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With the exponential growth of marketplaces like Amazon, eBay, Etsy, and others, starting a dropshipping business nowadays is a great idea! Dropshipping is an extremely popular business model in 2020 and will still be in 2021 and there is a good reason: Dropshipping is without a doubt the easiest way to sell online! And this is why we are to tell you how to start dropshipping from scratch! 

How Does Dropshipping Work?

Polo Shirt Mockup Of A Man Delivering Food

What is Dropshipping?

Dropshipping is a great business model for any seller online because it allows you to sell your products without having an inventory! This also means you don’t need to pay for products upfront. Third-party suppliers are in charge of producing and delivering your goods.

Benefits of Dropshipping

  • No warehouse expenses
  • No inventory
  • No shipping 

Starting a dropshipping business is a great way to start your own business, entrepreneurship! The way you make money is consumer pays for full price, you pay the supplier’s retail price, and the rest is your profit! 

Now, it’s not all as easy as it sounds, as a dropshipping owner, you are responsible for creating your own brand, marketing, and website. Just as many other businesses, dropshipping also involves a long time commitment to see great results. You can’t expect to become rich in the first month. You’ll need to invest a fair amount of time to see great results. 

A Few Numbers to Get You Hyped

    • About 33% of online retailers use dropshipping as their business model.
    • Dropshipping accounted for 34% of products sold on Amazon in 2011. That’s $14.2 billion of drop-shipped products!
    • The average profit of a manufacturer that dropships is 18.33% higher than a manufacturer that uses traditional retail models.
    • Global eCommerce sales projections show a growth of up to $4.48 trillion USD by 2021.
    • 84% of online sellers say that establishing positive relationships with dropship suppliers is the number one roadblock to starting an online business.

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How Much Do Dropshippers Make?

As with any other business, earnings vary a lot but you can take a closer look at a few examples of Ali’s express case study. Dropshipping can really be a profitable business because you don’t need to own a stock of your products. It’s low risk and you can get a good profit margin if you choose the right suppliers.

Convinced yet? Ok, let’s review the 7 main steps on how to start a dropshipping business:

8 Tips to Start a Dropshipping Business

1. Do Your Market Research

Finding out who your target is and creating products for them is called niche dropshipping, for example, let’s say you choose to target the Yoga community with awesome clothing products, selling pop sockets for phone owners, cute dog clothes for all pet lovers, and so on, etc.

T Shirt Mockup Of A Woman Lying On The Grass With Her Dog

There are two main aspects to choosing the right niche for you. First, we advise you to choose a niche you are passionate about! This will help your creative juices flow when thinking about your product designs. 

The other part is choosing a niche that is actually profitable and this involves market research. You must look into your locations, your competitors, trends to follow, and more in order to come up with the best product ideas for your niche. 

To help you out Shopify has published a trending products list you can look at. You can also use Google Trends to get more ideas on what to create for your consumers. You can also use Google Trends to search for a product your intent on selling and see what’s its popularity is. This will also give a good idea of who your highest competition is. 

Sometimes choosing a product that is not easily founded locally is also a great idea. 

Google.trends Google.trends.dropshipping

Check Out Your Competition

To take a pick on who and what your competition is doing. For starters, you can make a Google search. Use your keywords in your search to see your top competitors. They are on those top places for a reason, they must be doing something right! Remember also to check out their social media. 

Checking out your competition is an essential part of anyone’s marketing plan. You can use tools to help yourself like Alexa and Similar Web. Another great way to check out your competition is to sign up for their email lists to see the updates. 

The idea is not that you copy their work but to analyze their strengths and opportunities to target those opportunities in your own business. You can compare prices, products, designs, promos, and more. 

Dropshipping SEO

Use a keyword tool to find the best keywords to describe your products and optimize your website. There are several options when talking about SEO tools: you can use Google AdWords, Semrush, ahrefs, and others. You can add a Google extension like Keyword Surfer to see keyword volume while you are searching. You can also use Oberlo to see product’s volume and decide if your idea will be worth it.

2. Dropshipping Suppliers

You can find yourself a great supplier using a supplier database like Alibaba, AliExpress, Oberlo. You can also read our Best Dropshipping Sites for Your T-Shirt Business 2020

Choosing your supplier is kind of a big deal so take your time to make an informed decision and choose. This step is critical to the success of your business. To help you make a perfect choice you can place a sample order to see the results for each supplier. You can compare shipping times, product quality, packaging. 

When trying out a supplier make sure they have the experience, they are legit, their delivering fees are decent, they provide fast shipping, have quality products, and great referrals.

3. Design a Logo

Remember your logo is everything! Your buyers will remember you and identify your brand by your logo. Your logo will also open up the whole possibility of branding material to promote all over the internet. It basically the centerpiece of your whole business identity. 

Using Placeit’s logo maker templates you can create your own business logo in just a few seconds and right in your browser.  Here is how it works:

  • Choose a template that goes with your business description

Placeit.logo.maker

  • Once in a template screen, you can customize your logo template adding your own brand’s name, choose color, fonts, graphics, until you get an original design.

Logo.maker.screen

  • Once you are done you can simply download your design to receive a high-quality PNG or PDF file and share it right away!

4. Develop Your Brand

Mockup Of A Coffee Mug And Its Package

This means putting your brand throughout all your brand experience brand: your social media, your products, your websites, your packaging even! 

Same as our previous point, using pre-made templates you can create all kinds of brand assets from your business in seconds. You’ll need no design experience or special software.

5. Build an eCommerce Store

Girl Checking Her Phone At The Office Near An Imac Mockup

Next, you need an eCommerce platform to send traffic to, sell your products, and process your payments. You can build a website from scratch, use a template, or use a site like Shopify which designed for dropshippers like yours. Building a store with Shopify is really easy and you can choose from a variety of templates.

A Few Things to Keep in Mind About Dropshipping Websites:

  1. Your domain name is very important, so you need to do your research and make sure your brand’s name is available to use. Buy your domain as fast as you can! 
  2. A great user experience might get your customers to come back, so you should really work on delivering a great experience from the very first time, this includes mobile of course. 

Remember you can also upload your products to popular marketplaces, however, consider they will charge a fee. The good news about marketplaces is, they already have tons of traffic and high intent customers all the time! All you have to do is set up an account. 

    • Amazon is the most popular online marketplace, it is said to have 300 million active users. 
    • eBay has about 171 million active users with 1 billion products listed across 190 different markets. 
    • Etsy is said to have 54 million members, 2 million active sellers, and about 32 million active buyers. 84% of sellers are female! Etsy has established itself as a more trendy online marketplace with a focus on arts, crafts, homeware, and handmade goods.

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6. Market Your Store! (Our Specialty BTW)

Focusing on your marketing efforts at the beginning is crucial to ensure your dropshipping business success. Plus! digital marketing makes it easy and approachable for many people. 

Is time to make your dropshipping store stand out from the competition. Marketing your brand means using every tool you have available to promote your brand, your products, your sales, your collaborations, and more! Let’s go over a few ideas to market your brand on the wild:

Paid Ads

Nowadays you can put ads on almost every social media, your own website, and the internet, in general, using Google Ads. 

Two things to keep in mind to develop a successful ad campaign. One: create appealing banner ads! There is a lot of experimenting involved to get to the perfect banner composition. Is it a product image, is it a model wearing your product, is it an influencer post? With every experiment, you il get more insights on which ad style captures more attention and converts the most. 

Influencer Marketing

People trust people, negotiate a win-win situation for you. If you can’t pay you can offer an affiliate commission, this might even motivate them to really promote your store. 

Content Marketing

Social.media.templates.dropshipping

Send traffic to your websites using your social media, YouTube channel, or even a blog. Share valuable content with your potential buyers to capture their attention. 

You can see your content competition using tools like Buzzsumo.

Seed Your Website

Join groups and forums of people that might be interested in your products and share your information. Try to answers specific questions or share your website to people who is actually looking for something like it. People don’t pay attention to nonsense advertisers. 

7. Evaluate & Optimize

It’s important for every marketing project to take your time to evaluate your results and make improvements. There is no secret marketing formula for your business, only you as an owner will notice what’s working for you! 

It’s super important that every now and then you also evaluate your website’s performance in order to keep optimizing for the best results. Testing and optimizing should be a constant process. 

Use your data to analyze. Each social media has its own data tracking and you can also use a platform like Google Analytics or Search Console linked to your website.

Let’s Wrap It Up!

Round Neck Sweatshirt Featuring A Smiling Delivery Guy With His Phone

Dropshipping can be a great business if you are looking either for a side hustle or a full job! You don’t need to own any stock to sell your designs. 

Choose a great supplier to manage your production and shipping. As a brand own your job is to create amazing products and develop an online store to sell them on! You can always join popular marketplaces and sell there too! 

Update continuously your website to make improvements. SEO is another place where constant improvement can be done. 

Keep up with your customers, remember customers support is quite important to ensure they get a great experience from buying your products. 

And that’s a wrap, what are you waiting for to start your very own dropshipping business! What do you think? Feel free to reach down for any questions and we will help you as fast as we can! 


How to Start Dropshipping

Learn how to start dropshipping from scratch with this extensive guide. We give you the best tools to research your market, get on with your websites, choose the best suppliers, and create amazing branding assets to promote your shop!

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