(ThyBlackMan.com) Starting a drop shipping company is a great introduction to entrepreneurship. Not only does it host a model that’s relatively less risk, but it also gives you a chance to get your feet wet in an area where you’ve always wanted to work. And if you’ve been considering starting a drop shipping business, then there are a few key considerations you should have in mind. Check them out below:
Start Saving
If you’re going to be launching as a drop shipping supplier, then one of the first things you’re going to need to establish is the budget. According to the Small Business Administration, it costs between $1,000 to $5,000 to start the average small business. And while drop shipping is something that costs significantly less in regards to acquiring inventory, don’t be surprised if you have to make up those expenses in marketing or logistics, which is why establishing a budget and saving towards it is so crucial.
To begin, start sketching out the general needs your business will have, no matter how big or small. This includes everything from
hiring a designer for your logo to paying your state register to acquire your LLC. I’ll note that it’s best to be more conservative than not, giving you enough breathing room to survive.
Furthermore, don’t forget that if you’re going to be transitioning into this full-time, your eventual calendar for an exit, as well as when you expect to be profitable. While I know it’s more exciting to hop right in and get working, you’re also going to want to establish enough of a foundation to know you’re secure, so be patient in building up.
Focus On Efficiency
Another crucial aspect of establishing your drop shipping company is putting in the proper processes ahead of time to ensure efficiency. According to Entrepreneur, businesses can lose as much as 20 to 30 percent in revenue due to poor processes. If you want to avoid the same pitfalls, then it’s important to map out these elements ahead of time.
Perhaps the biggest pain point that you’re going to experience with drop shipping is how the actual logistical elements are going to work. This is two-fold, with one aspect being the supplier, as well as the type of shipping partner that supplier has. Of course, your goal should always be ROI for the type of partners you bring on; however, that’s not without getting quality word of mouth too, which is where people expect service to be done quickly. Efficiency is something you’re going to have to treat as a process of trial-and-error, but also an item you’ll start to get the hang of through time.
Don’t Forget About SEO
When it comes to eCommerce, being great at SEO is an absolute must. If you’re not familiar, this is how you rank in Google and other search engines, which is where your product differential will come into play. And as noted by Search Engine Journal, with 93 percent of online experiences beginning with search, this is one aspect you’re going to want to hone in on from the jump.
Start out by looking at what search terms you might be able to implement into your mix, especially if you’re able to offer a niche product or service over anyone else. For example, let’s say that I sell phone replacement kits and know that I’m one of the few that sells adapters for the Google Pixel’s USB-C. If I’m able to own the search term “Pixel USB-C replacement” early on by putting it in my content and on my blog, then I’ll be much more likely to garner traffic for that use. Brainstorm on a few SEO keywords you can experiment with; this one use that can help bring on a lot of inbound customers in no time.
Keep Your Marketing Steady
Finally, as you start marketing your drop shipping business, try to have your mix stay consistent. As noted by Zimmer Communications, consistent brand recognition is known to increase revenues by 23 percent, which is a pretty staggering figure considering the sheer difference that could make. However, if you’re looking to capitalize on this, then a big part of it comes down to getting in the habit of consistency.
Create a calendar for your marketing mix, including social media, content, and even email. Furthermore, try and vary up the mediums based on what type of content about your products will give you the best ROI. The more you make a concerted effort to forming a genuine connection your audience, the better of your results will be. Remember, the name of the game here is to form a community around your drop shipping business, which although will take time, could also develop loyal fans in no time.
What are you most excited about in starting a drop shipping business? Comment with your answers below!
Staff Writer; Steve Brown