For those of you that read my articles, you will already know that I run a dropshipping business on the side of my landscaping business. So far I have written an article explaining my experience when it comes to dropshipping as well as written other helpful topics like ‘how to start a dropshipping business’, ‘how profitable is dropshipping‘, amongst a few other topics. So it begs the question, why on earth am I starting a new dropshipping business when I already have one?
Well despite running a dropshipping business being a legitimate way of earning money, there is still a huge amount of false information out there making dropshipping look more like a get rich quick scheme than anything else but in reality, a lot of work needs to go into your new venture just like any other business model. With so much information available online, how do you know which article or YouTube video to believe? How do you even know that I’m telling the truth with my dropshipping articles? Well there’s only one way to find out exactly what to expect when starting and running a dropshipping business and that’s for to start a new one, from scratch, for all of you to follow.
How much time will I be investing into my new dropshipping business?
As I already juggle my time around running a landscaping business, writing articles on this website as well as spending any spare time with my 5 children, this new business venture will be ran on a part time basis. This will be perfect for those of you that want to start a business on the side of other work and family commitments.
Realistically, I will be working on my new dropshipping business anywhere from 3 to 5 evenings per week. I should be able to squeeze 4 hours in per evening so that’s 12 to 20 hours per week which I think is a good number.
How much money will I be investing into my new dropshipping business?
One of the biggest advantages to starting a new dropshipping business is that there are low upfront costs, but you still need some money to start up with as you will need to process the orders and wait 3-5 working days to get paid in return.
I’m going to start this new business venture with £1000. I think this is a fair number to begin with as hopefully it will be an achievable number for most of my readers to start off with. Although you can start up with less if needed, it’ll just take longer to grow your business due to cashflow.
With my £1000 start up funds, you will hopefully see the struggles faced with cashflow as the business grows and what I do to overcome this along with other issues such as returns and refunds etc..
One important note to make however is that I won’t be spending any of the income that my new dropshipping business makes. This will allow me to really show you how a dropshipping business model can keep itself afloat and be able to give a transparent balance at the end of each month.
I’ve set up this business as a limited company with it’s own bank account. Since I’ve already got PAYE set up for my landscaping business, taking additional money from another company will only complicate things for me. For now atleast, I will be starting my new dropshipping business solely to create real original content for this website, to help anyone that is thinking about starting out in the world of dropshipping and any money it does make will be a bonus.
What will my new dropshipping business be selling?
As I will be starting off with a relatively low start up balance of £1000, I am going to be selling small giftware and novelty items to begin with. I plan to use Puckator and Taylor’s Merchandise for this which will bring a total inventory of around 6000 items with an average order value of approximately £15. With a profit margin of 10-15% my profits will be very small (£1.50 – £2 per item) so I’m really going to have to rely on a high volume of sales to make it worth my while. Once all listings have been uploaded to eBay and Amazon, I will then decide to either sign up to another giftware supplier such as Ancient Wisdom Dropshipping or move onto bigger, better things.
If your wondering why I don’t just sell the larger things to begin with, after all 15% of a £200 sale is £30 (not bad for a few clicks) compared to £3 from a £30 sale, well it’s because a start up fund of £1000 doesn’t justify selling higher priced items in my opinion. Most higher priced items are appliances which carry restocking fees which means you will lose money on each return. As well as this, eBay and Amazon have this habit of putting new seller’s funds on hold which means it won’t take long before you run out of available funds and have to temporarily stop selling. And if your lucky enough to not have your funds put on hold then it still won’t take long to run out of funds since you will be waiting 3-5 days to get paid after paying for the item(s). It’s better to sell cheap and keep selling which in return brings more feedback increasing your sales and increase the value of your listed items as your capital grows.
How often will I be providing updates on my new dropshipping business?
I will be providing weekly updates letting you all know how many hours I managed to put into my new dropshipping business along with how many items I listed for sale and if and what I sold that week.
Included in my updates I will be giving advice on any obstacles I face along the way. From setting up a new seller account on eBay and Amazon as well as designing and listing items on my very own website to giving an insite on any returns and undelivered items and how I dealt with them. I’m sure I will have lots to write about as the business progresses!
When will I be starting my new dropshipping business?
I plan to start my new dropshipping business at some point in January 2022. A new year for a new business! As soon as I finish my first week of dropshipping I will write an article titled ‘Week 1 of my dropshipping business’ followed by weekly updates there after.