How to Start a Profitable Dropshipping Business: 6 Easy Steps

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Are you looking for a low-risk business model with high potential profit? Look no further than dropshipping! Drop shipping is a business model where the retailer doesn’t hold the inventory, instead searching the product from a supplier who ships them directly to the customer. By partnering with a drop shipping supplier, retailers can offer their customers a wide range of products without worrying about inventory management and fulfillment.

What is a Dropshipping Business Model?

Drop shipping is an eCommerce business model where merchants accept orders without keeping track of the stocks. It allows the eCommerce business to outsource procuring, storing, and shipping products from third parties. The order is simple; the consumer pays the drop shippers. In a drop shipping arrangement, customers make purchases from a third party (the “drop shipper”), who in turn is paid by the manufacturer, which then ships the product straight to the client. 

Essentially, the drop-shipper is the marketer. If a customer pays $50 for a particular product and the wholesale price is $30, then the drop shipper will directly keep the $20. And eventually, the supplier processes the order and ships it.

Advantages of Dropshipping

Drop shipping began as an alternative to traditional brick-and-mortar stores in the early 2000s, when technology allowed companies to outsource their product fulfillment and needs. Even if they have their own warehouse to keep the goods, retailers can still engage with third-party suppliers to conduct the full order fulfillment process, from receiving the goods to shipping them to clients.

One of the biggest advantages of drop shipping is the low startup costs- you don’t have to invest in the inventory upfront, and you can operate them from almost anywhere with an internet connection. Since you are not keeping an inventory, you do not need to make an initial investment in inventory, and you may operate the business from anywhere.

This article will explore the most significant factor of drop shipping, including finding the right supplier, selecting profitable products, and marketing your online store. We’ll also cover the common pitfalls to avoid and tips for success. Whether you’re a seasoned entrepreneur or just starting, drop shipping could be the game-changer you’ve been looking for. So, let’s dive in and explore the exciting world of Dropshipping!

How to Start a Dropshipping Business in 06 Easy Steps

So, after understanding ‘what is a dropshipping business and understanding its advantage and it works, now is the time to understand how to start your dropshipping business in 07 easy steps such as;

Starting a drop shipping business has always been challenging, and with the right strategy and dedication, you can easily turn your passion into profits. So, what are you waiting for? Let’s get started.

1. Market Research and Niche Selection

For drop shippers, success or failure hinges on finding the right market niche. Identifying a profitable niche and performing market research is the first step to building a successful drop shipping business. Finding profitable niches is also key to identifying products that solve a problem or meet a need. Look for products with high demand and low competition, as this will enhance your chance of success. Suppose you are targeting a gym person; you could consider niche products like Vegan protein, supplements, or specialized diet plans.

Once you’ve identified the potential niches, conducting market research that justifies the demand is essential. This can involve using tools like Google Trends to understand if there is a justifiable search volume for the product or niche. You can also check out the outline forums such as Quora, Reddit, and social media groups related to the niche to gauge customer sentiment. 

Competition is unavoidable, therefore it’s important to scope out who can pose a threat and learn from their successes and failures. This will involve looking at their pricing strategy, customer service, marketing tactics, and product quality. With this, you will be able to separate your company from competitors and provide something exclusive to your client.

Choosing a Dropshipping Platform

Selecting a dropshipping platform is a critical step to success as a drop shipper. Selecting a platform might be difficult with so many options on the market. You must keep one thing in mind and that is, your platform can affect your sales performance and customers’ perception of your online store.

Factors to Consider when Selecting a Platform

Choosing the right dropshipping platform can take all the difference for your business. It’s important to prioritize your demands with so many options. It’s important to prioritize your demands with so many options. The structure of the platform’s prices is the first and most crucial factor to take into consideration. Some eCommerce platforms offer subscription plans, while others charge a percentage of your sales. Be sure to consider which pricing structure would be a budget and sales projections. 

Another factor to consider over here is that it needs to be easy to use. You don’t want to choose a platform that feels like you’re trying to navigate a maze – it will just frustrate you and your customers as well. Payment gateway choices are also a crucial factor to consider. Try to choose a service that accepts several different payment ways including PayPal, Google Wallet, and Credit cards. This will ensure that customers can make purchases on your website without difficulty. 

Shipping options are also a crucial factor to consider. Look for a platform that offers a variety of shipping options, including different carriers and shipping speeds. Because of this, you may offer customers customized delivery alternatives. You also need to choose a platform that can grow with your business and that’s why you need to think about scalability as well. So, choose a platform that can adapt your business growth along with you, like a pair of shoes that provides enough room for your feet to grow.

Finally, consider the availability and quality of platform support. Look for a platform that provides resources for troubleshooting issues, such as a knowledge base or customer support team. This will ensure that you can quickly address what arises with your store.

2. Find your Perfect Dropshipping Platform

Are you ready to take your drop shipping business to the next level? It’s crucial to select a drop shipping platform that is easy to use. Yet, there is no need to be concerned because numerous well-liked choices are currently offered on the market. These choices include Shopify, Magento, WooCommerce, and BigCommerce, amongst many more. So let’s take a closer look at these popular drop shipping platforms and what they offer.

  • Shopify
  • Adobe Commerce (Magento)
  • Wix
  • Bigcommerce
  • Woocommerce

A. Shopify

In addition to being a prominent platform for dropshipping businesses, popular for its user-friendliness and comprehensive features, it also offers a wide range of services that can help you better manage your online shop. You would be surprised to know that, at present, there are over 4.25 million websites that are live on Shopify, according to Builtwith and also used by over 175 countries on the global level which defines its authority and pure form of dominance in the eCommerce industry.

Because of its user-friendly design, vast-customization possibilities, with a wide range of integrations. Shopify is a very popular choice for many online merchants and drop shippers. The best part is that it gives you unlimited bandwidth, storage facility, and an option to list unlimited products. The best part is that it comes with built-in marketing features, along with built-in Blog CMS to reach your target audience. Having a huge Shopify App Store of over 7500 apps, with attractive and easy-to-customize themes, and extensive free learning resources to help merchants while building a successful business.

However, the layout cost might be too expensive for small businesses, and some users have observed limits in terms of modifying certain features of their stores. They would also charge certain transaction fees in case you’ll use a different payment gateway, but the best part about them is Shopify Payments support all the popular payment methods and won’t charge you extra even for the manual payment mode (includes COD, Bank Transfer,…..) also.

So, if you’re a first-time entrepreneur and you guys are just getting started then, it’s highly recommended to go with Shopify as it is one of the fastest and simplest platforms to set up the store.

Also read: How to Setup Shopify Store? (Step-by-Step Guide)

B. Adobe Commerce Magento

Magento, which is nowadays termed Adobe Commerce, is one of the very famous eCommerce platforms widely used by professionals who are seeking to develop a long-term professional game for an eCommerce site. If I talk about the numbers, then More than 167,000 active eCommerce sites are driven by Magento 1 as of October 2022, while almost 100,000 are powered by Magento 2. 

This represents about 0.9% of all online retailers. Following the advent of Magento2 in the eCommerce market, the platform has advanced to a higher level, allowing shop owners to design effective solutions for B2B eCommerce enterprises.

Magento has several functionality and customization choices for e-commerce. Large organizations like it because it can handle significant traffic and transactions. Magento has great flexibility. Its many add-ons and configuration options allow firms to tailor the platform. Magento is also SEO-friendly, which helps boost traffic and sales.

Magento’s complexity can hurt some organizations. Small firms without an experienced technical team may struggle to get it up and maintain it. Magento hosting and development might be expensive. Large organizations seeking a flexible and scalable e-commerce platform may consider Magento. Smaller firms may take longer to implement.

On an initial basis, if you’re not a tech-savvy guy then, it’s highly recommended not to choose Magento, but once you become too much aware of the system, then I think it’s the right time for you to choose Magento and grow your business with it.


WIX is one of the best and most convenient ways when it comes to choose an eCommerce platform that provides a simple alternative to developing a full-on website because of the hassle-free coding. With its drag-and-drop website builder, you can easily create a professional-looking website without any knowledge of coding skills as well. WIX eCommerce also offers a variety of features to help and manage your online business which includes inventory management, processing of payment along with shipping and tax settings.

And, with its mobile-optimized design, your customers can easily shop from their smartphones and tablets. So, whether you’re just starting out your business or looking to upgrade your existing online stores, WIX eCommerce is a very great choice for small businesses.

Since there are so many upsides over here, you also need to understand that there are certain negative aspects as well of this platform as well such as, its lacks the customization related options once your website is initiated it becomes a challenging task to modify the templates, or you can’t move to other platforms all you have to do is to rebuild them completely. Since the limitation of the storage facility is very limited because they don’t offer it in any of their subscription plans. Even the navigation system through WIX is fairly simple, which makes it difficult for large-sized businesses while manage their inventory. 

WIX is an easy-to-go platform no matter if you have to develop a website for eCommerce, blogging, or even for a portfolio. However, it comes with certain limitations along with some nice features, if you’re having a large organization it’s preferred to build a website somewhere.

D. BigCommerce

Another popular platform for dropshipping companies is BigCommerce, which has a simplified user experience while giving robust functionality. Having a reputation for being the world’s most widely used open SaaS eCommerce platform. The platform is also renowned for other features, which also include its low cost of ownership with highly customizable APIs. It comes with tools for managing inventory, accepting payments, and configuring shipping options are just some of the offers. BigCommerce is compatible with a large variety of applications and plugins developed by third parties, which can further support you in improving the efficiency of your business procedures and increasing the size of your customer base.

BigCommerce is a robust platform with advanced features designed for larger businesses. Its powerful tools and integrations make it a popular choice for those with more complex needs. However, its sophisticated functionality makes it difficult to use for beginners, and its pricing may be too expensive for small companies.

In conclusion, selecting the right eCommerce platforms depends upon several factors that include your budget, technical expertise, and business needs. By considering these factors and comparing different platforms, you can select a platform that aligns with your business goals and sets you up to become a successful drop shipper. So, take the time to evaluate your options and choose the best platforms for your business.

E. WooCommerce

WooCommerce is a free WordPress plugin that offers a complete e-commerce platform for dropshipping enterprises. Its numerous capabilities allow you to manage your store’s inventory, accept payments, and ship orders. WooCommerce is highly versatile and offers several add-ons that may be utilized to create the ideal storefront for you.

Because it is easy to configure, this open-source platform is suitable for small companies as they can modify the code as per their requirement and if someone is familiar with WordPress, you will enjoy it while navigating its interface. The options of customization that WooCommerce offers help them to stand out from the crowd. And, because it brings regular software updates, with the help of this platform you will always be ahead of any type of cybercrime-related activities even though the SSL certificates are not included, you can add them

There are not only good things available over there, but since there are so many plugins available over there, sometimes you would feel overwhelmed which can hamper the ongoing excellent performance of the store. There could be a possibility that sometimes a user installed so many plugins available over there which could affect its performance and significantly be going to slow down the download speed and it might take up a lot of space. And, even the CMS offered by them is a little outdated. 

3. Setting Up Your Online Store

Is operating your online store something that has ever crossed your mind? An online presence is an effective strategy if you aspire to become a successful business owner and expand the larger audience and, ultimately, more paying customers. This is because reaching more and more people with the help of the Internet will certainly enhance revenue. 

Businesses might communicate with more potential buyers by using the Internet. Now the question might arrive, where to begin these things? So, don’t fear. We will walk you through the entire procedure step by step using the instructions.

  • Choosing a Domain Name
  • Designing your online store
  • Adding products to your store
  • Setting up payment and shipping methods
Starting your dropshipping business

Choosing a Domain Name

Your domain name is the address that people will use to find your online store. A memorable and easily recalled brand name is crucial to your company’s success. Picking a name that is memorable and meaningful is essential. Use relevant keywords and check if your desired domain name is available. Domain registrars like GoDaddy, Hostinger, etc., are where you should start your search and make your purchase.

Designing your online store

Starting a home-based business requires a well-designed internet shop. Improve your website’s interface. Utilize Shopify or WooCommerce instead of developing a website. Do either with Shopify, Woocommerce, or your domain name. The best aspect is that these platforms offer templates and themes matching your company’s style.

Adding products to your store

It’s time to start stocking your virtual shelves with wares for sale now that your shop is live. Make sure to take high-quality photos of your products and write detailed descriptions. Use categories and tags to organize your products, and consider offering discounts or promotions to entice customers to buy.

Now that your online shop is live, you can start stocking the shelves with goods. Make sure your product photos seem professional and give detailed descriptions. Get customers to buy from you by classifying and labeling your products and considering holding sales.

Setting up payment and shipping methods

Make sure to make your consumers’ lives easier by restricting their delivery and payment alternatives. By utilizing a specific payment gateway, such as PayPal or Stripe, you can even accept credit card payments for goods. Choose a shipping service like the US Postal Service or FedEx to send your packages. Provide precise shipping cost estimates and consider removing shipping charges for large transactions.

4. Finding a Reliable Supplier

Selecting a supplier is crucial to running a successful business. You require a dependable source who can match your requirements while also contributing to the smooth operation of your business. Finding a perfect supplier, however, can be difficult due to various issues such as quality, delivery time, legitimacy, along with payment terms. Consider these strategies for locating and analyzing potential suppliers to make informed decisions and develop a strong collaboration. Whatever your requirements are, your business may thrive and grow with the assistance of the proper provider. 

  • Identifying Reliable Suppliers
  • Evaluating Supplier Quality and Delivery Times
  • Verifying the Authenticity of the Supplier

Identifying Reliable Suppliers

Any business that relies on a steady supply of goods or services must find a dependable partner to be successful. You can start by researching and collecting information about potential suppliers to identify a reliable supplier. This could be done thoroughly through online directories, trade shows, or industry associations. Look for suppliers with a strong industry reputation and positive reviews from past customers.

The level of experience and competence possessed by the provider is also an essential component to take into account. So, Collaborating with a supplier with a proven track record of delivering high-quality products or services and has experience working with businesses similar to yours.

The main benefit of working with a supplier is great because you can earn higher profit margins here. But, there is still the possibility of there being a disadvantage as well because there are some suppliers who would only work with a minimum order threshold. This means that you are required to keep a minimum order every month in order to continue working with these suppliers.

Evaluating Supplier Quality and Delivery Times

After identifying possible suppliers, the following step is to assess their product quality and delivery time. Collaborating with a proper supplier might affect the quality of your products or services, even if quality is paramount. To evaluate the quality of the product, you must request the product samples or conduct an on-site visit to access the supplier’s production process.

Talking about the delivery times, one of the crucial factors that could make or break your business as it will impact your operations and customer satisfaction. The delivery times it takes should be at most 01 week from the purchase date. Ask potential suppliers about their lead times and delivery schedules to ensure they meet your needs.

Verifying the Authenticity of the Supplier

During the process of selecting suppliers, it is critical to conduct authenticity checks on potential vendors. Due diligence means checking a provider’s legitimacy and reputation. Start by verifying the provider’s registration, permits, and compliance with all necessary laws and regulations.

In addition, it is necessary to verify and validate the provider’s advice, as well as their legal and regulatory background and their financial history. Hence, make sure you conduct extensive research to safeguard yourself against being manipulated in any way.

5. Marketing and Driving Traffic to Your Store 

Online businesses are expected to serve their customers with greater products and services. In addition, attracting new clients to your store is vital. Addressing a wider audience has become much simple with the rise of digital marketing. These are some efficient marketing and traffic-driving methods for your store.

  • Creating a Marketing Plan
  • Utilizing social media and email marketing
  • Optimizing your website for SEO
  • Advertising on Google Ads and Facebook Ads 

Creating a Marketing Plan

Before deep diving into different marketing tactics, creating a marketing plan is essential. A well-planned marketing strategy will help you reach and create money. To achieve your business goals and evaluate the performance level, it’s important to set up a strategy. You have to consider one thing while developing your marketing plan: business needs, customer demographics, and the latest market trends.

Utilizing social media and email marketing

Marketing via email and social media is highly effective since it targets a specific demographic. With platforms like Facebook, Instagram, and Twitter, you can promote your wares, interact with consumers, and distribute hyper-specific advertisements. Selecting the right platforms that align with your target audience.

Email marketing is a fantastic channel for communicating with clients since it enables you to deliver customized communications like newsletters, special offers, and announcements to their inboxes. To increase click-through rates, create visually appealing emails with a clear CTA that speaks directly to your target demographic.

Optimizing your website for SEO

Search engine optimization helps your website rank higher in search engine results. This means that an increasing number of visitors will be able to locate your business online. To optimize your website, you can start by researching the keywords for the target audience that you’ve predefined them. Then, make sure the content of your website, structure, and metadata are optimized for those keywords.

Advertising on Google Ads and Facebook Ads 

Regarding targeting potential clients, Google Ads and Facebook Ads are excellent and cost-effective options. Google Ads allows you to show advertising to people looking for comparable items or services to yours. Facebook advertising allows you to reach a larger audience using tailored ads based on interests, demographics, and behaviors. Selecting the right keywords, writing engaging ad copy, and testing your ads to determine their efficacy are all essential for successful advertising.

Finally, marketing and generating traffic to your store requires a well-thought-out strategy and various approaches. Using social media, email marketing, improving your website for SEO, and advertising on Google Ads and Facebook Ads are all efficient strategies to attract new clients. Combining these techniques can raise your visibility, engage with customers, and increase your sales.

6. Managing Your Dropshipping Business

Drop shipping has become an increasingly popular way to start an online business without needing physical stores or inventory. However, managing a drop shipping business requires consistent effort and attention to detail. This article will explore some essential tips to help you successfully manage your drop shipping business.

  • Monitoring Sales and Inventory
  • Responding to customer inquiries and complaints
  • Keeping track of Finances and Taxes
  • Scaling and Growing Your Business

Monitoring Sales and Inventory

When it comes to monitoring your sales and inventory is crucial for any drop shipping business. It’s important to keep tracking the performance level of every product. With this information, you may choose which things to keep and which to promote. Additionally, keeping track of your inventory levels is crucial to only sell out-of-stock products. It’s also important to work with reliable suppliers who deliver the products on time and maintain consistent quality.

Responding to customer inquiries and complaints

As an owner of a dropshipping business, you must be responsive to your customers who have questions or concerns about their orders. It’s important to address customer issues quickly and professionally to maintain a positive reputation and prevent negative reviews. And communicate clearly with customers and provide regular updates on their orders.

Keeping track of Finances and Taxes

Managing the financial aspect of your drop shipping business can be daunting, but it’s crucial to keep track of your finances and taxes. Set up a bookkeeping system and keep accurate records of your income and expenses. It’s also become essential to keep track of tax obligations, including sales and income taxes. Consider consulting with an accountant or tax professional to ensure you meet all the requirements.

Scaling and Growing Your Business

Once you’ve established a successful dropshipping business, it’s time to focus on scaling and growing it. This will involve expanding your product line by improving your marketing strategies and exploring new sales channels. Influencers and affiliates can help you scale your business by promoting your products to their audiences. Additionally, consider optimizing your website for search engines to increase your online visibility and attract more traffic.


So are you ready to enter this profitable journey in the world of eCommerce? Start your own dropshipping business today! With minimal investment and maximum potential, you can achieve financial independence by following our expert steps. From choosing a niche to creating a stunning website, we’ve got you covered. Prioritize exceptional customer service and witness sustainable growth. Don’t wait any longer contact us now and unleash the power of dropshipping for your success!