Quick Guide to Start a Dropshipping Business in New Zealand
How to Get Your Foot in the Door of the Drop Shipping Industry in New Zealand (Quick Start Guide)
Have you recently been familiar with the concept of drop shipping in the media? If this is the case, you have probably heard that you can make money from the comfort of your own home by selling things directly to clients without ever touching or holding actual inventory. This type of business is known as direct selling. Continue reading if you are interested in this topic; in the following paragraphs, I will explain how to start a freight forwarding business from the ground up.
Last year, the NZ Herald reported that a 19-year-old made more than $180,000 a year through drop shipping in his bedroom, and just yesterday, they announced that a young block selling vehicle mounts turned over $800,000 a year. Both of these figures were reported by the NZ Herald.
Although you would need a good amount of luck to repeat such achievements, it is absolutely possible to obtain similar results through the use of drop shipping. Permit me to elaborate so that you can get a better grasp on the concept.
What Is DropShipping?
The term “drop shipping” refers to a way of sending products directly from a provider to the end customer, bypassing the traditional steps of travelling via a warehouse and passing through the hands of distributors (you).
Once you have made a sale of an item, you look for a supplier, put that supplier’s products up for sale on your website, and then purchase the item. The item will be delivered to your customer in unmarked packaging.
Your customer is never informed of the origin of the item, which keeps the mystery alive and puts money in your pocket.
See also: What Kind of Dropshipping Business Model Will Be Successful for Me?
How do you know what to sell?
You will need to find winning goods (tried and tested products or emerging trends) and then list them in your own shop, which is a do it yourself platform for creating a web store that will accept payments sent directly to your bank account in real time. After you have found winning goods, you can list them in your own shop.
Many different places are good places to look for emerging trends such as Twitter and Instagram. Thieve.co is a consumers’ group that appreciates using Aliexpress as their preferred Chinese drop shipper. Thieve.co is a pleasant website that curates products and can be found online.
Keep in mind that there is a lot of garbage on Aliexpress; therefore, before attempting to sell the item, it would be beneficial to buy the product in order to get a better idea of its quality. Maintaining control of quality may either make or kill your business.
Isn’t creating an eCom store expensive?
Building a website does not require that you pay thousands of dollars on the services of a web designer who is nerdy, and you do not need to understand how to connect your website’s address to a hosting provider.
Shoping is a service that charges a monthly fee of $29 (US Dollars) and gives you access to an entire platform on which you may develop your own shipping shop on your own. They provide a plethora of free templates and subjects that you may use to tailor your store to your own requirements. In addition to that, they provide a sizable app store so that you can further tailor your store.
Cart recovery is one of my favourite applications since it allows you to save your customers’ shopping carts even if they exit the browser and come back to the website at a later time. Another option is a popup coupon box that appears whenever a consumer enters their email address. This is useful for the purpose of producing a marketing newsletter with which you can engage in ongoing conversation.
Additionally Read: How to Get Started with Dropshipping from Thailand?
Is the dropshipping business risky?
There are two ways to approach the question’s answer: the first is the level of investment required, and given that you don’t acquire any stock, you can change products fast if something isn’t working for you. The second approach is to evaluate what the question is asking.
If you were to compare this to an old-fashioned retail store, you would probably need to spend at least $50,000 on inventory in order to fully stock your store. What if there isn’t enough demand for it? Drop shipping eradicates this risk and, should it become required, is a business model that makes it much simpler to modify items.
The most significant danger associated with dropshipping is the possibility of having to deal with fraudulent returns and refund requests from customers at some point in the business’s future.
Is it possible to Dropship while still making a profit?
Reporters who cover dropshipping from high school rarely have an impact on the actual costs incurred by a corporation. It is not necessary to assume that someone has robbed their family of a significant amount simply because they have an income of one million dollars.
Keep in mind that you are required to really buy the things that your provider sells. In most cases, this constitutes between 40 and 50 percent of the selling price. You should anticipate an advertising cost of somewhere between 10 and 20 percent. A distinction will also need to be made between operational costs, wages, and wages (if any), and the Inland Revenue Department (IRD) will, of course, want their share.
Also Read: How to Make the Delivery Time for AliExpress Dropshipping Faster?
The majority of shipping companies have a net profit of anywhere between 20 and 25 percent.
Can you Dropship with good profit?
A profit of around $250,000 before taxes would result from making a million dollars. Even so, it is preferable to a day job, although initially it requires a great deal of effort to get going. Regardless, one of the most lucrative businesses in New Zealand is just being started right this very second.
How to Get Your Own Drop Shipping Business Started in New Zealand
How to Get Started in the Business of Drop Shipping Check out the quick-start guide that I’ve provided below if you’re still interested in learning how to start a drop-shipping business. If so, it sounds like you’re in the right place. This guide was developed specifically for those living in New Zealand, although its lessons are applicable to people everywhere.
1. Setup Your Business Structure
If you want to be successful in the shipping company as a whole, the first thing you need to do is establish yourself as a sole trader or firm as soon as you start making a profit that is greater than a couple hundred dollars.
For me personally, the best way to open a business bank account with most New Zealand financial institutions was to start a company that required an initial investment in the form of a training fee. I decided to go with Bank of New Zealand, where I opened accounts for checking, savings, and a credit card with a total limit of $2,000.00.
In New Zealand, a credit card is not as useful for obtaining free airline flights and upgrades as it is in other countries; however, it is a convenient way to accumulate points because you will constantly be required to fulfil instructions and repay the credit card when depositing money into your bank account. Other countries have a more advantageous credit card system.
Also read about Dropshipping American Made Organic Clothing Companies.
You don’t have to hire an accountant in order to establish a sole trader statement or a New Zealand business; nevertheless, if you do, it’s probably going to be worth your while. If you just remember one thing after reading this step, let it be that you should open a bank account that is only dedicated to your business. If your statement also includes a lot of private purchases, filing your tax returns will be an extremely challenging process for you.
If your firm were to fail, having ownership of the company would limit your personal exposure, whereas being an individual proprietor would subject you to unlimited personal liability. Your customers will feel more assured about their purchases if they are made through a company rather than through your personal name.
2. Setup Accounting Software
I recommend that you start from the very first day. Platforms such as Xero or Wave Apps (which are free), as well as MyOB, are able to supply a simple graph of accounting and invoicing, as well as transaction ledgers, so that you can quickly view both incoming and outgoing payments for your firm. This will provide you with instant assistance in viewing your profit and loss statement as well as your balance sheet.
You have the option of connecting your bank accounts, credit cards, and other accounts such as PayPal to your accounting software, at which point the transactions will automatically flow to your programme for reconciliation.
If you start off by doing this from the very beginning, preparing your tax return will be a breeze. Do not put off till the following year the task of looking for and locating all of those receipts for purchases. When you run a drop shipping business, you’re likely to have thousands of customers.
Also read about the top eight dropshipping suppliers from China and Asia in this article.
The majority of accountants are able to provide assistance in the installation of this platform, and their fees typically include this service.
3. Setup Shopify Store
With Shopify, you can get started with just $29 (USD) each month, and there is no minimum commitment required. At the moment, you can also acquire a 14-day test with no obligations attached, which will enable you to construct and evaluate your store in order to determine whether or not it is suitable for you.
By installing applications and making use of Shopify’s free design templates, you’ll be able to personalise it and make your store look even more impressive. There are some premium subjects that, by creating a sense of exclusivity and confidence to your store, can assist in increasing your conversion rates. These templates range in price from $97 to $297, depending on who designed them.
Building your storefront with Shopify is made easier by the company’s provision of a wealth of no-cost educational resources as well as an extensive online community forum. Their technology makes it possible for anyone to open an online store in a matter of hours rather than days.
Take into consideration that you won’t be able to make any changes to the URL of your store after you’ve already established it.
Last but not least, you are going to require a domain name, which can be purchased through Shopify for a price of $25.
4. I suggest starting a general shop
First, this is really important if this is your very first retail location. Because of this, you will be able to test new goods without worrying about your customers getting confused. Imagine for a moment that JoesWarehouse.co.nz has called your store. You are now in a position to sell virtually anything and experiment with a wide range of new products.
If you opened a store on the web and called it Joe’s Baby Products, you could only sell items related to babies. If you then began selling consumer fitness products, it would be confusing for customers, and they would be less likely to trust your shop as a result.
Constructing a general store as opposed to a shop specialising in a particular market allows you to discover which of your products are successful before you scale them up. Once you have accumulated a sufficient number of products, you will be able to transform your store into a specialised shop.
Does that make sense?
5. Locate Products That Are Successful
Oh, this is the one question that I have been asked more frequently than any other, and that is how do I find products that have won awards? However, no one really grasps what the mystery is all about. You need only keep up with the most recent trends, maintain an eye out for new products, and seek motivation from other retail establishments that are doing well.
After that, you will be able to reproduce this in your own shop. The best seller category on Aliexpress, the movers and shakers section of Amazon, and a website that I like to use called Thieve.co, which is a community of Aliexpress shoppers who share new products, are some of the easiest ways to find products that are currently popular.
If you want a tool that is even better, you should sell.
The Trend offers you a free seven-day trial of its premium site, during which you will have access to more than one million trending products, as well as advertisements and other features.
You can also find a good Facebook shop and view all of their most recent ads under the ‘Info and Ads’ section of Facebook. This will allow you to see what they sell and provide you with ideas.
Read also: How to Get Started with Dropshipping in Hong Kong and Find the Best Suppliers.
At long last, you will be able to use platforms that share winning products with you. One of the most common devices used today is called Intelligence, and it is a desktop platform that runs either Windows or MAC and costs $19.95 per month.
Unfortunately, you will need to develop your own successful products in order to succeed. This is the most challenging aspect of drop shipping, but if you master it, your profits will skyrocket and your bank account will overflow (if you have traffic too).
Finding an appropriate provider for your product on the platform of your choice is something you will need to do. Buying the item yourself is the best way to determine its shipping speed, quality, and level of satisfaction with the purchase. These can be offset by acting as company acquisitions instead.
Once you have reached a point of contentment, you can start adding the products to your Shopify store. Make sure that you have not copied and pasted any of the item’s descriptions. Create your own thing and sell it to the tourists who visit you. Why do they require it, and why do they choose to purchase it from you?
6. Draw in the crowds
Without customers coming through the door, your business is doomed to fail. Like a propeller-free vessel. There aremany different platforms that can be used to generate web traffic, but the majority of shipping companies use Facebook or Instagram Ads when using Google Shopping.
The production of such advertisements warrants its own article and would add several thousand words to the length of this one, making the total word count significantly higher.
lso Read: How to Deal with Angry Customers Who Have Complaints When Dropshipping?
There is a plethora of information available on the internet about how to construct marketing campaigns for social media.
You could also make use of free resources provided by social media platforms, such as posting in groups where your customers congregate and using Pinterest to share images related to your retail establishment.
You could also take a look at the optimization traffic of organic search engines, which is more commonly referred to as search engine optimization, or SEO. You have the ability to customise Shopify websites to include such optimization; however, it is recommended that you seek the assistance of an SEO professional.
Don’t be such an idiot and buy spammy backlinks from Fiverr just because your friend thought it was a good idea to share it with you. It’s possible that it would have worked in the past, but not in the year 2004, and it’s also possible that it would have caused more harm than good.
Would you like to become an expert at dropshipping?
Would you like to learn how to take your dropshipping business to the next level by automating more of your processes, managing the returns and refunds of your customers, making your business appear more professional, and utilising chatbots, cool apps, and marketing funnels to increase your profits? Educate yourself on the advertising options available on Facebook, Instagram, Google, and Google Shopping, as well as Pinterest marketing.
ECom Elites is a training course that includes more than 175 high-definition videos that will walk you through the process of beginning a drop-shipping business in New Zealand. I strongly recommend that you check out my comprehensive review of Franklin Hatchett, an Auckland, New Zealand businessman who is shipping people online to their deaths. There is no need to look any further if you are interested in learning from the best.