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Drop shipping business

by Santr123
15 replies
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I want to start a drop shipping business but I am getting very nervous.

Two niches which I am looking at are women's clothing and canvas wall art.

So keep my costs low to begin with here is my plan.

1. Get a domain name
2. Get hosting from hostgator
3. Install free wordpress wootique theme and woocommerce plugin...
4. Build my simple ecommerce website. (Saw a youtube video how to do it)

Meanwhile contact whole salers in my niche.

5. Get CSV files from them and figure out how to load their products list on my simple website.
6. Start blogging. Write blog posts about fashion, shoes, styles and SEO my site.
7. Build traffic.
8. Boost traffic by PPC advertising
9. Hopefully start making sales and become a successful entrepreneur!!



Does this sound like a viable plan? Am I missing something?

My biggest concern is "how to handle returns". Will the customer return item to wholesaler or to me? Makes me nervous about this aspect...I am really wanting to start doing this all to learn stuff but I am nervous.
Even if I fail, I know I would have learnt a lot, but I am scared to deal with any mad customers.

Is there anyone who has done this before and been successful

Please advise
#business #drop #shipping
  • Profile picture of the author OnlineStoreHelp
    Originally Posted by Santr123 View Post

    I want to start a drop shipping business but I am getting very nervous.

    Two niches which I am looking at are women's clothing and canvas wall art.

    So keep my costs low to begin with here is my plan.

    1. Get a domain name
    2. Get hosting from hostgator
    3. Install free wordpress wootique theme and woocommerce plugin...
    4. Build my simple ecommerce website. (Saw a youtube video how to do it)

    Meanwhile contact whole salers in my niche.

    5. Get CSV files from them and figure out how to load their products list on my simple website.
    6. Start blogging. Write blog posts about fashion, shoes, styles and SEO my site.
    7. Build traffic.
    8. Boost traffic by PPC advertising
    9. Hopefully start making sales and become a successful entrepreneur!!



    Does this sound like a viable plan? Am I missing something?

    My biggest concern is "how to handle returns". Will the customer return item to wholesaler or to me? Makes me nervous about this aspect...I am really wanting to start doing this all to learn stuff but I am nervous.
    Even if I fail, I know I would have learnt a lot, but I am scared to deal with any mad customers.

    Is there anyone who has done this before and been successful

    Please advise
    I would do is slightly different.

    1. Get your reseller certificate - you will need it for wholesalers to do business with you
    2. get a domain name
    3. get hosted from a good host like veerotech - forget hostgator
    3. Install opencart or prestashop
    4. sign up for stripe - need to take payment
    5. get dedicated IP address
    6. Get SSL certificate and install on domain
    (or skip 2 through 6 and just start with shopify or bigcommerce)

    7. Reach out to suppliers and find out their return policy, restocking fees, average shipping cost, preferred shipping method, turn around time, etc. (each wholesaler has different rules)
    8. Sign up for retail tower and get my items listed in shopping comparison engines
    9. build my facebook and pinterest traffic
    10. analyze my sales and start buying certain items wholesale to make more money instead of dropshipping.
    10. quit your job
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    • Profile picture of the author darbok
      If you want to save money starting out, most shopping carts will be paypal compatible so you dont need an external processor and the dedicated IP address isnt needed right away or at all. the ssl cert is a good thing to have but it is costly depending on who you use.

      you will need a business liscense and an EIN number for most wholesalers but someone take one or the other or both, if you use a service like doba which I wouldnt suggest because they charge, you may not need any of that.
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      • Profile picture of the author Santr123
        Thanks for your reply.

        I will get a SSL certificate when I open E commerce site.
        What is the problem with Hostgator? I have used them before and Like them.

        I will start by only accepting payments with Paypal though .

        <<7. Reach out to suppliers and find out their return policy, restocking fees, average shipping cost, preferred shipping method, turn around time, etc. (each wholesaler has different rules)>>

        I have already done that. Found a clothing wholesaler in China and really like their prices. I have even ordered something for myself just to test them out. Just want to ask about returns and how it will be handled. Their policy is 7 day return and customer must pay for the returns.

        Here is what I found about SSL certificates. So I will need a private SSL certificate, I guess.

        What is the difference between shared SSL and private SSL? « HostGator.com Support Portal


        I am in touch with a company in China for clothes. They have huge selections. So far they have not asked for any Business number or so. Is this a red flag??
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    • Profile picture of the author kpmedia
      Originally Posted by OnlineStoreHelp View Post

      3. get hosted from a good host like veerotech - forget hostgator
      Indeed! Good advice.
      And get the domain from Namecheap -- not Godaddy!

      3. Install opencart or prestashop
      Or Magento.

      5. get dedicated IP address
      6. Get SSL certificate and install on domain
      (or skip 2 through 6 and just start with shopify or bigcommerce)
      To clarify, the dedicated IP is only need for self-hosted SSL ecommerce -- not third party stores.

      9. build my facebook and pinterest traffic
      Depends on what the item is. Social media may be wasted time, depending on the item audience. Using social media is not automatically needed.

      10. quit your job
      But ONLY if the income is long-term stable, and not just a fad. And quite often, it is.
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  • Profile picture of the author Joe Stewart
    Personally, I'd stay away from anything that has sizes like clothes and shoes. Selling things like that without the customer having the ability to try them on first is just asking for trouble.

    Of course, there are companies that do well with this. Zappos sells a lot of shoes and will even pay return shipping if the customer needs to exchange or return an item.

    I like to sell products to businesses. Here's why:

    1. The customer already knows what the item is, so there's little or nothing to explain.

    2. They almost always have money set aside for purchasing supplies and equipment.

    3. Once you've built a relationship with them you can sell them over and over again. I have customers that I've done business with for many years.

    4. They're accustomed to paying reasonable shipping costs. This can be a deal killer in some markets.

    I could go on and on, but I've been planning for months now to put a report together and don't want to give away everything in a forum post.

    I will say this, I don't think that an ecommerce store is the best way to do business. You're just another face in the "price comparison" crowd.

    I DO recommend having one eventually, but it's NOT necessary in order to start doing business and making money. With the exception of a 5 year break during the recession, I've been drop shipping products since 1993 and I've NEVER owned an ecommerce site.

    There are other ways to reach customers that are faster, low risk, cost almost nothing and can generate profit almost immediately.

    Just sayin'. :-)
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    • Profile picture of the author Santr123
      Originally Posted by Joe Stewart View Post

      Personally, I'd stay away from anything that has sizes like clothes and shoes. Selling things like that without the customer having the ability to try them on first is just asking for trouble.

      Of course, there are companies that do well with this. Zappos sells a lot of shoes and will even pay return shipping if the customer needs to exchange or return an item.

      I like to sell products to businesses. Here's why:

      1. The customer already knows what the item is, so there's little or nothing to explain.

      2. They almost always have money set aside for purchasing supplies and equipment.

      3. Once you've built a relationship with them you can sell them over and over again. I have customers that I've done business with for many years.

      4. They're accustomed to paying reasonable shipping costs. This can be a deal killer in some markets.

      I could go on and on, but I've been planning for months now to put a report together and don't want to give away everything in a forum post.

      I will say this, I don't think that an ecommerce store is the best way to do business. You're just another face in the "price comparison" crowd.

      I DO recommend having one eventually, but it's NOT necessary in order to start doing business and making money. With the exception of a 5 year break during the recession, I've been drop shipping products since 1993 and I've NEVER owned an ecommerce site.

      There are other ways to reach customers that are faster, low risk, cost almost nothing and can generate profit almost immediately.

      Just sayin'. :-)
      <<Personally, I'd stay away from anything that has sizes like clothes and shoes. Selling things like that without the customer having the ability to try them on first is just asking for trouble.>>

      Thats exactly whats making me nervous. But nowadays ppl are buying lots of stuff online. This wholesaler in China has huge supply of women clothing and accessories at cheap prices. I was planning to jack up their prices and provide free shipping to customers ( for orders over say $50)

      These dresses are really pretty. Only risk is how to handle returns. Other option is to have a no return policy. Then I might not get customers (.... This manufacturer in CHina has a huge fan base in FB also. People will have to ship the item to China for returns and pay shipping.
      Thats whats giving me jitters..

      My job would be to market their products through my fashion blog and present it better. I might also say shipping only to USA and Canada....

      <<I will say this, I don't think that an ecommerce store is the best way to do business. You're just another face in the "price comparison" crowd.>>

      Can you tell me the best way to do business?? if Ecommerce is not the answer.

      <<I DO recommend having one eventually, but it's NOT necessary in order to start doing business and making money. With the exception of a 5 year break during the recession, I've been drop shipping products since 1993 and I've NEVER owned an ecommerce site.>>

      How do you dropship if you don't have a site? Is it by selling on ebay/amazon etc.


      <<There are other ways to reach customers that are faster, low risk, cost almost nothing and can generate profit almost immediately. >>

      What ways? Can you share?? Can I PM you?
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      • Profile picture of the author ferghayden
        Joe prob means finding a business that would be a repeat customer I would surmise Santr from what he's written.

        Imagine finding a customer that will take scores or hundreds of units off you in one order rather than selling one unit by unit on ecommerce site.

        Finding these businesses means dealing in a market/product/niche that you know about and supplying cheaper to them then they are already getting.

        I am also looking at dropshipping method myself and what your thinking about so if you get any good info please pass it on thannks
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      • Profile picture of the author russ1106
        Don't forget to investigate import taxes. If you are dropshipping directly to your customer then they may get hit at the door to pay import taxes. Your products also can get tied up from time to time at the port so customs can inspect it. Suggestion if you are not doing this is to buy them yourself wholesale, then list them and resell them and ship them yourself.
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    • Profile picture of the author KBeamon
      Joe
      Can you share with me or guide me in the right direction on how to drop ship without ecommerce site to gain immediate profits like to mention in your comment. Im very interested but have no clue how to get started.

      thx
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  • Profile picture of the author amcg
    Some good suggestions above regarding processes, technology etc. I think you raised the most important issue however:

    My biggest concern is "how to handle returns". Will the customer return item to wholesaler or to me? Makes me nervous about this aspect...I am really wanting to start doing this all to learn stuff but I am nervous.
    Even if I fail, I know I would have learnt a lot, but I am scared to deal with any mad customers.
    This killed my drop ship business. I built the website (Shopify), did the deal with the wholesaler (which in itself was a mistake, deal with manufacturers!) and ran marketing. What I didn't anticipate before hand was the drop ship model evolves around managing the supply chain i.e handling returns!

    Returns are critical, they affect your customer service and thereafter, your reputation. This is especially important if you are selling on third party marketplaces. The way to handle returns is to make sure you and your supplier are 100% clear on terms. If you can get them to handle returns for you, great, you don't need to touch inventory. That said, you then risk losing customers direct to the supplier.

    Think about the supply chain seriously before investing in inventory, even if you're not actually warehousing it or are using third party fulfillment.
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    • Profile picture of the author Santr123
      Originally Posted by amcg View Post

      Some good suggestions above regarding processes, technology etc. I think you raised the most important issue however:



      This killed my drop ship business. I built the website (Shopify), did the deal with the wholesaler (which in itself was a mistake, deal with manufacturers!) and ran marketing. What I didn't anticipate before hand was the drop ship model evolves around managing the supply chain i.e handling returns!

      Returns are critical, they affect your customer service and thereafter, your reputation. This is especially important if you are selling on third party marketplaces. The way to handle returns is to make sure you and your supplier are 100% clear on terms. If you can get them to handle returns for you, great, you don't need to touch inventory. That said, you then risk losing customers direct to the supplier.

      Think about the supply chain seriously before investing in inventory, even if you're not actually warehousing it or are using third party fulfillment.

      Thanks for the advice for looking for Manufacturers and NOT Wholesalers. I was so close to starting my fashion blog but already did a lot of reasearch on what blog posts I will write .
      Another option for handling returns could be to ask my customers to send the item to me.:confused:. And suck up the costs or try to resell. That would work if there are few returns.

      How to look for the Manufacturers ?.I would most preferably avoid China as I am finding it very risky
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      • Profile picture of the author Importexport
        Originally Posted by Santr123 View Post

        Thanks for the advice for looking for Manufacturers and NOT Wholesalers. I was so close to starting my fashion blog but already did a lot of reasearch on what blog posts I will write .
        Another option for handling returns could be to ask my customers to send the item to me.:confused:. And suck up the costs or try to resell. That would work if there are few returns.

        How to look for the Manufacturers ?.I would most preferably avoid China as I am finding it very risky
        Hi Santr,

        I teach how to safely source products in small or large quantities direct from the manufacturers in many countries, including China.

        I am finding that more and more of my students are now looking to places other than China, and there is no doubt that it is possible to do very well by buying from places in Europe, other Asian countries beside China, and also in South America among others.

        Buying from China is not risky if you know how to safely source supplies. Almost everyone starts off behind the 8 ball because they start looking on the B2B sites that are always being mentioned on the forum.

        On those sites the vast majority of sellers are traders and wholesalers, even though they claim to be manufacturers. Alibaba themselves admitted that over 2,000 Gold Suppliers have scammed people, so beware. Gold Suppliers only buy that status, they don't earn it.

        You might be interested in the thread How Trustworthy is Alibaba.com?
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        • Profile picture of the author NateYoung
          You have a viable plan but don't forget about eBay, Amazon, and other sales channels. I've been selling products via drop shipping for 10 years. As far as returns each manufacturer has their own policies. Some will allow your customers to return the product to them directly while others will not allow any returns. You can write one return policy to comply with a majority of your suppliers. I have found that most will allow returns. I have not run into any situation where a manufacturer won't take a return.
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  • Profile picture of the author Rappostion
    I think, to resolve the issue about returns, get suppliers with very goo return policies otherwise you're in big trouble!
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  • Profile picture of the author wahm1
    Hi there. I have created a 100% free drop ship directory (has taken 2 years) for people looking for companies that drop ship their products. It is probably the largest free dropship directory online. We will be adding over 1700 more drop shippers to the list over the next 30 days. We already have 1000+ drop ship vendors listed on the site. There isn't a catch at all. No sign ups, no cost. I'm just a mom that has been creating drop ship sites for clients for the last 8 years and want to help people stop getting ripped off by paid directories. Hope this helps someone. DROPSHIPCATALOG.COM By the way I am the only one maintain the website so if you see anything outdated please don't hesitate to use the contact form on the site to let me know. Thanks!
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