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How To Create A Successful Dropshipping Business (2022)

Learning the basics of Dropshipping business is not simple. Regardless, it is an excellent introduction to entrepreneurial life. You can offer the products to the customer in no time. It does not require a full purchase. It is important to develop your new venture with good results for years. If you are considering launching your own dropshipping business, you should take these business and financial measures as explained below.

How does dropshipping business work?

Dropshipping business model allows you to run your store without having to keep any inventory. When you sell your items your suppliers ship your items straight to your customer’s home or office.

Creating a successful dropshipping business comes down to 5 steps

1. Finding the right niche for your online store

2. Choosing suppliers and sourcing products for your dropshipping business

3. Building and optimizing your store for conversions

4. Marketing and advertising your store

5. Scaling your business to six figures and beyond

1. Finding The Right Niche For Your Online Store

The first step to starting a dropshipping business is finding the right niche. When choosing a niche, it’s important to consider two factors: profitability and passion. There are many profitable niches out there, but it’s important to choose one that you’re passionate about as well. This will make it easier to stick with it when things get tough and keep you motivated throughout the journey.

How to find the right niche for your online store?

You’ll want to choose a niche that has enough demand for the products you’ll be selling and that isn’t too saturated with competition.

Some of the most popular and profitable niches include:

– Home And Garden

– Jewelry & Accessories

– Beauty & Health

– Consumer Electronics

– Women’s Clothing

– Pets

Source: Oberlo

2. Choosing suppliers and sourcing products for your dropshipping business

You need to take a few factors into account when choosing a supplier for your dropshipping business. The first is quality. You want to make sure you source products from reputable suppliers that offer good quality products. The second factor is price. You need to find a supplier that offers competitive prices so you can make a profit on each sale. The third factor is shipping times. You need to find a supplier that can ship orders quickly and reliably so your customers are happy with their purchases.

Different supplier options

Let’s go through some different options for choosing suppliers!


AliExpress is another great option for sourcing suppliers and products for your dropshipping business. The downside of AliExpress is the slow shipping times, AliExpress suppliers use slow shipping methods usually.

Private Dropshipping Suppliers

Private suppliers are the best option for dropshippers because they provide the fastest shipping times. Many times you can get better pricing from private suppliers too.

Once you have your dropshipping supplier and product selected, you are ready to start building your online store.

Step 3. Building your store and optimizing it for conversions

How do I exactly build my store? To get started, you have to select your platform first.

Choosing your e-commerce platform

Ecommerce platforms are software that enables you to create and run your online store.

Some of the most popular e-commerce platforms include Shopify, BigCommerce, WooCommerce, and Magento.

These platforms offer a wide range of features and plugins to help you run your store.

Let’s go through some features of different ecommerce platforms, so you have a better idea of what you should select!


It’s easy to use, has a lot of features, and integrates with different supplier apps so you can easily add products to your store. Personally, I have always selected Shopify for my dropshipping business and made all my sales with Shopify. Shopify is beginner friendly and they have great customer service.


BigCommerce offers similar features to Shopify. The main difference between the two platforms is that BigCommerce has no transaction fees, while Shopify does charge transaction fees on each sale.

WooCommerce & Magento

Another great option is WooCommerce, it powers millions of online stores. It is a plugin for WordPress, so if you are interested in creating your online store with WordPress, it is a great option.

Many people also use Magento to run their dropshipping stores. It offers a lot of features and flexibility. However, Magento can be difficult to use if you’re not a technical person.

After you have selected your e-commerce platform, you have to start working on getting domain for your online store.

Adding domain name and hosting

Your domain name is the URL people will use to visit your store (ex: amazon.com). It is important to have a clear domain name.

You can buy a domain name through Shopify or any other domain registrar such as GoDaddy, NameCheap, or Namesilo. Once you’ve bought your domain, you need to connect it to your Shopify store. This is called “pointing” your domain.

You can do this by changing the DNS (domain name server) settings at your registrar.

Optimizing your store for conversions

Your website is often the first interaction potential customers have with your business, so it’s important to make sure it’s up to par. Here are a few things to keep in mind:

-Your website should be easy to navigate and user-friendly.

-Make sure your products are well-described and that there are plenty of high-quality photos.

-Include customer testimonials or reviews on your product pages.

-Ensure that your checkout process is smooth and hassle-free.

Creating a great user experience on your website is essential for converting visitors into customers. Take the time to improve your site and make it as user-friendly as possible – it’ll be worth it.


Good copywriting skill is a must to have tool in dropshipping industry. Why? Because the success of your dropshipping business depends on your ability to sell products online. And in order to do that, you need to be able to write good sales text.

There are a few things you should keep in mind when copywriting for your dropshipping business. First, remember that people buy products for two reasons: to solve a problem or to fulfill a need. People buy emotions, not products. Read that at least two times. So, your sales text should focus on how you can fill pain points in customer’s life.

Keep your sales text short and to the point. No one wants to read a long, drawn-out sales pitch. Be clear and concise in your writing, and get straight to the point.

Always test different versions of your sales text to see what works best. Try different headlines, different descriptions, and even different calls to action. The only way to know what works best is.

A logo is going to be the face of your brand. It’s what people are going to see every time they visit your website or social media page. And it’s what’s going to help them remember who you are.

Before you start designing your logo, you need to have a clear understanding of who your target audience is. This will help you design a logo that resonates with them and speaks to their needs.

A good logo is usually simple, yet powerful and it should speak something about your brand.


See? All of these big brand logos are simple yet powerful, they tell something about the brand.

You need to have compelling product images and descriptions.

Your product images should be high quality and show the product in use if possible. In addition, your image should be accompanied by an enticing description that tells the customer what the product is and why they need it.

Difference between bad and good product image:


Source: Squareshot

Have a strong value proposition

Your value proposition is what makes your store unique and why customers should buy from you instead of your competitors.

Some examples of strong value propositions could be

Free shipping

A great return policy

Unique products that can’t be found anywhere else.

Have clear and concise calls to action (CTAs) throughout your store.

Your CTAs should tell customers what you want them to do next and make it

You need to ensure that your store is easy to navigate.

By following these simple tips, you can be sure that your store is optimized for conversions and ready to make sales!

4. Marketing and advertising your store

There are a variety of ways to get the word out there, and it’s important to find the method (or methods) that work best for you and your business.

Here are a few ideas to get you started:

Social media

Platforms like Facebook, Instagram, and Twitter are great (and free!) ways to reach potential customers. Make sure you’re active on the platform(s) of your choice and that you’re regularly posting interesting, engaging content.

Email marketing

Email marketing is one of the most powerful tools out there. You can get up to 30% of your sales from email marketing. It is the highest return on investment marketing tool out there. If you are not doing email marketing, you are missing out a lot.

Building an email list is a great way to stay in touch with your customers and let them know about new products, sales, etc. There are a number of email marketing platforms out there (MailChimp, Constant Contact, etc.), so find one that works for you and get started.

Source: OutboundEngine

If you have a little bit of money to spend, paid advertising can be a great way to reach new customers for your dropshipping business. Google AdWords and Facebook Ads are two popular options, but there are many others out there as well.

When it comes to marketing and advertising your online store. The important thing is to experiment and find what works best for you and your business. Good luck!

Some of the different social media platforms you can run social media ads on are: Facebook, Google, Instagram, Snapchat, Twitter, Linkedin, and Youtube.

You can also contact influencers on different social media platforms and do a collaboration with them.

Differentiating your brand

In order for your dropshipping business to be successful, you need to differentiate your brand from the competition.

There are a number of ways to do this, but it’s important to find what makes your business unique and capitalize on that.

Some things to consider:

What are your unique selling points?

What makes your products better than the competition?

What is your target market?

Who are you selling to?

Answering these questions will help you start to develop a brand identity for your ecommerce store, which is essential for differentiating yourself in the ecommerce business.

5. Scaling your dropshipping business

Scaling your business is all about growth – increasing your sales, profit margins, and customer base.

There are a number of ways to scale your business, but the most important thing is to focus on what will have the biggest impact on your bottom line.

Some things to consider when scaling your business:

  • Improving your product offering
  • Expanding into new markets
  • Increasing your marketing efforts
  • Improving your website and store design
  • Implementing new technology and automation

Each of these areas has the potential to significantly increase sales and profit margins, so it’s important to experiment and find what works best for your business.

6. Set Up Your Business & Finances

Now that you have a general idea of what dropshipping is and how it works, it’s time to start setting up your business. This includes everything from creating a legal business entity to getting set up with the right financial accounts.

Creating a Legal Business Entity

Like starting any business, starting a dropshipping business requires you to have some sort of business structure.

If you’re going to be running a dropshipping business, you need to do so as a legitimate legal business entity. This will protect you from any personal liability if something goes wrong with your business.

The most common legal structures for businesses are sole proprietorships, limited liability companies (LLCs), and corporations.

To create a sole proprietorship, all you need to do is file an assumed name certificate or “doing business as” (DBA) certificate with your local county clerk. This is typically a very simple and straightforward process.

If you want to create an LLC, you’ll need to file Articles of Organization with your state’s secretary of state office. The LLC formation process can vary slightly from state to state, so be sure to check the requirements in your jurisdiction.

Finally, if you want to form a corporation, you’ll need to file Articles of Incorporation with your state’s secretary of state office. Again, the incorporation process can vary slightly from state to state, so be sure to research the requirements in your jurisdiction.

Get basic financial accounts for your business

Once you have your legal business entity set up, you’ll need to get some basic financial accounts set up for your business. This includes a business checking account, a PayPal account, and a Stripe account.

Personal and business finances separated

Having personal and business finances separated will save you a lot of time and hassle. A business checking account will help you keep track of your business expenses and income.

It’s also a good idea to get a separate credit card for your business so you can keep track of your business expenses.

PayPal is one of the most popular payment processors in the world and it’s a good idea to have a PayPal account set up for your dropshipping business. Not only will this make it easier for customers to pay you, but you can also use PayPal to pay your suppliers.

Stripe is another popular payment processor that you can use for your dropshipping business.

Can dropshipping business be profitable?

Short answer: Yes, it can be profitable.

Dropshipping model is a great way to make good money when done right. However, it is not as easy as some people make it sound. It might take you years to build a profitable dropshipping business.

If you have the discipline to fail and learn, the reward can be big.

Advantages of dropshipping business model

Dropshipping business has many benefits. Here I have listed a few of the biggest advantages, little to no investment and it is easy to start.

1. Little to no investment

Starting a dropshipping store requires very minimal investment.

You should get started with 1000 USD. Most likely your first product is not profitable, so this gives you margins to test multiple ones.

2. It’s easy to start

You can start with dropshipping quite easily. You don’t have to quit your job. You can create your dropshipping business on the side.

Most of the successful dropshipping companies have started it as a side hustle and only later when they have made a lot of money, they have quit their job.

Disadvantages of starting a dropshipping online business

I think dropshipping can provide a lot of benefits, but let’s examine its disadvantages too.

While having your own online store and making passive income with it might seem like a dream situation, it’s not as easy to create as it might sound.

1. Competition

Dropshipping has exploded in its popularity since 2015, more and more people are getting on it and there is more competition than ever.

It doesn’t mean it’s not possible to make it profitable, but you have to differentiate yourself from the competition more than ever.

This might mean taking your own product photos and videos, having better ads, optimizing your website better than competitors, and every other factor that affects your sales.

Bottom Line

The global dropshipping market is poised to grow to more than $557 billion by 2025. Dropshipping ecommerce businesses are not slowing down. If this is a business model you’ve been considering, now may be the exact right time to start.

I hope this article provided you with value, it took a lot of time to make and I would appreciate your feedback on it! My name is Elmeri Palokangas and I write on my website aimailwriter.com.

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