Everyone has that go-to t-shirt that makes them feel stylish and comfortable no matter which outfit or outing is planned. With the demand for the perfect Tee never going away, why not be that go-to store for everyone's favourite Tee?
If we’ve got your attention, your next question is simple: “Where do I find unique and high quality T-Shirts?”
Look no further! We’re going to cover how to start a tee shirt business, and how dropshipping can solve your product and inventory problem. With 27% of online retailers transitioning to dropshipping as their primary method of order fulfillment, there’s no denying its effectiveness.
This guide is all about how to start a successful online t-shirt business that you can manage from anywhere in the world, and launch yourself into entrepreneurship. But buckle up! It takes hard work and grit to get there.
Before we get into the finer details of launching an online dropshipping t-shirt business, there are two important questions to answer:
- What is dropshipping?
- Is it profitable?
Dropshipping is a supply chain management method in which your goods - in this case, t-shirts - are transferred directly from a manufacturer or wholesaler to your customer. You take the order, but you never touch the goods.
In regards to profitability, now is a better time than ever to make money online. Retail eCommerce sales worldwide reached $3.53 trillion in 2019, and there’s no signs of stopping.
But that doesn’t mean success will come easy. Winning big at dropshipping is a result of grit, strategy, and knowing your costs.
For example, if you sell a t-shirt for $20, you must deduct your costs to arrive at your final profit. Here’s a basic example using the $20 retail sale price:
- Cost of t-shirt: $8
- Cost of shipping: $2
- Total profit: $10
Of course, this doesn’t take into consideration other miscellaneous expenses, such as marketing and advertising. But even if you don’t break even right away, keeping up with a healthy retargeting strategy and staying on top of your weaknesses will guarantee a healthy revenue and profit in the future.
Without further ado, let's get into it!
6 Steps for Launching an Online Dropshipping T-Shirt Business
No two entrepreneurs will take the exact same approach to start a t-shirt business, but there are six basic steps that deserve your attention. Don’t forget to tackle these one at a time, and make sure you spend the necessary time and effort on each one.
1. What Makes a Good T-Shirt?
Don’t do anything until you have an answer to this question. If you don’t know what a good t-shirt looks like (and feels like), you could end up with products that don’t suit your brand or target audience.
The word “good” means something different to everyone, but here are some basics to consider when sourcing t-shirts:
- Style
- Comfort
- Durability
- Sizing (including how it fits)
- Color
You know your audience better than anyone else, so personally weigh these five details accordingly.
For example, if you’re targeting the younger generation Z crowd, price is a driving factor.
Conversely, if you’re selling custom t-shirts to an older demographic, they may be more interested in comfort, durability, and a good fit. Although a good t-shirt lies in the eye of the beholder, it’s your job to make sure you provide the perfect tee to your target audience.
2. Choose a Niche
Choosing a niche is critical to honing down your target audience, and staying focused on your value proposition. It’ll help your t-shirt business stand out from the crowd. Furthermore, it helps you build a brand and competitive advantage.
There’s no shortage of niches to dabble in. Some common examples include:
- Funny
- Sports
- Nerd/fan
- Pop Culture
From here, you can narrow down the niche even further. For instance, maybe you want to sell funny t-shirts but would rather focus on humorous artwork as opposed to plain text t-shirts.
Or maybe you want to sell t-shirts with quotes on them, but would rather appeal to a more targeted audience. So, rather than use just any quotes, choose a sub-niche, such as sports, celebrities, or pop culture.
If you’ve yet to pinpoint your niche, here are some things you can do:
- Focus on topics that you personally enjoy
- Search for your niche and the word “t-shirt” in Google to find your competitors
- Use Facebook’s Audience Insights tool for data on your market
Once you have your niche specified, it’s easier to tackle the next steps in building your T-shirt dropshipping business. Keep your target persona in mind at all times! And always ask yourself: “Would I buy this T-shirt?”
3. Find Dropshipping Suppliers
This step can make or break your dropshipping experience, as the wrong choice of supplier(s) could cripple your dropshipping T-shirt business. Finding the right supplier takes time, and there are plenty of options out there for you to explore before making a decision.
Conversely, once you connect with a reliable, quality supplier, you’ll feel confident in every order you place. So, it’s important to not take any shortcuts in the beginning!
Here are some questions to answer as you compare dropshipping suppliers:
- What is their wholesale price?
- What is their return policy? Is satisfaction guaranteed?
- What types of designs are available?
- How often are new designs being made?
As you answer these questions, you’ll come to realize that some suppliers suit your every requirement, while others fall short in several key areas. With these questions, you’ll be able to filter out the ones that work best for you.
Your success hinges largely on two points:
- Your ability to form a partnership with a reliable supplier
- Your ability to balance quality and price, with the goal of achieving at least a 30% profit margin
With Spocket, you gain access to many high-quality artisanal US suppliers that offer fast shipping, competitive pricing, and unique designs.
You can also go the cheaper route, and try to find suppliers abroad that fit in with your aesthetic, but keep in mind that shipping times are an important factor in making a sale. With dropshipping suppliers from the USA, you’re able to make fast shipping a selling feature, and use it as a competitive advantage.
Tip: once you narrow your list of suppliers, request a sample (or several samples of different products) from each one. This should help you make an informed and confident final decision, as well as see the entire customer journey.
4. Define Your Approach
You’ve selected a niche and nailed down your suppliers. Now, it’s time to define your processes.
Since you’re dropshipping, there are three options available to you:
- Create your own designs: There are two ways to approach this.
Personally create your designs - if you’re the artistic type - or hire a designer to carry out your vision. There are both freelance networks (such as Upwork) and design communities (such as Behance) where you can find designers.
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