Drop shipping is the new go-to business. This is due to several factors, such as the proliferation of technology. Customers are shifting from the typical brick and mortar shops to online shops.
Many online shops prefer having a drop shipping business due to the possibility of initiating it with a low budget and what we know as bootstrapping.
In a nutshell, drop shipping consists of having an online store that showcases a supplier who ships the customer’s purchased product. Therefore, the online store doesn’t need to have an inventory for the products.
This article will provide an overview of five necessary steps that make your dropshipping business successful.
- Having an e-commerce website
One of the main must-haves in an online business is having a website where you showcase your products with their prices. Having a website is of the essence to increase your market reach.
From a lawyer’s standpoint, it is essential to have a set of agreements prepared and integrated into the website, and these agreements are as follows:
A privacy policy must agree that all laws around the world demand its presence to be law compliant.
Terms of use or terms and conditions: The main objective is to limit the store’s liability and legal disputes.
A good return policy, and here it is important to mention that having a detailed return policy affects the customer’s choice. His decision will be positively impacted by choosing to return the product.
It is important to add that these agreements are essential to be set and aligned with the law. From a customer’s perspective, it provides him with the assurance that the store has set out all the rules that govern their relationship. Nothing is vague.
Sometimes not complying with a simple requirement such as having a privacy policy can lead to a business’ bankruptcy from a specific malfunction or error.
So basically, keep in mind that it is always better to be safe than sorry!
- Incorporating a business entity that limits your liability.
Whenever you decide to start a business, it is essential to consider incorporating a business structure to ensure your liability limitation to avoid any bad results. This way, in the worst scenario, you will lose your business without having to lose any penny from your assets.
Since dropshipping is somewhat a small business, an LLC is the best fit for any person considering incorporating a dropshipping business.
- Choosing a tax-friendly jurisdiction
When starting a business, it is very important to exclude any unnecessary expenses. And sometimes taxes are considered as expenses that can be avoided legally, of course.
For example, suppose you are a foreigner, and you incorporate your LLC in the US while complying with few demands. In that case, you won’t have to pay any tax on behalf of your business.
- Secure a supplier
This is a core element since the supplier is the one supplying your store with products and the one responsible for the shipping. It is crucial to secure a supplier with broad experience in the business and charge reasonable fees since the lower, the better. People will always try to find the best products at the lowest prices. Besides, it is essential to provide fast shipping. We all make fun of the fact that we would be waiting by the door when we order online. Still, it is true. It is important to ensure that your customer will get his purchased product at the soonest.
- Good marketing and advertising
Marketing is the key!
With good marketing, you can reach the broadest customer platform available. Besides, we all know that the key to a customer’s mind is persuasion. Having advertising skills that can advertise your products to persuade a customer that he needs the product you are selling is a stunning effect.
With good communication skills and advertising, you can sell almost anything!
