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Things to Consider Before Starting a Drop Shipping Business: A Complete 2021 Guide

  • April 23, 2021
  • by Vaishali
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Estimated reading time: 13 minutes, 50 seconds

If you are an investor who wants to get into the e-commerce sector but does not have the resources to handle production, supply chain and results, then drop shipping can be a perfect option for you! Over the last few years, drop-shipping has become a reliable approach for entrepreneurs to earn money quickly.

We live in a world where civilisation is developing quickly, with the help of technology, businesses grow even faster. In this current post-COVID situation, companies are introducing new features and innovations to ensure their survival.

E-commerce websites have adopted many business strategies. Similarly, the drop shipping business is wholly dependent on it. So, before proceeding, it is crucial to understand what exactly is a dropshipping and how it can be profitable for your already established company?

About Dropshipping

Drop-shipping has seen rapid expansion in the e-Commerce game over the last few years. With booming technologies, the drop-shipping model is becoming more useful to implement.It is a retail and e-commerce strategy wherein you don’t keep your products in stock. Instead, you are partnering with a supplier or a trading company that stores its stock. When you receive an order, you send the required information to the company that ships the products to you. Clients won’t even know you’re going to drop, as private label shipping enables you to use your address on invoice and the exchange tag.

To learn more about drop-shipping business strategies, keep reading, as this guide is fully committed to all prime aspects of the drop-shipping business.

How the Drop-shipping Business Model Works

The sole purpose of the drop-shipping business model is to fulfil the order requirements of the customers. However, the retailer does not keep any products stock with him and manages the things via mail, calls and websites. Accordingly, when a customer orders something from a dropshipping store, third-party suppliers ship products directly to the shopper’s location. The customer pays the cost you set on the products, and likewise, you pay the wholesale price to the supplier, and the remaining amount you get is the profit.

In dropshipping, as in any other business, those who are better prepared are showing better results. It is therefore appropriate to switch to committed drop-shipping professionals. They’ve been running their online stores for a long time. So, they will quickly sort out your issues and offer you the ways to resolve them.

It only requires you to create an account with the supplier. And with these two simple ways, you can find a supplier for your dropshipping store:

  • With the help of a supplier database like Ali Express, Alibaba and Dropship Direct.
  • Also, with the use of a combined supplier manual in the backend of your store, such as Oberlo.

The most convenient dropshipping procedure for Shopify supplies is through Oberlo. You can stream millions of product orders from the Oberlo marketplace via AliExpress and receive them quickly to your store with just one click.

The only thing you have to do at that time is to check the order details, make sure they are correct, and then confirm the order. After that, the AliExpress dropshipping suppliers will ship the products to the customer’s location. During the dropshipping business model, you are solely accountable for making a website and choosing the brands.

Your business is similarly liable for dispatching expenses and creating costs that cause a reasonable income margin.

Advantages of Dropshipping Business

Almost everyone who starts an online business can profit from the dropshipping.

  • It’s one of the most verified strategies to manage the inventory of ships.
  • It also helps keep startup prices down and can allow you to start a business with only a few thousand dolls in less than a year.
  • Another perk you get from dropshipping business is that it saves your precious time of packaging and shipping the products.
  • Furthermore, there is no risk of any damage that usually occurs during the shipment of products.  The route on which the ship chooses is always direct from the warehouse to the clients’ location.
  • Additionally, dropshipping is a tremendous strategy to check out fresh commodities or notions. If you have been marveling at which color of t-shirt or which kind of jewelry would be great on your website, then it enables you to commit to the market – testing, without retaining to finance the products in sampling the market induction. You can flexibly shift techniques until you fulfil your purposes if the stock is not trading.

Starting a Drop Shipping Business

Now, this is a business strategy that many other retailers are using. Even large-scale retailers like Walmart use this business model to ensure that they only purchase as much supply as they need to meet client demand for the product.

So, if you’re starting a new business, these are a few things you’re going to need to know.
With These Easy Steps, You Can Start a Profitable Dropshipping Business:

Choose a Niche

Finding a niche you like and that interest you is an important factor before starting the dropshipping business. And these are the things to consider.

Aim for High Earnings

During a drop shipping business, your priority should be on trade and client obtainment. Therefore, the percentage of work needed to trade a $20 product is nearly equivalent as it would be to peddle a $1,500 product. Choose a niche with an increased rate of stocks.

Low Shipping Costs Are Essential

Although your supplier will deal with shipping, if the price is very high, it will annoy customers, and probably they will avoid purchasing that product. Therefore, it is advisable to select a cheap price product to ship to meet your customer satisfaction. If you offer free shipping, customers will not think twice while ordering items. Consequently, you will earn the benefits and can attract more customers too.

Investment of Money

Investment is always vital in any business, and you can grow your dropshipping business by investing money in it. Approximately, it will require an amount of $1,000 to the inauguration and management of it. We need money for communicating with suppliers, web hosting, and for any incorporation expense.

Sell Products That Are Not Easily Accessible Locally

Yes, that is also a great move you can do by selling the products that people usually cannot find on streets or in local markets. And try to sell modern and trendy stuff to attract more customers.

Know Your Competition

Do not even assume you’re the only one out there to come up with the idea of marketing niche products. Analysing your competition is an endless task, and there are so many ways to do that.

  • You need to verify whether the item you are about to start advertising is already rampant on other websites.
  • From our side, we advise you to keep in mind that you will be competing with numerous other drop shipping businesses too. And some of the big names like Amazon and Walmart are already in this game with their marketing strategies.
  • If the product is not highly coveted, there may be many reasons for it to be expensive, shipping costs, supply issues and a low-profit margin. Hence, always go for a product that is high in demand.

Where Can You Find the Most Trustworthy Suppliers?

There are two great ways to find a good and trustworthy supplier for your drop-shipping business:

Find Them Online

If you want the best suppliers for your business, then you can check the product portfolio and suppliers’ details on Google. You will get all the information about the product you can choose according to your preferences. You can also find them on popular platforms like or

With The Help of a Wholesale Directory

This can save your precious time and keeps you away from the e-Commerce extortion. Shopify has numerous suppliers that have been acknowledged and validated. You can call them or reach out to them and keep dignity in their potential to deliver promising assistance.

Make a Good Connection with the Supplier

Collaborating with a wrong and deceitful supplier can ruin your drop-shipping business completely. Thus, you require a good connection with the supplier. Mostly you will encounter suppliers from overseas and a few too far from your city. Hence, good communication and proper research are very crucial. You can take help and advice even from other former entrepreneurs. They will let you know about new business strategies and do’s and don’ts of this business.

Ways for Finding a Dropshipping Business for Sale

It is not straightforward business planning as the seller has to deal with many things like the quality, quantity, delivery on time, and price of the products.

You can seek drop-shipping business for sale on the platform known as Exchange. Find the list through Shopify, choose accordingly as per your needs and budget.

All the data that you will see will directly come from Shopify that can’t be modified. So do some thorough research and contact the most reliable broker online so that you will get to understand more aspects of it like all the required information about the business comprising deals and profit data.

With These Tips, You Can Lead Your Drop-shipping Business to Greater Heights

We see so many examples of online stores that don’t look so good, but still find a way to make sales. So, we advise you to focus on the visual (and practical) aspect of your store. It’s valuable that the prospects that come to your store find it welcoming and pleasant.

Through the entire article, we have almost covered all the most fundamental characteristics of dropshipping business. And now you must be confident about starting your business model. It’s true that during a dropshipping start-up, you will have to be very attentive towards your job and manage the work carefully as there are enough things to consider at once which makes it an intricate task. However, gradually you will become a pro in this field as well, so, before that, you can consider all these tips below which will help you reach your business to greater heights:

Add Value


A plan that will add value to your consumers is a vital consideration. However, it is for all industries mostly for dropshipping as you will be competing with other big competitors that will sell the same products with different values and plans.

By reducing the fare, you can add some value to your business. However, there are other fundamental aspects of it too.

Concentrate On Commerce and SEO

Many dropshipping owners encounter this problem during the business. Yes, that is true as the business owners waste their time reckoning why their products are not getting bought and why customers are not contacting them. But in actuality, the world has no idea about the presence of their websites. Trading and improved traffic are useful for your employment and but, it’s hard to outsource adequately, particularly if you have low funding and are bootstrapping your career. You accept the individual’s ambition to improve your SEO, traffic, guest posting and outreaching aptitudes. Here are some resources that will help you.

1. SEO Resources


Search Engine Land

SEO Book



2. Marketing Resources

Hubspot Blog

Seth Godin’s Blog

Quick Sprout

Sparring Mind

Copy Blogger



3. Ecommerce Marketing Resources

Shopify Blog

E-Commerce Fuel


Most business owners believe that, by limiting their priority boundaries, their buyer will purchase their products. But that’s not factual! Specialising allows you to communicate with your consumers more efficiently. It plays a leading role in a specific merchandise or niche.


The technological revolution of the early 2000s has radically transformed the way we think, execute and even make connections. The key aspect is that success is not instantaneous. As a general rule, it is not unusual for a new e-merchant to go through many failures before making a living out of the profession.

Therefore, if you are implementing a dropshipping business that means that you continue to analyse and optimise your activities. Starting from your product portfolio to the connection you have with your wholesalers, it is essential to monitor and enhance your efforts when necessary. Dropshipping is a viable business model in which you should invest your time and effort because it pays off.

So that is all you need to know before starting a dropshipping business. We have covered almost all the essential characteristics and have given a detailed analysis of the crucial factors that will help you to grow your business.

Now, this is your turn to sleeve up and switch your dropshipping business plan into reality.

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