How To Build A Successful Online Dropshipping Business

If you want to go into the retailing business but have limited funds or capital, then online dropshipping is one of your best options. Dropshipping is a new global phenomenon, which has been facilitated by the advent of improved information and communication technologies in the world.

Online dropshipping helps to eliminate the high cost of having to deliver goods to customers. All you have to do is get these customers, place an order online with a third-party manufacturer or supplier who then delivers the products to your customers. As easy as it may seem like every other business ventured into, there are still some basic things that need to be considered or put in place.

So if you are prepared to begin that your online dropshipping business, then read on to know some steps you need to take. It may not require significant funds, but it does require lots of effort for it to become successful.  

Create a Niche

The niche you choose needs to be laser-focused that you are legitimately interested in. Focus your products in a particular line or aspect, for if your product range lacks focus, you might face potential difficulties marketing them. It is always best to select a niche you are passionate about. So has to ensure that when you become discouraged and stressed, the passion drives you on. Let’s consider some few steps for creating your niche.

  • Go for goods with low shipping cost. Although you won’t bear the cost of shipping, it is in your interest to go for products with low shipping or even free shipping, which could serve as an incentive to attract more customers.
  • Being that the marketing is done for higher-priced product and low priced product in dropshipping is the same thing. Why not go for more top-priced products to gain better profit margins.
  • Ensure that for people just passing by but possess the financial ability to purchase your product on the spot, that your product is attractive to them. In other words, your product should appeal to impulse buyers.
  • Go for what people cannot readily get in their locality to make you more attractive.
  • You could rebrand some of the products with new packaging.


Always remember that you are not the first person to start online dropshipping and you won’t be the last. You would be competing not only with other drop shippers but also with online retail stores.  Therefore, ensure to do proper research before commencing. Do not make the mistake of going with products that have low competition.

This is wrong, as the little competition can be as a result of many unprofitable reasons such as; poor manufacturing, weak demand as well as the high cost of shipping. It is better to go with goods that have competitions; thereby you know that there’s demand for such product and you build your dropshipping around that.

Choose a Supplier

Selecting the right supplier can be very profitable to your business and vice versa, which is why this step is of much importance in building a successful online dropshipping business. In recent times, most dropshipping suppliers available are usually overseas, which means that communication is of high importance, especially with regards to their respond speed and ability to understand each other effectively.

For now, Alibaba remains the most popular dropshipping supplier that helps connect people to various manufacturers. One thing to note is that if you are not 100% certain of the supplier’s ability to fulfill your needs, move on, and continue your search.

Also, check their production capabilities, just in case your business grows and requires ample supplies if they will be able to handle it. Ask lots of questions at this stage, research a lot on this issue, as there is sufficient information online to aid you to make the right choice.

 Create an E-Commerce Website

You have to create for yourself an online presence. Before you start calculating the cost of setting up a website that supports dropshipping services, there is an e-commerce platform called Shopify that would make your transition to dropshipping smooth. It is well designed for even those without any tech knowledge to operate, and it consists of app features that increase sales.

So also if you have that money to pay a developer to create an e-commerce website for you, why not keep it till when you are well established. For now, begin with this platform designed to do the job effectively.

Create a Customer Plan

You could have carried out the first four steps wonderfully, have the right products and a great website, but without customers to buy your products, you do not have a business. Therefore, you have to create for yourself a way to attract sales to your business.

There are many options open to you, short-term with various social media networks now available; nevertheless, a Facebook ad campaign remains an effective way to drive sales for any online dropshipping business. For running a Facebook ad is quite cheap, and Facebook already provides you with the wide reach or broad audience, which can quickly promote sales and growth of your business.

Looking at it from a long-term perspective, you could consider email marketing, which is also useful.  You collect emails over time and create an automated email sequence in which existing customers would be informed about special offers or new discount prices.

Optimization of Data

After creating a customer acquisition plan, you have to monitor the activities of customers on your website continually. For instance, if you decide on using Facebook, then you can use Facebook conversion pixel data and Google Analytics traffic to more where exactly your customers are coming from and what path they take that leads to sales for you. When you properly analyze these data, you can effectively channel your efforts towards the way that yields more sales.

Note, that overtime you have to review your sales strategies and try to adopt new methods to improve sales and growth of your business.

Hopefully, you now understand the steps to engage in to have a successful online dropshipping business.

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