Infomediaku.net | 6+ Profitable Dropshipping Business Ideas That You Can Try
Starting a business without capital? Sounds a little suspicious, right? Wait a minute. Before you are skeptical, maybe what is meant by a business without capital is a dropshipping business. In This article, we will discuss dropshipping business ideas that you can try and do it.
Dropshipping opens the opportunity for you to start a business with just internet access. How to? Check out this article.
What is Dropship?
Dropshipping is a popular business model in the internet era. This business model involves a third party (dropshipper) who bridges the relationship between buyers and producers or suppliers of products. You can see the image below if you don’t understand the dropship system.
At first glance, the role of a dropshipper is very similar to that of a reseller. He sells products from suppliers to buyers. The dropshipper can determine a different selling price from the supplier. The price difference is an advantage for dropshippers.
However, the way the dropshipping business is with a reseller is very different. This business model makes the dropshipper doesn’t need to provide a place to accommodate the items purchased by customers. The dropshipper also doesn’t need to send these items one by one to the buyer’s address.
The dropshipping business model requires product suppliers to send products to buyers on behalf of the dropshipper. It is as if the dropshipper is the first seller of the product. In fact, the dropshipper only promotes products owned by the supplier.
To get to know more about the dropshipping business, in the next section we will discuss the advantages and benefits of this rising business model.
Dropshipping Business Benefits
Lots of lures to start dropshipping. But before you believe it outright, you need to understand what kind of business you get from this kind of business. Here is the explanation.
1. Without capital
You don’t need big capital to start dropshipping. At least you only need an internet connection. You do not need to restock merchandise. No need to rent a warehouse. No need to make packaging and calculate shipping costs. If you have this, you can say that the dropshipping business is without capital.
Instead of money, the things you really need are a matter of desire to learn and attitude. Business models that involve technology such as dropshipping, of course, have a technical side that needs to be studied. Starting from scraping data to promoting products to customers.
Besides that, attitude is equally important. As a dropshipper, you must respond to all questions from potential buyers. Some of them definitely test patience. So, a professional, agile, and patient attitude are also important assets.
Related : How to Start a Business Without Money
Compared to other business models or office jobs, dropshipping is a much more flexible practice. No need to make up before meeting potential buyers. There are no other conventional business practices. As long as there is an internet connection, your business will run.
You can even run a business without leaving the house. You can divide your time while cleaning the house, taking care of the kids, running the grocery store, or even on vacation. Because of the flexibility it offers, anyone can start a dropshipping business. Starting from housewives, employees, to students.
3. Large Selection of Products
The dropshipping business offers a wide selection of items to sell. Starting from beauty products, gadgets, clothing, household necessities, shoes, and many others. You could say that you can dropship anything that is sold on the internet.
You don’t have to worry about having too many rivals. Usually, dropshippers only explore one or two product segments. Because if there are too many, dropship will not be very effective. Dropshippers are often overwhelmed by the wide variety of products on offer. In addition, the reputation of the dropshipper’s shop is not good enough.
Imagine when you intended to buy products at an online store. You intend to buy a well-known brand of skincare products. Before long, you find the product you are looking for in a shop that also sells bedding and children’s clothing. Are you interested in buying the targeted product at the store?
Therefore, it is important to choose products that match your target market. Just select one or a maximum of two types of products. Also, if you choose two types of products, make sure they are related. For example, skincare products with cosmetics, gadgets with accessories, or sports shoes with sports bags.
7 Most Profitable Dropshipping Business Ideas
When you want to start dropshipping, choosing one focus is a bit difficult. But that shouldn’t be a problem. Here are dropshipping business ideas and a few considerations why you need to choose one of them.
1. Cosmetics and Skincare
The cosmetic and skincare market seems endless. Many women are willing to invest their money to look beautiful with cosmetics and skincare. A large number of new products and new beauty trends have helped make these kinds of products never lose interest.
If you are indeed close to the young adult female market segment to adulthood, it’s good to choose to make this a dropshipping business. Your ability to search for genuine products and predict future beauty trends will be of great use to businesses.
If you are a woman, this dropshipping business ideas is perfect for you to try.
2. Healthy Food
A healthy lifestyle is usually popular among young families to the elderly. As their metabolism weakens, they consciously choose healthy products to consume.
Not infrequently, health products have a higher price. But, you don’t need to worry. The prospect’s status as a young family or parent means they have more purchasing power than other segments. Therefore, you can freely target potential customers and reap more profits.
if you are a culinary enthusiast, this dropshipping business ideas is perfect for you to try.
3. Clothing and Accessories
Clothing, watches, bags, and other accessories are other strategic business ideas. However, it’s so broad that you need to target specific potential customers. For example, you will only sell clothes and accessories to female targets aged 30-40 years. Alternatively, you may decide to only sell children’s clothing.
Which target customer you want is up to you. But if you can give advice, it’s better to adjust it with yourself. If you are young, try selling things to “friends” your age. If you are an employee, try selling products that suitable for you. This way of thinking will make it easier for you to predict trends and understand the psychology of potential buyers.
if you are a fashion style lover, this dropshipping business ideas is perfect for you to try.
4. Gadget Accessories
Gadget accessories are strategic dropshipping business ideas. Because of their specific uses and certain materials, many people choose to buy accessories online rather than in stores.
For this one business idea, you need to be smart in finding attractive products. In addition, it is also important to ensure that there is a clear mechanism for returning goods. Because products such as earphones, mice, or flash drives are prone to damage.
5. Household Equipment
Household items such as beautiful dishes, home decorations, cooking utensils are also not spared from the potential for dropshipping. Because usually, products like this are mass produced, you need to be careful to find suppliers who offer low prices.
Because people usually don’t really care about brands, you can run a dropshipping business without spending a lot of energy on branding. This is very different from the clothing and beauty business.
6. Baby Products
Don’t get me wrong, baby products may sound trivial, but consumer demand for these products never stops. In 2017, the value of this product’s turnover reached billions of dollars and is estimated to continue to increase every year.
Another type of product that could be an opportunity for your dropshipping business is furniture. In 2017, the online furniture business accounted for around 16.9 percent of e-commerce transactions. Pretty high, right?
How to Start a Trusted Dropship Business
After determining what type of dropshipping business you want to be in, now is the time for you to learn how to start building a trusted dropshipping business. There are at least five steps you can follow. Check out the details below!
1. Conduct a Survey to Suppliers
As previously explained. Choosing a supplier for a dropshipping business is an easy task. Again, you need accuracy and patience to conduct surveys and determine the right supplier.
This section will help you determine the right supplier for the online business you start. So that determining a supplier is no longer an easy, complicated matter.
Before you choose a supplier, there are a number of things that need to be confirmed first. Here are some things we listed.
- Ensure the authenticity, quality, variety, and price of the products sold by the supplier. You need to know in detail because later you will also “sell” it to the buyer.
- If there is, make sure of taxes, insurance fees, and other administrative costs. You need to calculate these costs carefully. On the one hand, you will make it easier for buyers to display the real price. On the other hand, you will benefit from being able to target profits precisely.
- Find out what the payment options are. Does the supplier only use one bank account or several accounts? Then, does the supplier also cooperate with other payment merchants.
- Also make sure the courier service used by the supplier. The courier services used also affect your business reputation. With fast delivery and good conditions, of course the customer will be more satisfied.
- Does the supplier have rules about returning goods? This needs to be ensured to anticipate buyers who are not satisfied with the goods or supplier errors in shipping goods.
- Ask if the shipping packaging can be customized. If so, you can include a thank you card or other information about your business.
- Do suppliers display their stock in real-time? If so, of course it will be easier for you to run a dropshipping business. However, if you don’t, you might be a little bothered. Especially when the buyer has already made a payment, even though the stock of the desired item is empty.
- Most importantly, find out the reputation of the supplier you are targeting. Pay attention to the store’s rating and existing reviews if it is on the marketplace network. If so, look for social media too. Usually, customers will complain or leave testimonials on these social media accounts.
If the answers to the things above are positive enough, you should not rush into choosing one supplier. You still need to take one final step: conduct a trial purchase from a supplier.
Only then, you can be absolutely sure of the quality of goods and services that the suppliers offer. It doesn’t matter if you really need more time to do surveys. Because when you can find the right supplier, your business can run smoothly, right?
2. Determine the Marketplace
To become a dropshipper, the easiest way is to sell through an online marketplace. The online marketplace already has a clear customer base. In addition, various promos that exist every month can help customers find your business.
You can choose one of the many marketplaces in Indonesia. However, several marketplaces that display clear information about dropshipping are amazon.com, Alibaba.com, and others.
Whichever marketplace you choose, it doesn’t matter. Because the dropshipping system is usually not much different from one marketplace. Instead, about dropshipping, you need to decide which marketplace to use according to your potential and market segment.
3. Create a Brand and Do a Promotion
A brand is your investment in getting customers. With a professional and convincing appearance, of course the reputation will increase. In the long run, you can reap more benefits. Moreover, if you succeed in filling in the shortcomings that other competitors have.
To understand the main principles of creating a brand and running an online business.
4. Use Supporting Applications
Online business involves a lot of technical things to do. In the case of dropshipping, this means entering data about merchandise into the marketplace. Imagine when you intended to sell dozens of items. Entering the data one by one and uploading the photos, of course, it is tiring work.
Fortunately, there are several developers who offer solutions to this problem. Using certain software, you can upload tens or even hundreds of product info with just a few clicks.
Dropshipping Business Challenges
Like all types of businesses, the dropshipping business cannot be separated from challenges. In order for you to better know what to expect when dropshipping, here we explain the challenges that novice dropshippers often face.
1. Choosing a Supplier
You can easily select items to sell by dropship. But choosing the right supplier is another matter.
Choosing a supplier is an easy matter. It is quite difficult because you need to be careful. Because suppliers send products directly to buyers, dropshippers find it difficult to monitor product quality. It is important to partner with reliable suppliers. It cannot be denied, the possibility of fraud could occur.
However, you could say that choosing a supplier is an easy matter. Seeing the large number of supplier choices for selling online, let’s say you always have the option and opportunity to choose the best supplier.
2. Limited profits
Generally, dropshippers don’t dare to make much profit from their business. Even though the supplier has provided low prices, of course the price difference is too far to be detrimental. Dropshippers run the risk of losing potential customers because there are many choices of sellers at lower prices.
If so, the most likely thing to do is to catch up on the number of sales. The dropshipper needs to make sure he can sell as many items as possible. Thus, profits can be maximized.
3. Build a reputation
Trust is the currency of business. Before you can make money from an online business, you need to have a good reputation. That way, more potential customers will buy through you.
However, building an online reputation is not an easy matter. You need to continue to promote on social media and marketplaces. The goods that are being sold need to be continuously curated, updated, and promoted again. You also need to increase the follower of your online store and get good reviews.
Luckily with the right strategy, you can do it yourself. We will also present tips and tricks for increasing your business reputation to become a trusted dropshipping business in this article.
Are You Ready to Start Your Dropshipping Business?
The dropshipping business ideas allows anyone to start their own business. It turns out, starting a business without capital is real, huh! So what are you waiting for? Come on, start your business right now.
Hopefully, this article helps you to be ready and steady in setting your foot into the world of dropshipping. Keep trying and good luck!