If 2020 did anything to the online world, it’s that it moved a vast majority of businesses, activities, and people there.
Virtually everything from education to government was moved online during the start of the 2020 pandemic, and it looks like things will likely stay this way forever.
With people more than ever now online, uche web studio thought it best to write on the best online businesses to start in 2021.
Dropshipping is a type of retail business wherein the seller receives customers’ orders without having the goods in stock, a storehouse for keeping goods, or even an actual physical shop. Instead, the seller transfers the orders and their shipment details to either the manufacturer, a wholesaler, another retailer, or a fulfillment house, which then ships the goods directly to the customer.
Cool right? Dropshipping is one of the best online businesses to engage in, because it is not only easy to start but also eliminates the cost of owning/maintaining a warehouse, employing necessary staff, and paying some bills that come with having a physical retail shop.
HOW DO I GET STARTED WITH DROPSHIPPING?
i) FINDING A NICHE AND A SUPPLIER:
The first step in starting a drop shipping business is to find the type of products you would love to sell from a supplier, then list that product on your e-commerce site at a price you set.
ii) CREATING A PROFESSIONAL E-Commerce WEBSITE:
The second step entails getting a professional e-commerce site, where products can be properly displayed with their prices.
Remember! Information like the shipment and product details, need to be collected from the buyer and sent to you/your supplier after the buyer makes a payment. So ensure your website developer factors this in!
HOW DO I MAKE MONEY FROM DROPSHIPPING?
When someone places an order on your product, your customer pays you at retail price(the price you set), after which, you place the order with your supplier at the wholesale price(the amount your supplier sells the product) and have the product shipped directly to your customer.
Eg: Let’s say you found a shoe on a supplier’s website for N5,000. You would then put it on your website for N10,000, and when the order comes through your website, you would then place the order to your supplier using your customer’s information. So, you get a 5k profit at the end of the transaction and have the shoe shipped directly to your customer by your supplier.
2) Affiliate Marketing:
This is a type of online marketing business whereby you refer people to products and services that are not your own and then receive a commission if those people take action upon your referral, usually through a link.
HOW DOES AFFILIATE MARKETING WORK?
So basically, affiliate marking is just referrals.
EG: Let’s say you join Amazon’s affiliate program(amazon associates) or any other affiliate marketing program, which gives affiliates 10% of the original price of any Amazon product bought through their unique affiliate link.
Then you look up and get links to products you can promote. You would then put the link to the product, let’s say a 1,000 dollar shoe, on your website. Whenever someone purchases the shoe from Amazon through your affiliate link, you get 100 dollars(10%of the original price of the shoe).
Affiliate marketing is way easier to start than dropshipping, but unlike drop shipping, you cannot set the prices of individual products/ your profit. Your profit is strictly based on the amount the company gives out to affiliates of certain products.
Whichever way, millions of people are making millions of dollars from these two businesses. But success in either business doesn’t come easy as some may think. You’ll still need to put in a lot of time and effort in advertising and growing your business name(You can read more on this in my previous blog post). But once you take off perfectly, you should be on your ride to success.