How to start a drop shipping business today

how to start a drop shipping business today

I cannot remember the time when a drop shipping model of business could be so popular among entrepreneurs as it is now. Browsing the internet and making research on popularity of modern business niches I came across the fact that drop shipping causes a great interest among starters. It is not surprising for me though, since I also have a successful experience with running a drop shipping business.

So, let’s dive into details what does a drop shipping means and how to start a successful drop shipping business now.

What is a Drop Shipping?

Drop Shipping is a retail method when your partner, not you, is keeping the goods in stock. In simple words, it is a model of business when you act as an agent between business and customer. Here is the process of how it works:

  1. Find a business niche / goods you are interested in;
  2. Find a product manufacturer and agree with him on collaboration terms
  3. Sell your partner’s products
  4. Tell your partner order details and customer information
  5. Partner sends his product to a customer
  6. You earn your commission

Quite simple! Agree?

So, even if you are not an e-commerce expert, you have all chances to get success in a short period of time. And that is the reason why so many entrepreneurs start with a drop shipping business.

What are the benefits of starting a drop shipping business:

  • It is safe. You shouldn’t focus on goods in stock and their in-time delivery;
  • It is fast to start. You don’t need to have a deep knowledge on business, that is why this business model is just perfect for starters.
  • It is flexible. If you see that your product demand is decreasing, just change the product.
  • It is simple to run. You only need to concentrate on promoting your business.

But there are some tricks that impact on whether your drop shipping business will be successful or not.

Here is the step by step guide that will give you an understanding of the process and allow you to start doing actions today.

Read also: Build a T-shirt brand with no money

1. Find a business niche

What I like the most in drop shipping, you have a variety of choices. You don’t need to select one niche and dive into its deep business and marketing analysis.

All you need to do here is to select the post popular and high-demand goods.

Make sure people search it in the internet:

Go to Ebay and search for the most wanted and most sold items

search for drop shipping suppliers on ebay

Go to Amazon and search for top selling items

search for a drop shipping suppliers on amazon

Go to Google Keyword planner and check trends and search volume for your business niche.

check google trends to find popular items for your drop shipping business

2. Find suppliers

When you are sure about types of goods to sell it is high time to search for reliable partners.

Actually it is a key to success in a drop shipping business, because your future customers don’t care whose fault it is that the shipping is too slow or, for example, too expensive.   

Also, you should know that not everyone is ready to drop ship and it may take time to find a partner.

Start with creating a Google spreadsheet to manage the list of manufacturers and suppliers you find – their website, contact details, date of contacting and status.

Make sure to update the document every time you work with the list.

Where to search for drop shipping suppliers?

There are a lot of supplier directories where you can find a partner for drop shipping business.

Here is the list of the most popular and highly popular directories among the starters:

1. Alibaba

search for drop shipping partners on Alibaba

2. Wholesalecentral

search for drop shipping suppliers on wholesalecentral

3. TheWholesaler.co.uk

4. eSources

drop shipping suppliers directories

5. TopTenWholesale

drop shipping suppliers directories to start a drop shipping business

6. Dropship Direct

7. Sunrise Wholesale

how to find a supplier for your drop shipping business

8. Salehoo

dropshipping suppliers directories to start a drop shipping business online

From my personal experience you can find good manufacturers with beneficial collaboration terms quite easy if you pitch them correctly.

Remember you are building win win relationships and you should show a manufacturer the benefits of working with you.

Advice! Phone calls work better. But emails are also fine.

To tell the truth manufacturers are more likely to work with big companies that guarantee good sales volume in comparison with a starter who doesn’t have an experience, website traffic and loyal customers.

But it is not so disappointing as it may sound.

A drop shipping business model is so popular among the starting entrepreneurs. And it means that this business can give you a good start in building something BIG.

How to write a drop shipping request email?

First of all writing an email remember that you are contacting a person. Try to sound natural and not spammy.

Your email should be brief and to the point. A person reading your email should understand who you are and why you are contacting.

Also, it is better to make final sentence a question.

Here is a simple example of a drop shipping request email:

“Hello [managers name],

My name is [Your Name] and I represent the company [Your Company Name]. We are about to launch our new e-commerce website [yourwebsite.com] and we are looking for suppliers to collaborate with on a drop ship basis.

Our team has developed a marketing strategy based on the target market analysis that will help us to promote effectively and increase sales once we launch.

Could you please tell how we can apply for an account to collaborate with you?

Best regards,

Once you get a reply, give a prompt response to show your interest in collaboration. In most cases you’ll be asked to provide information about you by completing simple forms.

3. Create an e-commerce website

Actually, this step should be done together with the previous step. Even if you are still in search for your partners, you can start working on developing a website.

Read also: Top 30 content-sharing websites to promote your startup

Nowadays there is a number of popular tools allowing to create a professionally looking website without special knowledge.

I recommend considering the following e-commerce platforms:

But if you want to make your business look professionally from the start one simple website is not enough.

You need a BRAND.

Think about your future brand style: how it will look, what your customers and business partners will associate your brand with.

Having your own branding will help to stand out among competitors.

I always start with a competitive analysis before creating a new brand style. 

Branding shows that a business is not a one-day-company. It shows how business cares about its style and strives to impress.

Order a website and branding

4. Promote your website

When you found a partner, launched a website with uploaded items and updated information about your company, it is time to start promotion campaign.

Read also: How Changes in Facebook News Feed Algorithm Will Impact Business

What are the best marketing strategies for promoting a drop shipping business:

    • Social networks. Best for sales and drop shipping business promotion are Instagram, Pinterest, Facebook.
    • Product reviews. Add reviews to your website to make it more trusty for new customers.
    • Influencers. Find popular bloggers and influencers to promote your products. This strategy
    • Giveaways. Attract more clients by giving away a product and promoting it on Facebook and Instagram.
    • Start a blog. Write about your business niche, create product reviews and inform shoppers about new products through your blog. It will help to attract organic traffic and more returning customers.

Order a website promotion

SUM UP

As you can see now the process of starting a drop shipping business is not very complicated. It is easy to start and grow following the steps described above.

And remember, you can achieve everything if you really want it.

Time to take the first step!

13 COMMENTS

    • Well, it was an exciting experience of making money from home that helped me to move forward and scale up. Btw, my product was leisure bags! Drop shipping requires no investment and special skills in e-commerce, that was the main reason I started. 🙂

  1. I have never heard of drop shipping before.. It really seems like a great business to be in. I definitely will look more into it & consider doing it. Thanks for sharing this information!

  2. This sounds like it would be a fairly easy way to make money on the side, or even as a full time business. I’m sure there are some risks involved, but I appreciate you sharing tips on where and how to get started.

  3. I don’t have a product to sell, so this will not be applicable to me. But you enlightened me on drop shipping. I don’t know about this, maybe when I order some products, some of them are already doing this. Especially, if the seller can get a commission. WIn win 🙂

  4. Before reading this post I didn’t even know what a drop shipping was (now I’ll translate it in italian and see the applicable regulations). Thank you also because I’m planning to sell products on my website

  5. These are great things to think about when you are wanting to put together a business. honestly I think I would be too nervous to run a drop ship business and email or cold call them to get the relationship started. But you have to do what you have to do. And if this is your drive then by all means this is an excellent way to go it sounds like. Thanks for all the interesting information here.

  6. I never thought about starting a drop ship business before. It sounds perfect for people who are not sure about starting their own business and would like to learn more about how it usually goes by being the middle man.

  7. This is an interesting article on drop shipping! Tons of valuable info on how to get started.. I will have to save this for later!

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