How To Start a Dropshipping Business in 2022 and Make Money

Dropshipping is an awesome business idea to start your entrepreneurial journey in 2022. Dropshipping is one of the simplest business to make money. A dropshipping business allows to sell products to cutomers, set your own price , market the product and no requirement to hold the product in an inventory.

Although its seems to be easy but due to very low entry barriers there are huge competition in some market places. Therefore before starting a dropshipping business choosing the right product and a right platform to sell and a right way to market the product.

If you are serious about starting a dropshipping business then this article can help you to know more about a dropshipping business and how to start one and get success by doing right things and avoiding the wrong things.

At first let us understand what is a dropshipping business and it works?

What Is Dropshipping?

Dropshipping business is an online retail business model which is quite different from traditional retail business where you are required to hold an inventory with you.

 As a dropshipper you need not to worry about keeping stock in your inventory, packaging and shipping your products all you need to do is take orders from customer and transfer the orders and shipment details to the manufacturer or wholesalers you are working with who will then ship the good directly to the cutomer.

How Dropshipping Business Works?


A Dropshipping business is an online retail business which requires 3 key elements to work- retailer(you), manufacturer and customer.

As an online retailer or dropshipper you will be responsible for choosing products, marketing them and finding a rightly calculated selling price for the products you are selling so than it can cover the shipping expenses and wholesale cost that you will be paying to your wholesaler or manufacturer and at last can make you a profit.

As the dropshipper or retailer you will have to choose an online platform through which you will be selling your goods, for example the online platforms can be created by-

Building an e-commerce website, or

You can open a marketplace on Facebook, instagram, Shopify or other social media platforms

Finding a good manufacturer or wholesaler is very important for  dropshipping business and make it a success. The manufacturer or the wholesaler will be holding the stock of goods with them i.e, the retailer(you) will not be keeping the goods in an inventory. The wholesaler will also be carrying out the shipping process.

The customer will be buying the products directly from the retailer(you) and the retailer or the dropshipper will have to answer all the queries and issues the customer will have regarding the product.

How to Start a Dropshipping Business in 2022

If you are willing to start a dropshipping business in 2020 then you must follow these steps-

Choose a niche for your business

Finding a focused business idea or niche is very important for a dropshipping business because it is the main ingredient of a successful business.

You will often find people talking about dropshipping say that choose a niche which you are passionate about and that’s all but you must know that it is not the truth there many other factors which are need to be considered before selecting the right niche for your business such as-

Find products which are In trend and actively searched by people, if the product you are selling is not in demand or demand for the product is pretty low and out of trend then your business will not sustain.

The ultimate goal of a business is to make money, therefore selecting a profitable niche is very important which can make you a good profit after covering all the marketing and shipping expenses.

Choose a product which is small and lightweight as the shipping cost will be less for light products. If the shipping cost of your product will be high, it will directly impact your product pricing which may lead to loss of customer interest.

Never select a product which is seasonal instead select something which will be in demand for the whole year.                                                                                                                                                            For example- if you choose to sell umbrellas it will only sell during rainy seasons or if you start selling summer accessories then you will be getting sales only during summer seasons but instead of these seasonal items you choose to sell products such as mobile covers, jewellery, home decoration items, etc. which are in demand all over the year it will much good for your dropshipping business.

Sell an item which is not easily available in offline or online market.

Competitor research

When you start a dropshipping business the second important thing after selecting a niche you should consider doing for your business is doing a research of your competitor, i.e what products they are selling and where they are selling them and also their marketing strategies.

After some research you will find that there some of the product which have very low or zero competition. It might seem right to start with these products but when you dig deep you will find out that the reason for the product to have very low competition in the market can be because of its high price and low demand by customers or high shipping cost of the product due to which people are avoiding to sell.

Often selecting a competitive product with high demand is good for a dropshipping business but your marketing strategy and selling platform should be the best.

Find a Supplier

It is very important to find and secure a good supplier for your dropshipping business as its one of the key elements of a dropshipping business. Having the wrong supplier can make your business a flop.

Therefore you should never rush while finding a supplier you should talk to the suppler and make sure that you will comfortable working with the particular supplier before partnering with them. Find a supplier who can increase their production capacity with increase in sales and growth of your dropshipping business.

Build an online dropshipping business store

After you select a product you want to sell, securing a supplier for you and when you are done with your competitor research now is the time to select a way or place you want to sell the product.

These are the ways you can start selling your products online-

Build your own e-commerce website

Sell on social media platforms like facebook and instagram

Applying good marketing strategies

Now when you are all set for your dropshipping business it is important to let the people know about your products. If you are not able to attract potential customers to your online dropshipping business store then you will not get the sales you want.

There are several ways to promote your dropshipping business and attract potential buyers to your business, some of them are paid such as starting a Facebook Ad campaign, Google ads, Social Media Influencer Marketing, etc and some of them are free but requires some effort and time. Some of the free ways of marketing your product are Content Marketing, Social Media Marketing, Email Marketing, etc.

These are some of the steps you should follow and knowledge you should have before starting a drop shipping business

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