How To Make Money From Drop Shipping Business

Have you considered starting an online store? Building a successful online business takes substantial time commitment and a long-term perspective.

As with any other business, you will need to consider drop shipping fundamentals if you are serious about your new venture. Does it sound overwhelming? It shouldn’t.

Setting up a drop shipping business is perfect if you have time and limited capital, and are looking forward to working on your own. You can follow an exclusive guide on drop shipping business, which will surely help you to understand how the model works in real time.

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You need to understand the supply chain and the fulfillment process. It is important to have a vivid idea on the products you would like to drop ship. You will also want to identify the suppliers who have these products in store.

As you contemplate to set up your business, approach it with realistic expectations about the investment and your profitability.

Realistic expectations and proper time investment will reduce likelihood of frustrations that can prompt you to quit.

However to be successful you only need to get started.

Let us lay out every single step you will need to set up and what you should do.

Step 1: Decide On a Niche

What is your passion? To choose a niche that suits you, you will need to do all the hard work and research. It is advisable to go for what you are passionate about.

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Is it health and fitness? Is it cosmetic products? Nutrition perhaps?

Whichever your passion, check on data available to determine a niche that is profitable and attracts a wider audience.

You don’t want to end up with products that you are passionate about but do not appeal to the wider market.

Step 2: Identify and Contact Suppliers

Once you’ve decided on the niche to proceed with, it’s time to search for a drop shipper who can supply products for you.

Accumulate a list of potential suppliers and understand who they are, how they operate, and what they do.

This is where you will have to employ SEO tips to locate the suppliers you want. You will want to narrow down your search to save you time and effort.

Once you get their websites, check out their landing pages. Who are they? How can you contact them? Their “About Us” page should guide you on whether they are simple wholesalers or drop shippers.

From the wide range of supplier websites you go through, select one that meets your needs. Make sure they stock quality products that you are looking for at reasonable prices.

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Establish contact with them and express your interest if they are the best fit for you.

At this point, the supplier should advice you on the best way to proceed. Depending on their policy, you may open an account on the supplier website and give your company details. Take into consideration all the legal requirements for the venture such as resale license and Tax ID.

Step 3: Set Up an Online Store

The next step would be to open an ecommerce store that is easy to use and inexpensive for services provided. It is advisable to download Oberlo which is a platform for sourcing products which you can drop ship. It will help you run your drop shipping store with ease.

Step 4: Create Your Brand

You need to position yourself in the market. Your brand will differentiate and represent the brand of your company.

Think of Nivea for instance, do you get a feeling of cleanliness, good grooming and refreshing? It’s because their brand has positioned itself to give that feeling.

Your brand will make you different from the rest.

Step 5: Define What Products to Sell

Remember the niche we identified and defined earlier? Stick to it.

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Only sell products that relate to your selected niche. This will make your brand story more relevant and convincing.

To differentiate yourself from other brands do not try to sell every product you come across.

Make informed choices when defining products to sell. Follow your intuition, have a good strategy that will sell the product online and consider the pricing. There’s no magic formula in deciding the best mix of products to sell.

Of course you will not personally handle the inventory yourself but remember offering a wider variety of products will make it difficult to differentiate yourself from competition.

Step 6:Create Relevant Pages

Create enticing product copies to stand out and make sales. Your product pages should impress your prospective customers.

From the above steps, you should be able to setup your business in a few weeks. With every step, you can only go but up.

As you contemplate to set up your business, approach it with realistic expectations about the investment and your profitability. Realistic expectations and proper time investment will reduce likelihood of frustrations that can prompt you to quit. However to be successful you only need to get started.

How To Make Money From Drop Shipping Business
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About the Author: Santanu

Santanu is not a full-time blogger yet, but a blogger by heart. :) Loves to explore blogging tricks, affiliate marketing techniques, online income opportunities & the world of WordPress. I hope my honest attempt of sharing my blogging learning and income secrets will be helping newcomer bloggers to make their blog noticeable and money making.


  1. Hi Santanu,

    Nice Informative Post!

    Drop shipping is a retail method in which you don’t keep products in stock. Instead, you partner with a wholesale supplier that stocks its own inventory – you transfer customer orders and shipment details to them, and they ship the goods directly to the customer.

    Finding a good dropshipper is definitely the hardest part of operating. Before contacting suppliers, you’ll want to make sure your legal ducks are in a row.

    In the United States, most suppliers will ask for your business EIN number and a copy of your state sales tax and/or resale certificate. Once you’re properly established, you can start contacting drop shipping suppliers.

    I will tweet your post.

    Thanks a lot for sharing.

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