How to start an online store without an inventory
Overview
We all know how online marketing & online shopping has taken business by storm. More people are paying attention to eCommerce rather than establishing a physical store. and Countless people have been using e-commerce for the advancement of their business.
Statistics shows how popular it has become through the years, from $1.3 trillion in 2014 to $4.5 trillion in 2021. So it seems to be a business full of opportunity. The frustrating thing at hand could be: not having your own products/items to sell on your online store.
If you searched for “how to start an online store without an inventory” and you landed here, Then you are in the right place, and at the right time.
This business is still in the growing stage, and it has plenty of room for new comers. You can get a good flow of income with a little dedication of time, and your success depends mostly on your efforts.
We will cover all your questions and confusions in this article, please read it precisely, and apply if you liked it. ‘DropShipping’ is the main method that we will be discussing in this article.
eCommerce has been available for a long enough time, and a lot of people have been using this method for their businesses, but believe me most of people still don’t know how to start an online store without an inventory.
Setting up Your Online Store:
Dropshipping works in a simple and interesting way, you will need several tools to get started and all of them will be discussed in separate sections.
But First of all, you will need to set up your online store by using any e-commerce platforms or online store builders.
The online store builders will let you setup your online store even with no eCommerce or webdesign knowledge. They will automatically design and publish your online store, all you have to do is, just listing products and start selling online.
According to reviews and ratings the most recommended Online Store Builders are BigCommerce, Shopify, 3Dcart and, Pinnacle cart.
You can try these online store builders without needing to pay for trial period all of them comes up with 14 days of trial period without asking for any kind of payments.
I personally rate online store builders by the following order:
Click on the images below to get started with them.
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These softwares come with extra features and beneficial services. If you have ever looked into the e-commerce world, you would know how amazing and beneficial these platforms are.
E-commerce has provided many businesses the opportunity to shine.
If you still don’t know how to get online, I suggest reading How to Create an Online Store From Scratch.
How to Dropship:
Dropshipping comes into action after you avail your e-commerce platform.
You don’t need to have physical nor digital products to start your Dropshipping business. You will get a supplier for your store who will supply you with the products set up for selling on your store.
There are suppliers available for in fields and interests. If you wish to start a business in any particular topic then you can start it easily.
If you search for drop ship suppliers you will find a great list of suppliers. But the main point is not getting scammed!
There are hundreds or even thousands of dropship suppliers online. Most of them are third parties and other parties which are not first hand suppliers.
The main thing in this business is to find First Hand Suppliers, and without finding them you will not succeed with dropshipping business.
Choosing a dropshipper:
This is an important element in dropshipping. You need to be quick in judging which drop shipper is essential for your business. Do not start a business with a supplier that would increase problems for you.
Dropshipping is for making your business as simple as possible.
Don’t over complicate it by choosing a bad supplier.
Look after the way they deal with returned products.
Complaints about flawed products need solving from the supplier. They look into the products and tend to fix the problem for you but some don’t.
Be sure to look out for those ones because they will be a bother for your business. You would be the one dealing with the defected products.
Their customer support and response is important as well. Know how supportive or understanding you and your supplier are. You wouldn’t want to work with someone that you don’t have an understanding with.
Choose a suitable dropshipper for you business.
Finding a proper dropshipper:
Look out for dropshipping directories and beware of scammers, I suggest starting a business with Top Rated DropShip Directories, Because they won’t scam you for the sake of their brand and competition.
They can help you in having an approach to various dropshippers.
Pick out the ones that are authentic and offer qualifying skills.
Put your niche and expertise first and contact dropshippers that are worthy of your time.
As per our research, we found the following directories with lots of positive reviews and top ratings.
Here are some of the Top Rated Drop Ship Suppliers:
With the help of these online store builders, and dropshippers you can work towards a happy earning.
The Process:
Once you get an order by one of your customers, you will then send the details to your supplier
They will take care of the order and ship it to the customer (only for physical Products); you will earn a super easy cash By just marketing and sending details, and this chain will continue.
This is how you make cash while having a completely empty inventory!
You need to have the gift of marketing and you will have all sorts of customers swarming at your store.
The amazing thing about this whole process is that you don’t get to suffer from a loss. As you haven’t invested anything, the money that you earn isn’t going to be in the category of profit or loss. You can conduct your business without having to worry about any loss.
If you try harder and get more sales then you’d earn a great amount of money.
Your profit margin depends upon the variety of your products. Be sure to choose an e-commerce software with many payment options like Pinnacle Cart or BigCommerce.
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Tips to help grow any online store:
The disadvantages of drop shipping:
As much as drop shipping can be interesting, it still has its own sets of pros and cons. Getting started is easy as typing already given words. You need to find your suitable niche and start earning. No need to worry about your location or on manufacturing products yourself.
You get provided with everything and your only duty is to sell.
The ultimate dream of any first-starter! But there are still some issues that need to thought of.
Earning:
Earning good amount of money with dropshipping can be quite difficult.
Everyone that invests is a beginner with low marketing skills and starting from nothing.
They have to bear with earning small amounts for the early days.
You need to be well-informed in your niche; only then would you be able to make heaps of cash with this method.
Shipping:
There are issues of the shipping costs as well. The shipping cost will be different for different suppliers. It makes the process a bit difficult and expensive.
The ideal situation would be to keep fewer suppliers for your store if you are on a small stage.
Dealing with customers head-on needs patience and stamina anyway.
Competition:
Dropshipping is global and easy. Tons of people will start working with suppliers and furthering their cash and business.
The amount of competition and struggle that you will face can be high.
More people are going to be using the exact same niche as you.
How will you tackle that? How do you ensure that your business is the absolute best for the customer?
By working in the world of dropshipping, you will get to realize why marketing can be such a beneficial tool.
You will need to find low competition niches, to get higher profit. I suggest reading this book in order to be a successful dropshipper.
SaleHoo is a dropship supplier that can help you overcome most of these problems, they also have a tool called SaleHoo Labs, and it will help you find less competitive products with high demand on the market.
Read SaleHoo Review, before investing with them.
Responsibility:
It can be frustrating but you can be seen accountable for any issues in the products. Even if the issue is due to the supplier.
Most of the time it is your duty to handle or tackle angry and dis-satisfactory customers. It can be quite a negative experience for first-timers and beginners.
Ways to improve:
Marketing and displaying your products to the customers is a big yes, so you should focus more on promotions.
Your main goal is to make your store successful, so try to sell items for an affordable price, the products aren’t yours so there isn’t much to lose.
Try giving bonuses and discounts, and by doing this you will persuade people to share your online store with friends and families.
Challenge your competitors by completely understanding the ins and outs of your niche. Try visiting their stores as a customer and see how they behave you. see how they structure their stores and how they make you decide upon buying from them.
Research as much as you can to come up with strategies and better concepts. Read comments on websites with huge sales and a large number of followers.
It helps you understand the opinions/mindsets of the customers.
You get to know the reason for their store being attracting; what do they offer to have such a large impressions.
Conclusion:
It is clear that drop shipping definitely exists for a positive purpose.
But, there are some negative points about it that we need to understand.
Running business without first-hand knowledge on product development is possible now.
It saves you both time and money.
You get to work through your house or any location you feel comfortable.
Make sure to:
- Promote your products
- Study the marketing concepts that can get you a good amount of customers
- Choose the right supplier
- Look out for competition by researching your niche.
The process of how to start an online store without an inventory is simple if you try to understand it.
With the help of some e-commerce softwares you can start a business in your favorable niche.
If you have any queries or relative thoughts on this concept then drop a comment below to inform.