Everything You Need to Know to Start a Dropshipping Venture

Updated: January 8, 2020
by Jack Stan

An e-commerce entrepreneur who uses dropshipping sells products without having to carry inventory. In response to a customer's order, a store owner contacts the supplier, who will deliver the products directly to the customer. Dropshipping apps like Oberlo make it easy to start and run your own store. In this article, you’ll learn everything you need to know about dropshipping, from finding the perfect supplier to marketing your store.

There is no denying that dropshipping continues to grow at a ridiculously high pace and it is only a matter of time before it eliminates most of brick and mortar stores out there.

Dropshipping is pretty simple to understand. You operate as a middleman, receiving and fulfilling orders from customers and informing your suppliers about it.

There are a lot of different aspects to go over, so if you are really interested in learning more about dropshipping and giving it a go yourself, make sure to read until the end.

Everything You Need to Know to Start a Dropshipping Venture

The Benefits of Dropshipping

Advantages are one of the first things to look at since knowing them will help to understand why dropshipping is gaining so much traction all over the world.

First and foremost, you can really automate most of the process and eliminate such problems like order fulfillment, contacting the suppliers, and so on. Resources are consumed when you have to take care of these things on your own. But if you were to operate on Shopify and make use of something like Oberlo, things would become much easier. Dropshipping with Oberlo guide perfectly illustrates that.

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Ecommerce entrepreneurs who dropship don't have to carry inventory when they sell products through this business model. A store owner can simply contact a supplier with an order and the products will be shipped directly to the customer. Dropshipping is a great way to start an online business with little upfront investment, and it’s also perfect for entrepreneurs who are looking for a flexible way to run their business.

There are several dropshipping benefits that make this business model so appealing:

1. Low Start-Up Costs:

Since you don’t need to carry any inventory, your start-up costs can be very low. All you need is a domain name and hosting for your ecommerce platform, and you can be up and running in no time.

2. No Risk of Inventory Issues:

One of the biggest advantages of dropshipping is that you never have to worry about excess or obsolete inventory. Your suppliers will only ship the products that have been ordered by your customers, so you’ll never have to worry about storage space or overstocking your shelves.

3. Increased Flexibility:

Dropshipping also offers a great deal of flexibility, because it will allow you to work from home. If you are busy during the day, you can work in the evening or even very early in the morning instead.

4. Fairly Easy To Start:

It is also relatively easy to start since all you need is a website and a domain. The rest comes down to how much you are willing to work on the marketing side of things.

The business can function locally or you can turn your store into something that can sell worldwide. This depends on your ambition and whether the supplier offers worldwide shipping.

5. Scalable

Scaling is more or less infinite, and the money you make depends entirely on how much effort you put into the work. 

6. Vast Options

Finally, you have a ridiculously wide array of different products to try and sell. Sticking to something that interests you is probably for the best as you will have more motivation to work on it. And since there are so many different products to choose from, you can always abandon your first idea and move on to the next one if things do not work out.

How to Start Dropshipping

You know by now that dropshipping is a great way to start an online business with little upfront investment. There are a few things you need to know before starting a dropshipping business:

1. Find a niche market

When starting an online business, it’s important to choose a niche market. This will help you focus your marketing efforts and target a specific group of customers.

2. Choose the right supplier

Once you’ve selected your niche market, it’s time to find suppliers who can provide you with the products you’ll be selling. It’s important to choose a supplier who is reliable and offers good quality products.

3. Create your online store

The next step is to create your online store. You can use an ecommerce platform like Shopify to create and design your store. Be sure to include compelling product descriptions and high-quality images to attract customers.

What You Need to Start

Once you are done with product research and have a clear idea of what you want to sell, you will want to move on to other important matters. 

Problems You Can Solve


Simply picking a niche will not do. You need to look at a bigger picture and try to think of problems that people have right now and potential problems they might have in the future. Your business or, in this case, the product you are going to promote should be able to solve some of those issues.

If it does not, you will have a tough time scaling your business and turning it into a profitable and sustainable venture.

Competition Research

No matter how niche your market is, there will be some competition. Researching it is a natural thing to do. Find out what they are doing, what makes them successful, and where they fall short.

Doing so will help you understand the industry and you can implement some of the best aspects into your business as well. 

Choosing a Supplier

Picking the right supplier is one of the most difficult things. You can never be certain of anyone, so in this case, the best thing you can do is spend time researching. Look through reviews and gather as much intel as you can before you commit.

User-Friendly Website

The website is the cornerstone of your business and you need to work really hard to make it as best as you can. It should be user-friendly, meaning that the UI and other aspects are running smoothly. Also, do not forget the importance of mobile optimization.

Marketing and Traffic

Marketing and Traffic

Expecting to make money from nothing would be foolish. Marketing is a thing that will require most of your work.

There are a lot of ways to go about this, but most people tend to focus on two things – search engine optimization and social media.

The former is quite clear as it allows you to receive organic traffic from search engines. And people who come from there have intent to buy because they enter very particular keywords when googling.

As for social media, it also has a clear use. The most popular platforms have hundreds of millions of active users. And if you could take advantage of that, you can certainly expect to make a lot of money.

The Downsides of Dropshipping

The Downsides of Dropshipping

Though dropshipping does have a lot of advantages, there are also some potential downsides that you should be aware of before getting started. These include:

1. You have less control over your product.

Since you're not manufacturing the product yourself, you'll have less control over its quality. This can be a problem if you get a bad batch of products or if something goes wrong during shipping.

2. There is more competition.

Dropshipping has become increasingly popular in recent years, which means there is more competition than ever before. When you are competing against many other brands, it may be difficult for your store to stand out and attract customers.

3. You may need to invest in marketing.

Because of the increased competition, you may need to invest more in marketing and advertising to make your store visible to potential customers. This can add to your overall costs and cut into your profits.

DropShipping Tips and Tricks

Dropshipping tips and tricks

There are a few things you need to know to make your dropshipping business extremely successful. Here are some tips and tricks.

1. Find the right niche

Don't try to sell everything to everyone. Find a niche market and focus on selling products that meet their needs.

2. Choose the right suppliers

Not all suppliers are created equal. Make sure you choose ones that are reliable and offer good quality products.

3. Promote your products well

Just because you have a great product doesn't mean people will find it on their own. You need to promote your store and products through social media, marketing, and advertising.

4. Provide excellent customer service

This is critical for any business, but especially important in dropshipping where customers may never actually see the product they're buying until it arrives at their door. If there are any problems with the product or delivery, it's up to you to fix it quickly and satisfactorily.

By following these tips, you'll be well on your way to dropshipping success!


Dropshipping is a great way to start an ecommerce business with little upfront investment. You can source products from suppliers and have them shipped directly to your customers, which saves you time and money. Plus, there are plenty of resources available online to help you get started.

If you're thinking about starting a dropshipping business, be sure to do your research and create a solid business plan. With the right preparation, you can launch a successful venture that will provide you with a steady income stream.

So to sum it all up, you should get a much better view of what dropshipping is all about and what you need to do to start making money with it. The most important thing is to simply get started and gain some experience. And once you make your first sale, you will realize that it is not something that difficult in the first place.

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About the author 

Jack Stan

Online Marketing Career Consultant. Network marketing and web developing since 2009, helping people quit daytime job and earn enough money and freedom. Keen swimmer, horse-rider, cake-baker, a little bit of OCD.

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