Dropshipping for Beginners: Everything you Need to Know

If you have ever searched for online business models, you must have come across the term ‘Dropshipping.’ You must have also read about several online entrepreneurs earning a six-figure income per month using this model. If you want to join in on the fun, here is a brief introduction to dropshipping for beginners.

In this ecommerce business model, an online retailer sells products without maintaining an inventory. The supplier ships the product directly to the buyer when he receives an order.

In simple steps:

  • The online seller has an online store (website).
  • A customer purchases in the store.
  • The online store directly forwards the order to the product supplier.
  • The supplier ships the product to the customer. 

How to start

Starting a dropshipping business is easy, even for newcomers.

#1 Register your business: Firstly, you will have to decide how you want to register your business. Do you want a sole proprietor business, a partnership, or a company? Each has its ups and downs. You should also look into the laws of the country you live in as well as the tax systems. 

#2 Setup a web store: Next, you need to choose a platform on which you want to build your store. Some of the most popular platforms are Shopify and Squarespace. 

#3 Add products: Once you are done setting up the store, it’s time to add products to your store. The right choice of products can work wonders for you. 

Many suppliers provide a wide range of products for dropshipping businesses. Most of them will also take care of the shipping for you.

Spocket.co is an application that connects sellers with suppliers. It has a great selection of high-quality products at incredible prices. The app lets sellers choose products that they would like to sell in their stores. The app is also very easy to integrate with online stores in Shopify and WooCOmmerce.

Most of the products listed here are from suppliers in the EU and the US, but you may also find some suppliers from Australia and New Zealand. Sellers can thus choose suppliers based on their locations to speed up the delivery process. Sellers also have the option to search for products based on category, price, and even by keywords.

Sprocket also sends product samples to the sellers who are interested in quality control before putting a product on their store. This facility goes a long way to establish your store’s goodwill and increase customer retention and revisits.

For beginners in dropshipping, the app offers a 14 day trial period that lets them start using the services without any upfront payment.  In their starter plan, sellers can put up to 25 products from Spocket in their store. Moreover, there is no limit to the number of times a product can be ordered.

Sprocket also updates the inventory of the products in real-time. This feature helps prevent selling out of stock products that could cause massive confusion and payment issues.

Furthermore, in the Pro plan, Spocket provides branded invoicing for its products. This cool feature allows sellers to add a unique touch to their products, giving a more premium experience to the buyers and ultimately increasing customer satisfaction. 

Using applications like Spocket allows beginners in dropshipping businesses to expand their product list as well as their distribution channels. Also, the app helps with marketing campaigns leading to higher revenues for sellers.

#4 Payment gateway: And finally, you need to select a payment gateway to process transactions. Numerous payment gateways allow several ways for customers to pay. Each has their fees structure and can make a significant impact on the cash position of your business. 

Once you are done with the above steps, you must start to promote your store and try to generate as much traffic as possible. Beginners in dropshipping businesses should focus on organic traffic, meaning getting views directly through google search results.


#1 Easy to set up: The dropshipping business is relatively simple to start and can be done quickly. There are very few administrative procedures and does not require much paperwork.

#2 Low risk: Minimal running costs reduce the chances of a massive loss in case the business does not sell many products. 

#3 Location: Being a completely online business model, a seller can manage the store from anywhere in the world.

#4 Flexibility: The store can be easily modified according to the latest trends. As there are many suppliers, it is possible to bring variety into the store while adding different products. 


#1 Returns: Dealing with returns and exchanges can create liquidity problems. These tasks do not generate more revenue but require time.

#2 low margins: Usually, the profit margin in dropshipping is not as high as wholesale.

#3 Shipping delays: Shipping goods from far off countries can cause delays deterring the customers.

#4 High competition: As dropshipping is gaining popularity, more and more people are entering this market.

Success tips

Dropshipping for beginners can be confusing at first, as there are many critical concepts to understand. However, the following tips could make life a little easier.

#1 Select a niche: Choose a line of products that you understand well, and with relatively less competition. There are online tools that allow you to choose a niche with fewer competitors.

#2 Good suppliers: Only work with well-reputed suppliers with a proven track record and offer the right quality products.

#3 Focus on marketing: A good store is worthless without visitors. Market the store through various channels with a clear strategy.

#4 Innovate: Constantly monitor the market trends and try to adapt to what the people are buying. 


Dropshipping can be a very profitable business; however, many sellers jump into it without a good understanding of all the concepts. The business is easy to start but to succeed, you need to work as hard as any other work line. It requires a lot of patience and trying out different combinations of products to see what works.

Once you gain some practical experience, you will be able to make better choices for future ventures and work with stores on a bigger scale.   

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