How to start Dropshipping Business A Complete Guide

Dropshipping has become the popular go-to to make easy money online. One of the biggest reasons it is popular is its simple setup process. 

So, let’s take a look at how you can easily start a dropshipping business. 

What Do You Mean By Dropshipping? 

Dropshipping is the process of selling items online created by third-party suppliers. New entrepreneurs choose this business model to avoid detailing logistics and inventory and pay more attention to branding and sales. 

Dropshippers start by creating partnerships with wholesale suppliers and handling all fees and customer communications. 

5 Steps To Start A Dropshipping Business

When planning to set up your dropshipping business, there are 4 steps you need to focus on: 

  1. Growing your digital marketing skills 
  2. Choosing your niche market 
  3. Conduct marketing analysis 
  4. Finding the right seller 
  5. Building an eCommerce store 

You will need the right research and preparation when planning your dropshipping business. 

  • Growing Your Digital Marketing Skills: 

Before you start your own dropshipping business, you will need to develop your online selling skills. This can be done by taking a course or getting Certified In Digital Marketing. With the help of digital marketing you can increase your brand awareness and help direct potential customers to your website. With the right campaigns and ads you can increase sales and gain a bigger market share in the niche you choose. 

  • Choosing Your Niche Market: 

When you start planning for your dropshipping business, it is important to find your niche. This will help you find the right suppliers and stand out from the rest. The right niche caters to a specific market that has similar interests. 

Start by setting up a business plan based on your target audience, goals and products. Some tips to help you choose the right niche are: 

  • Choose a sector you are passionate about – When you are passionate about what you sell, it makes the business all the more interesting. Additionally, when you believe in your products, convincing others to buy them is easier. 
  • Provide solutions – Most people will choose your business when you help them solve a problem they face. Find out what your target audience wants, then give them the right products. 
  • Long-term planning – Use tools like Google Trends to find products that people want for the long term. 
  • Study The Market: 

Once you know which niche you want to be a part of, it is time to conduct market research to check if it is futile. A market analysis will help you find your target audience and understand the problems your competitors face. When you conduct a marketing analysis, you can know if the niche you selected is promising. Some items to look at when starting your market research: 

  1. Value of the industry and the market size: When looking for market details, you will see the market trend, size, and growth rate. This will help you find out if your customers are interested or not. 
  2. Check your target audience: When you find the right niche, you can find the right demographics, such as gender, occupation, education level, income, hobbies, and more. This will help you understand if your business plan is profitable or not. 
  3. Customer purchasing power: A market study can help you understand what drives your customers. You can also check similar products that will help you determine the right item pricing. 
  4. Finding your competitors: When you conduct a market analysis, you can find your competitors and see their performances. There are multiple tools online that will find the market gap and will help you analyze your competitor’s weaknesses. 
  • Choosing A Supplier: 

When your market research is complete, and you know your niche is right, you must select a supplier. Finding the right supplier will help make your dropshipping business a success. Some popular suppliers like Wholesale2B, SaleHoo, Meesho and Doba provide extensive products. 

When choosing a supplier, check for the following: 

  1. Legal documents and brand reputation: Find suppliers who have a solid reputation. Check their client list and authenticate their licenses. 
  2. Check online presence: Look for reviews from buyers to check the material quality. 
  3. Prices: Check the supplier fees and choose those sellers where you have a 15-20% profit margin. 
  4. Quality of the product: Order a product from the seller and review it first. Most sellers will provide you with test products. 
  5. Packaging and Shipping: See what the product looks like when you get it and check if it is consistent over all shipments. You can also check online reviews for this, as most people will mention the packaging. 
  6. Check multiple suppliers: Check various suppliers and compare the service and quality. Pick one that suits your business best. 

A new dropshipper using only one supplier can lead to a gap in the supply chain. Connect with multiple suppliers to avoid this. 

  • Building An Ecommerce Store: 

After choosing the suppliers, it is time to create an online store. First, choose a name for your store which is unique and easily memorable. Then select the platform you want to build your online store. Finally, start building your brand consistently. Even though you have suppliers and it is their products, your store should be unique to stand out from the rest. 

Some of the factors to look into: 

  1. User experience: Customers can browse your business to check their desired products. 
  2. Categories: Help your customers find products easily by separating types and including them in your main menu for easy access. 
  3. Payment Gateway: Offer your customers multiple payment gateways. Also, make sure that you highlight all taxes and shipping costs that customers must consider. 
  4. Mobile optimization: Your store must be mobile-friendly so customers can purchase products from multiple screens. 


Want to make money easily without the hassle of production – then dropshipping is the prefect business plan for you. Creating a dropshipping business is relatively straightforward and suitable for people with a limited amount of experience or a high-level budget. 

Choose a niche and do your market research to determine what types of products you want to sell. And remember to choose reliable suppliers to get the products. Build your website to your specifications and promote your business online.