Business,  Tips & Guidelines

How to Start a Successful Online Dropshipping Business?

There’re more and more types of online business, dropshipping is one of the most popular types in online business. If you want to start a online dropshipping business but have no idea, then you’re at the right place.

What’s Dropshipping?


This is a type of supply chain management or retail fulfillment method where products are purchased from a third party supplier instead of being stocked.

The retailer usually opts to transfer the customer’s orders and shipment details to either the manufacturer or wholesaler who then directly ships the product to the customer.

Today, dropshipping is one of the most profitable E-commerce models in the world. It gained much popularity in the beginning of the dot com era. In this era most mail order catalogs were transformed into E-commerce stores.

During the beginning of the Ecommerce period, two major companies that revolutionized how online buying and selling was done were eBay and Amazon.

The idea of going online and creating your own store was made easier as you could now list your items on the site and have them push them on your behalf.

The three key players of a successful dropshipping business are the manufacturer retailer and the customer. The manufacturer’s role is creating products, carrying inventory and shipping the products on behalf of the retailer.

The retailer sells the manufacturers product on your own website under your brand name. The retailer then markets and ships the products to the customer at a profit.

Dropshipping has changed how business is done as it does not demand as much as the traditional retail model. Most entrepreneurs prefer the dropshipping model of doing business as it requires less money and hassle to start. The merchant only needs to gain customers and process orders.

Why is Starting a Dropshipping Business a Good Idea?

Starting a dropshipping business is a great first step to successful entrepreneurship. This is because you are able to sell products to customers, set your prices and even start your own brand.

There is no need to pay for inventory until the product is sold to the customer. Some of the benefits of the dropshipping model include:

It is a Cheap and Easy Way to Make Money Online

With dropshipping you can control how much money you make and your business hours. Here you have the liberty to set your own prices and control your market. The more you market your product the more money you make.

Less Capital is Required

Dropshipping makes it possible for you to launch an ecommerce store without having to invest huge amounts of money to start with for inventory. In this model you do not have to purchase a product unless you have already made the sale.

As there is no need for inventory purchased up-front unlike the retail business, there is less risk involved.

Easy to Begin and Operate

Due to the fact that you do not have to deal with inventory, there is no need to deal with physical products. You do not need to worry about managing and paying for the warehouse, tacking inventory or handling shipments.

Offers Flexibility

As with all online businesses, dropshipping is a flexible form of operation as you just need the internet to run it. As long as you know how to communicate with the suppliers and clients the business can be run from anywhere.

Wide Selection Products

Since you do not have to pre-purchase items, you can sell an array of products to customers. Immediately suppliers stock an item you can list it for sale at your store at no additional costs.

Hot Products for Dropshipping Online

hot products

In order to find products that can easily sell online a seller should be able to find a popular product but make it unique to your store, the price points of the products should also be competitive to ensure your products are favored among a wide selection.

You can also opt to scale down to a specific niche. This can be done after studying the market and observing the products that are unique but are also on high demand. While selecting a product choose one that will have higher profit margins.

Selecting a reliable supplier is also an important factor to consider when choosing the type of products as they are responsible for the success of your business. Once you have vetted the supplier and found them trustworthy you will have peace of mind knowing that your clients’ needs are met.

The most sought-after products in dropshipping deals include those that are affordable and useful to the user while still being appealing. The other categories of hot products are those that are unique and the ones that are functional regardless of the price.

Some of the hot products for dropshipping include:

  • Power tools
  • Drones and accessories
  • Electronics
  • Lifestyle products
  • Tech supplies
  • Beauty and health supplies
  • Fashion jewelry and accessories
  • Health and fitness accessories
  • Shape wear
  • Yoga mats
  • Workout gear
  • Masks and hand sanitizers(recent purchase)
  • Watches(smart and analog)

5 Steps to Start a Successful Online Dropshipping Business


With dropshipping being the most modern and popular business model for entrepreneurs, here are some useful tips on starting a successful online dropshipping business:

Find a Niche

This is the first step that is required when starting a dropshipping business. Finding a niche allows you to focus on one product which you can curate and make to be unique.

Finding a niche enables you to avoid difficulties that you may encounter if you have a wide range of products that you are not passionate about.

Conduct Market Research

Market research allows you to scale down on the competition and hence find ways to easily and profitably get into the market by attracting wide variety of clients. Market research allows you to know the type of market for product and the price points that you can sell the products with.

Find Suppliers

This step is very important in any dropshipping business as the suppliers are the heart of the whole operation. If you take time to find and vet your suppliers, you can be assured that your whole business will be smooth sailing.

Build a Reliable Website

As this form of business is mostly online, your presence in this space should be carefully designed to ensure the customer has an easy time when trying to purchase an item. The website should be updated with the latest images and clear description of the products.

Create a Reliable Marketing Plan

This ensures that you get hold of target clients; this may be through ads, networking, and online campaigns. This step is important as the more you make your presence known the more people will want to find out about your products and purchase them.

5 Reliable Suppliers for Dropshipping Business


Nihaojewelry is one of china’s top dropshipping wholesalers in the world. With a wide variety of products to choose from the company prides itself in being reliable, fast and efficient in connecting your clients to the various products that are offered.

The website is up to date and easy to use which allows you to have a smooth buying experience. With a worldwide reach, Nihaojewelry is a one stop shop for all your fashion accessory needs.


The company offers both dropshipping and online retail services. Aliexpress offers a wide range of products at affordable prices. It also offers small order quantities which are great for testing product ideas without incurring huge costs.

With limited investment required upfront, Aliexpress is perfect for starting out as you can be easily up and running within a short period of time and have access to a variety of products.


The site offers a wide selection of Chinese suppliers to choose from. DHgate is easy to join and within no time you will be connected to a variety of sellers. The company ships worldwide so wherever you are you can trust that you will be able to access a wide range of products.

Wholesale 2b

Founded in 2004 in the US ,wholesale 2b is a site with a directory of over 100+ dropshipping companies and a wide range of products. Automated with solutions that synch your inventory orders and tracking, wholesale 2b ensures that all your orders are fulfilled in due time.

This Company was set up in the UK in 2005 and since then it has been essential in providing sellers with a huge selection of products, along with a large number of dropship suppliers.

The site also offers excellent customer service and provides its members with premium resources by ensuring customer trust by vetting each member to ensure they are genuine.

FAQS about Online Dropshipping Business

How do I start a dropshipping business?

By selecting a niche and performing market research on the product you want to supply it is very easy these days to start a dropshipping business. There is also a lot of information regarding suppliers online that you can use.

Is dropshipping profitable?

If you supply products that are unique and are in high demand it is very easy to make huge profits in the dropshipping business.

How much capital is needed to start a dropshipping business?

The amount of capital that is needed varies depending on the product you want to supply therefore it is important to research on a product and how much it can cost to supply.

Is dropshipping a legal business?

Yes. Dropshipping is merely a fulfillment model used by global retailers and is perfectly legal.


With the increase in access to online platforms, dropshipping has become one of the easiest ways to ensure that you buy and sell product hassle free. Though hard work is required when starting a business, dropshipping offers some relief as the seller does not have to handle the product personally.

Though this may require a level of trust within the supplier and retailer, thorough research will enable you to have it easy while performing using this business model.

Want to Know More:

Cons and Pros of Amazon Dropshipping Business

Top 7 Dropshipping Clothing Suppliers China

6 Popular Wholesale Jewelry Dropshippers China


  • Digvijay Kumar Mishra

    This information was very good for all who want to start such businesses. I am from India, planning to create a website for dropshipping work.
    I contacted with NIHAO agent to guide me for that however they suggested that there is no dropshipping option available here. They have suggested to buy the product and then deliver it to your customer by own. This is little contradicting.
    Can I have a proper guide on it.? You may send email to me Thanks. Digvijay Kumar Mishra

    • jessica


      Hi, Digvijay,
      Sorry to hear that. Now our dropshipping business is still in preparation. If the business is officially launched, we will notify you in time.

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