How To start a profitable Dropshipping Business for beginners

How To Start a Profitable Dropshipping Business For Beginners In 2022

Spread the love

How to start a profitable Dropshipping business for beginners is a common question many newbies looking to make genuine income online are asking today

Why is that?

Because dropshipping business is one of the best ways to make money online and can be a very lucrative business for you even in 2022 and beyond

The low barrier to entry has made it so popular in the past few years and has made it a highly competitive business

However, I am going to show you in this post all the steps and things you have to do to succeed and carve your own space in this highly competitive but also lucrative business even as a beginner

A Short Statistics In Dropshipping Industry

According to Grandviewresearch, The global dropshipping market size was estimated at USD 122.3 billion in 2019 and is expected to reach USD 149.4 billion in 2020

The global dropshipping market is expected to grow at a compound annual growth rate of 28.8% from 2019 to 2025 to reach USD 557.9 billion by 2025.

Now is the best time to start your own Dropshipping Business. You have to get your own share of this pie.

What Is a Dropshipping Business?

In simple terms, Dropshipping is a kind of business model in which you can sell products without ever holding an inventory

Once you make a sale, your supplier takes care of delivering or shipping the products to your customer.

You do not have to bother yourself with storing, packaging or even shipping the products

Your main work here is promotion and advertisement while your supplier handles the rest of the work involved.

How Does the Dropshipping Business Model Work?

The Dropshipping business model is very simple and straight forward.

It is a triangle business model involving three parties. The retailer, the supplier (dropshipper) and the customer.

The retailer who happens to be you finds a supplier (the dropshipper) for his products.

He sets up a Dropshipping store and put up the products there. He does the promotions and marketing, gets a customer and sells the product at a marked up price.

He then contacts the supplier and pays for the products ( in lesser amounts than he sold it) who ships the products directly to the customer and he (the retailer) takes the profit margin.

Pretty simple. Isn’t it ?

Let’s proceed

What Are The Pros and Cons Of Dropshipping Business For Beginners

Have you ever heard the phrase “everything has an advantage and a disadvantage”? The Dropshipping Business, on the other hand, is not an exception. As a result, I’d want to discuss the advantages and disadvantages of this business model.

This is not intended to change your mind about this successful business, but rather to provide you with information, as any real business has pros and cons.

See also  Top Best Ecommerce Platform For Beginners In 2022

Pros (Advantages of Dropshipping Business).

The benefits of Dropshipping vastly exceed the disadvantages, as one might imagine. The list is as follows:

  1. Dropshipping has low barrier to entry 

Unlike the traditional store and e-commerce business that requires huge capital to get started as a result of either developing, manufacturing or even buying the products to be sold.

Dropshipping has no such hefty financial commitment to get started as you don’t have business developing and even storing inventory. 

Consequently, many well meaning individual can enter in to the business just by understanding how it works

  1. There is Zero Worries About Managing Inventory

Traditional stores and e-commerce sites usually pay for products upfront and stores the products in a physical warehouse when the products arrives  after a period of waiting

Also, Handling and storage costs of some products could get high and stressful to manage. And in unfortunate cases, this may incrue some financial risks not planned for.

This is not the case with Dropshipping. Your supplier handles all of the inventory management for you and all the risks associated with inventory management is removed

  1. Financial Risks Are Minimally Reduced.

The tradition with running a physical store or an e commerce is that you buy your products and keep. In times and days that luck might run out of you, you might by large volume of products that don’t sell. When this happens, your bear all the financial risks alone

Also, testing of new products can get financially risky as you must have to buy the products to test the market.

Dropshipping business reduces this for you to the barest minimal

  1. There is an Improved cash flow 

In Dropshipping model, you can actually use your customers money to run your business  completely.

Once you confirm your customers payment. You take your profit and place an order to your supplier who ships the products to your customer. This in turn improves the flow of cash for you as the dropshipper

  1. It’s a Smart Means To Creating Passive Income

On this blog, I teach smart ways to make and increase your income online and learning how to Start your Dropshipping Business can be one of the smart ways to create a lucrative passive income

And because this is a real business, it will  require the upfront effort to get the ball rolling. After this, you just monitor and make your money

Cons (Disadvantages Of Dropshipping Business)

The cons of Dropshipping Business for Beginners

As expected, there would also be some pitfalls and downsides especially  Dropshipping Business for beginners and it is only fair I let you in on some of the cons of the business. These should not deter you regardless

1. HighCompetition

This goes without saying as it’s been stated from the forgoing that it has low entry barrier.

Every business that requires less capital to start and has little or no form of restrictions to enter into it is known to be highly competitive. Dropshipping is one of such businesses

This is why it is very important to plan well and do proper niche and product selection to scale through the competition.

2. Thereis no control In Supply Chain

In typical ecommerce and traditional stores, customers can complain about product quality, delivery time etc and  you can attend to them.

See also  Top 10 Ways To Make Passive Income For College Students

While dropshipping puts you at the whim of your supplier, you’re still in charge of engaging directly with your clients.

This can be frustrating as any failure in the part of the supplier will affect you negatively leaving you with negative customer reviews.

3.It is difficult to build a brand

Customers are majorly focused on your products and the shopping experience they get from your shop.

Also, when you supplier runs out of stock, it affects your business and building so building a brand becomes even more difficult.


Step 1. Decide On Your Niche

To really start a Profitable dropshipping business as a beginner. It is important you figure out your niche. This is a segment of the market you want to occupy and dominate.

For example, you may decide to go into children’s toys and specialise in it.

Figuring out your niche is the first step to starting a profitable dropshipping business for beginners. It is a very important exercise that should be done with in-depth analysis and great carefulness

The choice you will make at this stage will make or nar your Dropshipping Business goals.

Why? You may likely ask

This is simply because of the ever rising popularity of the business. This translate that as more people enter in to it, it is becoming really difficult to find niches that are underserved (not saturated)

But there’s good news: brilliant people like you are always promoting new products, resulting in the emergence of new niches. As a result, if you’re just starting out today, there are plenty of niches to choose from

More so, I am going to be giving you great niche ideas on this post

Nonetheless, you have to do your own personal research not to fall into a niche that you can’t raise your head above the water as a beginner

Best Dropshipping niche ideas for beginners

  • Toys and hobbies
  • Beauty
  • Health
  • Electronics
  • Mens Clothing and accessories
  • Women’s clothing and accessories
  • Mothers and kids
  • Watches
  • Sports
  • Entertainment
  • Gadgets

When you’ve arrived at a decision on a niche. It’s time to find a product (or products) in your chosen sector to prove your point.

Step 2. Choose A supplier

The next step is to choose a dropshipping supplier. This another sensitive stage on starting a Dropshipping Business for beginners.

These suppliers own the products you sell, they keep inventory as well as handles the shipping of the products to the customers. So you see they play the major role and determine how well your Dropshipping Business will do

If you don’t take great care in choosing a good supplier. It may adversely affect your business completely

Now you want to ensure you find a very reliable dropshipping supplier that provides the high-quality service you need to grow even as a complete beginner

AliExpress is a fantastic place to look for a reputable supplier.

Checking a supplier’s seller rate is one technique to spot an excellent one on AliExpress. You should look for sellers who have a score of 90 percent or higher.

AliExpress is almost certainly the finest option for anyone interested in dropshipping.

Step 3. Build Your Dropshipping Store

After finding a reliable supplier for your product. It is time to set up and launch your Dropshipping store.This is just like the normal e-commerce store where you display your products, send traffic to and even process payments

One of the popular platform to set up your store is Shopify. It makes launching your e-commerce sites very easy for even newbies

See also  30+ Small Business Ideas That Are Profitable In 2022 And Beyond (Online)

You may use Shopify to sell, administer, and even take payments. Most importantly, you won’t have to worry about not being a designer or developer because everything will be taken care of for you.

You might also consider using WordPress to create your online store. This solution is incredibly cost effective, and you can use powerful plugins like the woocommerce plugin to help you manage your business effectively.

Step 4. Start Driving Traffic To Your Dropshipping Store

It’s time to sell at this moment. This entails attracting customers to your store. The money is in the traffic, and the more people that visit your store, the more likely you are to make sales.

As a result, you should make a concerted effort to attract highly focused traffic that will mostly convert into consumers.

You may achieve this in a variety of ways, but one of the quickest is to run paid adverts in your store. If you have a budget, do this; otherwise, use organic methods such as Pinterest traffic, social network traffic, and so on.

Frequently Asked questions about Dropshipping Business For Beginners

There are a lot of questions newcomers have ask regarding how to start a profitable dropshipping business for beginners and as this post is targeted to beginners. I’ll do my best to respond to the majority of them.

Is Dropshipping Still Worth It In 2022?

Yes, in 2022, dropshipping is still profitable. Although, as large e-commerce sites like Amazon continue to dominate the business, it is getting more difficult now than it was back then.

This is why I recommend that if you want to establish a Dropshipping Business for beginners, you should do so within your close surroundings. It becomes easier because you will be able to outperform the competition sooner, resulting in a higher profit margin.

How much do beginner dropshipper make?

As a beginner, you might expect to make anywhere from $500 and $2000 each month. Depending on a variety of conditions, this might be less or more. On a serious note, if you treat your business seriously, you will break even.

How To start Dropshipping Business For Free?

Starting a Dropshipping Business for beginners comes with questions such as this. Many newcomers wonder if they can start a Dropshipping business without spending any money.

This question has a simple answer: YES. Let me explain how you can start a Dropshipping Business without spending any money. If you’re familiar with the Dropshipping concept, you’ll notice that after the business is up and running, you’ll be doing most of your work with your customers’ money.

The first step is to choose which things you want to offer. Instead of going general, look around your area to see if any manufacturers or wholesalers of similar products accept Dropshipping.

Contact them and ask to join their Dropshipping program. This is a completely free service.

The next thing to do is set up your online store.

Rather than setting up an online store with specialized platforms like Shopify, WooCommerce, or even WordPress, which will undoubtedly cost you money, you may do it this way.

You’ll create your own business page on social media platforms like Facebook and Instagram. They will serve as your online store and it is a totally free service. The page is then optimized for the things you want to offer.

Then, by being really active on the platform, you’ll begin attracting visitors to your pages. This will increase the number of people who see your products on your pages, resulting in more sales.

Is Dropshipping a good side hustle?

It’sa profitable good side hustle you can start up as a beginner and make smart income doing it


Having read How to start a profitable dropshipping business for  beginners. It is time to implement the in-depth knowledge gained on this post and start making smart Income from the comfort of your home

Your Turn

Have a friend who might be interested in how to start a Dropshipping Business for beginners?

Share this post to him as sharing is caring!


Spread the love

Similar Posts


Leave a Reply

Your email address will not be published. Required fields are marked *