DROP SHIPPING BUSINESS PLAN SAMPLE TEMPLATE
If you are fascinated by online commerce and would like to join, we are glad to tell you that you can. The best part is you do not need physical inventory of products.
In spite of the inherent opportunities, there needs to be a plan. Without one, it will only be a matter of time before your business hits the rocks.
We advise that you read along to learn what your plan should look like.
However this is only a sample and should be treated as such.
Shopeasy.com is a drop shipping business with a difference. Essentially, we operate in partnership with multiple drop shipping companies. These have been carefully chosen due to their track records especially as regards customer service as well as how well they treat their partners. As an online business, we have the freedom to operate global. However, operating a drop shipping business means we need to choose product niche(s).
We have researched products with the highest demand. This ensures that we are able to increase sales significantly.
Products and Services
Unlike most businesses, running a drop shipping business requires partnering with product suppliers. Hence because we don’t keep physical inventory of products, we have entered into such partnerships with product suppliers. Hence whenever our clients place orders, we contact our suppliers with such requests. At the end of such transaction, a percentage of the sale is paid to us.
Shopeasy.com, we consider our drop shipping business as a first step in the right direction. Hence, there are bigger plans which we intend to unfold eventually. This involves establishing our very own online store. Unlike drop shipping, this will involve keeping physical inventory of products and goods. It will also involve significantly higher logistics. This is our medium term goal which should be achievable within 6 years.
Our mission is to become known as a trusted partner and service provider. We have studied successful drop shipping businesses and have learnt the secrets to their success. We will be replicating these as well as finding ways to better our operations.
Luckily for us, drop shipping is ,one business that requires very little or no capital at all. Hence, one of the very few expenses to be incurred will be on data subscription. This has made our takeoff much easier as we do not need to apply for loans or sale of shares. While being one of several businesses without the need for financing, there’s so much potential for profitability. How profitable we become depends largely on the effort we put in.
In running a standard business, we aren’t shying away from responsibilities. Hence the need for self evaluation. This is one way we are able to keep track of how efficient and effective our business model is. As such we have taken the step in finding out by inviting professionals to conduct a SWOT analysis. The findings are as shown below;
We are very passionate about what we do. Hence our commitment not only to running a successful business but also satisfying our clients and partners/suppliers. By setting our sights on our objective (transitioning into a full fledged online store) we have ensured nothing distracts us. Our desire to learn will impact significantly on our operations.
Running a drop shipping business comes with its own challenges. We aren’t oblivious to this fact hence a glaring vulnerability. However since we are fired to learn on the job, we consider such weaknesses to be things we must overcome.
Opportunities inherent in a drop shipping business cannot be ignored. A major opportunity is the need for zero investment. Not many businesses will offer such opportunities. As a result, we are taking full advantage of such to build a strong brand.
Without adequately marketing a drop shipping business, there’s little we can do to stay afloat. Hence we are aren’t leaving things to chance as we plan on facing such threats head on.
Sales is an important aspect of drop shipping. The more sales made, the more income generated. Thus, based on average earnings, we’ve designed a three year sales projections that shows a steady climb. This shows so much potential as summarised below;
- First Financial Year. $300,000.00
- Second Financial Year $790,000.00
- Third Financial Year. $1,500,000.00
There are several drop shipping companies across the United States and beyond. Each offers different types of services. These are our competitors and can be formidable. However, we are equal to the task as we strategise on how best to play our role as a business. Thus, a painstaking process was adopted in enhancing our quality of service. We are not only interested in knowing our customer preferences but also interested in identifying the weaknesses of our competitors.
A drop shipping business needs all the publicity it deserves. In view of this, we are well positioned to embark on an aggressive marketing drive. Our website is user friendly and easy to navigate through. This is to enhance our image as well as customer experience.
This drop shipping business plan sample has been written with you in mind. We have highlighted grey areas which continue to hinder entrepreneurs from doing a great job with their plans. We hope that by now, you’d have gained a better perspective of what should or shouldn’t be included.
In other words, putting together the right information necessary for smooth implementation.
Best Drop Shipping Niche Ideas and Opportunities
Ever wondered what the phrase drop ship is? Drop ship is a marketing model many of you have come across or participated in without knowing.
For example if you have ever purchased a product from Ali Baba or Ali express, you have obviously played a role in a drop shipping process.
This article focuses on drop shipping niche ideas as it seeks to explain what it is all about. What is this drop shipping thing any way?
Drop shipping involves the transfer/transport of ordered goods safely and conveniently to their locations. It all starts from the retailer. The retailer showcases such goods and services online. When this service/product is purchased by a client, such product(s) will need to be transported to the buyer.
In this model of product supply management, the product retailer is not responsible for transporting such purchase, as third party sources mostly handle the transport or shipment of the purchased good/goods.
These third party sources could include the manufacturer of such product, a retailer whose business is tailored to provide drop shipping services, as well as wholesale business that have the capacity to provide such services to the client.
In some instances, a customer may likely incur shipment costs for such product/service, especially if the delivery location is outside the shores of the country.
Here, all the parties involved in a drop shipping business chain all work together to ensure the successful completion of a comprehensive supply and demand chain.
HOW TO DISCOVER GOOD DROP SHIPPING NICHES
Drop shipping will remain a constant feature for as long as people continue to purchase goods and services. But why bring in the issue of niche ideas to drop shipping? This is because there are several niche areas where drop shipping is applicable to. People have embraced online purchase of goods which is far more convenient as it saves the time spent in having to physically shop for certain goods and services. Once shopping is done online, purchased goods reach their buyers within a considerable amount of time.
Medical Equipment Supply
This is a drop shipping niche idea which continues to receive growing attention among investors. Today, there are several opportunities for providing drop shipping for medical equipment. This is a good starting point for professionals in the medical field as experience will greatly enhance the chances of success in this business. These medical equipment may range from light medical equipment to large and heavy equipment. The drop shipping business facilitates the shipment of these equipment to their destinations.
This drop shipping niche idea covers all electronic gadgets. Electronic equipment as stated here focuses on household electronic equipment. Electronic equipment vary in their use and applicability. Household equipment range from TV sets, radios, home theatre systems (consisting of all sound systems), fridges, cookers and a wide range of other home appliances. Starting a drop shipping business in this niche is a great way of gaining a fair market share.
An important aspect of starting an electronic equipment drop shipping businesses is that choosing a specific niche where you have competence in can translate to huge profitability owing to the experience edge.
Automobile Drop Shipping
Starting an automobile drop shipping business requires significant capital due to the nature of the purchased goods. The charges here are quite higher compared to those of other purchased items and goods such as home electronic appliances and other similar products. This drop shipping business idea requires having the right equipment to conveniently transport these products to their destination without damage.
Furniture makes up an important requirement for homes and offices. The demand for furniture is high, as there is a lot of online demand for these products. Setting up a drop shipping business for furniture is a great idea that can significantly attract patronage from clients. This is especially true if the drop shipping business has gained the reputation of meeting client specifications and expectation. This drop shipping niche idea requires adequate planning, and a proper knowledge of the business environment.
This is a great drop shipping niche idea that has the capacity of attracting significant sales for the business. Electronics such as phones, laptops headphones and accessories form an important requirement from clients. Today, mobile phones are transported from factories across the world to every nook and cranny across the globe. Spotting the right drop shipping niche idea is essential to success.
If mobile gadget supply is an area of interest for you, you might want to consider possible areas of investments as it may likely succeed with the right approach and attitude to business.
Consider Getting a Comprehensive Insurance Cover
Every drop shipping business requires a strong and comprehensive insurance cover. This is because supply management is quite delicate, as products may sometimes get damaged accidentally. Getting an insurance cover eliminates unforeseen losses or accidents that may arise in the course of shipment of goods/products.
There are numerous drop shipping niche ideas not mentioned here. An important consideration that applies to all is to select a niche that is of the most interest to the individual. Selecting a niche where you have competence in will have a positive impact on the business.