Tips on how to start a Dropshipping Business

Tips on how to start a Dropshipping Business


dropshipping business allows you to skip the heavy inventory requirements of running an e-commerce store, instead it allows you to outsource inventory management to a third-party supplier.

To start a dropshipping business is a great idea in the journey into entrepreneurship. You’ll be ready to sell products to customers, set up your product prices yourself, and push your own brand. You don’t need to buy goods or offer services directly until it’s sold or gets to an actual customer. If you’re dedicated to pushing your brand, you’ll build a successful dropshiping business.

Also, if you’re yet to start your online business, maybe it’ll interest you to know that ecommerce/online sales amounted to just about 3.2 trillion dollars worldwide in 2019. So, if statistics show this number of increases, starting an online business is an increasingly lucrative option in this present world.

Furthermore, dropshipping business allows you to skip the heavy inventory requirements of running an e-commerce store, instead it allows you to outsource inventory management to a third-party supplier.

How to choose the best e-commerce platform

This article will expose you to an amazing opportunity of starting a dropshipping business. We’ll be giving a clear definition of what a dropshipping business is, the way to find the proper dropshipping business ideas, and everything else you would like to understand to start out a dropshipping business.

What is Dropshipping business?

In a simple term, dropshipping business is a business model you’ll use to run an online store without the need of inventory. This enable you sell products directly from the wholesaler directly to the consumer. As a retailer, all you would like to do is to have an online product catalog – you don’t get to hold any inventory.

So, whenever customer places an order, you job is to forward it to your supplier, who will then directly send the product(s) on to the customer. There’s no stress of packaging or shipment. Furthermore, you’ll export all the purchase details from the wholesaler (Like from Jumia) to your own e-shop.

The concept here is that you’re selling products you don’t actually own. It means all you need to do is to get an online store, add your mark-up price, and sell products to clients and forward the order to your supplier. They reciprocally, send the goods to your customer on your behaf.

Three simple sets to a dropshipping business

  • The customer makes an order for $20 (product price).
  • The you pay the supplier $10 (wholesale price).
  • The supplier then ships the goods to the customer and you retain $10 (profit amount).

How a Dropshipping business works

The dropshipping business model works this way: the manufacturer, the retailer (you) and then the final customer.

The role of a manufacturer in a dropshipping business model includes creating products, carrying inventory, shipping products to customers on behalf of the retailer, replacing defective products, and restocking them. They sell products to the retailer at wholesale prices assuming the danger of unsold inventory.

The dropshipping business model we have, the retailer (you), sell the manufacturer’s products on your website under your own brand. You’ll be liable for choosing and marketing those products. Plus, you’ll even be liable for their shipping costs and setting prices for your profit.

In the cause of dropshipping business, the customer buys the products directly from you, the retailer. If questions or issues arise, they contact the retailer they bought the goods from.

Pros of Dropshipping Business

Below are some of the benefits of a dropshipping business:

  1. No Start-up cost

One among the most important benefits of a dropshipping business is that it’s possible to launch a store without having to spend money on purchasing items and storing them. Physical storefronts need large amounts of cash before they can their doors to get inventory, So, with dropshipping business; you don’t need to buy the goods, until a customer has made an order. This suggests low start-up costs and reduced risk.

  • Saves time and money

Since you don’t need to own a physical storefront, it’s easier to start up your dropshipping business. You won’t need to get, manage or buy a warehouse to store your products. There’s no need to monitor and maintain stock levels. You won’t need to handle returns or track inventory. These things prevent time and money.

  • Flexible Location.

Your dropshipping business can be based anywhere either in your room, sitting room or outside your house. As long as you’ve got an online connection, a good relationship with your suppliers and also ready to communicate with your customers then you’ve got it all set up.

  • Creates room for Diversity

Once you’ve made purchase, it’s easier and cheaper to shop for a small number of things in larger quantities, however with dropshipping business you’ll ultimately sell as many items as you would like, at no extra cost. If you’ve got the time to list them on your site, you’ve got the power to sell them.

  • Scalability.

With dropshipping the bulk of the work falls on the suppliers. Yes, to get sales would require hardwork, but if your business unexpectedly doubles, your workload would reduce. This means fewer growing pains for you as you scale your dropshipping business.

The dropshipping business model isn’t perfect however. Convenience, flexibility and price are all great attractions, but you want to also consider the shortcomings of this method.

Cons of dropshipping business

All the advantages we mentioned make dropshipping business a really attractive model for anyone getting started with an online store, or for those looking to expand their existing product offerings. Just like every other thing, dropshipping business has its cons too. So therefore, convenience and adaptability come at a price. Here are a couple of shortcomings to think about.

1. Low margins

Low margins are the most important disadvantage to operating a highly competitive dropshipping business. Because it’s very easy to get started, and therefore the overhead costs are so minimal, many competing stores will have a shop and sell items at rock-bottom prices in an effort to grow revenue. Since they’ve invested so little in getting the business started, they can afford to work on minuscule margins.

Therefore, these sellers will have low-quality websites and poor (if any) customer service, which you’ll use to differentiate your business. This won’t actually stop customers from comparing their prices to yours. The rapid increase in competition will quickly hurt the potential profit margins. Fortunately, you’ll do tons to mitigate this problem by selecting a niche/vertical that’s compatible with a dropshipping business.

2. Inventory issues come up

If you stock all of your own products, it’s relatively simple to keep a track of which items are available or not. But when you’re sourcing from multiple manufacturers and stores, which also are supplying orders for other dropshippers, inventory can change on a day to day. But luckily, there are a couple of apps that permit you sync with suppliers. So, dropshippers can “pass along” orders to a supplier with a click or two and will be ready to see in real-time what amount of inventory the supplier has.

3. Shipping complexities

If you’re engaged with multiple suppliers—as most dropshippers do—the products on your online store are going to be sourced through variety of various dropshippers. This complicates your shipping costs.

Let’s say a customer places an order for 5 items, all of which are available only from separate suppliers. You’ll incur three separate shipping charges for sending each item to the customer, but it’s probably not knowing pass this charge along to the customer. And even when it does add up to get these charges, automating these calculations are often difficult.

4. Supplier errors not resolved

Has there been a time you were blamed for something that wasn’t your fault, but you had to simply accept responsibility for the error anyway?

Even the simplest dropshipping business suppliers make mistakes fulfilling orders—mistakes that you’ve got to require responsibility and apologize. Goods that are of low-quality from suppliers will cause endless frustration with missing items, botched shipments, and low-quality packing, which may damage your business’s and brand reputation.

5. Limited customization and branding

Unlike custom-made products or print on demand, dropshipping business doesn’t offer you tons of control over thegoods itself. Usually, the goods that are dropshipped is meant to be branded by the supplier.

Some Alibaba dropshipping suppliers can accommodate your business’s product changes, but even then, the supplier has the foremost control over the goods itself. Any changes or additions to the merchandise itself usually require a minimum order quantity to form it viable and affordable for the manufacturer.

Steps on how to start a dropshipping Business

1. Find the goods you want to sell

There are many ways online on how to find a dropshipping business to go into, but this is often just a classy buzzword for product-market fit: are there people that want to shop for your product and from you?

If not, you won’t have a successful business.

You’ll have the foremost success dropshipping a product if there’s an audience that desires to shop for it and doesn’t have a better way to access it. That’s where you are available to take there orders.

Some ways to seek out or find a business: brainstorm rabid fan groups or audiences with a standard need or interest (perfume lovers, IOS fans, parents who like to dress up their kids in matching outfits, bankers and others). These are purchase-ready populations looking to like and buy things that they’re in need of.

Next, go to facebook and see what’s trending on Facebook.

Doing a fast search of a phrase like “Get yours here” or “Buy now” and a clear video featuring items purchasable that are becoming trendy. This will offer you a way to see which products are interesting people on Facebook immediately. Search for a high number of views in a short period of your time, then look for the item at a dropship supplier like Oberlo or Salehoo. Consider the price-point of the item seen in the video and therefore the assets you’ll create for it. Are you able to replicate — or improve on — the present trending video? If so, you’ll have an item worth dropshipping.

Few pieces of recommendation after you’ve taken care of all that:

  • Avoid selling anything dangerous or copyrighted
  • Go through seller’s reviews and order goods that have been tested
  • Consider dropshipping some items only

Go on to a supplier and build a dropshipping relationship with them

2. Make yourself different from other dropshippers

In order to stand out right from others, make your store listings and ads unique.

Have in mind, if you’ll quickly and simply find a dropshipping order for a selected product, it’s likely another store are going to be ready to do the same. You’ve to find an edge: ask yourself why would someone order from you? or find your store selling same product, and not your competitor instead?

Make sure people are able to see your store. This can be done through word of mouth, social media ads, viral memes, influencer programs, SEO, a newsletter. You’ll be needing visitors on your site to convert them to customers to make sales.

Take pictures of your goods yourself. Write your own copy. Shoot unique social videos. Really put thought into the way to present your goods and why an individual would want it: What problems does it solve? Can it make them happy and excited?

If you’re using AliExpress for instance, you’ll import the user reviews. Nobody likes being the first person to purchase an item.

Also, consider offering free shipping, too which will really entice customers. Do all orders have free shipping or only a particular order?

I don’t recommend offering “Free products — you pay shipping.” many purchasers would rather know the worth up-front than undergo a sale flow that says $0 the entire way through then slaps on a $15 delivery fee. It’s 2021 and therefore the idea should be free 2-day shipping with Prime.

3. Repeat and make changes on offers

Make use of ads to collect data and test strategy. We’re assuming that you’ll be buying ads. If you do, buy and use the information to check what’s working. What gets traction? How does it work? What doesn’t? Don’t use it. This might lead you to changing your products, your ad style and audience. Following the first traction means you head toward what’s working and faraway from what’s not.

Check and compare analytics with your sales trends, as well. What products are selling welll? What’s not selling at all? Is there any common theme within the items? Replicate what you’ll. Stop what’s not working.

The Best Dropshipping Business Tools in 2021







Oberlo dropshipping business

This is a dropshipping business app on Shopify that links you to a market that is filled with suppliers, allowing you to settle on numerous range of products and sync them to your website in seconds.

Go to website

Their free starter package allows you to sell out over 450 products a month, so it’s a perfect way to get started into a dropshipping business.

 There is a free trial period for 30 days, no credit card is required. Their cheapest plan is $5 per month.


If having access to variety is a motivator, then Spocket gives you access to thousands of dropshipping suppliers from everywhere in the world. Its over 25000 entrepreneurial users enjoy a machine learning product discovery tool that permits you to quickly order samples, an automatic processing tool that immediately tales your orders with one click, and faster deliveries.

spocket dropshipping business

The pricing plans starts from $12/month, or $49/month.


If you would like to integrate AliExpress with Shopify, then Dropified comes out top-picked. Dropified comes with complete advanced marketing research tools, quick product-add, product review import, and automatic orders to power your Shopify dropshipping business. This dropshipping business platform assists in managing multiple eCommerce stores too – allowing you to expand your business even more.

This Dropshipping business app is another Shopify app to stock your store and automate your orders on AliExpress (including shipping addresses).

But there’s no Dropified marketplace, but rather a browser plugin that’ll allow you to pull from anywhere on the internet. You’ll margin parameters and rules for changing the worth points in your store.

The pricing of this offers a 14-day free trial; then it’s $47 per month for the Builder plan or $39 per month on the annual plan. The Premier plan, which costs $127 per month or $97 per month with annual billing, recently added a profit dashboard, Zapier integration, and a vast high-speed captcha solver.

The app has 4.4 out of 5 stars from 104 reviews within the Shopify app store.


With SaleHoo dropshipping business app, you get more than half access to the wholesaler database. The other half is that the unprecedented agility you’ll gain compared to other dropshippers.

It offers a $65 yearly membership that grants you access to the present database of wholesalers and dropshippers. There are currently 8,000+ suppliers on the location and they’re all screened by SaleHoo before they’re added to the directory. There’s a 60-day free test period, and the customer service gets high marks: 9.6 out of 10 with 300 reviews on TrustPilot.

You’ll be happy to pay that membership fee (which isn’t too steep in the least, anyway) because not only does one get access to those fully vetted suppliers, you furthermore get enjoy SaleHoo’s marketing research Lab, where you’ll get insightful data into what people are buying now and what’s getting hot.

In this Lab, you’ll see competition for the goods among other dropshippers, compare profit potential between items, and spot emerging trends to permit you to strike while the iron is hot (or even before other sellers are hep the trend).


Wholesale2B is simply a web-based dropshipping business tool for managing online stores. eCommerce businesses can use the app to seek out top suppliers, look for dropshipped products, upload descriptions and pictures, sync inventories, automate order requests, access sales analytics data, and more. Product listings are always posted to existing online stores and third-party marketplaces like eBay and Amazon. Wholesale2B also can be used to create new online stores.

Wholesale2B offers a database that has950,000 products with wholesale prices. Trending categories are highlighted at any given time to assist businesses to choose which products to sell. A vetted supplier directory is additionally available.


Dropshipping business is a lucrative method of conducting ecommerce, but it’s vital to possess the proper qualities. Choosing the simplest dropshipping tools for you depends on the sort of products you would like to supply to your customers, how good their suppliers are, and the way they’ll match with the elements you have already got in site, like your website.

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