Drop Shipping for Beginners

Dropshipping is a lucrative eCommerce business. Perhaps that’s the reason why you’re reading this. If that’s the case, then by now, you must already be thinking of whether to jump into drop shipping or not.

In this blog, I’ll help you decide why drop shipping is the wise choice in starting your eCommerce business. I’ll be giving you a solid background on the nature of a dropshipping business and how it differs from the other types of eCommerce businesses. I’ll also be discussing the benefits and the process that come along with owning a dropshipping business.

So, let’s get onto it!

Understanding the Drop Shipping Business Model

The typical retail perspective that we have of an eCommerce store is that the store owner is the one who produces or wholesales the products. Meaning – the stocks are in the store’s warehouse, as in most cases, ready to be shipped to the customers.

Well, that is not the case in dropshipping.

Dropshipping is a form of eCommerce business model that allows you to sell products online even without keeping stock of the actual items. The way it works is whenever an order is placed on your website, all you need to do is forward it to your supplier, and your supplier will take care of the fulfillment – from making sure that the item is allocated and is shipping and delivered straight to your customers.

Essentially, you only work as the front-end as the store owner while a third-party completes the order. A more straightforward way to look at it is that you function as a middle man between the customers and the manufacturers.

Why Go For Drop Shipping?

There are so many benefits that come with dropshipping, including the following:

No Expensive Capital Requirement

Since starting an eCommerce business alone is already cheap and practical, how much more with dropshipping when there’s no need for you to handle actual products? Dropshipping eliminates the cost of building a warehouse, investing in branding/printing supplies, purchasing packaging essentials, and other logistic costs that govern product handling. Imagine starting a business with a million-dollar potential with minimal capital as an investment. Sounds like a win-win to me.

No Need to Develop Your Product

Dropshipping allows you to leverage manufacturing companies with existing products, ready-made and available for delivery. Since you only work as the middleman, you get spared from going through product development phases. Plus, you also get some sense of security since the product is already established and deemed marketable.

No High Operating Expenses

As earlier mentioned, there’s no need to build your warehouse or factory or any establishment to hold the items you will be selling. Instead, you only need to build a website to cater to your customers. In this business, you also don’t need to have a massive staff count since you won’t be handling the logistics. You can even get started without any staff and scale your business as your profitability grows.

You Get Full Independence

The thing with Dropshipping is that it allows you to work from anywhere in the world. Of course, the reason is that you are not managing any warehouse or stock facility where all your products are kept. You get to work remotely 100% and still be able to run a business.

So, if these critical benefits sound interesting to you, then let me tell you the ways on how you can start in dropshipping.

How to Start your Drop Shipping Business

  • Select a Good Niche – The first thing you need to do is research the particular niche you want to get into. This will define your dropshipping business path, so it’s essential that you make a sound and informed decision. 
  • Check the Competition – Once you’ve already shortlisted the niches you want to explore, the next thing is scouting the market for your chosen niche’s key players. You might want to avoid the niches dominated by a big brand since penetrating such a market can be extremely difficult for a startup. The key here is to find a gap in the market and offer something to fix the gap; thus, you can be sure that you will be serving new customers.
  • Business Registration – At this point, you should be taking steps to formalize and legalize your business. If you need professional help to do this, I suggest that you use the best business formation services who can help make your life easier.
  • Find a Supplier – Since the lifeline of drop shipping relies on your suppliers, you must spend a considerable time securing only reliable suppliers. You don’t want to engage with a company just because they sent a response first. There must be a holistic view in deciding which supplier you should go for. 
  • Solidify your Brand’s Standard of Procedure – This is one of the most essential parts that tend to get overlooked. In eCommerce, you need to establish a set of protocols that your business shall adopt. Many businesses fail to do this, causing misunderstanding with customers regarding refunds and returns, resulting in complaints. With a standard set of protocols that your customers can readily examine, you will be saving yourself from future headaches.
  • Establish your Marketing Elements – Once your business has been legalized, the next step is adding some personality to your brand. This includes designing the logo, color schemes, and aesthetics you want your brand to be known for.
  • Set up your Webstore – Now, let’s go to the more exciting part of your eCommerce journey, the actual designing of your online store. However, you have to make it easy and straightforward as much as possible so your customers can quickly check out and complete a purchase. The good news is that there are tons of platforms that you can use to build your dropshipping stores quickly – you need to be careful in matching your goals with the right platform that can make your life easier. Based on my experience, Shopify is by far the best platform for drop shipping business.
  • Design a Marketing Strategy – Upon setting up your store, the next thing is planning out how to get it out of the market and start attracting potential customers. Take note that since you don’t need to worry about merchandising, inventory, and logistics, most of your efforts must be directed towards running an effective marketing campaign since you need to sell as many as possible. This is the part wherein you must be aggressive to generate sales.
  • Create Social Media Profiles – Once you’ve planned out your marketing strategy, the next thing is to establish your social media profiles. Of course, you don’t need an account on all social media platforms but only on those platforms which resonate with your brand. For instance, if your niche is baking supplies, make sure that you have a YouTube account to share recipes. This is also the part wherein you release advertisements on each platform to make your brand known to your target customers.
  • Check for Gaps – Once you’re done with everything, make a quick round-up, and check if you missed any gaps. If so, settle it first before launching your dropshipping store.
  • Launch your Store – If everything’s sealed airtight, then you can launch your web store.

The Better version of Dropshipping: High-ticket Dropshipping

Now, if you’re hesitant about diving into the dropshipping business because its limited profitability is holding you back, then worry not – go into the high-ticket drop shipping business.

The standard drop shipping business is about selling cheap or low-cost items. Thus, it’s only valid to doubt its profitability. The traditional drop shippers look at the volume of purchases and capitalize on selling cheap products for volume sales.

However, if you’re not into such a processor model, you should certainly get into high-ticket dropshipping.

What is High-Ticket Dropshipping?

High-ticket drop shipping is dropshipping expensive items. That’s the simplest way to look at it. In this drop shipping model, you don’t get as much volume as traditional drop shipping, but your profits/margin for every sale is way higher than that of traditional drop shipping. Hence, a faster rate of return.

High-ticket drop shipping is where items are priced on average at $1,000. So, for instance, you’re selling a watch for $1,000, if you get a 30% margin with your supplier, then you instantly get $300 from one purchase. This is in contrast to selling an iPhone case at $10 with a $3 profit. This kind of drop shipping model sells not as many but comes with greater profits. Thus, making it a better choice in the dropshipping business model. Check out this article if you want to learn more about high-ticket drop shipping.


There’s no doubt that dropshipping is one of the best eCommerce business models today. With its low investment requirement, low operating costs, you’ll undoubtedly be able to build your own business in no time. Plus, it’s just as scalable as any eCommerce business, so there’s no need to worry about growing your store. 

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