How to Start a Dropshipping Company: A Complete Guide for 2021

It is not easy to learn how to start a dropshipping company, like with all ventures. It’s an excellent first step in the world of entrepreneurship. Customers can buy your products without having to keep any inventory. There is no need to purchase products upfront. If you are serious about your venture, you can create a long-lasting source of income.

Consider the following steps if you are interested in dropshipping.

Some are required from the beginning, others are optional, but it is worth taking the time to address them early. This will help you save time and headaches later.

What is the model of dropshipping?

Dropshipping allows store owners to sell directly to customers without having to stock any inventory. Dropshipping allows customers to purchase products from dropshipping stores and have them shipped directly by a third party supplier. You set the retail price and you pay the wholesale price. The rest is profit. You don’t have to manage products or invest in stock.

Register an account with your supplier to be able to sell the best Dropshipping Products.

dropshipping business model There are two ways you can find a supplier to your dropshipping shop:

  1. Through a supplier database such as DropshipDirectAlibaba or AliExpress.
  2. Use an integrated supplier directory in the backend of your store, such as Oberlo.

Oberlo is the best place to dropship Shopify store. Oberlo allows you to import millions of products directly from AliExpress.

Oberlo automatically fulfills orders when customers buy products in your store. You just need to double-check that your order details are correct before you click the Order button. The product will then be shipped from the AliExpress dropshipping supplier directly to the customer, regardless of where they may be located in the world.

Dropshipping is a business model where you create a website, your brand and market the products that you sell. Your business must also pay for shipping costs and establish prices that generate a high profit margin.

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1. Start a dropshipping company

Dropshipping is like any other business. It requires a lot of commitment and a long-term view. You won’t be able to make six-figures from six weeks of part time work. You’ll be less likely to quit if you approach your business with realistic expectations regarding the investment required and the potential profit.

Dropshipping is a business that requires you to invest heavily in either time or money.

Dropshipping is a time-consuming business.

Our recommendation is to invest sweat equity and bootstrap your business, especially for dropshipping entrepreneurs. This approach is preferred over investing large sums of money for many reasons.

  • This will allow you to understand how the business works inside and outside, which will help you manage others as your company grows.
  • You will be able to get to know your market and customers better, which will allow you make better decisions.
  • It’s less likely that you’ll spend large amounts on vanity projects that aren’t crucial to your success.
  • You will learn many new skills that will help you become a better entrepreneur.

Most people can’t quit their jobs to start an online business. Although dropshipping is more difficult than it sounds, it is possible to start dropshipping while still working a 9-to-5 job. As long as you have appropriate expectations about customer service and fulfillment times, you will be successful. As your business grows, you will be able to work full-time on it.

Every business and every entrepreneur is unique. However, it is possible to create a $1,000-$2,000 monthly stream of income by working only 10 to 15 hours per semaine to build your business.

You have the choice to work full-time on your business to increase your profits and your chances of dropshipping success. Especially in the beginning stages, it is important to focus all of your efforts on marketing because this is where momentum is most crucial. Our experience shows that it takes at least 12 months to build a dropshipping business. This is because of the importance of marketing.

This may seem like a lot for a small payoff. But keep these two things in your mind.

  • Maintaining your dropshipping business will take less time than a 40 hour-per-week job. Dropshipping is a great way to scale your business and save money.
  • You’re not just creating an income stream, but you’re also building an asset that you can sell down the future. When calculating your return, make sure to consider both the equity value and the cash flow.

Dropshipping: Invest money

Although it is possible to start and grow a dropshipping company by investing some money, we do not recommend it. Both the outsourcing and bootstrapping approaches have been tried by us, but we found that the best results were achieved when we were in the trenches.

It’s essential to have someone invested in the growth of your business from the beginning. If you don’t understand how your business operates at all levels, you will be vulnerable to expensive programmers, marketers, and developers who will quickly take any profits you generate. While you don’t have to do everything, we recommend that you be the main driving force of your venture from the beginning.

To get your business started and running, you will need to have a $1,000 cash cushion. This will be used to cover minor operating expenses such as web hosting or dropshipping providers, and for incorporation fees. We’ll talk more about this below.

2. Dropshipping is an option

Doing market research is the second step to learn how to start a dropshipping company. You should conduct market research just like you would when opening a store. Look into competitors, trends, locations and other factors. Then, decide on the most profitable niche. It can be difficult to come up with product concepts to sell.


Shopify has compiled a list of the most popular products to help you start your dropshipping business. You can attract shoppers’ attention by focusing on niche products and popular products. This will help you gain traction and not compete with established companies.

Niche products are often more popular than mainstream products. This can help you sell to specific customers and increase awareness. Dropshipping can be done with zero money by starting dropshipping in fitness, beauty, electronics, phone accessories, or yoga-related products.

Here are some examples of niche dropshipping stores:

  • Dog bow ties
  • iPhone cases to sell
  • Camping gear for campers
  • Fitness equipment

To test your dropshipping business idea, you can also use these tools:

Google Trends. Google Trends will help you identify if a product’s trend is upward or downward and the season they are most popular in. Google Trends does not show search volume. To determine the popularity of a product in search, you should cross-reference your data using a keyword tool such as Keywords Everywhere.

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Keywords Everywhere. This keyword research tool will show you the monthly search volume and competition for your product. This information can be used to determine the popularity of your dropshipping idea and inspire new product designs in the future.


Oberlo order volumes. To determine the potential of your business, you can use Oberlo to search for products based upon order volume.


Dropshipping businesses are benefiting from the increased popularity of ecommerce. However, there is also a lot more competition. To ensure your success selling your products, you will need to research your competitors when creating your dropshipping business plan.