How to Start a Dropshipping Business in 2024 - Full Guide

Updated by March 18,2024

When you start any business, the amount of time and money always seems inadequate. New businesses grow slowly, and with insufficient funds to pay the employees, there's always a shortage of time to achieve all goals. Dropshipping is an excellent solution for first-time entrepreneurs or anyone wishing to set up an eCommerce store. Dropshipping requires no warehouse, shipping tasks, and several other processes that can make running a business pretty hectic.

However, entrepreneurs and business owners are still confused and can't get a proper answer to this question - "how to start a dropshipping business?" In this comprehensive guide, we'll discuss what dropshipping is, what are the basics of a dropshipping model, and what are the essential steps to start a dropshipping business in 2023, keep reading.

What Is Dropshipping

Dropshipping is a supply chain model where the store doesn't keep the products that are to be sold. Instead, when someone buys a product, the store owner immediately orders that product from a wholesaler and has it shipped directly to the customer. This business model is open to anyone and doesn't require any upfront investments. Dropshipping is an exciting business model that almost anyone can start with little to no money. It is also a profitable business model that is being used by thousands of entrepreneurs.

Moreover, you can also consider dropshipping as a supply chain model where the store doesn't keep the products that are to be sold. Instead, when someone buys a product, the store owner immediately orders that product from a wholesaler and has it shipped directly to the customer. Again, this business model is open to anyone and doesn't require any upfront investments, so let's take a look at its basics.

Basics of a Dropshipping Business Model

To understand the basics of a dropshipping model, you need to go through its components, which are listed below:

1. The Retailer

Retailers sell products on their eCommerce store that are manufactured by someone else. They decide the products, are responsible for the marketing of every single item and have to decide the shipping cost.  

2. The Manufacturer

The manufacturer is responsible for creating and supplying the products that are sold by the retailer in a dropshipping arrangement. The manufacturer may be a factory, wholesaler, or another type of supplier. The retailer typically works with multiple manufacturers to source the products they sell.

Dropshipping allows retailers to offer their customers a wider variety of products without having to carry inventory. So, when a customer orders a product from the retailer, the retailer contacts the manufacturer, who then ships the product directly to the customer.

3. The Customers

You must be familiar with the term already; customers are the people that buy the product from your store. They pay as per the retail price and help your store to grow. Being a retailer, you must solve any queries or questions your customers have, which maintains your store's reliability.

According to experts, dropshipping involves low risks and you might be able to earn a profit if the suppliers are right.

Some Stats Related to Dropshipping

As per the latest data, the global dropshipping market size was valued at USD 196.78 billion in 2022. However, with the pace at which its demand is increasing, you can expect the market value to cross the USD 200 billion mark in 2023.

If you believe in predictions, the estimated size has been calculated to be USD 301.11 billion in 2024. The only reason behind the growth is the preference for online shopping.

Therefore, the demand for dropshipping services has positively impacted the eCommerce industry and has proven to be an effective tool for new business owners or entrepreneurs.

Risks and Drawbacks of Dropshipping

Dropshipping has a few drawbacks that should be considered before starting a business using this model. First, dropshipping businesses are heavily reliant on their suppliers. An unreliable supplier can cause significant problems for a dropshipping business, including late or missing shipments, incorrect product descriptions, and poor customer service.

Another downside of dropshipping is that it can take time to build a brand. Since dropshippers do not control their inventory, they often need more control over the quality of the products they sell. Creating a strong brand identity around a product can make it easier.

Finally, dropshipping businesses often have thin margins. Because they are buying products at wholesale prices and then selling them at retail prices, there is not a lot of room for error when it comes to pricing. If dropshipper raise their prices too high, they will likely lose customers to their competitors.

How to Start a Dropshipping Business with DSers

Dropshipping is one of the popular business models for ecommerce entrepreneurs. However, many drop shipping business owners fail to succeed because they need to put suitable structures in place. So, when it comes to how to start a dropshipping business, you need to create a systematic approach to both the marketing and operation of a dropshipping business if you want to succeed.

One of the best ways to start a dropshipping business is by using dropshipping tools. And one of the best dropshipping tools is DSers; if you want to start your business with its help, you must consider the following steps:

1. Find the Right Dropshipping Niche

The first step is finding a lucrative dropshipping niche. As you already know - your e-store is dependent on the products you sell. So, you need to choose the potential target market. Finding the right niche is essential to starting a successful Dropshipping business. There are a few things to consider when choosing a niche, such as things you're passionate about, what knowledge you have, and what's in demand.

Once you have considered these factors, you can narrow down your options and select a niche that you think will be successful. Once you have selected a niche, you need to validate it by researching the competition and demand. Once you have done this, you can create a Dropshipping business plan and start to build your business with the DSers.

2. Get the Products

When you decide to dropship with DSers, you must work with AliExpress sellers, as it offers a range of products to choose from. So, you must begin by checking the popularity of the product, and you can do that by checking the number of products sold and reading the reviews. Apart from that, you need to figure out the reliability of the seller, the product's profitability, and the return policy.

In addition, you must know that not all products are profitable. When choosing the products, you must avoid copyrighted products, technically complex products, and heavy-weight products. DSers is full of features through which you can sort and bundle products easily to grab buyers' attention.

3. Find the Suppliers

If you are dropshipping products, you need to look after the sourcing of products. This is because it is a crucial part of the business. It is necessary that you get high-quality products that are offered at the best prices.

You need to find the best suppliers to get the best prices, but it's not that easy. The first challenge in finding the best suppliers is to discover which suppliers provide the best products and the lowest prices.

You can start by looking around your local area to see which local suppliers produce the products you want to sell. You'll learn the prices they offer and which products are worth offering on your site. However, if you're using DSers, you can rely on its Supplier Optimizer feature to find the best suppliers.

4. Design Your Store/Website

After selecting the products you'd like to sell on your dropshipping store, you must add them to your website. But first, you must take some time to think about its design. You can find several website designing tools like Shopify to create a user-friendly website, and if you're using DSers, you can integrate with Shopify to improve the experience.

Just pick a name, logo, and template to get started with your website. DSers' Dropshipping tool is integrated with Shopify to help you manage and track your orders, from placing bulk orders to checking the status of shipped orders. The DSers tool makes it easy to see your entire supply chain at a glance, so you can quickly and easily make changes as needed.

5. Managing the Supply Chain

Many store owners find supply chain management pretty challenging, but DSers makes it hassle-free. Tracking the shipment is easy, and you find everything in a well-structured manner. With the help of the seller optimizer engine of DSers, you can easily figure out which sellers would be profitable for you and which ones won't be. In addition, there are more options and features that you can enjoy to make dropshipping more profitable and hassle-free for you.

Conclusion

There can be a plethora of benefits to using a dropshipping tool for your online store. From streamlining the supply chain to finding the apt suppliers, DSers can do it all for you. DSers is the best answer to your question - "how to start a dropshipping business."

This dropshipping tool is full of features and also allows you to integrate your store with Shopify, WooCommerce, and Wix to make the experience much better. However, if you'd like to know more about DSers and its features, you can visit the website https://www.dsers.com.