There is no need to doubt that eCommerce has opened the door to many golden opportunities to make money, not only for big enterprises but for small and independent businesses as well. In recent years, the unprecedented development of dropshipping businesses has encouraged many aspiring business owners to start their own eCommerce store. For Magento store owners, the dropshipping business can be challenging sometimes. In this article, we will discuss a detailed guide on how to set up Magento dropshipping business.
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Magento dropshipping is an eCommerce business model that doesn’t require you to keep any inventory. In this model, customers order products from your store and items then will be packed and shipped from third-party vendors directly to your customers. In this way, dropshipping business owners don’t need to handle packaging, shipping, and most importantly, the product inventory.
Unlike the traditional business model in which you store inventory at your store and ship products to customers directly from your warehouse, Magento dropshipping business only need to market products to customers. Once any orders are made, a third-party fulfillment supplier will take care of the rest for you.
The process of running a business with Magento dropshipping can be described in 3 steps:
One intriguing advantage of Magento dropshipping model that attracts many small businesses is that third-party providers or vendors are totally invisible. Customers will still receive their orders under your brand, and they would believe that they receive their items from you directly
Magento Dropshipping business presents many outstanding benefits for Magento merchants:
Though there are many benefits, Magento dropshipping business still has some drawbacks that you should think about:
The very first step to set up your Magento dropshipping business is to decide on what you want to sell. As mentioned above, there are various business niches you can choose to run your eCommerce dropshipping, but it’s better that you decide on the on-trend products and keep up with the latest trends.
There are many tools that can help you with that, such as Ubersuggest Keyword Tool, Google Keyword Planner, or Google Trends. These tools help you discover everything customers are looking for and what items are in great demand.
Keep in mind that there are many other competitors who are running the same business as you. So make sure that you do research to see how your competitors are running their business. There are many business ideas that sound good but will not bring you lots of sales or their profit margin is too low.
Besides, what you know from your competitors may reveal what you need to improve in order to compete with them in this fierce competition. You might need to build your own marketing strategy to attract customer attention.
The third step you need to do is to find and decide on reliable dropship suppliers. For each product niche, there might be many available suppliers with different services, prices and shipping conditions. So you need to analyze carefully what suppliers can offer you because their product quality, delivery time and policies can hugely affect your Magento dropshipping business.
At this stage, you already have in mind what you want to sell, and which supplier you can trust. Now you have to build a Magento store where you offer customers various products and items. Your eCommerce website needs to operate smoothly with full functionality to help customers enjoy their shopping experience.
If you are considering building your own Magento dropship website, you can always contact LandOfCoder. We can deliver the best web quality at a reasonable price based on your business size and needs. We tailor everything to make your website suitable for your business ideas, so don’t hesitate to contact us.
Now you have everything in your hand, the only job left is to advertise your store and attract customers. In order to receive orders and scale up, it’s always essential to build up a detailed marketing strategy. At this stage, you might have to use a variety of marketing tools such as SEO, Google and Facebook Ads, influencer marketing, etc. Using your marketing channels in a strategic way along with the development of your business will help you to grow up your Magento dropshipping business faster.
If you just start your Magento dropship business, it’s possible that you manage your orders manually. That means whenever you have an order, you can notice your vendor or place orders through the vendor’s website. This solution is useful if your store receives a few orders a day, and you can test your supplier as well.
If your store is already going big with hundreds or thousands of orders a day, it’s better that you install an extension that allows you to select and process all your orders from one platform. All orders will be automatically sent to third-party vendors, which saves you a lot of time and energy.
Though dropshipping business is getting really competitive recently, Magento store owners can still gain advantages of this business model with a suitable marketing strategy and reliable third-party vendors. We hope that this article can help you learn more about Magento dropshipping business model and decide on the best solution for your business needs.
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