Starting a successful dropshipping business is no easy task, and for those in Africa who…
9. How To Start Dropshipping With $200 Investment
Usually, start-ups give up before starting their dropshipping journey because of the capital required to start and run the business. Today, I share how you can Start Dropshipping With $200 following the dropshipping strategies I am about to unleash free of charge to you.
Starting a dropshipping business requires capital, some would say above $2000; to be successful in this venture, you require money to run advertisements, fulfill orders, design the store, pay for apps, and perform general management tasks that require cash.
The good news is, you don’t have to do all that. If you only have $200, you can start a dropshipping store on Shopify and pave your way up as you learn to save and work smart.
Many Shopify stores closed due to a lack of funds to manage and run marketing; others couldn’t keep up with the pressure that comes with it, so 95% of Shopify stores closed without making sales.
Table of Contents
Starting From Scratch Budget Breakdown
Since you love dropshipping and are desperate to start and make some sales with a low budget, these strategies should apply in your situation. We will spend the $200 wisely until you make sales that will enable you to scale your eCommerce business.
- Shopify basic monthly Plan = $29 Monthly
- Premium Domain Name = $14 Annually
- Install Free Shopify Apps Only
- Use Free Shopify themes only.
From the working capital of $200, we are left with around $150 on our credit card, and now, you can decide to have your domain name bought from other domain name providers, which may be cheaper than on Shopify. Then, you can later add it to your existing stores through the DNS setting of your host.
At this stage, I assume you have your store already designed using one of the free Shopify themes offered on their platforms; the store must have a logo, which, of course, you can design free of charge using Canva or any other free logo tool on the internet.
You must install only free Shopify apps essential to your store; when the shop is flooded with apps, it tends to slow down the performance, and some pop-up apps make it hard for customers to navigate the shop.
So, only install apps that you need at the beginner stage; the Dsers app is a must-have; it is the app you will use to import products from AliExpress after you’ve identified the niche you want to start with.
The store should have the following:
- Menus (features your product collections and navigation)
- Homepage set up (includes graphics and set up)
Finding your dropshipping Product
There are various ways to find hot-selling products; if you want to go the Ecom hunt or niche scraper way, you’re welcome, but remember, your budget won’t allow you to do that. There are other free ways of finding a good product we won’t look into, like searching them on Facebook using terms like ‘Get yours here, free shipping”.
You can find good products on Facebook, but for a product to gain traction on Facebook feeds through ads, it only means the cash the store owners have pumped into the ads; hence, you must have a huge budget to try selling a product that has trended on Facebook.
So what do we do?
Use of Instagram
Regarding how to start a dropshipping with $200, the best and most effective way to find our product is through Instagram Explorer. It is easy to find a product on Instagram since store owners use Instagram influencers to expose their products to the right audience.
When you hit the explore page and find or see an ad for a similar product at least 5 times, then you must stop what you are doing and start looking into it.
When several Instagram influencers promote the same product, it only means it is doing well.
A store owner would only repeat one Instagram influencer if they get sales. When this happens, it only proves that the product is hot and you can make a sale on it.
So, when you head over to the Explorer page on your Instagram, you will see posts, ads, and Instagram TV content presented to you; the data you access is based on your cookies and browsing habits. So, if you like searching for certain keywords or products, you can only see the same and related keywords.
After you’ve found the product, head over to Google Trends to see the data it presents in the last 12 months; if the graph is rising, it only means you can look for the product and add it to the shop.
Pet Pooper Scooper has been on my feeds and Instagram Explorer of late, and I have seen the ads from influencers at least 6 times. Today, I am using this product as an example.
So here are the Google trend searches in the USA for the last 12 months. You can try the product from here or keep looking for others.
The same applies to Aliexpress: check up on the product, focus on the number of orders, copy and paste the product link, head over to the dropshipping center, and check if it is hot.
Now that you’ve identified a product you want to sell, it is time to build the store and set things up for you. We are still on a low budget of $200, so everything we do must not involve money or pay for anything not part of the plan.
Building the store
We will build a one-store product, and you may ask yourself why. With this kind of store, you get time to focus on what works and kill what doesn’t work for your store. Since we are on a low budget, we must focus on one thing to succeed.
A one-product store works magic if you have a good product and a unique marketing approach. In this case, you’ve already learned how to create a Shopify store.
Then let’s add our product using Dsers. Make sure to have looked for stores selling the same product, probably the one you saw on Instagram.
Don’t try to reinvent the wheels; duplicate everything the way theirs is, but edit to suit your store brand and uniqueness.
Start Dropshipping With $ 200: Product Marketing.
As stated earlier, when I started this post, we will deal purely with Instagram; we’ve already found a product on Instagram, and now it’s time to launch our ad campaign.
Instead of using Facebook ads for our product marketing, we switched to Instagram influencers. We want to use them simply because we are on a budget that won’t make us sell on Facebook. The point most drop shippers go wrong is starting their marketing on Facebook, yet they are on a low budget.
The next task would be to find influencers in the niche we are trying to promote. The influencer must have at least 50-200k followers.
You don’t want to look for influencers with 900k followers; the more followers they have, the higher their rates. Going for influencers with no marketing posts is highly advisable, the clean account that hasn’t marketed anything.
When we do this, we stand a high chance of conversions; users tend to ignore ads more so if an account constantly posts ads and promotions, unlike a new account with followers who haven’t seen an ad from them. They will likely convert or take action.
The low followers’ account must be engaging on the said account, and your budget for promotion must not be more than $20 per post of 12 hours.
Now, if this is done successfully, with conversions, you can negotiate a long-term arrangement with the influencer. Meanwhile, you can browse Instagram to find similar influencers for the said product.
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When you do the above and get sales, you can rinse and repeat, find new influencers within your niche, negotiate better rates, run promotions, and see results.
If conversions increase and sales come in crazily, look for influencers with huge followers, try and see if you can afford it, hire them, and run the promotions.
When you hit $ 2000-3000 in profit, you can start Facebook advertisement using the data gathered by pixels for Instagram activities and lookalike audiences (LAAs).
However, always ensure that the product image or video you promote has no copyright issues. It is wise to create your video ads or edit the existing ones, just in case they may have issues using their copyright marketing materials.
This brings us to the end of how you can start Dropshipping with $200, and it is clear that you have no excuse for not starting a dropshipping store on Shopify.
All you have to do is sign up on Shopify and start your dropshipping journey. If you are stuck, I am here to help you go through it, and help will come your way.
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