July 21, 2023


The way businesses are operated has changed in recent years. There are many new businesses emerging, and one of them is dropshipping. With this type of business, you can get products from third-party suppliers who will manage the inventory and fulfilment so you can sell them on your eCommerce platform.

Dropshipping is a rapidly-evolving business niche, but with the right knowledge and approach about how to start a dropshipping business, you can earn quality revenue and make a name for yourself. You just need to focus on the website and marketing to run a dropshipping business successfully. Here, we have discussed everything you need to know about starting a dropshipping business.

What Is Dropshipping?

Dropshipping is an online business where you can sell products without any physical store or the necessity to actually store the product. It is one of the best business models with little investment and high ROI.

In this business method, you don’t have to manage product inventory, order fulfilment and shipping. The supplier manages these all. You need a digital eCommerce platform to market and sell the products online. You do not need to pay upfront for products to start a dropshipping business.

In addition, there is no risk of overstocking as the supply partner manages inventory and not the drop shipper.

How Does Dropshipping Business Work?

In Dropshipping, the seller signs a contract with a supplier about the product, its cost and other terms. When a customer makes a purchase through the seller's online platform, the order details are shared with the supplier. The supplier manages the order fulfilment, including packaging and shipping directly to the customer.

In this process, the customer pays the amount specified by the seller on their online platform. The supplier receives the agreed-upon amount, and the rest margin serves as the profit for the seller.

Here is Step-by-Step Guide on How To Start Dropshipping

To start this business, you must know certain things and consider what is crucial. Here is a comprehensive guide on how to start a drop shipping business from scratch:

  1. Decide your product and niche: Determine your dropshipping business niche and analyse the target market.
  2. Find a dropshipping supplier: Partner with reliable partners to manage product and order management.
  3. Build a drop shipping website: Get a feature-rich and easy-to-use eCommerce platform to mark your dropshipping business.
  4. Register your business: Complete the legal work and register your business with the local authorities.
  5. Market your business: Use optimisation and marketing strategies to increase visibility and reach more users.

If you are confused about how to get started with the dropshipping business, here is the complete guide from our eCommerce expert team:

Determine Your Dropshipping Business Niche

You must find an in-demand and profit-making niche for starting a dropshipping business. Niche matters and can uplift your idea of starting a business with no investment.

  • Conduct a competitor analysis so you can know if your niche is working or not. With this, you can know the demand and strategies for dropshipping for your preferred niche.
  • Explore the product needs in the market to find the preferences of your potential customers. With this, you can manage the competition and stay ahead of the competition.
  • As a part of the research, you can explore the items on the online marketplaces and find out if your niche is relevant or not. Moreover, you should consider the market size and customer buying patterns from online sources.

Find Dropshipping Suppliers & Partner With Them

The next step is to find dropshipping suppliers and partner with them. It is the most crucial step for your dropshipping business idea as it is totally dependent on third-party suppliers. For quality results on your eCommerce platform with dropshipping business, you can use CMS integration from suppliers and get their products on your platform with automation.

  • Make a list for this and reach out to them and ask for a partnership for your business. You can contact retailers, manufacturers or suppliers who only work for dropshippers.
  • When you have a dropshipping business, you need to ensure your customers get the best service from suppliers. For this, you must have a quality approach with terms and conditions.
  • When looking for suppliers for your dropshipping business, you must consider factors like their reputation, business authority, licences, and legal documents.
  • It is also crucial to look for the customer services and fees involved in order completion. The order fulfilment process and the quality of the product are two of the main things to look out for before choosing a supplier.
  • Once the supplier meets your needs, you need to prepare a contract to handle the workflow and manage delivery standards and return/ refund policies.

Best Dropshipping Suppliers

You need to work with a reliable partner to manage order fulfilment effectively to run your business successfully, satisfy your clients, and grow as a dropshipper. Here are some of the best platforms where you can find trustworthy dropshipping suppliers for your business.

  • AliDropship
  • Gelato
  • Printify
  • AliExpress
  • Printful
  • Doba
  • SaleHoo
  • Wholesale2B

Register Your Business With The Local Authorities

Once the website is ready and every process is managed, you need to register your business with the local authorities. You can avoid legal trouble with proper legal infrastructure.

  • You can start the process by opening a bank account under your business name. It is essential for managing online transactions. Many parts require a resale certificate to sell products from third-party sellers, so it is best to have that as well.
  • There is a need to manage the taxes, and for this, you need to check regulations in your locality and register yourself for the same as a company.
  • There can be issues with order returns, exchanges, or refunds. You should have a privacy policy and terms and conditions to protect customer rights and stay clean in any potential legal dispute.

Build A Feature-Rich And Easy-To-Use Ecommerce Platform

When you have a dropshipping supplier, you would need to work on your business’s digital presence. It is best to hire expert eCommerce developers so you can get an eStore that is SEO-friendly and feature-rich content. You can start with limited products and scale up on the online store when needed. A smooth eStore experience can convert more and reduce cart abandonment.

  • You need to choose a unique domain name based on your business preference that matches your business idea.
  • You need a scalable, high-performing, and user-friendly platform for eCommerce websites. There are many eCommerce platforms, like Shopify, Magento, BigCommerce, WooCommerce, and more.
  • You should choose a platform with built-in SEO features and easy payment gateway integration. With mobile optimisation, you should also consider adding product descriptions to give value to your potential customers.

Market Your Dropshipping Business With Unique Strategies

When your website is live, it won't be able to reach the masses without optimisation and marketing. The use of marketing is crucial because it can make your business platform visible to thousands of users around the world.

  • You need to create effective strategies for digital marketing to beat your competition. From social media marketing to email marketing, everything plays a huge role in the growth of a business. You can also use new-age marketing methods such as influencer, affiliate, and performance marketing.
  • As a long-term digital marketing strategy for your eCommerce business, you can use SEO, and if you want instant results, you can use paid marketing, like targeting ads on Facebook Ads, Google Ads, Bing Ads, and more like these.

If you follow a proper approach to your dropshipping business idea, you can quickly make your business stand out. With this step-by-step guide, you can learn everything you need to consider before entering the dropshipping business.

Things To Consider Before Choosing A Product To Sell For Your Dropshipping Business

You can get successful with dropshipping if you have the right products to sell online. Here are some of the top considerations to make before choosing a product for dropshipping business:

  • You should choose a product based on price because if you choose a high-priced item, you will not be able to mark high sales. Instead, pick an item with the ideal price while ensuring you make a healthy profit margin.
  • The marketing approach is also one of the crucial things to consider. Suppose you are trying to sell a product which is new to the market, not known to anyone. In that case, you will have to put a lot into marketing, and it is not worth going for it as a beginner in the dropshipping business.
  • You can consider the products that are not easily available in the local market. With this approach for dropshipping, you can reach more users and bring traffic to your eCommerce platform.
  • Many dropshipping businesses are choosing products with repeat order value. With this, the chances of profit increase, and you can make the most of your business idea on dropshipping.
  • Choosing smaller and more compact items is easy to sell online. You should also consider this fact before making an online move with the dropshipping business.

FAQs About Dropshipping

Many questions come to mind when you are considering starting a dropshipping business. You must conduct thorough research and create a store for your business. Here are some of the most frequently asked questions about dropshipping business:

How To Find A Supplier For Dropshipping?

It is the most crucial step in starting a dropshipping business. AliDropship, Gelato, Printify, EPROLO, AliExpress, Printful, Doba, SaleHoo, and Wholesale2B are some of the best names for finding a supplier for your dropshipping business. To effectively provide customer satisfaction and avoid any problems with order fulfilment, you need a trustworthy partner for your dropshipping business. Moreover, you can contact the local manufacturer directly and ask them for processes.

What Are The Best Products To Dropship?

There is no specific product you should pick for a dropshipping business. Instead, you should go with the product you have in mind. The most common and profit-making products are home goods, pet products, personalised gift items, personal care products, electronics products, fashion and clothing products, accessories and more like these. Choosing a product in demand with an effective repeat order value is important.

How Much Can You Make With Dropshipping?

There is no limit on the income you can make with dropshipping business. An average dropshipper in the UK made more than £2000 every month last year. If you still want to know how much dropshippers make, it depends on the overall sales, as the higher the sales, the higher the revenue. Moreover, the profits you make with dropshipping business vary based on your location and supplying partner percentage. With the dropshipping business, you can get a high return on investment with the help of an eCommerce store.

How Much Does It Cost To Start Dropshipping?

If you have a website ready, you can start a dropshipping business with as minimum as £100. Dropshipping has a low setup cost with a simplified business model. No maintenance cost is involved, and you don't need to keep stocks either. It can be challenging if you are thinking about how to start dropshipping with no money, but it is one of the best ROI-focused business models.

How To Spot Fake Dropshipping Suppliers?

When starting a dropshipping business, you must ensure you partner with the right supplier or wholesaler. Here are some things to know so you can stay away from fake suppliers in the dropshipping business:

  • The supplier, manufacturer, or wholesaler asking for recurring fees or service charges is likely to be a fraud. When choosing your dropshipping business products, you should avoid them.
  • If they offer everyone their products at the same price, you should not trust them. Dropshipping business is done with a contract with exclusive wholesale prices.
  • If a supplier asks for a pre-order fee, they will likely be a fraud. Genuine partners for dropshipping businesses don't ask for minimum order size or pre-order fees.

Get a High-Performing Website for Your Dropshipping Business

Dropshipping has significantly influenced the eCommerce landscape during and after the pandemic. It has immense potential, and you can get started with this business idea. Since a secure and robust website is the only major investment required for a dropshipping business, you need to hire a professional development team to make it a success.

With the expertise of Dotsquares eCommerce developers, you can get a highly functional and feature-rich platform with a smooth user experience and an easy checkout process. We have BigCommerce, WooCommerce, and Shopify experts to help you with the development. Contact us now to get started with a website for your dropshipping business.

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