5 easy steps to Running a Drop shipping Business

5 easy steps to Drop shipping Business
Ultimate Guide to starting a Drop shipping business

Drop shipping.

Drop-shipping is a form of business that allows you to list products that you don’t have but know where to find, you are kind of like the middleman who knows how to source for products and knows how to deliver it to the person who needs it, while you make a nice profit after your cost of sales.

In the product industry you have the following as the supply chain from: Product manufacture———–Wholesaler ————-Retailer ——–Consumer

Drop-shipping does not appear here because it’s a service, not a role, a drop-shipper can also be the manufacturer of a product, meaning that when you manufacture your own products and sell to the final consumer you are also drop shipping for your own products. A drop shipping merchant is that person that acts as a go-between, between the Manufacturer or Wholesaler and the final consumer.

A drop-shipping merchant, in this case, is responsible for finding the products, listing it on his site and selling to the final consumer. The manufacturer or wholesaler then ships it to the person who bought it.


-Mr. Bon wants to purchase a new battery for his phone, he goes to Mr. Dav’s Ecommerce shop and places an order and makes a payment.

-Mr. Dav receives the order and payment and then, in turn, places an order with his suppliers which could either be the manufacturer or a wholesaler.

-When the supplier receives the order, he processes and fulfills and ships to the buyer. He then gives a tracking number to the Drop shipping Merchant who owns the eCommerce store

-The Drop-shipping merchant then informs the buyer that his order is on the way.

-When the buyer receives the goods, it’s only the logo of the drop shipping merchant he is aware of, the manufacturers or wholesaler, in this case, is invisible to him.

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You don’t need a 100 page Business plan to start one

One page business Plan modified. (1)

The One page Business Plan Part B

Today I will be concluding the second part of this post, the one page business plan, if you did not read the first post, you can get it Here .I hope you have taken time to implement what you have learnt. You know writing this post has also helped me to go back to the drawing board to re- tweak my business plan.

  • The link for the one page business plan is displayed above, or you can click the link at the end of this post to get it.

Now to the business of the day, we will talking about the remaining 3 parts of this plan.

The Hustle.

How will customers learn about your business: In this area we talk about your marketing plan, how do you intend to invite customers to your business. one of the key questions you need to ask yourself is where do my customers congregate? This is the reason you must define your target market before setting out. When you know what your target market is, then you can begin to define where they are likely to congregate,thereby target your advertising to such places.

For example, my Niche market is stay at home moms who want to launch a business, one of  the likely places I will find such women are baby forums, forums where women discuss money making ventures, I might also target my Facebook ads to women in their childbearing age because I know they will more likely be there. Thanks to Facebook targeted advertising features, you can do a lot  to find your customers.

How will you encourage referrals: By giving away free samples and asking people to refer others to your business if they liked your product. You can also conduct contests for price point to encourage people to refer a certain number of people to win the price. Finally you can give discounts for referrals to your point of sale.


How will you rate the success of your Business: This part deals with figure terms, when you will you say your business is successful? is it by the number of customers you have served or by the annual net income you intend to make. These figures will enable you plan properly on how you intend to achieve it. It will force you think of ways of dimensioning your resources to ensure you meet your targeted goals whether in customer numbers on in Revenue. This part is where you also itemize your income streams and apportion how much you want to make from each stream. A multiple stream income strategy is always the best.

Challenges/ Obstacles; Finally this is the portion where you will write down obstacles that will mitigate against your business and how you intend to overcome them. Listing out your challenges is not to discourage you but to help you become aware of the risks involved in starting your business, and to show you also have a strategy to reduce those risks. Call it your mini risk analysis and you may not be far from the truth.

Proposed solution to your challenges: Here is where you list the steps you intend to take to mitigate such challenges and if possible eliminate it.

I hope you have learnt a lot by reading this post. I if you want the template, you can download it here.

Please share this post with your friends if you really learnt a lot from it. Your comments and suggestions are also welcome.


Thanks for reading: