Dropshipping: A Low-Risk Way to Start an Online Business


Dropshipping has become an increasingly popular business model in recent years. It’s a type of retail fulfillment method where a store doesn’t keep the products it sells in stock. Instead, when a store sells a product, it purchases the item from a third-party supplier and has it shipped directly to the customer. The seller never sees or handles the product.

The appeal of dropshipping lies in its low startup costs and flexibility. It allows entrepreneurs to start an online business without the need for a large inventory or a physical storefront. They can sell a wide range of products without the financial risk associated with buying and storing inventory.

Here are the key elements of dropshipping:

1. Choose a niche and find suppliers

The first step to starting a successful dropshipping business is to choose a niche. This involves identifying a specific market that you want to target. Some popular niches include fashion, health and wellness, beauty, and home goods.

Once you’ve chosen a niche, the next step is to find suppliers. You can find suppliers on platforms such as AliExpress, Alibaba, and Oberlo. These platforms allow you to search for products and connect with suppliers who can fulfill orders on your behalf.

2. Set up an online store

After finding a niche and suppliers, the next step is to set up an online store. You can do this by using platforms such as Shopify or WooCommerce. These platforms make it easy to create an online store and manage your inventory and orders.

When setting up your online store, make sure to choose a design that reflects your brand and appeals to your target audience. You’ll also need to set up payment and shipping methods.

3. List products and start marketing

Once your online store is set up, it’s time to start listing products and marketing your business. You can import products from your suppliers and add them to your store. Make sure to write product descriptions that are informative and engaging.

Marketing your business involves using a variety of channels such as social media, email marketing, and paid advertising. You can use social media platforms such as Facebook and Instagram to reach your target audience and promote your products.

4. Fulfill orders

When a customer places an order on your online store, the order is automatically sent to your supplier who will fulfill the order and ship it directly to the customer. You don’t have to worry about storing or shipping the products yourself.

5. Manage customer service

While the supplier handles the fulfillment of orders, you’re still responsible for customer service. This involves responding to customer inquiries, handling returns and refunds, and resolving any issues that arise.

Some Common Questions:

How profitable is dropshipping?

Dropshippers usually keep their profit margin at 10%-20%. However, initially, this can be even lower than 10%. The biggest financial challenge dropshippers face is the marketing cost. If you already know how the basics of marketing work, you can increase your profit margin earlier.

Is drop shipping illegal on Amazon?

Yes, dropshipping is permitted in the Amazon store if you follow relevant guidelines including our dropshipping policy. For example, you must be the seller of record and include your information and branding on packaging and shipping materials, instead of Amazon’s or the dropshipping supplier’s.


Dropshipping can be a great way to start an online business without the financial risk associated with buying and storing inventory. By choosing a niche, finding suppliers, setting up an online store, and marketing your business, you can build a successful dropshipping business. However, it’s important to remember that dropshipping requires hard work and dedication to succeed.