Dope Incognito

Where there's dope, there's hope

How to start Profitable Dropshipping Business | Full Guide on how to Setup


Whether you are already involved in dropshipping Business or thinking to start as a new bee, our complete research on dropshipping business  is surely going to help you out to make this business profitable one.

 Since year 2020 many people have tried dropshipping business but only few of them are successful because there are so many facts that people do not consider before starting this business and declare it as a bad or failed one.

But, the truth is if you are willing to start profitable and sustainable dropshipping business then you cannot think of big – fat profit from scratch. It will take time to earn consistent profit as building a trust among your customer take time and do not forget the high competition involved in dropshipping business.

So, if you are looking for quick way to make big money from dropshipping business then this post is might not be for you but if you want to give a serious try to this business- stick to the article as we are sharing  everything you need to know about  a profitable dropshipping business.


What is Dropshipping?

The basic idea behind dropshipping is – you need not to worry about shipping or inventory warehousing. You as a dropshipper is acting as a middle man between supplier or manufacturer and end customer.

So, three sentence to sum up dropshipping process are-

1.      Customer buys from and pays for  product on your e commerce site

2.    You pay to manufacturer and share address and  order information of customer to supplier/manufacturer

3.    Supplier packs the order and ship directly to customer address.

Pros and Cons in Dropshipping Business

The Foremost plus point about dropshipping business is – it requires minimum investment to start the business and process of starting this business is also a lot simple.


Unlike other e commerce business you can easily test on variety of product at a same time and if any product is not working for you then with no difficulty you can switch to other selling product- it is all because you are not depending on inventory or warehousing of products.


And this ease of process makes dropshipping a great opportunity to start with minimal investment but at the same time a highly competitive business. This is the biggest con of dropshipping business which makes low profit  margins in this business.


Also, you completely depends on manufacturer because at the end inventory, production and returns all are in there control only.


But, it doesn’t mean one cannot be a successful in  dropshipping business. As I have already said earlier, if you are starting this business to only make quick money then  you might find hard luck but for genuine dropship business owners it will turn out a successful one by keeping some important tips of this article in mind.


How to become a successful dropshipper

To become successful in dropshipping business one should follow what already successful dropshippers are doing as several case studies and success stories of these persons proves following are the key rules they stick to-

Choose a correct niche for dropshipping business –

To start your business you are going to need a product in which you believes it can be beauty products, gadgets , apparels , jewelry or anything that interest you most.

What interest mean here is – a product you believe that if it is available in affordable price, you as a customer would surely purchase for yourself.

Your trust in product is must.

Once you find this product, in which you can put your faith and trust, do some research to find competition. Generally, you should go for a product which is in low to moderate competition and moderate to high in demand.

Tools like google trends, google AdWords, eBay or amazon top selling products list and most wished section can be helpful to find demand and competition.

Also look for the product which are not fulfilled by Amazon Prime as delivery time is one of main key factor in sales. Why anyone place order of a product which is delivered by your website in 7 days and at the same time if other platforms delivering the same in 1-2 days.

Next step should be to do a demography based research- one product which is in demand in one country might not be fail to find demand in other country.

Let’s take a example if I am planning to go with beauty niche and  to find competition among Purse , Eyeliner and lipstick, this what google trends says-

drop trendd

So I can target handmade purses according to demand in different regions worldwide.

Find the right supplier or manufacturer for dropshipping business-

dropshipping business - supplier

Finding the supplier is not a difficult task as there are millions of suppliers available but finding the right one is essential-

-First ensure the quality of product by yourself. Ask for the product samples to ensure this.

-Go for the experience, track record and background check of manufacturer. Ask your suppliers list of other entities they are working with.

-Shipping time is crucial. Suppliers which are far from your targeted demography would take much time to deliver and so the shipping Fees will be high.

– Do consult on return, cancellation and exchange policy of supplier as no one want to end paying for return or cancelled products by oneself.

-Also, do not completely rely on just one supplier. Plan your contingency list. If due to any reason your supplier is out of stock or raise the product prices, you cannot either let your customer suffer from delayed delivery or yourself from cut in profit margins. So, always have 2-3 suppliers for your back up in crisis time.

It is also equally important to check review of your supplier on websites like Trust pilot or alike.

If you are a new bee in business you can always check Aliexpress, Oberlo, Wholesale2B, CJdropshipping, SourceinBox , dropshipdirect where many  suppliers can be found with lower shipping price and Faster processing.

But suppliers registered on Platform like Aliexpress are based on China and quality is also compromised , so your shipping time is going to up and you might not be satisfied with quality either.

Pricing and Profit Margins in dropshipping -

When it comes to price your product always compare the prices with your competitors as today’s customer is well aware and before buying any product customer always check for cheaper price for same product on other platforms.

But you cannot forget about keeping an adequate profit margin as you are paying for shipping and advertising also.

As dropshipping is known for its lower overhead prices and cash flow is much easy but it is to make sure to not only concentrate on sales, always make a balance in product pricing and profit margins.

Make your website attractive

There is a phrase – “Keep it visible”. Just like a brick and mortar store which is attractive enough to fetch customer inside store, your e commerce website should be attractive enough to bring customers to your site.

UI experience, website’s performance and product layout can attract so much traffic to your site. As most of the dropshipping business owners do not pay attention to their website and in the result lose their customer just because of unattractive website.

 Do not blindly copy paste product description, images from any random site. Write a detailed product description with reviews and images to get your hold on customer.

Consider yourself as a customer and design the layout what you would be looking for before making purchase from any website.

Advertising of your Dropshipping Business-

It is difficult to make high sales without proper advertising of your products. If you are not doing publicity no one is going to know about your product no matter how good and unique it is.

Platforms like Pinterest, Instagram, Facebook, Reddit or YouTube are easy to use and popular among all. Just create attractive Ads , use free tools, photo editors etc to make your adds attractive enough to generate customer traffic for you.

Although you can start this business under $30 but initial Advertising cost of nearly $250 to $300 cannot be overlooked and one should have this much saving before starting this business.

Customer Support –

There is no business that can sustain without customer loyalty. If you are only taking orders from customers and forwarding it to supplier to fulfill shipment/delivery and not bothering about your customer, you will never get that customer back.

Customer service is a part of your job if you want to run a successful dropshipping business. Always focus on your customer’s experience. If customer is facing any issue email them as quickly as possible.

Always ask for customer’s feedback on product quality and delivery experience. Learn from experience of your customer and improve the things, if you find any.

Go extra mile-

To make your business successful you need do to something extra as dropshipping business is highly competitive and your products are accessible to others also.

So, to make your strong appearance in crowd – always win trust of your customer – write a personalized note or a thank you email to them.

Provide some discount coupons to your customer on completing a purchase milestone or anything extra you can think of that your customer find unique and adorable.


Set up your own Dropshipping Business

setup - dropshipping business

Once you have completed your research on product and potential supplier- you are all set to launch your business, for which you would basically need a business account, your own website and a platform like Shopify, Wix or Amazon.

1.      You will require a Payment gateway for transactions– PayPal business account is a good and easy option for this purpose.

Also, if you are having a credit card it would be great as credit card provides benefit of completing payment after 35-40 days. By this way your cash flow will not hamper in case of bulk demand.


2.    For website there can be two ways- first, you can buy your own domain from platform like GoDaddy where price is cheaper and .com domain are more preferable.


Try to not name your domain on product as it will limit your future chances to try another product. Make it more general and use of word like “shop”, “store” or “mart” at the end is good.


OR second is, some e-commerce platforms provides direct integration to all the requirements to set an account.

However, always create your own ecommerce website as functionality and uniqueness can offer upper hand against your competitors.

Also, choosing e commerce platform also depend on selected supplier as for Oberlo it make more sense to sell on Shopify.

You can also give a try to BigComerece or WooCommerce.

3.    Use of package forwarding company like Viabox for virtual address is also recommended by many successful dropshippers as having a virtual address of USA for people  operating from countries like India is a good way of managing returned products

4.    Final tip is, optimize and market your site as much as you can- As all your sales depend on how much customer you would bring to your website.

As earlier said, do advertising onsocial media platforms, use tools like Mailchimp for email marketing. You should always email your customers about new product or on going sale or discount.


Frequently Asked Questions

Products like Phone accessories like waterproof Phone case, Magnetic Mobile Charger, Pet products like Dog Harness , de shedding gloves for pets, Boho clothing and accessories , Funky Jewellery are among top selling products in dropshipping business.

There is no set time limit only your consistency and perseverance would make you successful.

Also, before starting always do a prior research on product and its market so that you will get an idea of profit involved and timeline required.

Our answer is Yes or no both. As if you totally focus on revenue and neglect your profit margins you will end up losing money.

But, if you keep proper balance between Product price and your profit margin, your sell and profit both would go high.

Major mistakes like not correctly handling refunds and returns, selling low quality products, depending only one supplier, delayed shipping , inconsistency , unattractive website design should always be avoided . Else you will end up in a failed business.

Try to target the products which are not available on Amazon and you  can always refer some of best dropshipping website like Product Mafia, Thieve, Pexda, Usercart to discover most popular dropshipping items.

Leave a Reply

Your email address will not be published.