How To Start A Dropshipping Business

Has the idea of ​​establishing a business ever crossed your mind, but between finding a location, the cost of inventory, and hiring employees, the numbers don’t add up as you would like?

If that is your case, Dropshipping, a variant of Electronic Commerce, maybe the option that you have been looking for so much, since, without having any product or paying for inventory, you can start selling online immediately, yes, immediately!

Did you know that Amazon, the most recognized global retailer, started this business model years ago and that by 2011, 34% of this multinational company’s sales were made using a Dropshipping supplier?

In simple terms, this is a company that supplies the products sold by an online store without it having its own inventory, since the supplier is in charge of storing all the products, and offering their services, in exchange for a commission per sale or a fixed rate. This figure has continued to grow since then.

Are you interested in exploring the idea of ​​a Dropshipping business? Continue reading to find out how to start your own dropshipping business

What is Dropshipping?

Dropshipping is a business model that involves establishing your own business without having any inventory. This is an ideal business model for new entrepreneurs since it allows you to open your online store, define what type of products you want to sell, and find a supplier who is responsible for having them in inventory and sending your orders to your clients.

The wonderful thing about this type of business is that you do not need inventory or personnel to make shipments. Once the customer places an order on your online store, you pass this order to the supplier, who will complete the processing of the order and ship it directly to your customers.

Who pays for the product? The client; You only pay the supplier when, in turn, you have received payment from the customer.

Why should I consider a Dropshipping business?

You should consider it because this business model is very advantageous, both in low cost and minimal risk. If you implement a good strategy and find the right supplier, you can make very good profits, since you do not have to worry about shipping and production problems, which are two of the situations that businesses often face.

On the other hand, another major business concern is investment capital, since a limited budget does not allow paying for a large inventory. In this sense, Dropshipping is a good idea, since it minimizes the risk for new companies, especially financial ones.

How is this possible? With Dropshipping you do not have to pay the costs of manufacturing your products, inventory or warehouse, nor packaging or shipping. As a result, you save a lot of time, money, and effort that you can dedicate to other important tasks for your business such as marketing your business, promoting your products, and others.

Recommended Read: Starting a business in the U.S? Here’s what you need to do

How to start a dropshipping business?

1. Choose a business niche

The first thing you should do is find a business niche. However, this is not so simple, especially with the increase in this type of business and the vast powers of online commerce, which has saturated the market recently.

So avoid competition with large stores that have more product categories to choose from. However, if you can identify the right niche, you can secure a piece of the big pie that is e-commerce.

How can you do it? Google Trends is a great place to start because it allows you to search by keywords and see how popular they are.

2. Research your competition

Once you have determined a potential niche, it is essential that you conduct research on your competition in the dropshipping market.

You should know that, usually, you will find niches that are already competitive and that this is part of the business since you cannot be successful in this business model without some competition.

If there are already companies with an established reputation and profits in the niche that attracts you, think twice before jumping in! Ask yourself if your dropshipping business could survive with competition from established companies and loyal customers.

Additionally, if your niche has few or no competitors it could be because the demand for those products is not high enough: starting a business with an untapped dropshipping niche is a real challenge.

3. Find a supplier

Don’t rush to choose a supplier for your dropshipping business, because if you make a good choice, you will have good profits, but if you choose the wrong one, it can lead to failure.

To choose the right dropshipping supplier, you must take several factors into account and even when you already have an established relationship with a supplier, you must ensure that your customers will receive high-quality products and services.

There are many dropshipping suppliers on the market, but before choosing one, whether domestic or foreign, you should consider the type of product you will sell your target customers and your financial resources.

4. Build your store

If professional website design is out of your reach, use an easy-to-use eCommerce platform like Magento, Shopify, or another. These allow you to set up your store without the need for technical knowledge. In addition, they have many tools available such as easy-to-integrate applications and extensions to increase sales for your business.

Other factors that you should pay special attention to to make your online store efficient include: being easy to navigate and mobile-friendly. Take your time to create a good user experience, as this simple action has a very powerful impact on customer engagement with your store and their purchasing decisions.

5. Promote your business

Instead of waiting for customers to come to your store, you should help people find it! One way to do this is by using Google Analytics.

This tool allows you to know where your potential customers come from and which groups of customers will become real buyers. With this information, you can start a marketing campaign.

Use two of the most viable and profitable marketing platforms: Google and Facebook. Try a Google campaign to have your products appear on Google Shopping, a virtual showcase of products from registered stores; and Facebook, where your products can appear in the feed of customers of this Social Network.

Another essential element is to optimize your website to position it in search engine results. If your pages or products appear at the top of the search results page, customers are likely to come to your website.


As with any other business model, Dropshipping can have certain complications that you should consider before investing. Still, it is an ideal business model for those who are new to the field of e-commerce.

Once you identify your profitable niche, find a suitable supplier, market your product well, and provide good customer service, you will be able to comfortably advance in the dropshipping business.

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