Assuming you want to start an online business like dropshipping but you don’t have any money or any ideas on how run it. A great business idea with zero capital doesn’t mean your path to entrepreneurship is over. There are plenty of ways to start a business without money. In most cases, all you need is an entrepreneurial mindset: patience, hard work, creativity, and the willingness to test new things.
From validating your idea to making your first dollar, here’s the blueprint to starting a business with no money.
Even though you have to spend money on products to send to the customer before they get delivered to the buyers and you actually get paid out from most marketplaces
What is Dropshipping
Dropshipping is a type of business model in which the seller, also known as the dropshipper, doesn't maintain any inventory of the products he sells. Instead, upon receiving an order, the dropshipper sends the order details to a third party supplier who then directly ships the product to the customer.
The seller earns by marking up the wholesale price of the goods purchased from the supplier.
Dropshipping is a popular business model for entrepreneurs looking to start a small business with no money. Simply create an online store and choose a dropshipping supplier like DSers or AliExpress. When an order is made, your ecommerce platform will forward the order information to your supplier. It’s their job to pick, pack, and ship the order to your customer.
The best part about dropshipping is that you can get started with a tiny budget. Instead of buying inventory before it’s sold, and storing those goods in an expensive warehouse, vendors will only charge you for inventory when you sell it.
I highly recommend the amazon store card, the Walmart store card, & the eBay store card. All of these give 5% cashback on ALL purchases on their website. And they’re all great reliable suppliers to use for dropshipping too.
The reason using credit cards is so effective is because
You don’t need any up front cash to scale this business like we just covered
More importantly, you can use cashback credit cards on lots of suppliers where you can earn up to 5% cashback (for purchases you already have to make any way). This is how I’m able to get thousands of $1,000+ in free cashback most months simply from using cashback credit cards on purchases I would have had to make for this business anyway.
Find a Niche
Find a niche that you’re interested in. Although with dropshipping, the risks are low and let you experiment with different products within different niches without breaking the bank. For example, Amazon has a wide variety of niche categories you can sell in.
Find a Product Within Your Niche. Find a product that sells using a tool like Jungle Scout. If it sells any more than $25,000 per month the product is too competitive.
Find Suppliers. Find a good supplier on Alibaba (you can use Jungle Scout's Supplier database to find out exactly what supplier your competitors are using).
You can also find wholesale suppliers for online stores outside of Alibaba. Here are some Alibaba alternatives.
Choose a Platform to Sell On. There are many free ecommerce platforms to choose from and most of them offer a range of free plans or trials that allow sellers to test and explore the platform before deciding whether it's suitable for their needs.
Two of the most popular platforms for dropshipping with no money are Shopify and WooCommerce.
Shopify offers a free trial period for users to try out and familiarize themselves with the store before they begin selling, while WooCommerce can be downloaded and used for free. For a more detailed comparison of these two platforms, you can check this article: Shopify vs. Woocommerce: Which Platform Is Right for You?
Amazon Dropshipping. Amazon dropshipping is essentially the same as your classic dropshipping model, except that you sell the products on Amazon’s marketplace, instead of selling them exclusively on a standalone ecommerce store.
Many dropshippers choose Amazon as a selling platform due to the vast number of potential customers and the built-in visibility that comes with the site's enormous market share. Additionally, Amazon can be integrated as a sales channel with your self-hosted e-commerce site or Shopify store.
Create Your Store and Promote It. Once you've chosen your products and the platform where you want to start your dropshipping business, you'll need to set up your store.
How Dropshipping Saves You Money and Time. If you're cautious, dropshipping can actually be a very safe and reliable business model.
Dropshipping offers multiple benefits for businesses, including reducing upfront investment and the burden of shipping, cutting costs on warehouse space, saving time, and lowering risk.
There is no need to purchase products upfront and sellers can enter the market with a low barrier and avoid the risk of purchasing too much stock.
Dropshipping is a time-saving business model that frees up more time for sellers to focus on marketing, driving traffic to their channels and building customer support.
Can You Lose Money With Dropshipping
Dropshipping is a business model that poses very low risks of losing money, given its little to no upfront costs. The only real expense is the website's cost, but you can choose from various pocket-friendly options like WooCommerce or Shopify.
Nevertheless, there are still ways to lose money with a dropshipping business, such as
- Unprofitable advertising campaigns
- High rates of returned merchandise
- Selling products with a high risk of fraud
- Tips for a Successful Dropshipping Business with No Money
- Maintain a Strong Branding
Many dropshipping sellers opt to source products from AliExpress and list them on eCommerce platforms like eBay or Amazon. However, the challenge lies in the fact that there could be numerous other sellers offering the same product.
Therefore, it's essential to make every effort to distinguish yourself from these sellers.
Build Relationships with Customers. Providing customer service is a cost-free task that requires only your time. While dropshippers with greater financial resources may have the edge in various aspects of the business, customer service is one area where you can compete.
Although you may be selling the same merchandise as other dropshippers, customers will return if they feel valued and appreciated when shopping from your online store.
Build Effective Copy for Your Sites. Copywriting is essential to drive sales when customers land on your website or listing, but content writing plays a crucial role in attracting them there in the first place.
By utilizing content, you can improve your search engine rankings and gain traction. When individuals search for a particular query, your pages will appear as results, prompting them to click and land on your website. This strategy is known as content marketing via search engine optimization.