Dropshipping Business - How to Start a Dropshipping Business in 2020

Dropshipping Business – How to Start a Dropshipping Business in 2020

Dropshipping Business is an entrepreneur worth venturing into.

As we all know that Entrepreneurship is the act of creating a business or businesses while building and scaling it to generate a profit.

Coosing to start a dropshipping business could be a great step into entrepreneurship.

If you still thinking about starting your online business, maybe it will help to know that ecommerce sales amounted to nearly 3.5 trillion dollars worldwide in 2019. So, if global stats on ecommerce are any indication, starting an online business is an increasingly lucrative option right now.

Have you been worrying about, “How to start a dropshipping business in 2020?

If so, you’ll be glad you read this article.

Did you know that starting a dropshipping business is one of the easiest ways to make money online in 2020?

In this article, I’ll  show you how to start a dropshipping business.

The growth of Amazon, eBay, Etsy, Shopify, and other online marketplaces and platforms means that anyone can start an online store for as little as $50.

If you’re thinking of starting a dropshipping business – either as a side hustle or a means to leaving your full-time job – you can save yourself time and set yourself up for success by following the simple steps outlined below.

What is dropshipping business?

A dropshipping business is where you can run your store and sell to to your customers without holding any inventory. When once a customer places an order to purchase an item from your store at retail price, You then forward the order to your supplier, which you pay the wholesale price, your supplier will ship your products from their warehouse, straight to your customer’s doorstep under your business name while you earn the profit margin.

All you need is a retail website, find customers, and handle customer support. You’ll never need to worry about storing, packaging, or shipping your products.

Thousands of people around the world are making five-, six-, and seven-figure incomes from drop shipping and there’s no reason why you can’t do the same.

What’s the challenge, is it what you need to start a dropshipping business?

Necessary things to Start a Dropshipping Business

Other than a positive attitude, a good work ethic, and genuine motivation to commit to your new business venture, there are only a few essentials required to start a dropshipping business.

They are:

  • A product to sell
  • A supplier of that product
  • A platform to sell on
  • A sales tax ID

How to Start a Dropshipping Business in 2020

1. Choosing a Dropshipping business idea and Niche

The truth is that what you sell matters. So, Choosing a niche is the first step to starting a dropshipping business. The rising popularity of dropshipping means it’s becoming harder to find niches that aren’t already saturated. But new products and niches are emerging every week, so the opportunities are almost endless.

Pick a niche you’re passionate about. You should take some time to find the best dropshipping business ideas.

The reality is the best dropshipping business ideas are usually the profitable ones. It’s a lot easier to be passionate when you’re actually making money.

A niche is a segment of a market. For example, bluetooth speakers are a popular niche in the home audio market. You could even say that outdoor, waterproof bluetooth speakers are a sub-niche of the bluetooth speaker niche. You get the idea. The more specific your niche is, the better.

A common misconception about dropshipping is that you can be successful and profitable in any niche, but that’s simply not true. If you choose a niche that’s already saturated with sellers or dominated by major brands, you’re going to face an uphill battle with your new business.

Dropshipping Business - How to Start a Dropshipping Business in 2020

Start with your interests and passions – Tap into your hobbies and interests. If you enjoy travel or hiking in the outdoors, you’re going to have unique knowledge of the products and trends in those markets that can help you identify a viable niche.

Research the competition – Is the niche you’re interested in over-saturated? If so, is the competition easy to beat? Better yet, is it worth beating them? You’ll often find that the niche you’re most interested in joining is the one that nearly everyone is already a part of. This doesn’t mean you can’t hop on the bandwagon, just be ready for some competition.

Ensure the niche is profitable – The objective of business is to make money, right? Therefore, you need to check the profitability of every dropshipping niche and product idea that you come up with. Ideally, you should choose a niche to meet your desired profit margin.

Brainstorm Business Ideas
Now that you know the criteria for a good dropshipping niche, you can start narrowing down product ideas for your eCommerce business.

You should aim to brainstorm at least 10-20 product ideas and then use the guidelines above to either qualify or eliminate them from your list.

Once you’re done with that process, you might only have a few product ideas that are considered viable. If you have none, then you’ll need to start the process again.

If you have at least one solid product idea at this stage, you’re ready to progress to the next level.

2. Competitor Analysis

  • Once you have decided what to sell you now need to educate yourself on who your competitors are, what they sell, and how they sell their products. There are many ways to do this.
  • Enter the name of one of the products you want to sell into Google and do a quick search to see who shows up on top. The top ten results on Google or any other search engine will give you a good indication of your competition in a certain location.

Dropshipping Business - How to Start a Dropshipping Business in 2020

  • If you are selling products in a location different from where you are based you can use third party tools to gather data. Use tools like SEM Rush to get information about search results in different locations across the world.
  • Browse Facebook ads within a niche and social media pages for top brands. How many followers do they have? How do they market their brand? How much engagement does their brand get? What can I do differently to stand out against them? What are they doing right that I should copy?
  • Know your competitors content and what performs better for them through the use of BuzzSumo so you can replicate. This tool will give you insight into what content gets the most social shares so you can find inspiration for new blog ideas. Signing up to a competitor’s newsletters can also keep you on top of their content if they share their blog content this way.

3. Find a Supplier

  • It can be easy to find a good supplier with Oberlo. Once you are on the platform you can search for products, and choose suppliers from the list of results. On the Oberlo platform you can see reviews, ratings and how long the supplier has been on the platform, for each supplier and this should sway your decision on which supplier to choose.
  • When you have a list of five or six potential suppliers to choose from you can move onto the next step which is contacting these suppliers to ask important questions like minimum order quantities and shipping times.
  • By now you probably have reduced possible suppliers from a list of 5 suppliers to 2-3. The best way to make the decision now is to place a sample order with them for a product and compare the results.
  • Compare ecommerce shipping times, product quality, and packaging while making a decision, keeping your customer in mind and what they will expect from you when placing an order.

4. Building a Dropshipping Business Store

Dropshipping Business - How to Start a Dropshipping Business in 2020

There are a few components to building a dropshipping ecommerce business the right way. Here are a few:

  • Domain Name – Your domain name matters, especially if building a long-term brand. You can use free business name generator to help you simplify the process. Always get a .com domain, no matter what. If you want your niche as a keyword in the new domain make sure it’s broad like beauty, jewelry, fashion rather than very specific so you don’t need to change your domain name down the road. Also, avoid using your name as the domain for your store. If you ever sell your business, you could legally use the rights to your own name.
  • Sign up for Shopify – Shopify is the most comprehensive ecommerce platform on the market. With new features, tools, resources and apps being added regularly, you’ll find that it’s easy to use and run a business on the platform. Plus, if you get stuck you can reach out to a Shopify guru who will personally walk you through any steps for free.
  • Shopify Themes – Personally, my go to free theme is Minimal Vintage it’s easy to navigate, clean and overall a great starter theme for those on a tight budget. Themes can be changed overtime. In the beginning while you’re just testing out free themes do get the job done. Once you’ve started making some money, you can invest it into buying a new theme for a better store design.
  • Install OberloOberlo dropshipping allows you to find products online that you can sell the same day. You’ll be able to find products in a number of popular niches. Aim for 10-25 products when starting out as it can be overwhelming to write product descriptions for much more than that. If you ever have questions you can reach out for help via the Oberlo blog, social media pages or via Shopify’s support line. You can also check out 50 Ways to Get Sales with Dropshipping to learn the exact strategies and marketing hacks I’ve used on my own online stores to make money with dropshipping.


Hope you apply some of the advice from this article into your own online store as you work towards building an online empire of your own. Be reminded that the best way to learn how to start a dropshipping business is by taking that first step to build it.

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