What Is Dropshipping? How To Setup A Dropshipping Business


Among the best-efforts free idea to earn money is dropshipping. Learn what the features are that it provides to set up a dropshipping business. So, let us start to learn about this business model and incorporate it into our models. 

What is dropshipping? 

Dropshipping is a fulfilling trade method where the seller’s store does not have any product in stock.

Instead, the dropshipping business model is designed in such a way that whenever any store sells a product, it buys that item from a third party and ships them directly to the customer’s doorstep.

The good thing about the drop shipping business is that the seller does not have to worry about stocking, storing, packaging, or shipping the products through this business model. This advantage is the robust point of dropshipping business model.

How does the dropshipping business model work?

The drop shipping business model works upon three main masts:

  • The manufacturer of the product
  • The seller (one who want to start drop shipping) and
  • The consumer
  1. The producer of the product: In this business model, the manufacturer creates the products, carries the inventory, and ships them to the customers on your(seller) behalf. Also, the manufacturer is responsible for replacing the defective pieces and restocking. 
  2. The seller: The only thing that the retailer does is to sell the products on the website under his brand name. The seller is responsible for making the trade of the prices that will make a profit and is also liable to pay the shipping costs.
  3. The customers: The last block of the dropshipping business model is the entity that buys and uses the products directly from you. All the questions and queries of consumers and responded to by the retailer.
launch your product 4

Is starting a dropshipping business a good idea? 

The drop shipping business model is the least risk model. To set up a dropshipping business does not require any high investment. The only amount that the retailer has to pay is for the products you are selling to the customers.

There is no extra burden of high charges involved. For instance, upper charges like product creation, inventory carrying, price of unsold items, costs of packaging and shipping, and staff costs.  

Simple and with the slightest to no risk involved, set up a drop shipping business is the best startup idea for newcomers. Besides having a low risk, this business model requires low working efforts as well. The only thing that seller has to do is, process the orders, which itself is done automatically and only requires a click.


A successful dropshipping business does not need any high-tech high-end setup. The majority of online dropshipping businesses are operated from homes. And these do not involve having a business license.

To set up a dropshipping business for yourself you just need to follow these 6 easy steps:

Picking up an idea

Take an ample amount of time to do research and choose what you want to deal with. When it comes to choosing the area, two things matter. The first is your passion and the second and perhaps more important is the range of profit that it can give you. Besides, a profitable business will be your passion at the end of the day. There is a wide range of jewelry to clothing, from household items to accessories.

As a beginner, the pro-tip is to make a listing of the things which can be easy for you to work upon. Refine your niche and keep an eye on the rising and declining trends. Even if you are planning to take it for longer terms then think of a business that has a more profiting trend in nearby future.

find profitable product
Do the Competitors’ analysis

The market is open with a plethora of ideas that are dumped and reinvented every day. And you are not alone to work in the market. Explore what ideas are your competitors working on. Do a detailed analysis of the nature of the business. What are the things that make them outperform?

Look for a supplier

Find a good supplier for your online dropshipping business. As a newbie, make a draft of 5-6 suppliers. Choose between them by examining their reviews and ratings. This will help you to opt for the best one. After choosing the one for you, contact and ask all the necessary questions that need clarification before starting. In the start, as a trial, compare the shipping timings, quality of products and packaging, etc., don’t make a quick decision in choosing the supplier for your set up.

supplier database
Build up a store

To build up a website or a store for your business, some basic things matter a lot. The domain name, for example. There are many domain name generator tools that you can use to generate your domain name.

If you have a limited budget and a beginner, I would suggest hiring a professional web developer. When it is established in the later stages of the business, and some revenue is generated, learn how to customize the website.

Start promoting your business

With all the basic building blocks in hand, now you all need to do is marketing. Like every other business, promotion is a very crucial and equally critical part. Even if you are a beginner, don’t act like one. Do not give the impression that it is your first time. If you have put some effort into it and want things to work flawlessly, don’t be scared of putting yourself out there. There are many ideas on social media and many channels as well with which you can start to do marketing in no time.

Drop shipping solution
Keep room for Improvement

Giving yourself the ease of improvement is a profitable thing. Once you have come up to this point, you will well aware of what is required to build your business set up. After achieving the results, analyze and look into the ways to further optimize your shop. Make sure that your website does not be delayed by the best practices of a successful dropshipping business. 


Making up to this point, you already know that setup a drop shipping business isn’t a big deal. You are now able to build up your empire and rule. All you need is to take the first step.

Also Read: How To Sell on Amazon FBA

Best of luck!

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