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Reading time: 14 minutes

Published: April 24 2025

Kinga Edwards

24 April 2025

How to Start a Dropshipping Business in 2025

You might have seen those YouTube or TikTok videos where someone is claiming they made $10,000 or more overnight with just dropshipping.

Sounds amazing, right? And honestly, it can happen!

Dropshipping is a solid way to launch an online business without spending thousands on inventory or a warehouse. You don’t have to pack boxes or deal with shipping, your supplier takes care of that.

It’s simple, low-risk, and a great venture to dip your toes into e-commerce without draining your savings.

Wondering how to start a dropshipping business?

Don’t worry! This guide will walk you through it all with clear, practical steps to help you get started the right way.

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8 Easy Steps to Start a Dropshipping Business

Forget the idea that you need tons of experience to get started. Dropshipping is simple when you follow the right steps—and that’s what this guide is here for.

Step 1: Conduct thorough market research

First of all, you need to spend time understanding what people actually want to buy, so you don’t waste time selling stuff no one wants. A winning product can make or break your store.

Here’s what to do:

Visit Amazon, Etsy, AliExpress, and look at the best-selling items.
Search on Google Trends to see what’s growing in popularity.
Scroll through TikTok and see what people are showing off or talking about.
Look at other online stores—what are they selling?
Avoid choosing random products. Look for items that solve a small problem, have a “wow” factor, or target a passionate audience.

Make notes on popular price ranges, types of customers, and what other sellers are doing right (or wrong). Your research will shape your entire planning process.

Step 2: Choose your specific niche

Once you understand the market, pick a niche—a focused category of products. This makes it way easier to stand out and target a specific audience, instead of trying to sell everything to everyone.

Go with something you’re genuinely interested in, that has a clear target audience, and isn't already packed with too much competition.

Here are some solid niche ideas:

Kitchen gear for home cooks
Smart pet gadgets
Low-key home fitness tools
Phone add-ons
Car cleaning kits

A clear, specified niche makes it easier for you to create targeted marketing, build a loyal brand, and win trust. Make sure your niche allows for repeat purchases or product upsells.

Step 3: Create a clear dropshipping business plan

Even though dropshipping is low-cost to start, treat it like a real business, not just a side hustle. So, you’ll need a basic business plan to stay on track. This will give you a roadmap to follow and keep your ideas organized.

Here’s what your dropshipping business plan should include:

Business name, structure, and branding style
Product types and pricing strategy
Target customer—who you’re selling to (age, interests, habits)
Compelling value proposition
Startup budget, including website setup, ads, product samples, etc.
Sales goals (monthly revenue/profit targets)
Marketing strategy, TikTok? Instagram? Paid ads?
Financial projections, such as revenue, operating costs, profits, etc.

You don’t need a 30-page-long document. Just keep it short, simple, and focused. You can use a free template or an AI business plan maker to write your plan quickly.

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WebWave AI Writer

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WebWave AI Writer

Generate your website copy with just one click.

Try for free ->

Step 4: Get a business licence, permit, and insurance

Even if you’re running things online, there are still legal steps to handle. A dropshipping venture has fewer legal needs than other businesses.

To stay compliant, you have to take care of:

Register your business (LLC or sole proprietor)
Get an EIN from the IRS, needed for taxes and payment systems like Stripe.
Apply for a seller’s permit or tax ID (depending on your country/state)
Understand sales tax rules for online sales
Consider basic business insurance to cover liability or legal issues

Legal setup boosts your credibility and helps with supplier relationships. Also, this will protect you from avoidable risks.

Step 5: Establish relationships with suppliers

Your dropshipping supplier is more than just a vendor. They’re your business partners who handle everything from product storage to packing and shipping. And their performance directly affects your customer’s experience.

That’s why it’s important to partner with suppliers who are consistent, responsive, and easy to work with.

You can use platforms like AliExpress (with DSers), Spocket, Zendrop, and CJdropshipping for solid track records. Also, consider SaleHoo, Printify, and Alibaba for more control or print-on-demand flexibility.

Before committing to any supplier, always order samples. This helps you evaluate product quality, packaging, and delivery speed firsthand.

Ask about key policies—returns, refunds, tracking, and customer support response times. And don’t rely on just one supplier; having a backup helps you avoid disruptions if problems arise.

Strong supplier relationships help ensure smooth operations, fewer customer complaints, and long-term growth.

Step 6: Set up your online store and shipping policies

Now, it’s time to go live and establish your e-commerce website where people can browse and actually buy your products.

Choose an e-commerce platform that’s beginner-friendly and has app support, such as WebWave. It helps you build a professional-looking store with its drag-and-drop editor and lots of design freedom. No coding needed.

When setting up your store, start with a name and logo that fit your brand and are easy for people to remember. Choose a clean, mobile-friendly design—most shoppers browse on their phones, so your site needs to work well on small screens.

Write your own product descriptions instead of copying them from suppliers, and use clear, high-quality photos.

Also, show prices upfront and include the essentials: shipping details, return policy, and a contact or chat option in case customers have questions.

Make sure you set up shipping zones, rates, and estimated delivery times so buyers know what to expect. Be honest about how long delivery takes and how returns or refunds work.

If needed, add an FAQ page to cover common queries. These small things help build trust and make your store easier for people to shop from.

Step 7: Implement marketing strategies

After your store is live, now focus on getting people to see it. Marketing is how you attract your target audience and turn them into paying customers.

The following are a few free as well as paid marketing ideas or promotional tactics that you may consider:

Social media marketing (TikTok, Instagram Reels, or short videos) to show how the product works
Facebook/Instagram Ads to start small, like $5–$10 per day
Work with influencers to reach out to small creators in your niche
Email popups to collect emails and send offers later
SEO blog posts to write helpful content about your products

You don’t need to do it all. Focus on 1–2 platforms in the beginning. Test them and scale what works, so you don’t get overwhelmed.

Tip: Using product videos, before-and-after photos, or real customer testimonials can help you get more clicks. Also, install Facebook Pixel or Google Analytics to track traffic and sales.

Step 8: Manage business operations

Once you start getting orders, your focus shifts to daily operations.

So, this step is about keeping things organized behind the scenes, from order handling to customer service and managing your cash flow.

You’ll require an efficient system to process orders, send details to your supplier, and track shipments so you can update your customers. Tools like Shopify, DSers, AutoDS, or Oberlo can automate order forwarding and save you hours of manual work.

Also, connect with your supplier often; you want to know right away if there are delays, stock issues, or changes in pricing.

On the other side, you have to be ready to reply to customer emails, handle refund requests, and deal with complaints fairly. Good communication can save a sale and keep people from leaving bad reviews.

Furthermore, keep track of each sale, what you pay your supplier, your ad spend, and profits. Keeping your finances in order is just as important as making sales. Know where your money is going and what you’re earning.

For that, you can use Google Sheets, Wave, or QuickBooks to stay on top of everything. Review your income and expenses weekly, so you’re not guessing whether you’re making money.

Conclusion

Wrapping up! Dropshipping can be a great place to start if you’ve ever wanted to start a business without spending a fortune up front. No inventory, no packing, no shipping headaches.

But like any real business, it still takes planning, consistency, and effort.

The good part? You don’t need to be a tech expert or require any special skills to get started.

Just follow the steps mentioned above—Pick a solid niche, work with a good supplier, get your store up, and keep things steady. That’s really it.

So, why wait? You've got everything you need to start. Take the first step now!

FAQs

What is dropshipping?

Dropshipping is a simple retail business model to sell products online. You don’t have to pack or ship anything. You list the product, a customer places an order, and your supplier ships it directly to them. You’re basically the middle person—set the prices and keep the profit, simple as that.

Is dropshipping a profitable business?

Yes, definitely. Most people try to make a 10% to 40% profit per sale. But it really depends on your product costs, shipping fees, and marketing spend.

How much does it cost to start dropshipping?

You don’t need a lot of money to get started. A few hundred dollars, approximately $100 to $300, is usually enough to get your domain name, build a website, and run a few promotional ads.

Can I run my dropshipping store from a phone?

Absolutely. Once your store’s live, you can manage most of the day-to-day operations from your phone—checking orders, replying to customers, even running ads on the go.

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