How to Start a Dropshipping Business?


Nowadays dropshipping has become a popular business model in the market. It is used to run a business or store without holding the inventories. Once you’ve received a sale from the customer, your supplier will ship that particular product from their warehouse at your customer’s doorstep. As a result, you don’t need to bother about production, packaging, maintaining or shipping the products.

Select a niche

The niche you’re going to select must be laser-focused. When you cannot focus on your product, it can be difficult to promote in the market. When you’re not passionate about your selected niche, you’ll end up disappointed. Pick the niche that you’re interested in and grow your business. Seeking incredible profits can be availed running a dropshipping business.

Select the niche that has a high price, you can earn good money. Also, low shipping costs play a major role. Customers may not buy the product when the shipping charges are high. Therefore offering free shipping charges to your customers will increase the conversions.

Invest in SEO

Perform keyword research about your product. Check whether people are showing interest or searching for your product. You can check the user’s search queries using Google’s keyword planner. If none of them is searching for your niche, you need to stop focusing on that niche. Look for the niche that people are searching online to buy.  Sell a product that is not available locally. Choose the product that customers cannot find them on the streets.

Create a unique brand

Creating your own brand can be a daunting task for you. Being unique is important if you want to improve your brand value. Look for the product or service you can sell as your own. Make sure to have custom packaging to increase brand awareness.

Competitor analysis

The term competitor analysis denotes “identifying and evaluating your niche competitors”. Performing competitor research is important for a dropshipping business. Simply put, you’ll be competing with multiple dropshipping businesses and other popular e-commerce brands such as Amazon, Walmart and more. By determining and discovering where your niche competitors took the wrong step, you can make sure to avoid those mistakes to reduce losses.

Generally, dropshipping owners prefer the product or service that has low competition in the market. This is absolutely wrong, when there is no demand for the product, a dropshipping business may end up the loss. It’s no surprise that there are multiple reasons for a product that has less competition. It includes poor quality, high shipping prices, production issues, outdated and more. Always choose the product that has high competition, when the demand for the product is high, your business model will sustain for longer periods of time.

Secure a supplier

Dropshipping is one of the great approaches to earn passive income. Securing your supplier is an important aspect to run a dropshipping business. But, it can be harders part ever for dropshipping owners. Because the supplier can make or break your dropshipping business. So, don’t take a wrong step while selecting a supplier. Follow the below steps while selecting a supplier

  • Communicate with the manufacturer. Once you’ve finalised about your niche, research about the manufacturing company. Maintain a good relationship with suppliers, ask them to offer products at wholesale prices. 
  • Choose the suppliers who are providing their services from the past few years. Understand the supplier’s terms and conditions clearly.
  • Purchase from other drop shippers to generate more leads.
  • Clear all your queries. Ask them about their production capabilities, duration to ship a product, payment and more.
  • Using member directories is the best way to find out the trusted and secure suppliers. Pay a few dollars for member directories and find legitimate suppliers.

Build your e-commerce website

There are several e-commerce platforms that support the dropshipping business model are available online. Shopify is one of the great choices to build your e-commerce website. You don’t need to have the technical expertise to run an online business. Everything can be done within a few simple clicks – creating home page to data recovery. Shopify consists of several applications to improve conversions. If you don’t have the technical knowledge, choosing a plug-and-play option is great for you.

Create a customer acquisition strategy

It’s no surprise that creating high-quality products and user-friendly website is excellent, but without having a potential customer to purchase, all your hard work is meaningless. Therefore having a solid customer acquisition plan is important.

Attracting new and existing customers is significant for a dropshipping business. Though there are multiple ways to reach customers, among all Google ads and Facebook ad are the effective options. Google and Facebook allow you to promote your products to target customers. There are other ways such as guest posting, guest blogging and email marketing to increase your revenue. Search engine optimization is also a great choice to improve your website traffic.

Analyze and optimize

As mentioned earlier, Google ads and Facebook ads can generate more sales. After generating sales, many dropshipping owners forget to analyze and optimize their processes. For a successful dropshipping business, you need to analyze and optimize. For example, if you’re using Google and Facebook channels to improve your conversion. It’s important to track every conversion. Get to know about the customer, what path customers had chosen to visit your website, check the bounce rate and more. This way you can estimate what works and what doesn’t work. Eliminate the things that don’t work for you. 


Planning to start an e-commerce business? Running out of budget? Don’t have a warehouse? But still, looking to earn profits? Yes!!! Dropshipping is the best solution for you. Dropshipping is a well-known business model, especially for new entrepreneurs. The process is easy, you receive an order from the customer. Then you forward that order to your secure supplier. Finally, your supplier will place the order at customers doorstep. You don’t need to bother about production, stocking and handling the products. With limited funds, you can run a dropshipping business. There are few important things to consider such as selecting a niche, competitor analysis, building e-commerce website, creating customer acquisition and more. This way you can start a dropshipping business with less overhead.
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