Lots of people are looking for a side hustle these days to help them pay the bills or just bring in a little extra cash every month. But with so much interest in earning extra money, most of the more popular avenues are heavily saturated. If you want to break into a business that has high earning potential and less competition than trades like blogging or affiliate marketing, consider dropshipping!
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What Is Dropshipping?
Dropshipping makes you the middleman in eCommerce interactions. You sell goods directly from manufacturers on your website. When someone purchases an item, you simply tell the manufacturer where to ship it and they send it straight from their warehouse.
This business model is great for extra income because it has low startup costs, you don’t have to manage an inventory and you don’t have to integrate Shipping API or shipping costs into your business expenses.
Let’s look at the steps you need to take to start your dropshipping UK business.
Choose Your Concept
The first step to creating a dropshipping business is determining your products and your target audience. Think through some of your favorite items or industries you’re passionate about. Do some research about dropshipping items to find what brings the highest profit margin, and try to find one that fits both your passion and your business goals.
Some common items sold with dropshipping include:
- Clothes
- Shoes
- Kitchen and dining items
- Pet supplies
- Office tools
- Phone Accessories
Source Products
Once you’ve decided what to sell, you have to source the products to list on your website. This means finding distributors or wholesalers who need sales outlets for their products. Depending on your products, some popular suppliers include:
- AliExpress
- SaleHoo
- WorldWide Brands
- Wholesale Central
Many of these suppliers also offer information about the popularity and anticipated profit margins of their products. This can help you select items that will support your profit margins.
Build an Online Store
The next step is to set up your online store. This is the website customers will discover and navigate to find the products they want and purchase from you. There are plenty of different web builder platforms that can help you make a stunning website, but you want to ensure you choose one that has eCommerce capabilities.
You need a website that integrates carts, a checkout interface and allows payments all through your website. Plus, you need to offer extra security so people feel safe giving you their card information. Platforms like Shopify and Squarespace are both good options for setting up your online store.
Legally Register the Business
This is a step some people forget about. It’s important to register your business with your city and state so that you can separate your personal assets from business assets. There are a few types of business structures, but the best for this situation is to set up an LLC.
A limited liability company (LLC) separates your personal and business assets and puts a limit on what someone can take from you in a lawsuit. It offers the most protection for small businesses of all kinds.
Start Marketing
The last step is to get the word out! Start marketing your business to family and friends, as well as on social platforms or through ads. You need to attract customers to your site so they can start purchasing from you.
As you bring people to your site, be sure to collect testimonials with every purchase. These provide powerful social proof to new visitors and can help you better market your services. You can gather testimonials after checkout or send an email follow-up post-purchase to invite people to give feedback.
Starting a dropshipping business is an easy way to make extra income. All you have to do is pick your product and audience, find a supplier, set up your website, register your business and market your store to the world. Next stop: passive income!
