How To Start A Dropshipping Business [A Complete Guide]

DROPSHIPPING BUSINESS MODEL

If you are planning to start a dropshipping business, then you came to the right place to know What to do and what not to do?

Dropshipping can be the first step toward entrepreneurship. You will be able to sell goods to consumers by setting your product prices on your own. You can do marketing for your very own brand. Even you do not require any stock or store to start your business. You do not need to pay for products until it gets sold to an actual customer. If you are willing to start work, then you can even create your successful brand.

If you still having any confusion in mind about starting your business online, then it may help you that eCommerce businesses amounted to nearly 3.5 trillion dollars worldwide in 2019. So, worldwide statistics on eCommerce are an indication that online businesses are increasing rapidly.

Starting an online business is a highly profitable option right now.
In this article, you will know What it is, Why should you start and the most important how to start a dropshipping business?

Complete Guide – How To Start A Dropshipping Business?

How To Start Dropshipping Business-Complete guide

What is Dropshipping?

Dropshipping is a method of fulfilling the order that does not require goods in the stock. Instead, the person who starts dropshipping will forward the demand to the manufacturer or a third-party supplier. Then, the manufacturer or a supplier ships the order directly to the customer.

In this way, the margin between the cost-price and the selling price will go to the person who starts a dropshipping business.

Why should you start a dropshipping business?

There are lots of benefits to choosing a dropshipping business. Some specific benefits of dropshipping are:

1. Low Risk

Usually, there are risks while working as a retailer, but in the dropshipping business, there is less risk. When it comes to startup costs, it is very less, or you can start it with a free trial.

Because of the low capital required to start dropshipping so there is less stress, and fewer responsibilities, with more time and money to allot to other work of developing business. With this business, you typically have to pay for stock until a customer places an order and has paid you. It is a cost-effective and risk-free model.

2. Less Investment

Traditionally, merchants spend thousands of dollars on inventory and warehouse setup. On the other hand, in the case of dropshipping, You do not feel overburdened with the cost of producing products, carrying inventory, maintenance costs, and the cost of employees for packaging and shipping of products. It is a great path to move towards entrepreneurship, as you can start your own dropshipping business by yourself in the evenings and weekends.

3. Wide Range of Products

Dropshipping allows you to sell many products as many you want on your online store without worrying about inventory or costs. Even you can display various brands on a single screen at your online store. You can attract your customer with varieties of products available in your online store.

4. Easily Manageable

Dropshipping Business is quite simple and less time consuming even you can do it part-time with your other jobs. As it does not requires to deal directly with the products you are selling or customers, it is much easier to handle a dropshipping operation compared to other eCommerce businesses.

Dropshipping lets you free from some of the most complicated aspects of running an offline business, such as warehouse space, inventory, shipping, shipments, and more.

5. Flexibility to work

The most important thing you must have is an internet connection to stay in touch with your customers and suppliers, and you have the freedom to take your business anywhere across the globe. You do not require a physical store or warehouse to operate. Dropshipping is a business that can run from wherever you would like.

It is very crucial to plan before you take any action. Now, you will get a complete step-by-step guide to know how to start a dropshipping business.

How to Start a Dropshipping Business

Step 1 – Dropshipping Business Niche

All that matters is what you sell and how much profit you earn. You should spend some time to find an appropriate niche for your dropshipping business. The niche you choose should be something you are interested in, and that also provides you enough profit. It means your idea of business should be something that will be a combination of your passion and maximum returns. Try to aim those niche which would provide high profits because products that are not focused will be difficult to market.

Here are some tips to consider while choosing the niche:
  • Try to select that product niche that gives attractive profits. When you start a dropshipping business model, your focus should be on-demand and market depth.
  • Make sure your product attracts consumers for impulse buying with disposable income.
  • Pick something that appeals to people, and the product is not easily accessible. In that way, you become more attractive to a potential customer.
  • Use Google Trends and  Google’s Keyword Planner to check some common search phrases linked to your niche. If there are no searches for what you are planning to sell, then avoid such a niche idea because you might go under loss.

Step 2 – Analyse Competition

Once you have selected your niche, then you need to train yourself. Look at your competitors, what they sell, and how they sell their products.

Here are some useful tips for analyzing the competition:
  • Search for the product that you want to sell on google and look for your competitors on the top. Here you will get an idea of search results and about your competitors, including there selling tactics. Moreover, you will get to know your nearest competitor and their location. You can use some Tools for competition analysis, For example, Ubersuggest – It is a free tool. Also, you can use paid tools like Ahref or SEM Rush, from here you can get know competition on searches at a different location all over the world.
  • You can analyze your competition on social media as well by searching for similar products on it. You can see your competitors and their followers for a better understanding of the market depth.

Step 3 – Find the Right Dropshipping Supplier

It is very crucial to find a good supplier because a partnership with a wrong supplier can lead to ruin your business. So, give sufficient time in this step for partnering with the right supplier.

Tips to Find Right Supplier:
  • Make a list of Suppliers and then start eliminating from them till you find the best one.
  • Communication with the supplier is most important, both in terms of the speed of their response and mutual understanding.
  • Ask all necessary questions from suppliers like minimum order quantities and shipping time. It would help you in choosing the right supplier.
  • Compare shipping time, quality of the product, and packaging while making a decision. Keep your customer expectations in mind while placing an order.
  • You can use an online platform like Oberlo, to find the most suitable suppliers. It would also help you to see reviews, ratings of the supplier.

Step 4 – Build Your Dropshipping Business Portal

The quickest and easiest way to build an online business is using eCommerce platform Shopify, which supports a drop shipping business model. For this, you do not require a technical background to set up your business online. The Shopify platform is simple and very useful. Moreover, it has lots of other features to help in increasing sales. 

Shopify provides various free tools such as Logomaker, Business Name generator, Profit Calculator, and many more. Even if you have a decent budget, you can hire a specialist for more customization and, when your business starts generating revenue, then you can explore additional website customization that would help to expand your business.

1. Signup for Shopify

Firstly you have to Sign up for Shopify for setting up an online store, and also you can take a free trial. Shopify is an all-in-one commerce platform on the market. It is a commerce platform that enables anyone to set up their online business store to sell their products. It is a complete eCommerce platform that allows you to start, grow, and operate a business. With the help of Shopify, you can sell products to multiple places, including web, mobile, social media, online marketplaces, brick-and-mortar locations, and pop-up shops. It also provides control to manage products, inventory, payments, and shipping. If in case you are stuck somewhere, you can take the help of Shopify guru for resolution.

2. Branding

You can generate a name for your business, which is the most suitable. Branding gives a professional look and helps customers connect with your business.

3. Shopify Themes

It provides various options so that you can choose the most suitable theme, which is best according to your niche.

4. Find products on Shopify with Oberlo

Oberlo helps you to find and add products quickly into your Shopify store, which allows you to start selling products right away. You can find products to sell on Shopify with Oberlo here. Oberlo handles your products for you, so you will never have to bother about the warehouse or inventory. When you sell any product, you can just order it on Oberlo, and they will handle the packaging and shipping as well. They have a network of suppliers who will manage your inventory, packaging, and shipment of the products for you.

Step 5 – Execute Marketing and Promotional Strategies

So, now you have your digital store and products. Its time to start attracting traffic to your portal. To get traffic, marketing is very crucial. It is also essential to consider the budget for marketing, need to invest more in it. You will have to focus more on marketing to make your dropshipping business automated.

You will need to spend time learning – how to run ads, how to grow your traffic, and converting into your store visitor.

 Social proof shows that other people have purchased products from your store and have great experiences and satisfaction. It makes other customers feel more comfortable buying goods from your store. Product reviews, Social media followers, and blogs that suggest your digital store helps to generate trust.

Facebook and Instagram are two major social media platforms to start promoting your products or brand. Facebook is always a good one to start advertising your products. You have to start posting content daily to promote your products. It is advisable to get some followers before running your first ad. If you have a low budget then you can spend a month joining Follow for Follow groups. And, If you have a good budget, then you can run an engagement ad to engage more people with your posts.

You can also use your products for engagement ads to advertise your product before running a conversion ad on that same post. These engagements in the post, act as social proof, and boosts the chances that people will click the post to visit your store.

Tips for marketing:
  • You can start Email Marketing.
  • Setting up a Facebook and Instagram Page for Shop.
  • Setting up Instagram and Pinterest for Shoppable Posts to let shoppers buy right from posts, and Shopify and WooCommerce support this.
  • Search Engine Optimization (SEO) helps your website rank higher in search engines, and you need to learn SEO tactics.

Step 6 – Analysis and Optimization

Almost all done! Once you have set up your portal, brand, and marketing plans, then you can start analyzing the outcomes of your hard work.


Now you need to track the traffic source to analyze marketing activity to optimize your business. You can use Google Analytics or Search console or Facebook pixel for analysis. These tools can also help you to find out how effective ads campaigns are working. Moreover, you can check whether the online traffic is increasing or decreasing at your site.

You can also start feedback services, which will help you to know your weakness, and this will make your brand more professional. As traffic on your store increases, then you will require the best customer support. Make sure to create Legal pages, Help desk page that clearly describes Typical Delivery Times, Return Policy, Contact Information, Frequently Asked Questions.

Conclusion

Here we have provided the best answer to this question- How To Start A Dropshipping Business along with proven tips to grow your eCommerce business. You can use these tips along with your ideas and creativity. Surely you will find good results.

And, the most crucial part of a successful eCommerce business is to provide the best services to the customer. Also, regular analysis and optimization can help to grow your business and revenue.

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