Dropshipping has had its good share of popularity in the last few years. It is the first thing that comes to mind whenever someone thinks of making a passive stream online. But a question that pops up as soon the thought of dropshipping enters the mind is that can it be done part-time? Well, this article addresses just that question whilst telling you how it can effectively be done.
Yes, Dropshipping can be done as a part-time business when you are starting out. Rather it is recommendable to only leave your job after you start making some real money off of dropshipping. Until then, doing it part-time is a very viable option to uphold
The no.1 advice you can get
“Don’t be too eager to rush into leaving your job.” This is something that many people do as they tend to become too excited and hasty which leads them to leave their job before even actually having an actual money stream that they can count on. Once you start earning off of your dropshipping setup, you shouldn’t quit your job too early.
Especially, if you don’t have a dropshipping business that is making money, at least the same amount of money as your job, for 5 to 10 months consistently. This means that your passive income is still not big enough for you to fully rely on it. But many of the people don’t give much consideration to this and quit their job in the early stage –adrenaline rush. Which does not always go their way, as dropshipping though being a great business model is not without its share o problems
Dropshipping and the legal system
Dropshipping is legal in all the countries, though the level of support provided to the online businesses might vary depending on different Government policies
However, you do need to be careful whilst selecting suppliers and go through their return policies in and out. As you will be responsible if your customer doesn’t receive satisfactory services/goods. Moreover, you will also be responsible for a refund if that is what’s needed taking the context into consideration. And if you don’t go through with these and your customer feels cheated. He/She may as well decide to sue you which is viable as you are the one responsible for all the services and products being delivered
Do you need a license?
Well, this is a very valid question that many people have. And the answer is “No“, technically speaking, you don’t need a business license to set up a platform and start selling products on it. But, it might still be a good idea if you decide to get licensed as that might help you in paying taxes if you have to and some other related stuff
Do you have to pay taxes for your online businesses? Well, that varies depending on where you live. Different geographical areas might have different sets of laws regarding e-commerce that you have to conform with and abide by. But most of the countries out there don’t really charge you sales tax until unless you operate as a physical entity too. But this is not the case for every online shop, so it probably won’t concern you, but still make sure to giving a look to your local laws regarding e-commerce isn’t a bad idea .
Reviewing dropshipping and answering some questions
How much can you make Dropshipping part-time?
There’s really no limit to it, but it depends on a no pain no gain principle. All you have to do is find a winning campaign and then just simply scale it. Dropshippers who are able to find a winning campaign and successfully scale it, make 5k per month on average, but really successful drop shippers make well over 5 figures.
What is the average drop shipping profit margin?
Dropshipping profits depend considerably on the niche, country, product, and traffic source. I’d suggest you choose a low ticket product which costs between $1-$20 and then usually you are able to cut out a larger profit margin, for example, a product which costs between $1-$20 can then be priced between $30-$50. On the other hand, if you choose a product which costs about $100, firstly fewer people are likely to buy a product with that cost but even if they decide they are going to buy it, they are more likely to research about it and so they might find out about another supplier who is selling at a lower cost.
What You Need to Start a Dropshipping Business
Other than a positive attitude, a good work ethic, and genuine motivation to commit to your new business venture, there are only a few essentials required to start a dropshipping business.
- A product to sell
- A supplier of that product
- A platform to sell on
How to Start a Dropshipping Business in 2020
STEP 1: FINDING A NICHE.
The following steps will help you choose a niche for your dropshipping business.
- Identify your interests and passions. This may be something you’ve already done.
- Identify problems you can solve.
- Research your competition.
- Determine the profitability of your niche.
- Test your idea.
You are only going to successfully promote a product if you have enough information about it and you are passionate about it, else you are going to get bored and are more likely to fail in promoting a product because if you don’t have information, how are you going to convince people to buy it.
Secondly, choose a product and a niche which solves a problem, it can be anything like weight loss, etc. If its emotion-driven you are more likely to make a sale.
Researching about your chosen niche and its profitability is also quite important. You have to look at some common factors like competition and profit margin.
These are the three evergreen Niches: Health, Wealth and Romance. Products in health may include slimming belts and in romance, jewelry really works well.
STEP 2: FINDING A SUPPLIER
For many drop shippers finding a reliable supplier is almost always the hardest part. You rely on suppliers for the product stock, it’s quality and then delivery time, etc. The key points to look in a dropship supplier are as follows, he should actually provide support for drop shippers, secondly, he should have good customer reviews as well as support. Some bonus points would be that he can provide fast shipping as well as quality products.
Where to find reliable dropshipping suppliers
There are essentially two ways to find reliable suppliers.
First is more conventionally used and it requires you to look up wholesale suppliers on AliExpress usually if you hit em up in DMs, they are willing to provide support for dropshipping.
You can also use a wholesale directory, this can save you a lot of time and help you avoid eCommerce fraud. SaleHoo has more than 8000 suppliers that have been vetted and verified. You can contact them in just a couple of clicks and have confidence in their ability to provide good service.
STEP 3: FINDING A PLATFORM TO SELL ON
There are many different platforms that you can utilize to sell your products. You don’t even need a website, you can sell on Social Networks like Facebook and Instagram.
When starting out I’d recommend you choose already established platforms such as Amazon and eBay, the reason is that it doesn’t require any initial capital and many people trust these platforms so you can make a lot of money.
But I’d recommend once you get some cash rolling in, consider creating your own dropshipping store. You have much more flexibility in your own store and you don’t have to pay extra fees. In addition to that, you can take advantage of branding which will help you sell your products at a much higher price.
STEP 4: TRAFFIC
After you have created your store and added products, it’s time to drive traffic. There are many ways to drive traffic but if you don’t know what you’re getting into you can lose a lot of money.
You can get fast results using paid traffic methods such as Google Ads, Facebook Ads, etc.
Free traffic methods include creating your own content and hoping someone buys your product after interacting with your content.
We have another article about dropshipping so give it a click if you are interested “All you need to know about dropshipping“. Hopefully, this article helped you understand dropshipping a bit better. And if you have any further questions feel free to ask them in the comment section below.