How to Start a Drop Shipping Business?


Are you looking to start your own online business and you don’t have funds for that? Let me tell you, the drop shipping business is the most suitable method that suits your requirements with earning.

In the drop shipping business, you tie up with companies to sell their products on your online store. In the online store, you show a catalog of the products in a way that makes the product more attractive so that it can be sold easily.

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Drop shipping is a great way to start a business. It allows you to test out new products or services, which can be difficult if you’re trying them for the first time. You can also sell products from other companies and countries without having to worry about logistics or inventory management!

Drop shipping is also useful if your product isn’t in high demand right now but will be an important part of your business later on.

For example, if you sell books online and most people buy them online instead of at bookstores (because they don’t have time), then drop shipping might be a good option for those types of businesses because it gives customers access to their favorite titles right away rather than waiting until they get home after work has ended all day long.

You don’t have to be a genius to start a drop shipping business, but it helps if you have the right questions answered before jumping into the deep end. In this article we will go over some of the most important ones:

  • What is your business model?
  • How much capital do you have?
  • How much time do you have?
  • How much money do you have?
  • How does this business model work?
  • What are the benefits of a drop shipping business?

And, there will e several other key pointers that will help you to start and grow your online drop shipping business.

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What is a Drop Shipping Business?

It’s a business model that allows you to sell products through your store, without having to buy and store a physical inventory.

Drop shipping is a business model that allows you to sell products through your store, without having to buy and store a physical inventory. Instead, the supplier handles all of that for you by shipping goods directly from their warehouse to your customers’ doors.


Most drop shippers start with just a few items—but as they grow their customer base and get more orders per month (known as “orders per hour”), they can start offering a wider selection of products or additional services for customers such as store design consultation or marketing services

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How Does a Drop Shipping Business Work?

The users or buyers come to your online store and purchase the products, you receive an order, the customer receives his order confirmation, you send all the details to the drop shipper, drop shipper packs the product, and sends that to the customer. This is how a drop shipping business works. 

Drop shipping is a retail fulfillment method where a business does not keep the products it sells in stock. Instead, when a customer places an order, the business purchases the item from a third party who then ships it directly to the customer. Drop shipping businesses play a significant role in the e-commerce industry, and here are some of the key roles they play:

1. Reduced inventory management costs

Role of Drop Shipping Business

Drop shipping businesses do not need to manage inventory or worry about the costs associated with warehousing and storage. This can result in lower overhead costs and higher profit margins.

2. Easy to start and scale

Drop shipping businesses are relatively easy to start, and the lack of inventory management allows for scalability without the need for additional warehouse space or staffing.

3. Access to a wide range of products

Drop shipping businesses can offer a vast selection of products without the need to purchase and store inventory, making it easier to offer a diverse range of products to customers.

4. Reduced shipping costs

Since the products are shipped directly from the supplier to the customer, drop shipping businesses can save on shipping costs and pass these savings on to their customers.

5. Increased efficiency

Drop shipping businesses can be more efficient since they do not have to spend time managing inventory or shipping products. This allows them to focus on other areas of the business, such as marketing and customer service.

6. Lower risk

Since drop shipping businesses do not purchase inventory upfront, there is less financial risk involved. This can make it a more appealing option for entrepreneurs who are just starting.

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How to Start a Drop Shipping Business in 6 Steps?

Drop shipping is an incredibly profitable business model that allows you to sell products without having to store them or stock them. It’s also a great way to start your own eCommerce business, especially if you’re looking for something that’s easy and requires little investment. But how do you get started with drop shipping?


Here are six steps that will help guide anyone interested in starting up their very own drop shipping business:

1. Choose a niche

  • Choose a niche with high demand. You can’t just pick any niche and expect it to work, because you’ll be competing with other sellers on every single product in that category—and if you’re not careful, some of them might end up stealing your customers!
  • Choose a niche that you are passionate about. It will help keep you motivated throughout the process of building up your business; something that makes us excited is less likely to cause us stress or anxiety than something we don’t care about at all (like money).
  • Choose a niche where there isn’t already too much competition around it yet…but also one where it isn’t too little either! This will help prevent flooding yourself with orders while simultaneously making sure they’re quality enough for potential customers into thinking twice before buying elsewhere instead.”

2. Perform competitor product research.

You should always be on the lookout for new competitors. Do some research and see if your competitors are offering similar products as you do. If so, find out what they’re doing right and wrong so that you can improve upon them with your own drop shipping business.

You should also take into consideration the other aspects of their business model:

  • How much money do they make? Do they get more profit per sale than you do? Or is there another factor at play here (such as more sales volume)?
  • What’s their customer base like? Are their customers loyal or are there any new ones coming in every month?

3. Find a reputable drop shipping supplier.

  • Find a reputable drop shipping supplier.
  • Look for the following:
  • A good reputation and reviews
  • A good return policy and refund policy
  • A good customer service, especially if you’re going to be using their products yourself (or if they’re not trustworthy)

4. Build your online store (Website)

  • Choose a platform
  • Choose a theme
  • Choose a domain name
  • Choose a logo
  • Select your payment gateway and shipping carrier (if you want to offer free shipping)

5. Market your drop shipping business.

You’ve got the product; you’ve got an idea and a plan to get it there. But how do you market your drop shipping business?

  • Social media: This is one of the most important parts of any online marketing strategy. It’s where most people go when they want to learn about new products or find out more about a product they’re interested in buying. Social media allows you to reach out directly to customers by posting pictures, videos, and stories about what goes into making their favorite products from start to finish!
  • Blogging: Blogging has become increasingly important as more consumers turn towards their phones or tablets for information rather than sitting down at home on their computer screens (or even worse, not having access). If something is interesting going on in your life at least once per week then posting about it can help boost traffic back towards your store page when someone searches for something similar.”

6. Analyze and improve your store

You need to track how well your products are selling to make sure that you’re not losing money on every sale. This can be done through a few different tools, but we recommend Shopify’s free shipping calculator as it gives you an idea of how much money you could potentially earn from each purchase.

You can also use analytics platforms like Google Analytics or Mixpanel by analyzing customer behavior around specific pages on your website so that you can understand what kinds of things might drive traffic more than others. (such as adding related keywords into Google AdWords).

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How to find suppliers?

The best way to find suppliers is by searching online forums like Alibaba or Etsy Marketplace where people post their products for sale; they’ll also have pictures and descriptions so that it’s easier for buyers/sellers alike who want more information about what they’re buying before making an order decision (this can also help prevent scams).

You could also try contacting manufacturers directly through their websites if there aren’t any specific types listed yet—ask them if they’d be willing to sell directly via drop shipping instead since this should lead to fewer problems overall!

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Best Drop shipping Companies & Suppliers in 2022

Worldwide BrandsDHGate
DobaWholeSale Central

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List of Trusted Drop Shipping Suppliers Based on Niches

  • Women’s Clothing and Accessories
  • Electronics and Media Suppliers
  • Home and Garden
  • Furniture and Appliances Suppliers
  • Personal Care Suppliers

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Best Drop Shipping Products to Sell in 2022

Knitted DressVacuum Packing Machine
Track SuitsBaby Carrier
Wireless Security CamerasOrganic Tea
iPhone USB Cable and Type C Fast ChargerScalp Massager
Ear PlugsXiaomi Mi Air Purifier
Cordless Electric DrillsAdjustable Nylon Rope Pet Cat Leash
Deep Tissue Massage ToolSmart Bassinet
Couple Unisex T-shirtsHair Growth Oil
Rice CookerCream Foundation
Baby MonitorElectronic Headphones
Loose JeansThermos/Flask
Wall ClockTamagotchi
Flannel ShirtsRepair Tool Kit
Car Jump StartersDrawing Tablet
Portable Air CompressorWater Shower Filter
Jewelry Making ToolsKids Alarm Clock
Oral Irrigators

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Required Initial Investments to Start Drop Shipping Business

The initial investments required to start a dropshipping business can vary depending on several factors, such as the products you plan to sell, the suppliers you choose, and the platforms you use to sell your products. However, here are some of the typical costs associated with starting a dropshipping business:

1. E-commerce Platform

You will need an e-commerce platform to set up your online store and manage your products, orders, and payments. This can include platforms such as Shopify or WooCommerce. The cost for these platforms can range from around $29 to $79 per month.

2. Domain Name and Hosting

You will need to purchase a domain name and web hosting service to create your online store. The cost for these can range from $10 to $50 per year for a domain name and around $10 to $30 per month for web hosting.

3. Product Catalog

You will need to purchase the products you plan to sell from your suppliers. The cost for this will depend on the products and suppliers you choose.

4. Marketing

To promote your dropshipping business, you will need to invest in marketing, such as advertising on social media or Google AdWords. The cost for marketing can vary depending on your budget and the advertising platform you use.

5. Miscellaneous Costs

Other costs may include payment processing fees, website design and development, and any additional software or tools you need to manage your business.

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Possible Earnings From Drop Shipping Business

The potential earnings from a dropshipping business can vary depending on several factors such as the products you sell, the suppliers you work with, and your marketing and sales strategies.


However, here are some general factors that can impact your earnings:

1. Product Margins

The profit margins on the products you sell can significantly impact your earnings. You will need to set your prices higher than the cost of the product and any associated fees to earn a profit.

2. Sales Volume

The volume of sales you make can also impact your earnings. The more products you sell, the more revenue and profit you can generate.

3. Marketing Strategy

Your marketing strategy can also impact your earnings. Investing in effective marketing tactics, such as social media advertising, can help you increase your sales and reach a broader audience.

4. Supplier Costs

The cost of your suppliers can also impact your earnings. It is important to work with reliable and affordable suppliers to maximize your profit margins.

5. Competition

The level of competition in your industry can also impact your earnings. If there are many other dropshippers selling similar products, you may need to adjust your prices or marketing strategy to stay competitive.


Benefits of a Drop Shipping Business

Drop shipping is a great way to start your online business. With drop shipping, you don’t need to invest in inventory or hire employees and maintain a warehouse. You can also avoid paying for storage and shipping costs as well as advertising and marketing efforts.

1. No Requirements for Inventory and Staff

This is the most important benefit of a drop shipping business. You don’t have to worry about inventory. You don’t have to worry about storage, shipping, and returns.

The only thing you need to focus on is making sure your products are shipped out fast enough so that customers get their orders as quickly as possible and can start selling them right away instead of waiting for weeks or months because they don’t have any products in stock (which happens often).


You also don’t need any customer service staff since everything will be handled by Amazon FBA which has an excellent customer support team available 24 hours a day 7 days a week 365 days per year!

2. High-Risk Management

The supplier is responsible for fulfilling your order and shipping it to you. In other words, you don’t have to worry about handling returns or refunds. That’s because the supplier takes care of everything!

The risk is on the supplier because if he fails to fulfill his duties (or doesn’t ship), then there will be no one left holding up a mirror in front of him so that he can see himself and change his ways.

This means that if something goes wrong with your drop shipping business model—and it does sometimes—you can rest easy knowing that someone else will be taking responsibility for fixing it instead of getting involved personally in any way shape or form (or losing money).

3. Low Expenses and Investment

If you’re looking to start a drop shipping business, you might be wondering how much it costs. Not only does this vary from company to company and product to product, but some major advantages come with being on the other side of this equation—namely, low expenses and low risk.

Now let me say that I am not here to sell you on the idea of buying products wholesale (or receiving them as gifts). I just want to share some information about what makes drop shipping so attractive for businesses like yours who want an easy way out without having any upfront investment required.

For us to understand how much money we can save using this method over traditional retail channels like eCommerce stores or brick-and-mortar businesses like restaurants/bars etc., we need something called “cost per sale” or simply CPS (cost per sale). This measure tells us exactly how much it costs us per unit sold versus what would have been spent if we were selling those units through traditional channels like Amazon FBA vs their website.

4. Select Products & Pricing According to You

You can choose any products you want to sell. You’ll be able to set your own pricing rules, which will allow you to charge whatever the market demands that item.

You can also set shipping rules so that if a customer buys more than one item at once and they’re not in a hurry, they get free shipping on all of them.

5. You Don’t Have to Worry About Returns or Refunds

One of the biggest advantages of drop shipping is that you don’t have to worry about returns or refunds. The supplier handles all of those for you, so it’s easy for them to send replacement or refund requests. If a customer wants a refund, they can contact their bank or credit card company and ask them to reverse the charge (this will depend on whether or not they received their product). And, if they didn’t receive their product and need it replaced, then they’ll contact their supplier directly.

Moreover, if someone asks for a replacement because of damage during shipping (and this happens pretty often), then there are two possibilities: either the customer pays for it out-of-pocket; or if he doesn’t want to do this himself—he calls up his credit card company again!

6. Doesn’t Require the Retailer to Keep any Inventory in Stock

By eliminating the need to keep inventory in stock, drop shipping eliminates many of the risks associated with traditional retailing. This is especially true if you’re not sure what type of product you want to sell or how much it will cost.

You don’t have to worry about whether there will be enough demand for your products; instead, you can focus on creating an effective marketing strategy and increasing sales volume through customer acquisition tactics such as advertising on social media platforms like Facebook or Instagram.

Also, because no physical products are being shipped from one place to another (that means no damaged items), there’s less risk of having them stolen by employees or customers who might try taking advantage of their position within the organization (i.e., employees who steal from customers). And lastly…no need for inventory shrinkage!

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By following the steps “how to start a drop shipping business in 6 steps”, you can start a drop shipping business in as little as an hour. It’s not an easy task, but it is possible and the rewards are worth it. If you have any questions about this process or want to share your own experience with starting a drop shipping business, leave them below!

If you’re looking for more details and explanations, you can leave a comment and I am ready here to assist you with everything you are looking for.

For any query and further help, we suggest you to please leave your comment here.

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