How to Do Dropshipping Internationally?
Dropshipping is a business model in which the entrepreneur sells products without inventory. Every time a customer wants to buy an item, the entrepreneur makes a request to the supplier, who sends the item directly to the end consumer.
Working with the dropshipping format is ideal for anyone who wants to start commercial sales, without the need to have a huge stock structure. The entrepreneur only needs to create a virtual store structure and work to advertise the products to potential customers.
This business format is gaining more and more space in the American market. Interested entrepreneurs contact suppliers in China, for example, and carry out the entire delivery process for customers in America.
Do you feel like starting a business like this? Instead of thinking about selling your products only to the local market, what about focusing on global customers? For this, you can continue to live in your country and do business internationally and surely you want bloggersneed ali dropship coupon code
How to assemble a global dropshipping structure? A good way to get this plan off paper is to open a company in the United States. U.S. consumers alone were responsible for handling $13 trillion in 2016 (yes, you read that right. Billion, with a B).
This country is the largest buyer of consumer goods and accounts for one-third of global consumption. That fact alone would already be enough for you to start focusing your dropshipping efforts to the U.S. American customers consume more than any country.
In addition, the United States has a free trade agreement with 20 countries, Latin America, Asia, and the Middle East. This means that companies incorporated in U.S. territory have tax exemptions and facilities when trading with these allied countries.
There's more! From the moment you start trading, you get money from buyers in dollars. Your supplier's payment is also in dollars. Therefore, your company is not subject to currency variations, which is excellent for your business, especially in the beginning.
Below, we list the key areas that deserve your attention when starting a Dropshipping business that caters to the global market but is managed from home (in your country). Check it out!
How to dropship internationally, from your country?
Open a company in the United States.
As we discussed earlier in the text, having a U.S. company helps you in the dropshipping process for U.S. customers AND U.S. partner countries.
Starting a business in the United States is not difficult, but it requires your attention to some details. The first one is to choose wisely the state where the incorporation of the company will take place. The two most interesting states to start a business in the United States are Delaware and Florida.
These tend to be the states of choice for starting operations because they have a number of benefits for entrepreneurs. For more information on the benefits of each state, visit this article.
Identification Number
Once you register a company in the United States, you will need an Employer Identification Number (EIN), also called an ID number. All U.S. businesses need this document. With this number you will be able to keep your taxes in order, open a bank account and apply to sell your products through wholesale dropshipping.
Don't worry, Company Combo guides you through the ID number creation process.
Open a bank account in the United States
This is the most complex process to create a dropshipping model in the United States. To open an account remotely from a Latin American country, you need to have a Social Security Number (SSN), which is a number equivalent to CPF in Brazil, RIF in Venezuela, RUT in Colombia, for example.
If you do not have it, you will have to go to the United States to open a bank account. Approach this trip abroad as an investment in your business. It is money that is spent, but it is part of a strategy that, in the long run, will bring you benefits.
Attention: it is possible to start your dropshipping business until you go abroad to regulate your bank account situation. To do this, it is only temporarily adopted systems such as Payoneer and/or Transferwise, for example.
Do a lot of research!
Choosing quality products is key to the success of your international Dropshipping. You need to know the markets you want to reach. Do your research, identify who your customers are and what they really like.
One way to find out if the product you have in mind will be successful in a particular country is to use tools like Google Trends and Google Keyword Planner. With them, it is possible to identify the number of searches that a particular product has.
As your goal is to sell to other countries, it is also interesting to know who your competitors will be in these markets. By fully understanding who will compete with your company and who the consumers are, it is easier to target your communication.
Finding good suppliers
For your business to work, it is crucial to find suppliers (they can be from China, India, Bangladesh, etc.) who are already used to working in the dropshipping model.
Remember that the consumer is eager to receive the product at home and that the delivery process must be efficient. Do a supplier reference check before investing your money!
Choose platforms to sell your products
The channel is a point that deserves a lot of your attention. Your international dropshipping company will only work if it reaches the right customers. To do this, choose where to place the products.
Shopify is a great tool for starting your own e-commerce, but don't just focus on it! You should also list your products on popular marketplaces in each country. Do good keyword research and write full descriptions in the language of the country (Fiverr allows you to hire translators of different languages with affordable values).
Focus on digital marketing
Once the company is structured and the products are chosen, your effort will be basically on digital marketing. The conversion rate in e-commerce is around 1-2%. That means that for every hundred people who enter your store, only two will buy an item.
Therefore, your goal in digital marketing should be to create actions that attract as many people as possible to your e-commerce. Invest in a good SEO strategy because it will help you stand out in search engines. In addition, you should also do a constant job of optimizing your site so that conversion increases. You can do this by making the checkout process as simple and intuitive as possible by adding reviews from real consumers who have used your product.
Invest in quality photos and also do A/B testing to see which messages most entice the consumer to swipe the credit card number!
Investments in Google Adwords, Google Shopping and Facebook Ads should also be part of your routine. Advertising products through these tools ensures that more people access your website.
Follow the operation closely.
Dropshipping is an excellent business because it allows you to perform all operations from your country of residence. However, for it to work properly, it is essential to closely monitor the performance of the dropshipper (your supplier).
Remember that if the supplier makes a mistake, you will get the complaint and you will look bad to the customer.
From the moment your company is established in the U.S., and you understand how to do Dropshipping once, everything becomes easier for the next time. Always focus on finding new suppliers, opening new markets!
dropshipping lover