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How to Start a Drop Shipping Business

Have you heard all the rave and trend of Drop shipping business and want to know how to start a drop shipping business by yourself? Well, you have come to the right place.

If you’re trying to start an online shop and wouldn’t want to struggle with inventory, manufacturing, delivery, or other logistical processes, a drop-in company might be the right match. Drop shipping is an incredibly common business model for young professionals, particularly the gen Z and Millennials, due to Internet marketing initiatives that far outperform financial capability. Since you wouldn’t need to store or manage products you’re selling, you can start a drop shipping company with minimal funds.

An online retail platform that runs a drop shipping model orders product that it offers from a third-party retailer or seller, who then fulfils the order. This not only lowers running expenses, but it also relieves you from time to time to concentrate all your attention on the acquisition of consumers. If you are good to launch a company and want to know how to start a drop shipping business that will compete with retail giants on a small budget, then follow the six steps below. Although it doesn’t cost a lot of start-up finances to start a drop shipping company, it will demand a massive amount of time and effort. But before we move on to the steps of how to start a drop shipping business, let us first make sure that you understand the basic of what a drop shipping business is.

start a drop shipping business


Essentially, a drop shipper is a middleman. You meet clients, another firm makes and delivers the goods, and you take a percentage of profits.

That manufacturing facility may manufacture things that consumers want and need, so it doesn’t want to care about advertising. They’ve made it halfway to the goal: to make sales. Your drop shipping company is going to get them the remaining distance. You use your marketing and operational expertise to reach out to potential clients, create loyalty, thus becoming their preferred source. You should build something in a niche of your own. Continuously add goods and set your costs, without caring about distribution, warehouse handling, stock storage or production. Here is how to do that.



The niche you pick needs to be laser-focused and something you’re specifically interested in. A non-focused selection of goods would be difficult to sell. If you’re not excited about the niche you chose, you’re more likely to be disappointed, as it takes a lot of effort to effectively scale a decline in the shipping business. Here are several things to remember when choosing a niche:

  • Look for enticing gains. If you operate a drop shipping business model, the attention is on promotion and consumer retention, so the amount of effort needed to sell a $20 item is the same as selling a $1,500 item. Choose a niche for higher-priced items.
  • Low shipping charges are of considerable value. And if the retailer or producer handles the shipment, it can serve as a consumer repellent if the cost is too high. Find one that is affordable to ship, as this also offers you the option of providing free delivery to your clients and bearing the cost as a business cost to gain further sales.
  • Be sure that the commodity appeals to impulse shoppers of discretionary income. When you’re focusing on attracting traffic to your website, you want to achieve the best possible retention rate, because most users will never return. The goods you are offering can trigger spontaneous sales and cater to those with the financial resources to make an on-site buy.
  • Make sure customers are constantly looking for your offer. Using the Google Keyword Planner and Patterns to review any typical search words relevant to your future niche. If nobody is looking for what you’re planning to sell, you’re dead and buried before you even start.
  • Build a brand of your own. Your drop shipping company would have more appeal if you can rebrand what it is that you’re offering and sign it off as your own. Find a product or range that you can mark white and market as your own company with customized packaging, promotions and advertisements.
  • Offer anything that is not easily accessible nearby. Choose something that your customer can’t seem to find in the avenue. That way, you can become more appealing to a prospective buyer.

Research the above-mentioned topics and aspects and then only choose a niche for your drop shipping business so you can get maximum profit and sales.


Note, you’re dealing with other drop shipping businesses as well as online companies like Walmart and Amazon. This is where a lot of prospective drop shippers go backwards because they’re aiming for a commodity that has little or no demand. This is an indication that there is no market for that particular commodity. There are several reasons that a commodity does not have a lot of competition, including high delivery prices, supplier and production problems or low-profit margins. Search for affordable goods, since it is an indication that competition is strong and that the business model is viable.


Collaboration with the wrong supplier will destroy your firm, so you mustn’t hurry this move forward. Carry out thorough due diligence. Many drop shipping vendors are based overseas, making contact highly critical, both in terms of movement of response and capacity to comprehend each other. If you are not 100% sure about the communication skills of a possible supplier, go ahead and continue the quest.

Alibaba has been one of the leading online resources for finding and connecting with prospective vendors and suppliers. Be sure you ask a lot of questions to understand what their manufacturing capacities are if the company expands tremendously. You want to know if they have the potential to progress with you. Look to benefit from other start-ups who have been down this road in the past. There are several intelligence sources online, from business and technology blogs to drop shipping subreddit. It’s a common subject that can help you prevent expensive vendor errors.


The easiest way to start a website that embraces a drop shipping business model is to use a basic e-commerce application such as Shopify. You don’t need a technical experience to get up and running, and you’ve got a lot of applications to help boost revenue. Even if you’ve had a big budget which might enable you to pay a web development firm to build a customized solution, it’s much wiser decision to get one of the plug-and-play options, particularly at the beginning. When you are developed and the money comes in, you can pursue a further modification of the platform.


Getting a fantastic product and website is wonderful, but you don’t have a company without consumers trying to purchase it. There are many options to draw new buyers, but the most successful choice is to run a Facebook ad campaign. This helps you to create profits and income right from the beginning, which can lead to rapid growth. Facebook helps you to position the bid directly in front of a heavily focused audience. This offers you the opportunity to compete instantly with the biggest distributors and companies.

You will need to think in the long run, so search engine optimization and email marketing can also be the priority. Accept emails from the outset and set up automatic email sequences providing incentives and special deals. It’s an easy way to manipulate your current client base to raise sales without additional advertisement and promotion expenses.


You need to monitor all the data and statistics available to develop your business. This involves Google Analytics traffic and Facebook pixel conversion results if this is your primary consumer acquisition platform. If you can monitor every single transition to know where the buyer comes from and what direction they followed to the website that finally led to a sale—you will quantify what succeeds and remove what doesn’t. You’re never going to get set-and-forget ads or promotion solution. You need to continuously test potential opportunities and fine-tune existing campaigns, enabling you to know where to maximise or change campaign spending.


Learning how to start a drop shipping business, as with any kind of enterprise, isn’t simple. However, this is a wonderful first step in the field of entrepreneurship. You will sell to consumers without any inventory. You don’t have to pay for the goods in advance. And if you are passionate about your new idea, you will create a reliable source of income in the coming years. Make use of our above-mentioned steps and tips to create a successful drop shipping business.