All beginnings are difficult. This is especially true for young founders and budding entrepreneurs who are playing with the idea of setting up their own company. How can you start concretely, which business idea should you pursue and in which industry is a beginner particularly well and safe? Among freshly-baked self-employed persons, online trading is particularly popular as a field of activity today. If you additionally choose the DropShipping business model, then there are only few obstacles to business success. We’ll explain why DropShipping is an excellent choice for newcomers and how you can significantly increase your market chances with a few simple rules.
DropShipping as the most modern variant of online trading
Hardly any other industry in the world can boast such a steep success curve as online retailing. More and more goods and services are now being purchased by consumers around the world via the Internet and there are no signs yet of imminent market saturation. The signs are therefore still pointing to growth and independence in this area is associated with distinct chances of success. No wonder that many founders choose e-commerce when it comes to choosing an industry for their own independence. As online retailing is still an area of innovation, it is important to be aware of the latest developments in the industry before deciding to start a business.
One of the most innovative extensions of conventional e-commerce is drop shipping, in which connected suppliers send ordered goods directly to the end customer without the retailer himself coming into contact with his products. The business model DropShipping is characterized by the following advantages:
– No purchase of goods and no goods risk
-• No warehouse and no shipping personnel
-• Plenty of time for marketing and customer care
-• Low seed capital and running costs
There’s no question about it: if you’re an online retailer and don’t need your own warehouse or expensive logistics personnel, if you can do without high initial investments and can concentrate mainly on product range maintenance, marketing and customer care, you’ll be more relaxed when setting up your business. But why is DropShipping especially suitable for founders who want to set up their first own company?
Newcomers have it particularly easy with DropShipping
For many prospective self-employed people, the establishment of their first own Internet company is primarily associated with great fears and uncertainties. Do I even qualify as an entrepreneur? Will enough consumers be interested in my offers? Which products should I trade with and how can I buy them myself? And what do I need to really start my own online business? Newcomers cannot fall back on a wealth of experience in self-employment. They are at the very beginning of their professional career and must first learn everything that distinguishes a successful entrepreneur. In this situation, it is best if the effort involved in setting up the company, the complexity of the business model and the costs incurred are kept within narrow limits and if the entry into self-employment can be made as easy as possible. Right now the many advantages of DropShipping unfold their greatest effect:
-• Hardly any barriers before the actual start
-• No financial reserves required
-• Independence from home possible
-• Little responsibility for others
If you set up your own business as a DropShipping dealer, you can in principle get started within a few days. The access here is to contact one or more manufacturers or wholesalers who support the DropShipping model. Many of these suppliers even offer their dealer customers their own shop systems, which they can use free of charge or for a small fee. Here the desired products can be integrated by mouse click and already the trade can begin in the Internet. Since there are almost no investments in this business model, there is no need for seed capital. And since you take over all the work yourself in the initial phase, you do not need any personnel with the associated responsibility and costs. In addition, the founder does not need any business premises. Your own desk with telephone, PC and Internet connection in a quiet corner of the house or apartment is sufficient for the beginning.
Combined unbeatable: DropShipping as a second job
With the DropShipping trading model, you have already become acquainted with a business concept that allows you to enter independent online trading in a particularly simple way. Is it possible to further increase the chances of success, security and comfort of this form of self-employment? We say yes and present you the model DropShipping in the part-time self-employment. Just start your own e-commerce business while maintaining your main job for the time being. The advantages of this unbeatable combination are obvious:
-• Best opportunity/risk profile
-• Independent with net and double bottom
-• Double protection against unemployment
-• Reduced performance pressure
As a founder, you benefit from an excellent balance between opportunities and risks. Since you invest almost no money in your independence, you cannot suffer any special losses. You only use your working time and your greatest risk is to have worked for yourself for a certain period of time without remuneration. By maintaining your previous job, you will retain your salary and your social security. You are not dependent on living from your independent income and act with the good feeling of remaining socially secure all around. DropShipping on the side protects you against unemployment in two ways at the same time. If your current main job is in danger, you can run your part-time business full-time at short notice. If, on the other hand, your online business fails, you will still have your existing job. All in all, these factors lead to a significant reduction in the performance pressure under which founders and prospective entrepreneurs normally find themselves. You will found your own company in a relaxed manner and will manage it with peace and serenity and without fear.
You can’t do it without talent: You should bring these qualities with you
The part-time self-employment as a DropShipping dealer offers you a particularly easy and secure entry into entrepreneurship. Even though it is much easier to set up such a company than it is in many other industries and business areas, you must not make the mistake of underestimating the demands placed on you here. In order to successfully establish and operate your own Internet company in the field of DropShipping, you should have some basic characteristics and skills, without which this path could be very difficult. You should have these competencies and attributes:
-• Ability to plan and structure clearly
-• Negotiating skills with business partners
-• Persuasiveness when advertising your own offers
-• diligence, self-discipline and motivation
Without sensible and viable planning, this business area will not be able to do so either. They must be able to structure processes, define goals and fulfil their own plans. You should have negotiation skills in order to move suppliers and other business partners to optimal conditions. In addition, you have to stand up for your company and your offers confidently and convincingly in order to inspire markets and consumers with your products. Without diligence, discipline and a good portion of ambition, you will not succeed in founding and running a viable company. Before realising your founding project, it is therefore essential to check whether you have a sufficiently pronounced will to succeed.
How to start your own DropShipping business
If you find that you have the qualities and skills that we have listed here, then you should not put off starting your own business for long. The following tips will help you get off to a good start.
Planning is the be-all and end-all
Plan your start-up project carefully before you start to implement it. Create a business plan in which you list all costs and revenues and define binding targets for your own success. Write down where you want your company to stand in six months, one year, two years and five years and try to make a realistic assessment.
Finding market niches
Choosing the DropShipping trading model does not free you from the task of developing your own business idea. Which products do you want to conquer the market with and which reasons do you want to offer consumers to buy from you? Note that it is much easier to locate a successful company in an attractive market niche and think about product areas that are not yet sufficiently represented in the markets.
Do not underestimate effort
The daily routine of a DropShipping retailer is far less stressful than the burden of a conventional Internet seller. Nevertheless, this form of self-employment cannot be realised without a certain amount of time and without professional stress. You should not underestimate this, otherwise you run the risk of being overwhelmed after a short time and losing your motivation.
Use supplier databases
To track down suitable manufacturers and wholesalers, you should use professional supplier databases on the Internet that specialise in suppliers who ship their goods directly to consumers on behalf of affiliated retailers. On DropShipping.com we offer you the currently largest German database for DropShipping suppliers. From here you have access to over 660 qualified manufacturers and wholesalers and more than 4.2 million products for your assortment.
Monitoring successes and goals
As an independent entrepreneur, you must always know exactly where your company stands at the moment. Therefore, check and monitor your business figures regularly and carefully and make sure that you are achieving or exceeding your own goals again and again. If you notice that you are doing less well than planned, then you need to analyze the causes as quickly as possible and find a remedy.
The first professional self-employment in life is a particularly exciting affair with many challenges. Financing in particular can now appear to be a serious hurdle. Our guidebook therefore informs you that it is necessary for the foundation of DropShipping companies excellent funding opportunities there is.