It's a lot faster to start an online business than a brick and mortar business. Still, you have to invest the necessary time into getting things going and profitable. That's why you want to go into business, anyway, to make money, right? It's easy enough to start-up an online store, but what do you sell? That's the crucial detail where many aspiring entrepreneurs get stuck. More and more, Canadians are interested in everything that entails the creation of an online business.
Dropshipping in Canada is one option, if you don't have your own products that you find or make. In this, you establish a professional relationship with a vendor that wholesales products that you'd like to sell. This vendor handles the shipping, sending orders to customers directly instead of you having to do the inventory stocking and product fulfillment on your own.
This can make for a great home business, since you might not have a lot of physical space to put into it, and it also leaves a lot of your busy calendar free.
Four Things You Need In Order To Make Money With Dropshipping
1) Products To Sell: You need to be careful when you look for a dropshipping supplier, given how many unethical players there are looking to scam you. There are two things to look out for when looking for a reputable dropshipper, which you can always investigate and confirm through neutrally sourced or objective reviews online. The first is that a trusted one isn't going to charge you fees just to sell their products, only when they get ordered. Secondly, they'll need documentation or proof that your business is also legitimate.
2) Your Selling Venue: This could be your own website, or an external platform. If it's your own website, then you'll need a domain name, shopping cart software, and web hosting account. Keep in mind that while platforms such as eBay and Amazon are powerful for building your brand, some might restrict their products from being sold through such sites, particularly for auctions.
3) A Payment Method: Paypal is a simple way to start, as you only pay fees if there are actual transactions. Credit card processors have lower fees per transaction, but there are setup and monthly fees better oriented for larger volumes and sales.
4) The Red Tape: What kind of licensing or documentation you need to start your business will vary based on the specific municipality and province that you're located in, but you do need to consult the relevant government authorities to get your business certified.
5 Tips For Running A Dropshipping Home Business
If you've decided to try dropshipping as a home business, then keep reading to learn 5 tips you should use when you start this venture.
1) Confirm The Inventory:
You never want to sell a product a dropshipper offers only to discover they don't have it in stock at the time. This happens a lot in the dropshipping industry. Try to find a partner that uses available stock fields included in their product description so that anyone can see how many of the items are on-hand at the time for immediate delivery.
2) Be Mindful Of Shipping:
Many entrepreneurs that are new to the world of dropshipping totally forget about the costs of shipping and how much it might cut into their profit margin. Be mindful of your shipping charges and make sure that you pass them onto your customer. It might be smart to apply flat-rate shipping charges that might cover most products and deliveries, as it might even provide some profit when more shipping charges get collected but not used.
3) Remember The Dropshipping Charges Too:
Different providers are going to have their own dropshipping rates and fees. Every particular item might have its own dropshipping charge, even if an order is for multiple items. Others still might apply annual or monthly fees. It's crucial to know what fees are associated with every company.
4) Be Wary Of Saturation:
When you pick a supplier, you never want to pick one that is involved in a saturated market. Do you know the principle of supply and demand? It's still true, even in the world of online business. If you're selling the very same thing that hundreds or thousands of other sites are doing, then you're going to need to offer some kind of incentive for people to buy from you. It might be better to find a niche dropshipper who can offer you unique products that are at attractive price points.
5) Avoid Middlemen:
The hardest thing to do might be finding a dropshipper in the first place. There are quite a few middlemen sitting around waiting to sell you lists or direct access to their contacts so they can take a cut of your profits. It's better to find it on your own.
Now that you've read this article, you know what dropshipping is, how it can be awesome as a home business, what you need to get started, and a few tips to use along the way.