What Should Do Before Starting Dropshipping in 2020

Dropshipping is not a new term in 2020. You’ve heard, read about it many years ago.

In 2020, you’re going to start a business with dropshipping. However, you’ve never started a business before or have no idea how much money you should expect to spend on them.

You are not sure why anyone would come to your website instead of other ones.

Dropshipping business

The article is for you when we’re going to cover every fear of worrying questions and insecurity that you have about getting started with dropshipping.

1️⃣ Is Dropshipping a Scam?

This is the first fear that we want to touch on.

First of all, let us explain a process of dropshipping.

Drop-ship is actually just an eCommerce business model and a quick recap of that for you.

In the dropshipping business model, you create a store, import products from suppliers, invest your own money in marketing those products and then sell them to the customers.

When you get orders, you go to the supplier one at a time and place the orders that customers have already placed with you. After that, the supplier ships the product directly to your customers.

Dropshipping model

This is a business model that a lot of other retailers use even big-box retailers like Walmart.

There are various suppliers and sources where you can find them. One of the biggest sources we are going to mention is Aliexpress.

You can get your products from Aliexpress, which is an eCommerce website that other people can shop on.

That’s what leads some people to think that dropshipping is a scam.

Why? 🤔

On Aliexpress, there are lots of suppliers selling the same products with endless shipping options and prices. This causes confusion.

However, drop shippers are not obligated to sell products to customers at the lowest possible price but the product they say.

Therefore, dropshipping is not a scam because you sell what you offer based on your supplier’s description. So try to state the information as clear as possible.

2️⃣ Is Dropshipping a Get Rich Quick Scheme?

We’ve tried to portray dropshipping as something anyone can succeed in as long as they work hard and persevere in the face of setbacks.

In fact, we don’t believe that you can make a certain amount of money in a short time.

We encountered many differences and even failed. Then we learnt and developed our courage to know how to do things right.

For example, importing products is easy but getting customers to actually buy those products is hard.

Plus, you really need to practice and hone your skills on the topic of dropshipping.

With a huge of knowledge you will learn, we can say that you cannot do dropshipping quickly.

3️⃣ Is Dropshipping Saturated?

We’ve been excited to address this claim.

Market saturation arises when the volume of a product in a give market place has been maximized at the point of saturation.

An entrepreneur can only grow business with new products by taking market share from competitors or from a rise in customer demand.

Dropshipping is not saturated since it’s neither a product nor a market. It’s just an eCommerce business model.

You may think that there are still so many products to dropship and those products are all saturated.

But our point is that a product can only be saturated in a given market.

Let’s take this kind of scrubbing gloves for example.

scrubbing gloves

The scrubbing gloves cannot in themselves be saturated instead in the US or Florida, for instance.

How about other areas like Canada, the UK, Spain and so on?

You don’t focus only on one market, do you?

4️⃣ Do You Need A Huge Budget?

Some people will give you different advice on how to budget for your first dropshipping business.

Budget
Pie chart on a stock chart with a budget

Some will say you need only $200 and others will point that you need at least $2,000.

We can say that the biggest variable in your budget will be marketing. Marketing is what can change your initial budget from $200 to $2,000 but depending on the marketing channel you choose.

For example, Instagram influencers will be cheaper than Facebook Ads.

You can start a store with no marketing budget to grow an Instagram community or a Facebook group beforehand. However, it’s not easy nor fast.

You’ll need between $300 to $1,000 to start dropshipping but do not spend the last five hundred dollars in your bank account to get started with this business.

If this is your first business, you’re going to make mistakes and probably not going to see an immediate return on that investment.

5️⃣ Does It Take Months to Ship Products from China?

This isn’t true. It’s really solved by ePacket shipping, it takes about 2 to 3 weeks and comes with free tracking. The best of all is really cheap.

If shipping from China did take months, other drop shippers would not be able to have sustainable businesses. Some suppliers on Aliexpress even have US or European warehouses that let them ship to local customers within 5 to 7 days.

6️⃣ How to Compete Amazon?

Another huge fear is that customers will just buy from Amazon instead of your website.

Amazon is the world’s largest online retailer with 1 to 2-day prime shipping available. However, it does not mean that you can’t run a successful business because the majority of our purchases are impulse buys.

Dropshipping vs FBA

Your customers aren’t looking for those products and therefore they’re not going to Amazon to look for them.

When they see something unique, they’re willing to wait for it.

Your goal is to grab the attention of customers and show them before they know what they want.

Even if some customers do go to Amazon, multi-million dollar businesses are built on the back of a 2% conversion rate meaning 98% of people who visit these successful businesses bounce.

It is still enough for you to grow your business so don’t worry too much about the competition and focus on maximizing the good numbers of your business.

Conclusion

We’ve covered your biggest doubts fears and concerns about starting a dropshipping business.

Please leave your thoughts below and we will jump in with our comments.

If you look for top products to start dropshipping, you can refer Top 10 Best Dropshipping Products to Sell in 2020.

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