What is Dropshipping?
Dropshipping is a business model where the seller doesn’t need to own physical products to sell them. Since you don’t need to keep inventory or have a warehouse, the initial investment is very low.
Let’s cover how dropshipping works, from store setup to shipment:
1. Find the product – decide what you will be trying to sell, and find a supplier.
2. Create an online store – build an online store and tweak it to be as attractive as possible. Research and add must-have features.
3. Fill the store – import the products to the store and start promoting it.
4. Receive an order – once you’re up and running, wait for an order and payment to come in.
5. Issue order to the supplier – make the payment to the supplier and have them ship the product to the customer
6. Notify the customer – after the supplier ships the product, notify the customer about the shipment. Make sure they’re informed about the estimated shipping date and have a tracking number if one is provided.
Right now you might be wondering, how do dropshippers profit in this scenario? You have to apply a markup on the price of the product. That’s why it is important to make sure you have a good supplier that offers a competitive price on products. If the supplier is expensive, and you’ll have to apply a larger markup to make a profit, selling might be incredibly hard.
This business model is especially attractive to beginner entrepreneurs. Apart from the low starting cost, it provides flexibility in choosing what products you want to sell. You just have to focus on maintaining your store and finding a reliable supplier.
In many cases, dropshippers also sell white-label products – premade products that you can legally brand under your company or site.
How to Create a Dropshipping Website With WordPress?
Now that you are familiar with the business model, we can get into the steps of creating a dropshipping website with WordPress:
1. Find Your Niche
It is essential to find your niche first. This decision will influence many of the decisions later down the line.
When picking your niche, you need to understand the problems your target audience has and then, find out what products can solve them, or meet their needs. Keep in mind that there is a limited range of products, so standing out of the crowd can be difficult. So how do you do it?
After identifying the problem, you have to discover which side of the problem remains unsolved. In short, you need to find the unfulfilled niche and seize it.
Let’s say you’re targetting cat owners. How about cat-related fashion products? That is exactly what Meowingtons offered.
Their products range from cat-themed apparel to cat costumes. By focusing on this niche, they have successfully gained the interest of the cat-lover community. They applied unique branding, a comprehensive list of products, and great user experience to achieve success.