How can I start a dropshipping business?

Drop shipping is a business method where markets do not manage or supply their inventory. In this way, customers order you, and you send it to a supplier. Now, the supplier receives the order and sends the product straight to the customer on your side.

Here, we talk more about drop shipping and its advantages and disadvantages. Also, you can read about some of the best drop shipping suppliers.

How can I start a dropshipping business?

If you want to start a dropshipping business, read here to understand the proper steps to launch your business successfully.

  • Find a profitable dropshipping niche.

To start an outsourcing business is to know well what you want to sell. There, you have to know about the supplier and your objective clients. Totally, you have to identify your niche. 

If you search, you might find different pieces of advice on the most suitable way to do this. Some believe in passions and interests to choose the best item to trade, but others believe in selling what people need.

My recommendation is a mix of them. For instance, if you like meditation and are also interested in piousness or astrology. You can mix these two sections into one market. In this way, you have a brand about both while they serve one type of customer.

  • Make a market research

Now, you need to do competitive research. Here, you can use two ways to know your competitors and stock trends.

Start by making a rundown of product catchphrases in your proposed market divisions. For example, if you want to search fitness or activewear, you have to search about worlds like “athleisure,” “workout clothes,” “stockings,” “exercise garments,” “yoga pants,” and so forth.

You have to search these keywords in Google’s Keyword Planner, and you can see how much volume they get. Then, you will find whether “tights” and “yoga pants” are getting the maximum searches. 

You can do so when you want to decide about your specialty. Start by identifying possible business divisions (optionally using your mastery and interests). 

  • Search about Product Trends

After you find keyword information, you have to combine it with pattern information. Now, you can decide whether the trend is developing or declining. Start your search from Google Trends and type out the keyword phrases. When you type your keywords, you will find out how the trends are going on time. You will see if they are upward or downward trends, monthly, yearly, and five years or more? 

  • Discover the best dropshipping suppliers.

After you choose your niche carefully, you have to find some suppliers to start your business. Here is a list of some best suppliers to use for your dropshipping market.

  1. Spocket
  2. Oberlo (Aliexpress)
  3. Salehoo
  4. Modalyst

You can find out a more in-depth guide on their site if you click any of them here.

  • Create your eCommerce store

After all these searching levels, you have to build and set up your store. For this, you can choose among different platforms for eCommerce and dropshipping. There you can send traffic, sell products, and take payments. There are many complete eCommerce platforms like BigCommerceShopify, Wix, Shift4ShopWooCommerce, Volusion, and more that you can use to launch your eCommerce website. They allow you to do anything online, sell in various currencies, check products, and accept fees. 

  • Choose your business structure.

If you want to set up a genuine business, you need to choose a perfect business structure. Here are some of the utilized business structures:

Limited liability company (LLC):

 LLC is famous for its protection, as it help you to protect your assets and business. This type of business structure will protect your business if anyone wants to sue you. So, you have less liability at the individual level.

C corporation:
Most large companies use a C corps structure. Because when you use it appropriately, the result is the most protection. The point is that they are more complicated than LLCs with more taxes. But they contribute more protection than LLC.
If you do not know how to choose, you can talk to a legal counselor.

  • Make your finances in order.

A mistake business people make when commencing a business is working with personal bank accounts for business goals. This way is confusing and will cause you huge liabilities. 

If you want to hold your business and private finances separate, you have to open up new accounts in your business’ name. Here, is a list that you choose among them:

Business checking account

If you want to track expenses and revenue simply, you need to open a business checking account. You can manage all of the sales and payments through this account. 

Credit card

I suggest you have a business credit card. Then you can backup your funds for any extra expenses or orders that you have to pay.

Collect sales tax

When you want to sell online, you should be aware of Taxes.

You can find many tax guide manuals from different platforms.

What are the Pros and Cons of drop shipping?

Here, you can read about the advantages and disadvantages of selling products online, so you can decide better if you like to start it or not?

Benefits of drop shipping

  1. Easy o start
  2. You need less capital
  3. It is possible to manage your work from anywhere.
  4. Test different products.
  5. You should not have an inventory.

Disadvantages of drop shipping

  1. It is more prone to errors.
  2. You can not easily brand or customize products.
  3. Earn low-profit margins.
  4. Hard to control inventory

Is it possible to create a business from outside the United States?

While it is a complex process, foreign retailers can incorporate a business in the United States and let them access the US-based drop shippers and consumers. The retailer has to come to the US to make the required paperwork, choose a trusted business co-worker in the US, or use an agency to do everything.


You might want to start a dropshipping business, but you do not know much about that. Read the above paragraphs to understand what dropshipping business is, learn about its pros, and cons and how you can start it.

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Dyka Smith
Dyka Smith is a content marketing professional at Inosocial, an inbound marketing and sales platform that helps companies attract visitors, convert leads, and close customers. Previously, Dyka worked as a marketing manager for a tech software startup. She graduated with honors from Columbia University with a dual degree in Business Administration and Creative Writing.

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