How to start a dropshipping business in 5 simple steps

 High competition in the retail business develops nonstandard business models. Dropshipping is one of them. This business model gives you the opportunity to start a new business without significant investments or professional knowledge. All beginners, using a guide like this article, can open a dropshipping store and start making money.

Dropshipping is an online business where a customer chooses products in an online store, places the order, and a dropshipper starts order fulfillment. The key difference in this model is that a dropshipper does not have a warehouse with products or does not produce them. A dropshipper places the order with a wholesale supplier, manufacturer, or another retailer. They produce and deliver the products to the customer. In such a model, a dropshipper is responsible for the online store, customer service, marketing, and proper choice of suppliers.

The business model is relatively easy, and the organization of such a business does not require a lot of time. To reduce this time and make your business profitable, below is a guide for opening a dropshipping business in five simple steps.

A guide for opening a dropshipping business in five simple steps

This guide is not based on the requirement to start a business with zero investments. As time is the most valuable resource, it is recommended to begin with special software tools. They help go through preparation steps significantly faster, open the store, receive orders, and correspondingly profit. Otherwise, you can spend many hours on manual research and receive a significant profit significantly later.

• Choose automation software.

You need to choose the tool based on your budget, the number of tasks you want to transfer to AI, and the size of your future online store (number of listings and orders). If you use automated dropshipping software like Easync, you may rely on significantly reducing routine dropshipping work at every step of creating a new business. Like many other similar ones, this tool may help find the product niche, suppliers, and make orders.

Tools are also available aimed only at one specific task, like creating a new brand, online store design, or delivery organization. If you build your business on marketplaces, many plugins and applications for creating product pages through easy export from other resources are available.

Do not hesitate to automate your business; you can hardly evaluate all profitable dropshipping ideas. If you are unsure about any automated products, use their trial versions or buy initial starting packages with minimum features. For example, the basic version of Dsers is absolutely free.

• Use the software to find the product niche and suppliers.

Considering that you have already purchased and used the dropshipping software, That is why you can pass this fundamental step of dropshipping business development with only several clicks. Every dropshipping business should start by finding a product niche and a reliable supplier. Fortunately, almost all product categories are available for dropshipping, except dairy products, fake goods, large and fragile items complicated by delivery, drugs, and adult products. All other categories are available; you may read many stories of success.

Nevertheless, your dropshipping tool (if you purchase the one with a product research tool) gives you detailed reports about the most profitable product categories, niches, and items. You will see actual figures of how many items were sold during a chosen period and the estimated profit. It is recommended to start with popular products and set similar market-compatible prices. This will help you receive positive reviews and increase your seller rating if you use marketplaces for your online store. Do not forget to search for product niches in your required region, not worldwide.

After you have chosen the product niche, you need to find several reliable suppliers. It is better to have several suppliers, as you may split a high load between them. You need to execute the first order at your home address to check the supplier's quality and delivery services. If you find a local supplier or a warehouse in your region, you can get fast delivery, which is now one of the most crucial factors in e-commerce.

• Legalize your business.

Like any other business, dropshipping should be registered appropriately based on local and regional laws. You must pay all taxes, receive a business license, purchase business insurance, and do not forget copyrights. Even though you are not producing products, you will be responsible for their quality and safety.

You should be aware of consumer protection laws and provide only the truth in your advertising.

It is recommended to avoid any products that humans or pets can eat at the beginning. Also, you should sign settlement agreements with your suppliers, including information about disputable cases of lousy quality or delivery.

If you expand your business to a new country or region, you should check all legal requirements, including marketing laws, to be sure that your dropshipping store works on the safe side.

All licenses and permits must be ready before your registration on marketplaces, as this information is mandatory for sellers. Do not use fake information; you will be banned on this platform.

• Create a website on a separate domain or on a marketplace.

All retail businesses should have a store. A dropshipper has two options for an online store: a separate domain or a marketplace. For the first option, you choose your name, domain, and all technical details. You have no restrictions or limitations; develop your website as you wish. But marketplaces have a bunch of requirements you should fulfill. From the point of view of usability, there are tons of apps and plugins for making a website without technical knowledge.

There are several benefits that marketplaces can offer: technical support for 356 days per year and a stable flow of customers. But, correspondingly, each marketplace has many dropshippers and competitors, and you should set your price considering their prices.

To set up a store on the marketplace, you need to pay a fee for registration or for each sale. Also, marketplaces can limit payment methods, and you should choose the platform based on your product niche (for example, BestBuy is popular for electronic gadgets, while on Shopify, most customers purchase beauty products).

The online store should have a modern design with high-quality photos and videos of sold items. Each product page should contain detailed characteristics (which your software can automatically download for the source market). The more unique and memorable your presentation is, the more customers you get.

• Make an advertising campaign.

Without proper marketing, your online store is invisible to customers. You can pay for the marketplace to include your store in the discount program or any other promotion. But if you have a separate store, all marketing campaigns should be organized by you. To receive organic customers, you need to set proper keywords for search engine ranking. Additionally, you can request a full SEO report to see other weak points in your online store.

All other customers can be attracted via social networks, advertising banners similar to your website, email marketing, forum posts, guest blogging, or reviews. All tools for attracting clients and creating loyal customers can be used here.

Using software tools, the start of a dropshipping business can be easily described in five simple steps. Be aware that it may happen that you will change your product niche several times, but all steps should be repeated for all products.

Conclusion

Dropshipping is the best e-commerce business for beginners, as you only need to spend a little money on inventory; all responsibility for production and delivery lies with the supplier. With the proper choice of supplier and the correct business organization, you may achieve significant revenue in the first month of sales.

The simple business organization steps in this guide are good navigation for all beginners in dropshipping. Automated dropshipping tools and active marketing campaigns are vital factors in your success!

This article was written in cooperation with Easync.

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The Best Dropshipping Suppliers

Dropshipping has its own business model. The perk of dropshipping is that you don’t have to deal with inventory, you have your own warehouse for storage, and you don’t have to worry about being the one to ship out orders to your customers. Dropshipping is a fulfillment method where the store itself does not have to physically have the products it is selling in its own store or warehouse.

Your business will work with a third-party supplier, so when a sale is made, they will deal with the shipping and processing. Your company will never have to lay a hand on the product itself. It seems like the best of both worlds, right?

The Best Worldwide Drop Shipping Suppliers

There are many great suppliers to work with, such as Oberlo, AliDropship, Dropified, Sunrise Wholesale, and Nordstrom. Understanding which third party best suits your brand and the products you will be selling is crucial to a successful start.

Keep reading to learn more about some of the best worldwide dropshipping suppliers that you might want to use for your own business.

Best for Reliable and Efficient Order Fulfillment: The Fulfillment Lab Best For

Reliable and Efficient Order Fulfillment

Get started securely through The Fulfillment Lab’s website, 1 Minute Review.

As technological advancements continue to transform the e-commerce landscape, businesses are engaged in fierce competition for customer attention and loyalty, driving a need for constant adaptation and innovation. Fast and efficient order fulfillment is crucial for driving customer loyalty and sales. A study by Dotcom Distribution found that 87% of online shoppers consider shipping speed when deciding whether to shop with an e-commerce brand again. However, many businesses lack efficient order fulfillment strategies. That’s where The Fulfillment Lab (TFL) comes in.

Founded in 2012 and headquartered in Tampa, Florida, The Fulfillment Lab is a leading third-party logistics (3PL) and e-commerce fulfillment company that offers comprehensive services to help businesses manage their supply chain and streamline their order fulfillment processes. The company provides various services, including warehousing, order fulfillment, inventory management, and shipping solutions, leveraging its state-of-the-art facilities, cutting-edge technologies, and team of experienced professionals.

The company also offers customized solutions tailored to each client’s unique needs. Its commitment to customer service and efficient operations has earned it a reputation as a trusted partner for businesses of all sizes. TFL’s technology-driven approach and expertise ensure that clients can focus on growing their businesses while leaving the logistics to the experts. Benzinga spotlights TFL, explaining how its services can help you fast-track order fulfillment and turbocharge your e-commerce businesses.

Best For

• E-commerce business owners seeking reliable and efficient partners for their order fulfillment and shipping needs
• Startups and small businesses looking to outsource their logistics and warehousing operations to a trusted third-party provider
• Entrepreneurs who want to focus on growing their business and sales instead of worrying about the logistics of order fulfillment
• Companies expanding into new markets or launching new product lines need a flexible and scalable order fulfillment solution.
• Online retailers who want to provide their customers with fast and reliable shipping and delivery options to boost customer satisfaction and loyalty

Pros

• Robust and agile proprietary software, Global Fulfillment Software (GFS), to expedite and streamline order fulfillment
• Dynamic integration with over 40 e-commerce platforms, including Etsy, Shopify, eBay, Amazon, and BigCommerce
• Real-time inventory tracking using its proprietary management software
• In-house design and printing services for personalized marketing campaigns with client orders
• Custom packaging and shipping materials
• Excellent global or international presence
• Efficient customer service across diverse channels

Cons

• Available in only two locations in the U.S.
• Lack of transparent pricing (no upfront estimates)
• Unavailability of climate-controlled facilities

In the eCommerce space, there’s quite a lot going on for every retailer. You’re selling products to consumers who expect a fast turnaround, but how can you make the most of your business and get the fulfillment services you deserve?

When you use The Fulfillment Lab, you can take advantage of a 3PL service that leverages state-of-the-art facilities, processes, order fulfillment, warehousing solutions, inventory management options, shipping, and more. As you take advantage of these services, you can foster greater loyalty amongst your customers, and you also get:

• Reliable 3PL services
• Support for startups and established small businesses
• Logistics and warehousing options
• The ability to grow your business
• Scalable fulfillment services
• Agile proprietary software
• Global fulfillment services (GFS)
• Integration of over 40 platforms, including Etsy, Shopify, Amazon, and more
• Real-time inventory tracking
• Quality customer service

While climate-controlled facilities are not available, you still have an incredible opportunity to streamline the options you have for shipping to your eCommerce customers. As long as you can promise better service for your clients, your business will grow that much faster.

Best for E-Commerce Store Owners: Printful Best For

E-Commerce Store Owners

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The global printing-on-demand (POD) market is forecasted to reach $39.035 billion by 2031, indicating significant growth potential driven by a substantial customer base that presents a lucrative revenue opportunity for entrepreneurs. To start a printing business, you’ll need a service that delivers high-quality prints. Printful empowers you to launch your online store effortlessly through its high-quality printing services. Whether you’re a creative artist, a graphic designer, or someone with many awesome design ideas, Printful offers you a seamless and efficient way to turn your designs into tangible products and profit from them. From apparel and accessories to home decor and promotional items, Printful offers a diverse product catalog to suit various business needs and ensures high-quality and precise printing.

The platform offers a dedicated POD dropshipping tool, meaning you don't need to worry about holding inventories. Instead, you can collaborate with manufacturers to have the items you create directly shipped to your buyers. That way, you eliminate the time-consuming fulfillment tasks of printing, packaging, and shipping and focus on developing your brand and promoting your store. Printful provides a wide range of fantastic tools tailored for creative individuals seeking to leverage the advantages of cost-effective dropshipping for their businesses. Suppose you’ve dreamt of selling your own unique products, such as t-shirts, hoodies, hats, mugs, tote bags, and phone cases. In that case, Printful can turn that dream into a reality without the hassle of worrying about warehousing and stock management.

Besides its robust printing tools, Printful’s integrations with major e-commerce platforms, automation features, and reliable customer support make it an ideal solution for anyone looking to enter the printing industry and build a successful online store. The platform provides comprehensive guidance to help you get started, offering easy-to-follow lessons on dropshipping, on-demand printing services, and building a successful digital business. However, compared to some competitors, the platform provides a wider selection of products. Benzinga spotlights Printful, highlighting its pros and cons, core product offerings, and how it compares with other POD services.

Best For

• Creative entrepreneurs, including artists, designers, and creators who want to turn their unique designs into tangible products
• E-commerce store owners or individuals running online stores who want to offer a wide range of customized products to their customers
• People interested in the POD business model and looking for a reliable and efficient platform to bring their ideas to life
• Startups and business enterprises that want to minimize upfront costs and inventory management by using the dropshipping model
• Online marketers looking to expand their product offerings by integrating POD items into their marketing strategies
• Those seeking passive income or an additional source of income by selling custom products without the need for inventory or fulfillment logistics

Pros

• Wide range of customizable and white-label products
• Seamless integration with e-commerce platforms
• High-quality printing and product finishing
• Automated order fulfillment and shipping
• No upfront costs or inventory management
• Global shipping capabilities
• Easy-to-use design and mockup tools
• Transparent pricing and competitive profit margins
• Helpful educational resources and customer support
• Scalability and flexibility for growing businesses

Cons

• Potential for longer shipping times
• Higher pricing compared to traditional printing methods
• Limited control over the production process

When you’re looking for a printing-on-demand partner, it’s wise to turn to Printful. This platform offers a unique customer experience that walks you through the process, so there’s no confusion and you get the support that you need.

No matter what your line of work is, you can reach out to Printful to ask for the printing of apparel, accessories, home decor items, promotional materials, and more. There’s quite a large catalog to choose from, and every piece is printed expressly with your needs in mind.

There’s also a dedicated POD dropshipping tool that allows you to cut back on holding inventory, meaning that you can get back to the core of your business. You don’t need to handle fulfillment because Printful handles it for you, and the platform even integrates with the most popular e-commerce platforms on the market.

Best Dropshipping Accounts: Oberlo

With many categories for dropshipping, Oberlo is known to be one of the best suppliers in general due to being user-friendly and simple to navigate. Using Oberlo as your dropshipping supplier is easy and beneficial, as it enables you to import your chosen products to your store and ship them straight to your customers.

Another aspect that makes Oberlo one of the best is its dedication to helping people succeed, no matter their professional level, financial status, or where they personally are on their eCommerce journey. This platform is very popular with its app connection through Shopify as well, making integration uncomplicated.

On the downside, Oberlo’s chat support is slow, and its multi-store management can cause users headaches.

Oberlo offers three different pricing plans:

• Explorer
• This plan offers two free digital learning courses and other educational material to read and listen to, and is completely free of charge.
• Grad 
• The Grad plan provides courses, coaching and trends reports and costs $7.90 per month.
• Boss
• This Boss plan in Oberlo offers a wide range of eCommerce tools, costing $29.90 per month.

Best Manufacturing and Dropshipping Supplier: AliDropShip

AliDrop is well-known for being a powerful manufacturing and dropshipping supplier. Their platform allows individuals to start or expand their dropshipping business by selling products from AliExpress. The main reason why AliDropship is so popular is because a user can simply buy an already-made dropshipping business through them, host their webpage, or even just use their plugin for their own personal site.

Like Oberlo, AliDrop is also very user-friendly, making it great for beginners even with add-ins such as pre-built themes. The platform allows for easy installation and simple product imports. Pricing is also a benefit for this platform, as there is only a one-time fee, and that fee is quite affordable.

The cons include that there is only forum support and only two plugin versions.

However, when weighing out the pros and cons, it is clear that using AliDropship for your dropshipping needs can be an exceptional choice.

Popular Shopify App for AliExpress: Dropified

Dropified is a platform that helps you on your dropshipping journey by streamlining and automating your business. The platform allows a successful start by providing you with the tools to search, list, and fulfill products on your eCommerce store. Dropified is popular for its integration with AliExpress, providing excellent features and support.

The pros of Dropified include easy integration, access to AliExpress suppliers, customer support, and reasonable pricing. Cons for the platform include having limited automation when compared to other dropshipping suppliers and the lack of FAQs on its website.

There are three monthly pricing options and three annual pricing plans for Dropified. Monthly, the platform starts off at $17 per month. The next monthly plan comes in at $97 per month. This plan is best for online entrepreneurs looking to build their own custom brand. The third monthly plan is called Dropified Black, priced at $297 per month with no transaction fees.

This plan is best for power eCommerce sellers with a higher volume of sales. Annual fees are slightly less than the monthly rates offered, yet still close in price. All plans also come with a 14-day free trial, so you can get a better feel for what you want to commit to before being charged.

The Best US Dropshipping Suppliers

There is no doubt that dropshipping is a desired business to take on. But with that being said, there are certain suppliers who perform dropshipping better than others. Some of the best dropshipping suppliers in the United States include Sunrise WholeSale and Nordstrom.

Sunrise Wholesale offers many products for dropshipping.

Many dropshipping suppliers are very category-specific, but with Sunrise Wholesale, there are many different products supplied. Sunrise Wholesale is a dropshipping app that offers over 15,000 products for your eCommerce store.

The pros of Sunrise Wholesale include simple product integration, automatic inventory updates, direct fulfillment, and a built-in Fraud Check for integrated orders. You can easily add items of your choice with a single click, and there is no need to buy any quantity of products upfront.

A couple of cons that emerge with Sunrise Wholesale include their smaller catalog of product choices compared to other drop shipping companies, along with not having international shipping.

Overall, Sunrise Wholesale’s pricing is pretty straightforward. You can get a seven-day free trial, but after that, if you choose to keep using the app, there will be a recurring fee of $29 a month.

Nordstrom—AApparel Supplier

Nordstrom has its own program for dropshipping. They are partnering with Dsco to offer an integration platform that helps suppliers connect and exchange drop-ship data. Not only is Nordstrom one of the best suppliers for apparel, but they also have a large assortment of beauty supplies, including hair and nail products.

The pros of drop shipping through Nordstrom include their wider range of brand visibility and awareness, as well as their sales and revenue. Their start-up investments are minimal when compared to the vast number of sales opportunities. Additionally, they pay for all shipping fees. All the supplier has to do is pick and pack.

Although Nordstrom has its pros when it comes to apparel dropshipping, there are a few cons too. Nordstrom does have limited products it sells compared to other companies. But if you are looking to sell apparel, they may be the best supplier for you.

How Does Dropshipping Work?

So, how exactly does this business model work? You are an entrepreneur and a business owner, and your customer places an order from your online store. After the order is placed on your site, your store automatically sends the order to your dropshipping supplier. Your drop shipper will then begin to prepare the order your customer has placed. When the order is finished being prepared, the final step in this process will be your dropshipping supplier shipping out the completed order directly to the customer.

How To Start Dropshipping

First and foremost, it is important to make sure you do your research when starting a dropshipping business. Not only will it be important to research the supplier you will be working with, but knowing more about what products are trending, who your competitors are, and how to best market to your audience will also be important.

In order to start dropping, you will need to be able to invest initially. While you can try to go the free route, it is much harder. The financial obligations upfront may make it harder to start dropshipping, as you may not have the money to buy in bulk to start. But if you do, this will be one of the first steps. Assuming you already have your dropshipping business idea, you will need to choose a supplier to work with.

In Conclusion

There are numerous great dropshipping suppliers for you to utilize. Some of the best ones include Oberlo, AliDropship, Dropified, Sunrise Wholesale, and Nordstrom. Some suppliers will be better for you, depending on the products you are looking to sell. Nordstrom will be better if you are dealing with apparel, and Alidrop will work best if you are looking for the best manufacturing supplier.

Whichever supplier you choose to work with, make sure you do your research to know if they are the best fit for you and your business!