How to start a dropshipping business

How to Start a Dropshipping Business

In the ever-changing business world, people are trying their best to increase their income by experimenting with various side hustles. Whether you’re a stay-at-home parent, a college student, or a working professional looking for additional money, a side hustle can be your ticket to financial independence. Lately, the dropshipping business has become one of the most appealing side hustles for first-time entrepreneurs. According to Grand View Research, the worldwide dropshipping industry is expected to increase at a CAGR of 23.4% to USD 1,253.79 billion by 2030.

But what is a dropshipping business, and how do you start one? I’ll answer all of your questions and lay down a step-by-step for you to start a dropshipping business.

What is Dropshipping?

Dropshipping business is an e-commerce business model that is far more flexible and effective than traditional retailing. The traditional retail approach involves a retailer buying goods in bulk, storing them in a warehouse, and taking care of packaging and shipping when orders are received. However, a drop shipper is a retailer who doesn’t have any involvement in operational tasks such as packing and shipping the products. Dropshipping enables the retailer to sell things online without having the need to own an inventory.

Before you start a dropshipping business, you should be aware of the potential challenges. Overcoming these challenges will determine your business’s destiny since these challenges can either make or break your business. Let’s address some of the challenges that you might encounter.

Also Read: How to Start an eCommerce side hustle without any investment?

Challenges of a Dropshipping Business

A dropshipping business can be a lucrative side hustle, but it comes with its own set of challenges. Although challenges are inevitable in every business and you must be prepared for them, you should be extra cautious of dropshipping (as it may incur heavy losses if not done right!).

Some of the potential challenges are –

  • Matter of fact is that trustworthy suppliers are hard to find. Your ideal supplier should be someone who offers reasonable rates and quick deliveries on your orders.
  • The supplier is in charge of both order quality and shipment time. As a result, as a drop shipper, you must keep open communication with your chosen supplier to ensure that all orders are fulfilled on time and without any defects.
  • Although you do not need inventory as a drop shipper, you must maintain track of product availability. This strategy will ensure that no product in your online store ever runs out of stock.
  • To build a profitable dropshipping business, you have to explore strategies to strike a balance between competitive price and profitability. It will need an extensive analysis of product prices, shipping charges, and other expenses as well.
  • Increasing traffic and conversions to your online business may be difficult, especially in today’s competitive digital world. To attract and retain customers, you need to learn and implement effective marketing methods such as advertising, SEO, content marketing, and influencer partnerships.

It was my duty to prepare you for the hardships. Now, if you’ve made up your mind and still want to start a dropshipping business, up we go!

Here’s a step-by-step guide to starting a dropshipping business (Rest easy knowing that I’ll make it as simple as possible). Let’s get started:

Challenges of a Dropshipping Business

Practical steps to start a Dropshipping Business

The worst thing you can do while starting a business is: Set up without the proper knowledge. You will feel lost, you’ll get burdened, incur losses, and eventually disband the business. But not after reading this blog.

I’ve curated the perfect guide with step-by-step instructions to help you get started with your dropshipping business. Let’s dive right in.

STEP 1 – Choose your Niche and Conduct Market Research

Ah, the ‘niche’ word never goes away! Anyways,

Finding your niche is the first vital step in launching your dropshipping business. Think about what excites you and what products you have a genuine interest in. Explore your passions and hobbies, because when you love what you do, success follows (cliché again, I know).

Conduct thorough market research to identify the demand for your chosen niche. Dive into online forums, social media groups, and industry publications to understand your target audience’s needs, preferences, and pain points. By pinpointing a profitable niche and understanding your customers, you’ll pave the way for a successful dropshipping journey. Remember, passion and market knowledge are your secret weapons!

STEP 2 – Search for Trustworthy Suppliers

Now that you have determined your niche, it’s time to find reliable suppliers for your dropshipping business. Here are a few examples of popular suppliers to consider:

  1. AliExpress: A widely recognized platform that connects you with numerous suppliers offering a vast range of products. It provides buyer protection and allows you to order products in small quantities, making it ideal for beginners.
  2. Oberlo: Specifically designed for Shopify users, Oberlo offers a seamless integration that enables you to import products from suppliers directly into your online store easily. It provides access to a wide variety of suppliers and products.
  3. SaleHoo: A comprehensive directory of suppliers, SaleHoo offers a vetted and verified list of wholesalers, manufacturers, and liquidators. It provides valuable insights into supplier performance, including user reviews and ratings.
  4. Worldwide Brands: This directory is known for its extensive database of suppliers and drop shippers that have been verified and screened for legitimacy. It offers a range of product options and includes market research tools to help you make informed decisions.

Remember to thoroughly research each supplier, review their product offerings, compare prices, and read customer reviews before making any commitments. Building a strong relationship with trustworthy suppliers is essential for the success of your dropshipping business.

STEP 3 – Set up your online store and integrate Dropshipping app

Now that you have identified your niche and found reliable suppliers, it’s time to set up your online store and integrate a dropshipping app. Follow these steps to get started:

  1. Choose an e-commerce platform: Select a user-friendly platform that suits your needs, such as Shopify, WooCommerce, or BigCommerce. These platforms offer intuitive website builders and various customization options.
  2. Sign up and set up your store: Create an account on your chosen e-commerce platform and follow the prompts to set up your store. Customize your store’s design, layout, and branding to reflect your niche and appeal to your target audience.
  3. Install a dropshipping app: Explore the app marketplace of your e-commerce platform and choose a dropshipping app that integrates seamlessly. Popular options include Oberlo (for Shopify), AliDropship (for WooCommerce), or Modalyst (for Shopify and BigCommerce).
  4. Configure the dropshipping app: Install and activate the chosen dropshipping app. Connect it to your online store and follow the app’s instructions to configure settings like pricing rules, product import options, and inventory management.
  5. Import products: Browse your suppliers’ catalogs within the dropshipping app and select the products you want to sell. Use the app’s features to import product descriptions, images, and pricing to your store.
  6. Customize product listings: Enhance your product listings by writing compelling descriptions, adding high-quality images, and optimizing for search engines. Highlight the unique selling points of each product to attract potential customers.
  7. Test the purchasing process: Before launching your store, go through the purchasing process yourself to ensure it works smoothly. Place test orders and verify that your customers will have a seamless buying experience.

By setting up your online store and integrating a dropshipping app, you’ll be ready to showcase and sell your products efficiently. Remember to regularly update your inventory and maintain good communication with your suppliers to ensure a streamlined dropshipping experience for your customers.

STEP 4 – Source Products and set Competitive Prices

To thrive in the dropshipping business, sourcing products and setting competitive prices is a crucial step.

  • Start by analyzing your suppliers’ catalogs, looking for high-demand products that align with your niche. Compare prices and shipping costs among different suppliers, considering customer preferences and price sensitivity.
  • Calculate your costs, including product, transaction, marketing, and shipping expenses, to determine profitable pricing. Keep a close eye on competitors, monitor their pricing strategies, and strive to offer similar or better products at competitive prices.
  • Stand out by providing value-added services such as fast shipping and excellent customer support.
  • Regularly review and adjust your prices to stay competitive and maximize profitability.

By carefully sourcing products and setting competitive prices, your dropshipping business will be well-positioned for success.

STEP 5 – Deploy the Marketing Strategies

Now that everything is in order, you should concentrate on marketing your dropshipping business. You don’t need a large team of marketing experts telling you what to do and what not to do. Instead, you can do it all by yourself. But how? The answer is social media, duh!

You can start creating content on various social media platforms, especially Instagram reels, YouTube shorts, and TikTok videos. Start engaging in various types of marketing, such as content marketing, email marketing, paid advertising, influencer marketing, and so on.

Additionally, develop your own brand and try to communicate with your audience since they could be potential customers. Tap every area and opportunity to market your products and see what works. Once you find the key, double the efforts.

Note: Starting a dropshipping business isn’t easy and requires capital investment to try out different products and marketing tactics. Just telling so that you don’t come dissing me later, huh!

True drop shippers will understand


With this blog post, I did what I could. I told you about the challenges of a dropshipping business. I researched and laid down a step-by-step plan to start a dropshipping business. Now, it’s your turn to research more, learn more, and build a solid foundation for your dropshipping business.

Remember to carefully choose a profitable niche, conduct extensive market research, and find trustworthy suppliers that can provide top-notch products to your customers. Creating a user-friendly online store, adopting successful marketing methods, and delivering outstanding customer service are all important aspects of attracting and maintaining customers.

Also, try to keep up with market trends, keep an eye on your competition, and analyze your business performance on a regular basis to make data-driven choices. Don’t get attached to a product. Move according to the market!

Dropshipping has created thousands of millionaires and who knows, your dropshipping side hustle might make you one too. (But never say EASY!)

Take the risk, seize the chances, and begin your dropshipping business adventure. Stay FuelEd.

Sushrut is the key content strategist and writer for FuelEd Community. He is a content writer and content strategist with experience in domains like technology, freelancing, and side hustles.

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