How to Start a Drop Shipping Business

Drop shipping is essentially acting as a middle man between a customer and a manufacturer or wholesaler. With drop shipping, the business owner, storekeeper, or seller does not own the goods that are ordered. They simply take a customer’s request or order and in turn orders from the manufacturer and has the goods directly shipped to the customer.

This sort of business does have its advantages, especially since it’s easy to start and run. Here are some guidelines to help an individual or company get an idea of how to start and benefit from the drop shipping business.

Have Great Marketing Skills

Before you even consider going into this business, you must refine your marketing skills. That’s your ability to be able to sell a product. Find the right words, be eloquent and effective. Try to persuade your buyers but do so gently. You don’t want to rub your targeted customer the wrong way. You want as many people as you can to visit your drop shipping site and purchase the items you have up for sale.


Find the Right Market Niche

Knowing what’s out there and already easily available is helpful. It’s good to have a general idea of what is sellable – in other words, what people are most likely to buy and use. It could be everyday inventory like clothes or larger products like building materials. When you are comfortable in your little corner, you can make your contacts and get acquainted with your target manufacturers and wholesalers.

Get a Tax ID

Make your business legal; you don’t want the government hot on your heels. Without a tax ID, you cannot legally register your business. The issue with illegal businesses is the potential risk of getting caught, which comes with a pretty grievous penalty. This is completely avoidable. Everything you do in your business will be linked with this ID number. Otherwise, you may not be permitted to do business at all.

Use the Little Capital You Have

It’s important to know that you don’t need large capital to start a drop shipping business. This means that you don’t need to keep saving ‘til eternity or even try talking a bank into granting you a loan. The good thing is a flow of cash is pretty free and constant in the drop shipping business. At a particular point, you will have received payment from the customer, likely via credit card payment or bank deposit, so you’ll readily have the money available to you before paying the manufacturer.

You can even receive extra cash if the manufacturer gives you a commission. Asl, you gain by owning the difference between your asking price for the product and the wholesale price of the company. Remember, you don’t have to own the inventory personally. You just have to be able to sell for the manufacturer.


Learn how to get started with a drop shipping company fast!

Target Your Customers

Customers are everywhere, so knowing what each person wants and whether it’s within your market niche is of great value. Get word around about the services you provide. Create a website that is customized to showcase what you can offer customers. Make sure that there are a couple of positive reviews, so the customer knows that they are in safe hands.

Other ways of advertising your services include promoting your business on other sites. Some of these sites include Google, Facebook, Instagram. You can also opt to send customers email advertisements and promotions. Generate as much traffic as you can for your business.

Beware of Fraud and Scammers

Unfortunately, the internet is full of them. Try and research the manufacturer or wholesaler you plan to work with before agreeing to do business with any one – individual or company.

Bottom Line

Remember, a drop shipping is not capital intensive or consuming. You can work from your office or home, and you don’t need to worry about the overhead cost since you don’t directly own the inventory. You will have to do your homework on marketing, though. Know your customer and service them with the goods they want to buy. If you would like to learn more about drop shipping, check out the book Dropshipping: Your Guide to Mastering Dropshipping – Includes 50 Dropshippers Inside! by Chris Sharpe.

Good luck!