How to start dropshipping in Sri Lanka

If you’ve been hearing a lot about dropshipping these days, it’s no surprise at all. The dropshipping business model is rapidly gaining traction worldwide, with the global market valued at a whopping U$225.99 billion in 2022, statistics by Grand View Research reveal. Thanks to increasing online shopping trends and the surge in cross-border e-commerce, dropshipping is, therefore, becoming an attractive business prospect. For budding entrepreneurs in Sri Lanka, dropshipping presents an incredible opportunity to tap into this growth as it marries the country’s booming e-commerce with global trade dynamics.

How does a dropshipping business work?

At its core, dropshipping is a streamlined form of retail where a store doesn't keep the products it sells in stock. Instead, when a product is sold, it purchases it from third-party suppliers and has it shipped directly to the customer. This is done while retaining the dropshipping brand on customer-facing materials, such as the packaging and invoice. This eliminates the need for a physical inventory, let alone managing it, thus reducing overhead costs. With its inherent simplicity and efficiency, it's no wonder dropshipping has become a favoured business model. 

Ready to dive in? Here are steps you can take to kick off your dropshipping journey.

5-step guide to starting a dropshipping business 

1. Do market research

Understanding the nuances of your target market is pivotal. Begin by identifying trends and niches with potential for profitability. Take, for instance, the global trend towards sustainable and eco-friendly products. A deep dive into market research might reveal a growing international demand for sustainable fashion or biodegradable makeup products. By aligning your dropshipping portfolio with these global preferences, you position yourself in a profitable niche. An eco-friendly e-commerce brand not only appeals to eco-conscious consumers but also allows you to meet global sustainability goals. Therefore, a comprehensive analysis of customer preferences and needs will not just inform your product selection but also help shape your dropshipping strategy in line with international market trends.

2. Look for dropshipping suppliers

Finding reliable suppliers is crucial in the dropshipping world. With a focus on overseas market expansion, casting your net wide is a winning strategy. Here are some ways to search for and secure suppliers:

• Global supplier directories: Websites like Alibaba, Global Sources, and Oberlo can connect you with manufacturers and wholesalers from various parts of the world. 
• Trade shows: Though this might require some travel, international trade shows offer a chance to meet suppliers face-to-face. This helps in establishing trust and understanding the quality of products firsthand.
• Dropshipping marketplaces: Platforms like SaleHoo or Doba curate lists of pre-vetted suppliers, reducing the legwork for you. They connect businesses with suppliers who are willing and experienced in the dropshipping model.
• Industry forums and groups: Engage with online communities specific to your niche. Experienced dropshippers often share their insights, recommendations, and sometimes even warnings about certain suppliers.
• Social media: Use platforms like Instagram or LinkedIn to identify potential suppliers. Many manufacturers and wholesalers these days have a robust online presence, showcasing their products and establishing their brands.

3. Set up your online store

The burgeoning landscape of e-commerce beyond Sri Lanka offers a variety of platforms for establishing your online store. Opt for platforms that best suit your needs and integrate seamlessly with dropshipping suppliers. Popular e-commerce platforms include Shopify, WooCommerce, BigCommerce, and Magento. Each comes with its own set of features tailored to various needs, from seamless integration with dropshipping suppliers to scalable infrastructure for large inventories. Alternatively, consider setting up seller profiles on marketplaces like Shoppee, Lazada and Amazon. You’ll find similar integrative features suitable for your dropshipping venture. When it comes to the customer experience, consider these quick tips:

• Plan a user-friendly interface: Ensure your website is intuitive, easy to navigate, and mobile-responsive, so your customers are willing to stay on the page and continue browsing.
• Use high-quality product images: Visuals play a pivotal role in e-commerce. Display clear, high-resolution photos from multiple angles to provide customers with a comprehensive view of what they’re purchasing.
• Engaging product descriptions: Avoid generic descriptions. Craft compelling, informative content for each product, highlighting its benefits and features. This not only helps in selling but also boosts search engine optimisation (SEO).
• Secure payment gateways: Incorporate trusted payment methods and ensure the security of customer information. This can include options like PayPal, Stripe, or credit card payments.
• Transparent shipping and return policies: Clearly outline shipping times, especially if sourcing products internationally, and provide a fair return and exchange policy to build trust.