How to Start a Dropshipping Business
A dropshipping business sells products online without holding inventory. When a customer orders, the supplier ships directly to them. Dropshipping has very low startup costs but thin margins and heavy competition. Success requires finding underserved niches and building a brand, not just listing products.
How to get started
1. Research niches where you can add value beyond just listing a product (bundling, branding, content)
2. Find reliable suppliers on platforms like AliExpress, CJ Dropshipping, or domestic wholesalers
3. Set up a Shopify store with a professional design and clear product descriptions
4. Test products with small ad budgets ($20-50/day) on Facebook or TikTok to find winners
5. Double down on products that sell and cut everything else - most products will not work
Key metrics to track
Profit margin per order
Conversion rate
Ad spend return (ROAS)
Shipping time
Customer complaint rate
Common mistakes to avoid
- Selling generic products with no brand or differentiation
- Choosing suppliers with 20+ day shipping times
- Not ordering samples to check product quality yourself
- Spending too much on ads before testing product viability
- Ignoring customer service - dropshipping has high support volume
Startup costs
Expect to invest $200 to $5,000 to get started.
- Shopify subscription: $39/month
- Domain name: $10 - $15/year
- Product samples: $50 - $200
- Ad testing budget: $200 - $2,000
- Apps and tools: $50 - $200/month
Time to revenue: 2-6 weeks to first sale
Funding options
Bootstrapping
Personal savings
Credit card (small amounts)
Frequently asked questions
Related business types
Related resources
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