How To Start Dropshipping In The USA
Why start dropshipping
Most of us dream of having a profitable business that serves customers all over the world, rather than getting a full-time job that restricts you in all directions. If you are one of such people, and you decided to change your life for the better once and for all – try a dropshipping business!
Dropshipping is a business model which is available to everyone regardless of location, education, and so on.
In a nutshell, it gives the entrepreneurs the following benefits:
- No investments = no risks
- No need of background knowledge
- No boss = no bureaucracy
- No extra staff and stuff
- No limits of expanding your business
And this is not the entire story. If you would like to learn more about the concept of dropshipping, keep reading!
How dropshipping works
Why start dropshipping in the USA
As a US resident, you have lots of benefits that let you start this business smoothly and quickly.
- Easy Internet access and growing mobile device usage let you stay in touch with your suppliers and customers 24/7 and guarantee a brilliant business performance.
- Globally trusted payment gateways, such as PayPal, 2Checkout, Stripe, and others are available in the USA, which is why you can safely receive and manage your well-earned profit (register your store with 2Checkout now and feel what it’s like being you’re own boss!).
- Multicultural environment lets you learn more about the life and issues of various ethnic groups, and tailor your offers to various customer segments.
As you can see, there is nothing to stop you from launching a money-making business that breaks geographic boundaries and lets you run your venture on a global scale.
So, how would you like the idea of selling high-quality products from China to customers widely spread across the world – and, meanwhile, staying at home or other places of comfort?
5 reasons to start dropshipping in the US:
- More than a half of US population prefers to shop online; 96% of Americans have made an online purchase at least once in their lives
- High standard of living, high wage income → more than half a trillion ecommerce sales per year
- High purchasing power → high average order value (almost $100)
- Large population → high number of purchases
- Fast and cheap shipping from Asia
eCommerce sales in 2018
Leading e-retail category
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Should you dropship to the USA?
If you’re residing in the USA, it doesn’t mean that you must target your business in this country only. Yes, the USA is more than just your homeland – it’s one of the world’s strongest economies. However, why limit yourself to one country, no matter how big and prosperous it is, if you can have the whole world on your plate?
The Dropshipping business model lets you deal with buyers across the world, whether it be a student from the Netherlands, or a farmer from Australia, or a citizen of any other country. The US infrastructure is perfectly optimized for eCommerce. So, you can enjoy both easy business management and a healthy level of profit. Also don’t forget about taxes. If you dropship to the USA you will have to pay state or city taxes for the goods you sell to the citizens.
What to dropship?
How much can you make with dropshipping?
How far you can go with dropshipping: real-life experience
Is dropshipping legal in the USA?
Yes! When you are dropshipping, you are not ‘fooling’ anyone, and you are not breaking any laws. You are simply helping other people receive the items they want - and enjoy the perfect customer service you provide.
However, pay attention to your choice of products. It is illegal to sell branded, copyrighted items, or things like weapons (even their sports or hunting models), knives, smoking mixtures, etc.
How much money do I need to start?
At least $150 is necessary - let’s do the maths.
If you have some technical skills and can assemble and set up a website yourself, you will need around $150.
First of all, you will need to buy a domain name (a good one costs about $10-15, and you will need to pay this fee every year to prolong your registration).
After that, you need a hosting: a server that makes your store info visible to the Internet user. You can use the basic hosting service from AliDropship (‘Silver Plan’) and only pay $69 per year.
Then, you will need to install WordPress, which is absolutely free, and buy AliDropship plugin, which costs $89. It should be enough: WordPress + AliDropship make a proper basis to create a fully functional dropshipping store.
If you don’t have these technical skills, you can order a ready-made store based on the AliDropship plugin. It will be made for you personally by an expert team: the specialists will even add the first products to your store. So, technically, it will be ready to sell items from day 1. The basic ready-made dropshipping store costs $299; together with the annual domain fee, you will have to pay $310-315 to launch your business.
How to choose the store niche?
First, it should be something that you really like - or, at least, know deeply. You will be picking products, making advertisements, and advising customers, so you absolutely need to be a pro in this.
Also, this niche should be popular with buyers and easy to promote online. Here is a complete niche selection guide that will help you!
What country to target?
Living in the USA, you are not limited to your local market. You can serve customers all over the globe, even in the countries of Europe and Australia. Remember your store niche and think who might be interested in these products. Where do these people live, most likely? That’s your target region!
Where to find the products?
AliDropship plugin lets you easily import products on your dropshipping website. Basically, it transfers the products’ titles, descriptions and images in a single click. So, all you need to do is browse and find good quality products from reputable sellers.
Alternatively, you can use a database of over 50,000 selected products which are guaranteed to be in high demand. This database is available within AliDropship plugin: you can see it when you go to the Import section of your AliDropship-based store. The best part is that all the products’ titles and descriptions are already edited there, so you won’t spend your own time doing this yourself.
If I sell products, how can I compete with itself?
AliExpress is a large shopping platform where sellers offer everything at once. At the same time, your niche dropshipping store is focused on a specific range of products. Surely, you are more client-oriented than a large-scale store, and this is why buyers will choose you over.
Will my buyers know they are actually buying items?
It’s not likely. Even if they see Chinese names/addresses/characters on the wrapping paper, it won’t tell them anything. Lots of warehouses and manufacturing facilities of the largest global companies are situated in China, so there is nothing strange if a buyer receives a package of the Chinese origin.
Also, you can write your suppliers directly and ask them not to put any promotional materials into the package. Sellers are always glad to partner with dropshipping store owners because this partnership is profitable, so they will be happy to help you.
Will my buyers agree to a long delivery?
Long delivery itself isn’t a problem. Your customers are not buying life critical items from you, so they don’t mind waiting - especially, if you offer them an appealing price and a low-cost shipping.
Besides, you can choose the ePacket delivery method which cuts up the delivery time significantly. With ePacket, it will take the packages 7-15 days to arrive.
What if a buyer asks me for a refund?
Refunds are the responsibility of the original suppliers. Usually, they refund low-cost purchases really quickly, so there is nothing for you to worry about.
How to promote the store?
Will WordPress or AliDropship limit my activity and charge business fees?
No. The only recurring fee is the domain fee - you will have to pay for it every year, otherwise, your site won’t be visible on the Internet.
WordPress is completely free, and all the AliDropship solutions only require a one-time payment. Whatever AliDropship tool or service you get, you remain a full owner of your business. There are no limits on the amount of orders you can accept, or the volume of profit you make, or the quantity and the content of the products you import, etc. You are your own boss!