a dropshipping business is relatively easy.

Getting started with dropshipping can be done without prior business experience. Learning the basics will help you launch a business quickly and retain the rest.

The start-up cost of dropshipping is low compared to other retail business models, making it easy to start. For example, you don’t need a warehouse or a team to operate your business. Stocking and shipping are also acceptable. As soon as you get going, it becomes pretty hands-off.

READ ALSO
How Oginni Tolulope Joshua Became CEO Before 30 And Made FORBES List Of 30 Under 30 CEO's

Thus, you can begin your business today. You can set up and start operating within a few hours.

  1.  The dropshipping model is scalable.

As you grow, you don’t need to change anything about your business model. Growing your business will require more work in sales and marketing, but aside from processing more orders, your day-to-day operations will remain the same.

Dropshipping has the advantage of keeping infrastructure costs low even as it scales. Due to this, you are left with more resources to devote to your marketing efforts. Your business will be better served if you focus on promoting it and delivering excellent customer service.

  1.  Dropshipping doesn’t require a physical location.

An entire business can be run directly from your laptop, so there is no need to make significant investments. Advertising will likely be your most considerable expense, and you can scale the budget as your store grows. Despite growing your business, your costs will remain reasonably low, especially compared to conventional business expenses.

  1.  Dropshipping offers a lot of flexibility.

This is one of its most significant advantages. You have the freedom to make your own rules and regulations. Anybody can pursue it successfully, and it’s the most flexible career.

With a laptop and a few other things, you can work from home at your most convenient times. This is perfect for people who want a business that works around their schedules.

As a business model, dropshipping is also flexible because you can make decisions that work for your business. Your strategies can be adjusted quickly, and new products can be listed soon. It is possible to generate passive income while on vacation if you automate everything. There is no end to the possibilities.

  1.  Dropshipping is easier to manage.

Since it does not require hiring employees or renting warehouse space, dropshipping is easy to manage. For the most part, once you’ve located suppliers and organized everything, you’re only responsible for running your online storefront.

READ ALSO
Bitcoin Drops Below $20k

How to start a dropshipping business in three simple steps.

Step 1: Identify a product you want to sell

Selling is only the first step; it isn’t the end goal for your dropshipping business ideas. A reliable product is essential to retaining customers, gaining favorable reviews, getting referrals, and growing your audience. Some of the vital guidelines for choosing the right product include the following:

  • Your product should be within the price range of N10,000 – N40,000 so that you can make a decent profit without selling thousands of products to get by. Selling low-cost items of about N3,000 is bad as their margins will be too low.

Another way to play around with this is to sell the product as a collection. For instance, if you have a product that is N4,000, you can sell three of it per order (N4,000 * 3 = N12,000).

  • Weight – Shipping costs can significantly impact heavy product sales, especially if you allow express shipping. Try to tilt more towards lightweight products.
  •  Easy to use – Your product should be easy to use to avoid customers returning them. Customers return products they cannot use when they receive them, and you have to cover the return shipping cost. Over time, these costs can significantly reduce your profit margins.

Step 2: Look for a reliable supplier

Dropshipping businesses rely on delivering their products on time, without fault, and as described.

As a result, your suppliers must:

  • Be available whenever you need them.
  •  Ideally, process orders on the same day or within 24 hours.
  •  Ship using fast shipping methods with complete online tracking
  •  Take responsibility when things go wrong and realize the importance of quality items.
  •  Be sure to let you know when products run out or if there are other delays – This is crucial since you rely on them entirely.

Step 3: Upload your product to a ready-to-use platform

You can set up an online store for your dropshipping business in two ways. The first method involves self-hosting. This option will only be good if you start your dropshipping business with zero capital. However, the other highly recommended option is to host your store on a ready-to-use e-commerce platform.

READ ALSO
FG says Badagry Deep Seaport to generate $2.6 billion, create 5,000 jobs

You can create an online store on platforms like Jumia, Konga, Shopify, eBay, and Amazon, all with templates and designs included. As a result, you don’t need to buy a domain and hire a designer to build an eye-catching store.

 Conclusion on How toStart Dropshipping Business with Zero Capital

It’s important to note that dropshipping starts bringing in money after some time. Only expect to start making some money from dropshipping in days. You have to put in the work by marketing your product using everything at your disposal, starting with your mouth down to your social media (Whatsapp, Twitter, Instagram, Facebook, etc.). Be consistent; before you know it, the orders will start trickling in.

People Also Ask For FAQs

How do I start dropshipping?

Your product should be within the price range of N10,000 – N40,000 so that you can make a decent profit without selling thousands of products to get by. Selling low-cost items of about N3,000 is bad as their margins will be too low.

Is dropshipping still profitable?

It’s important to note that dropshipping starts bringing in money after some time. Only expect to start making some money from dropshipping in days.

Is dropshipping good for beginners?

Dropshipping is a great option for first-time entrepreneurs. It frees up time that can be refocused on marketing and provides a low-risk way for small businesses to test out new product ideas (and product lines) without having to own and pay for the product upfront.

Is dropshipping legal?

Yes, dropshipping is a legal method of order fulfillment.

How to do dropshipping?

Selling is only the first step, in starting a dropshipping business; it isn’t the end goal for your business ideas. A reliable product is essential to retaining customers, gaining favorable reviews, getting referrals, and growing your audience.

Stay Connected , follow us on: Facebook: @creebhillsdotcom, Twitter: @creebhillsblog, Instagram: @creebhills, Pinterest: @creebhills, Telegram: @creebhills
To place an advert/Guest post on our site, contact us via [email protected]

LEAVE A REPLY

Please enter your comment!
Please enter your name here