How to Start a Dropshipping Business

By John Cruz

Last Updated:

Learning how to start a dropshipping business is going to be one of the best decisions you’ve ever made in your life.

It’s one business that can build an income you never thought possible.

But just like any great opportunity out there, you need to understand several things before you go complaining about how it didn’t work.

For one, dropshipping is a real deal business that needs to be treated as such.

Do not get involved if you don’t have the time.

Do not commit to this if you aren’t ready to make that commitment.

And, please, do not come in here trying to test the waters.

Are you going to open a restaurant to see if people will pay for your food?

That’s my point.

Go into this business with the idea that you are going to sell products that people want.

Understand that much, and you can start a successful dropshipping business.

What Exactly is Dropshipping?


Dropshipping is the equivalent of a retail store with the use of e-commerce rather than your traditional store setting.

The business does not require you to purchase any products up-front, and it doesn’t require you to ship them either.

You serve as the middleman between a customer and the dropshipping company.

Through your website, a customer will make a purchase.

From there, you will take the money they just spent, and make the actual purchase through your – soon to be – dropshipping partner.

That partner will then send the product to the customer, with you cashing in on the difference.

It’s that simple, but there is a lot more to learn before you go thinking you’re going to be some kind of millionaire come this time tomorrow.

How to Start a Dropshipping Business

Learning how to start a dropshipping business might seem simple to most, but it’s a lot more complicated than you think.

The idea is as simple as I explained above, but it’s everything else that is complicated.

What products are you going to sell?

Which dropshipping company should you go with, and how do you even join one?

It’s all the little things that will make all the difference.

Don’t focus on them, and well, you’ll be a part of the over 90% of failed drop shippers out there.

I don’t say that to deter you from trying to start a dropshipping business.

I say that, so you can understand that this is no walk in the park.

Dropshipping is real, it’s legit, and it can change your life.

IF, you understand what it’s all about and you do things the right way.

Try to do it on your own, and you’ll become another statistic.

So, to prevent you from failing, I have put together this simple guide on how to start a dropshipping business.

There are many steps and strategies, but I want to keep things simple, so you don’t get confused.

So before you go thinking you’re going to be a millionaire six months from now like Irwin and his wife did, let’s see what it takes to start a dropshipping business.

1. Learn Dropshipping


I can tell you all the steps to start a dropshipping business, but what good is it if you don’t know the ins and outs of things?

Just like anything in life – especially in business – you are going to need to learn and understand how everything works.

You can know how to sell anything, but where are you going to sell them?

Where will you find your audience?

How will you get them to see your products?

It doesn’t get any more effortless online either, so that’s why I say you need to learn this stuff.

Just like any other business, you will need to invest.

The pricing for courses might be a bit shocking to some of you, and that’s fine.

What you need to know is that this is a real business that you are about to take on.

With a dropshipping business, though, it won’t cost you $50k like it did for me to run a bar that stressed me out more than I made money.

Rather than pulling out a loan, you can learn all this for just a couple thousand dollars or even a couple hundred a month.

Yup, it’s that low.

Remember now, real business.

2. Pick Your Niche


Just like you would do if you were to take on affiliate marketing, you want to go with something that interests you.

Some will tell you to chase the money, but there are exceptional instances where I would recommend such a thing.

For the most part, I don’t ever recommend doing that, especially if you are entirely new to the world of making money online.

If you want to start a dropshipping business, you need to be knowledgeable about that topic.

You need to understand the products and the topics related to those products.

You can’t recommend one vacuum over the other if you’ve never tried it.

The same thing goes with diamonds.

I know there is a lot of money to be made, but without knowing about cuts and all that, how will I know what I’m talking about.

If you’re a dog person, go with dog products.

If you like fishing, then that’s something you should consider.

Write down a list of what you are interested in, and let’s move on.

3. Scout the Competition


I don’t care what business you are going to run, and there is always going to be competition.

Sometimes it’s okay, sometimes it’s bad, and sometimes it’s even both.

Regardless, it exists, and it’s something that needs your attention.

This will especially help you with step #6, so keep this in mind.

With the internet, your competition is going to come in different forms.

You can see them in the search engines like Google, or you can see them on social media like you are probably already seeing.

These competitors might be a fellow dropshipper, an affiliate marketer, or they could even be a blogger.

They all target different customers but have the same goal of making sales.

So, see who is out there within your chosen niche.

Look at what they are advertising or writing about, and you will see what you’re up against.

4. Pick Your Supplier


Several companies would love to partner with you.

It’s all a matter of who has the products you need at the best prices and who you want to deal with.

The most popular of all dropshipping companies is Alibaba.

They are based in China and have a bazillion products that you can choose from.

They offer you (the drop shipper) products at wholesale price, and then you mark it up for profit.

Yes, the same way that real stores are doing.

These drop shipping companies don’t care what you sell them for, so you can price them however you want.

And if you know nothing about Alibaba, just know that they sell almost everything at meager prices.

What’s even cooler is that not everyone can get these prices.

It’s either you buy them in bulk for personal use, or you get them through the drop shipper’s rate.

5. Build Your Site


There are several ways that you can make money with a website and dropshipping is just one of them

If you have never built a website in your life, don’t let this scare you.

Building websites are beyond easy to do these days, and they are very inexpensive.

If you can click a mouse, you can build a website.

Now, if you want to start a dropshipping business, you will very much need a website.

You need that site to showcase your products as well as a place for others to make their purchase.

Through sites like Shopify, you can build your website as well as be able to take orders thanks to their ready-to-go themes.

6. Get Traffic


As a website owner, traffic is going to be your best friend.

Without it, you will probably be enemies.

Within the online space, though, there are several ways that you can get visitors to your site.

You can pick and choose which one you want to utilize, but you don’t need to use them all.

One is all you need.

If you can master that one, you can make some good money with dropshipping.

Now, if and when you gain a little more experienced, you can use two or even all if you think you can handle it.

You can use Google and get some organic traffic through what people are searching for there.

You can also get traffic through social media if you are a little more knowledgeable in that department.

Lastly, you can pay for traffic.

Paying is what I recommend, especially looking to start a dropshipping business.

This way, you don’t have to wait, and you can make money almost immediately, unlike how you would if you were to make money blogging.

7. Analyze, Tweak, and Make Changes

Nothing is ever perfect the first time around.

Sometimes it doesn’t even get better.

Regardless of what happens, you need to find a way to make the necessary changes to get you to make the most profit.

If you aren’t getting much traffic, find a way to get it.

If you aren’t making any profit, you might want to adjust fire there too.

It’s this same reason as to why I had “learn dropshipping” as the first step.

Without the proper knowledge, you will most likely be wasting your time and throwing money away.

Get with the right program, make it a point to learn more, and apply that knowledge to your newfound business.

Conclusion – Start a Dropshipping Business

Today is the best day to start a dropshipping business.

With the current state of our economy and the shift to online everything, there is no better time to take your business to the internet, than today.

Whether it be dropshipping, blogging, or regular old e-commerce, use the internet to your advantage.

Most will never see the true potential or even give it a chance, so you know the opportunity will always be there.

Until then, do not give up on running your own online business.

Get started, learn your butt off, and you’ll see how impressive the internet is.

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