For your e-commerce business to succeed, you actually have to make sure that you have a regular stream of customers for your dropship products. The most effective marketing resources must be applied for you to get your target customers. As more and more (over 2 Billion active users) of people in the market are using social media platforms like Facebook and Twitter, these platforms are perfect places to market your drop shipping business.

However, some people might still not be familiar with what is drop shipping. Some people who heard about it have thought of starting their own but they don’t know how, where, and when to begin. Some are still having second thoughts and asking “What could be the benefits of using that method in e-commerce world?”

There can be hesitations and so many questions that might come up for beginners or newbies and even to those who are just getting started. Well, let us answer those questions and more, including:

• Quick Guide on how to start your dropship business
• Drop Shipping Best Practices for Success

What is Dropshipping?
Rather than buying a huge number of items or inventory, you can just do a partnership with a drop shipping seller and create a list of their stocks for sale. When you receive an order from your e-commerce store, you or the system will just reroute it to the seller for fulfillment. Then the dropship seller will send the order directly from their depot to your customer and what you’ll earn is the after the retail price amount of the product ordered.

What are the Pros of dropshipping?
One of the major benefits when drop shipping started is that you can actually launch an e-commerce store without the product on hand. No need to give yourself a hustle of going to the market and to invest for thousands of dollars in inventory up front. Once you are partnered with a drop shipping supplier, all you have to do is to begin your efforts in creating your e-commerce store, start building your market and make a good impression on your prospects for them to buy your products repeatedly. Less capital, more profit!

Operating a dropshipping business is more manageable when you don’t have to deal with:
• Operating or funding for a factory and warehouse
• Arranging and delivering orders
• Monitoring an inventory for bookkeeping purposes
• Managing stock level

What are the Cons of dropshipping?
Of course, if there are advantages on the things that you get easily, there is also some major weaknesses situation that might come along the way. So here are the following:

• Low Margins – This situation is the greatest disadvantage if you are working with a drop shipping supplier that is highly in-demand in the market. Since it’s so simple to begin with – and the opening capital costs are so minimal – many retailers like you, will set up a shop and sell items at knockdown prices to attract buyers and grow profits.

• Twists and Turns in Shipping– In working with multiple drop shipping sellers or suppliers – just like most drop shippers do, like you – products that you are offering on your e-commerce or social media site is being derived through a number of various drop shippers. This also confuses the shipping expenses.

>>> Inventory Concerns – Keeping your own items in-stock is pretty much easier when it comes to making an inventory and identifying which items are in and out of stock. However, with drop shipping, the inventory change from time to time since your product is being outsourced to various warehouses. Especially when your product is also hot items in some of drop shipper’s merchants.

>>> Supplier Mistakes – When you are running an e-commerce business, the mistakes or errors are taken against your store when unfortunate events happen. However, you still accept and take the responsibility and apologized to your customers even if it’s the drop shipping seller’s mistake.

Of course, nothing is perfect in any industry. No matter how careful people are to make things better, making mistakes is inevitable. That is why even the best drop shipping sellers also commit mistakes in fulfilling orders and since you are the more frontliner or the seller of their product, you have to be accountable for the situation.

Quick Guides on how to start your Dropshipping Business

Before you venture out into a new business; practicing and understanding the following business and financial steps or guides are necessary, especially once you are decided about your new investment. To help you out, we have listed down a quick summary of a guide, on what you need to do to start your dropship business.

1: Your Commitment Is Expected
Just like any other industry, if you want to produce a successful drop shipping store – your commitment in a long-term perspective is a must! Don’t expect good results and high revenue if you’re objective is just to do this part-time. First of all, you have to design and create your e-commerce store. Following is your commitment to promoting it elsewhere in social media channels; update your products and making sure that your items are still current. Even though you have someone to do it for you, your presence is still required!

2: What’s Your Business Format?
If you are aiming for a long-term business format, you may want to prearrange a legal business entity. The following data are just some of the commonly used business formats by drop shippers who are taking their business seriously:

•Limited Liability Company (LLC) – An LLC offers an improved assurance of your personal assets by building
your business as a separate legal entity.

•C Corporation – The majority of most corporations are built-up as C corporations, which offers the utmost
liability protection. This business format is likely to be more costly to incorporate and is directed to double taxation.

• Sole Proprietorship – This type business format is actually the most manageable than the previously mentioned business formats but this one extends no personal liability protection. So if your business is accused, your personal assets could be put in jeopardy. Processing of requirements is least, and you simply state your business’s profits on your personal taxes. Plus, filings for state or federal business are not required.

*Note: The business format guide mentioned above is only appropriate for entrepreneurs in the United States and won’t apply to other countries. Do ask a lawyer for if you need to seek an advice.

So which business format would you choose? If you are to ask us, LCC works better because we think that it contributes the best trade-off about liability protection, liberty from personal economics and charges.

3: Picture a Long-Term Perspective
Developing a drop shipping store is like creating something else of advantage: A meaningful level of responsibility and investment over time is what it takes. But for some reason, people expect they can make passive six-figure profits with drop shipping overnight. As a matter of fact, that’s not how it is – it could take at least a year to develop an e-commerce business that generates an ordinary full-time income.

Once you mentally prepared yourself for a difficult start and expected to get great revenue over time, then you will be much possible to stay with your business until it becomes a success.

4: Preparing Your Finances in Line
One frequent mistake that businesspeople execute is when they start their business; they combine their personal and business finances. Preferably, you may want to assign your business and personal finances apart. So the best plan on doing it is by opening up new financial accounts under your business’s name like Business Checking Account, Credit Card or a PayPal Account.

•Managing Your Sales Tax : You will only be required to collect sales tax if you qualify for these following factors:

o If the state you are operating from collects sales tax
o The purchase is done by a customer who lives in your state

•Obtain Local Business Licenses :
For legit businesses, getting a local business license is a must in most of the cities and towns and is required to be renewed on a regular basis. However, requirements for home-operated drop shipping services may also vary. So you might want to look for your local laws and regulations to know what or if anything is required.

We believe that the dropshipping guides that we presented above can support you on started by understanding the process. However, to seek professional advice, we strongly suggest consulting with a legal professional before making any conclusions.

*** For Checklist & Strategies You Need When Starting A Dropshipping Business: Visit this link ( )

To conclude this article, let us leave you with some of Dropshipping’s Best Practices. But still watch out for our follow-up articles for more drop shipping tips and guides (soon).

Dropshipping’s Best Practices to Success

With many advantages to consider, it is sometimes natural to get overwhelmed and forget what’s truly essential. That’s why we listed the most important best practices for success.

1: Add a Valuable Meaning for Your Consumer’s Sake:
As a drop shipping merchant, you might think that your task is just to sell drop shipping supplier’s products. However, successful people in this field don’t just think about selling. Instead, they become successful because they are also selling the product’s insights, information, and solutions for them to get more buyers. Think out of the box! You are not just a drop shipping merchant but you are also an information provider.

If you don’t add a meaningful value to your items, then your store will just be like any other store that only compete on its price but no additional value. What we meant about adding value is by putting information like features and benefits of the product, sizes or colors available, where it’s made from, the material used, etc.

2: Concentrate on Your Product!
Most successful drop shipping merchants concentrate on a particular product or niche. So the more product they concentrate on, the more successful they can be.

If you’re starting a store in a new customer’s interest; at first, you might apparently not know which segment of your customer’s interest to focus on yet – but that’s OK. As you earn experience with your consumers, the more you slowly identify which segment is the most profitable and enables you to add a product with the most value for your customers.

3: Make Your Product Concentrate on Marketing and SEO
Social media advocacy and driving traffic to your site is definitely an essential part of the success in your business and is difficult to utilize well, most especially if you only have a minimal budget and restarting your business. In addition, you also need to take make an initiative to develop your marketing strategy, improve the way you engage with your loyal customers and guest by your social media posting skills and SEO management.

For beginners, here are some of the following resources that can support you in digital marketing and SEO:

Marketing Support:
• Vital Medias: ( Vital Medias is a business solutions company that specialize digital marketing programs and consultations. Their team creates and manages top-performing social media campaigns for businesses ranging from starting entrepreneurs to million dollar brands.

• Hubspot Blog: ( the go-to blog site if you are seeking for advice on marketing related topics, from driving traffic to social media marketing tips.

• QuickSprout: ( A blog site by known entrepreneur Neil Patel devoted mostly to marketing, SEO, and traffic generation.

SEO Support:

• Vital Medias: ( Vital Medias have SEO Solutions experts that focuses on Increased traffic, organic sales, brand awareness and guarantee ROI.
• SEOBook: ( Known SEO blog support site and the base of a paid private community for SEO professionals.
• MOZ: ( One of the well-known online SEO community. Their beginner’s guide to SEO is a usually a great support for newbies in the industry.

• SeachEngineLand – ( Very rich SEO blog site that posts a lot each day.

E-commerce Marketing Resources:

• Shopify Blog: ( It contains and posts full e-commerce blogs that post frequently on how to effectively advertise and sell your online store.

• ecommerceFuel: ( This site provides tips from an existing e-commerce entrepreneurs on how to find, develop and sell online stores. Their team writes particularly for different store owners and smaller stores.

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