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How To Start Dropshipping In 9 Steps With Low Budget [2023]

How To Start Dropshipping In 9 Steps With Low Budget - OneCommerce

How To Start Dropshipping In 9 Steps With Low Budget - OneCommerce

Have you ever dreamed of running your online store without having to spend time and money on inventory?

If so, dropshipping might be the perfect option for you. With dropshipping, you can simply partner with a supplier who handles everything for you and pocket the profit.

However, dropshipping is not a get-rich-quick scheme. It takes hard work, research, and creativity to succeed in this competitive market. The dropshipping market is expected to reach $243.42 billion by the end of 2023. This means there is a huge demand and a lot of competition.

But don’t worry. We’ve got you covered. In this ultimate guide, we’ll show you how to start dropshipping from A to Z and build a profitable online store in 2023.

Let’s dive in!

💡 Recommended reading:

What Is Dropshipping?

Dropshipping is a business model where the sellers sell products without having to carry any inventory. When a customer orders, the seller purchases the product from a supplier and the supplier ship the product directly to the customer.

This allows you to start an online business with little upfront investment and no need to worry about warehousing or shipping.

Dropshipping has its set of benefits that is suitable for individuals and businesses to start fresh without facing too many risks. However, it also has some challenges and drawbacks that need to be addressed beforehand:

Benefits Drawbacks
  • Low startup costs: You don’t need to invest in inventory, warehousing, or shipping. You only pay for the products you sell.
  • Low risk: You don’t have to worry about unsold inventory, overstocking, or product obsolescence. You can easily test new products and markets without commitment.
  • High scalability: You can grow your business without increasing your workload or expenses. You can leverage the supplier’s resources and expertise to fulfill more orders.
  • High flexibility: You can sell any product, from any niche to any customer you want. You can also change your product offerings and suppliers as you please.
  • Low margins: You have to compete with other dropshippers and online retailers who may offer lower prices. You must also pay the supplier’s fees and commissions, which can eat into your profits.
  • Low control: You have no control over the product quality, availability, or delivery. You must rely on the supplier’s performance and reputation, which can affect customer satisfaction and loyalty.
  • High competition: Dropshipping is a popular and easy business model, which means that many other sellers offer similar products. You have to find a way to differentiate yourself and stand out from the crowd.

How Does Dropshipping Work?

In the previous section, we discussed the definition of dropshipping. However, if you’re still unsure about it, let’s delve into what dropshipping is and how it operates through a simple example:

You want to start a dropshipping business selling clothes. You would first need to find a supplier who can provide you with the clothes you want to sell. Once you’ve found a supplier, you create a website or online store where customers can browse and purchase your clothes.

When a customer orders, you don’t have to worry about shipping the products yourself. Instead, you forward the order and customer details to your supplier, who will ship the products directly to the customer.

You pay the supplier a wholesale price for the products and keep the difference as your profit. This way, you never have to physically handle or see the clothes yourself.

That’s it! You just sold a product without ever touching it or seeing it. You don’t have to worry about stocking, packing, or shipping anything. All you have to do is focus on marketing your store and providing great customer service.

Key Players In Dropshipping Business Models

Dropshipping business models rely on three key players: suppliers, dropshippers, and customers.

These three key players work together to create a seamless and convenient online shopping experience. Nevertheless, they encounter various challenges and risks, including communication difficulties, product quality concerns, delivery complications, and return issues.

To establish a profitable dropshipping business, it is crucial to locate trustworthy suppliers, select profitable products, and utilize efficient platforms for store management. The following section will outline nine simple steps on how to start dropshipping.

How To Start Dropshipping For Complete Beginners (9 Steps)

If you’re new to dropshipping and want to learn how to start your own successful dropshipping business, this section is for you. Here are the 9 steps on how to start dropshipping for beginners:

Step 1: Analyze the market

The first step in how to start dropshipping is to analyze the market. This means understanding what products are in demand, who your target customers are, and what your competition is doing.

To analyze the market and find a niche, you need to do some research and answer the following questions:

To kickstart your journey on market research and analysis, here are some tips and tricks to help you:

  1. Online tools: Google Trends, Keyword Planner, or Niche Scraper to discover trending products, keywords, and niches.
  2. Social media platforms: Instagram, Pinterest, Facebook, or TikTok to see what products are popular among your target audience.
  3. Blogs and Forums: Read blogs and forums related to your niche to learn about your potential customers’ challenges, preferences, and opinions.
  4. Marketplace: Visit online stores like Amazon, eBay, AliExpress, or Shopify to see what products sell well and read customer reviews.
  5. Surveys and interviews: Conduct surveys or interviews with your existing or potential customers for feedback and insights.

By doing market research and analysis, you can identify a profitable niche with high demand, low competition, and loyal customers. And also, validate your product ideas and test their viability before investing in them.

Step 2: Choose the dropshipping niches

Once you’ve analyzed the market, the next crucial step in how to start dropshipping is you must choose a niche to focus on.

A niche is a specific market segment you can target with your dropshipping products.

First and foremost, select a niche that aligns with your interests. This will enhance your motivation to learn about the niche and effectively market your products to your target customers.

Additionally, opt for a niche with high demand by utilizing tools like Google Trends to analyze product trends and gauge customer interest. Lastly, avoid niches with excessive competition as it can hinder profitability.

Another way is to research popular marketplaces, such as Amazon or AliExpress. For example, AliExpress has a dedicated section for top-ranking niches and products, with millions of followers and sales volume.

Find the best dropshipping niches in AliExpress Top Ranking

Here are some examples of popular dropshipping niches:

These examples represent just a fraction of the available dropshipping niches. The crucial aspect is selecting a niche that resonates with your interests, and that has a lot of demand to ensure success.

Step 3: Choose the dropshipping products

After you’ve nailed down a profitable and sustainable niche, the next crucial step is selecting the perfect dropshipping products for your business. Your chosen products will ultimately dictate your sales, profits, customer satisfaction, and brand reputation.

But how do you go about making this decision? How can you identify products in high demand, have low competition, and offer a healthy profit margin?

Luckily for you, Ali Hunter got you covered. Ali Hunter’s built-in spy tool for dropshippers allows you to analyze competitor sales, discover winning products, and skyrocket your dropshipping business to new heights.

Ali Hunter will also help finding winning products to start dropshipping

Ali Hunter also comes with a Chrome extension that works on AliExpress, Shopify, and Facebook. It helps you to:

Ali Hunter also helps tracking competitors

With the help of Ali Hunter, you can easily find the best dropshipping products for your niche and avoid wasting time and money on low-quality or saturated products. You can also learn from your competitors and see their strategies to succeed in their niche.

To use Ali Hunter, you either use the web application or install the Ali Hunter Chrome extension. Then, you can access it from any website that it supports.

Step 4: Choose the dropshipping suppliers

Another crucial step in how to start dropshipping is to choose the best dropshipping suppliers for your products. Your chosen suppliers have a direct impact on product quality, shipping efficiency, customer satisfaction, and the overall reputation of your brand.

Several factors should be taken into account when making this crucial decision:

To save you valuable time, Ali Hunter developed a “Supplier” feature to help you choose dropshipping suppliers. Here are some tips for choosing dropshipping suppliers using AliHunter:

Ali Hunter Chrome Extension to help finding suppliers

When you’ve found a few dropshipping suppliers that you’re interested in, you can contact them to get quotes and learn more about their products and services.

Step 5: Decide the dropshipping business names

One of the most important and probably the best steps in how to start a dropshipping business is to decide on your dropshipping business name.

Your business name is the first thing that potential customers will see. It will represent your brand identity, personality, and value proposition. It will also influence how your customers perceive and remember you.

Here are some tips for choosing a dropshipping business name:

And in case you’re stuck in brainstorming a cool name, look at some of our examples:

If you want the aid of some technology, check out this cool Business name generator from Shopify. This tool will help you generate some ideas for a business name in minutes.

Shopify offers a free business name generator

Step 6: Choose the dropshipping platforms to sell your products

The next step in starting a dropshipping business is to choose a dropshipping platform.

A dropshipping platform is a software or service that allows you to create and manage your online store, product catalog, orders, payments, and shipping.

There are many dropshipping platforms available in the market, such as WooCommerce, Magento, BigCommerce, Wix, and Squarespace. However, among all of them, we highly recommend Shopify as your dropshipping platform.

Why? Shopify is the most popular and user-friendly eCommerce platform in the world. It powers over 1.7 million online stores and has helped thousands of dropshippers to launch and grow their businesses.

Here are some of the reasons why Shopify is a great starting point:

💡 To start your dropshipping business with Shopify, you can sign up for a free trial here.

By selecting Shopify as your dropshipping platform, you will be able to build an impressive online store that captivates customers and drives sales. Plus, you can leverage the advantages of joining the Shopify community: gain insights from fellow dropshippers, receive expert assistance, and access exclusive resources.

Step 7: Build your dropshipping websites

Next, you need to build your dropshipping websites. Your website is your online storefront, where you showcase your products, attract customers, and process orders. You can do this by using a website builder or hiring a web developer.

If you are a beginner that chooses to sell on Shopify, you can utilize the Free & Premium themes selling on Shopify. It will make it easy to create a professional-looking website without coding knowledge.

You can easily build a website using Shopify themes

Once you have installed the template, you need to import your products from your dropshipping supplier to your website. In this case, Ali Orders will be able to do the trick.

Ali Order is a Chrome extension that can help you to import products from AliExpress to your dropshipping store. It is a great time-saver, as it can automatically import product details, images, and prices from AliExpress.

To use Ali Order, simply install the extension and then go to the AliExpress product page you want to import. Click on the Ali Order icon, and the extension will automatically import the product details into your dropshipping store.

Ali Orders will help you import products from AliExpress to your website

Once you’ve imported the products, you must add them to your store and set up your shipping and payment options. You must also create a marketing plan to promote your store and attract customers.

Here are some tips for building a successful dropshipping website:

Step 8: Apply the dropshipping marketing strategies to your store

Once your dropshipping website is up and running, the next step is to market your store effectively.

Marketing is indispensable for online businesses, especially in dropshipping. It aids in increasing brand awareness and visibility, driving traffic to your site, converting visitors into customers, fostering customer loyalty for repeat purchases, and ultimately boosting sales and profits.

But how do you apply the best dropshipping marketing strategies to your store? There are several different marketing strategies that you can use.

Step 9: Leverage the customer experience

The final step of how to start dropshipping is to focus on providing them with a great customer experience. This will help you to build a loyal customer base and encourage repeat purchases.

To be able to do that, you can try these tips:

These 4 points can be done by yourself or using third-party apps. If you can invest in your business, we recommend you use apps to accelerate and manage your customer experience.

For example, for “Collect reviews”, you can choose apps like Ali Reviews. This tool allows you to collect customer reviews, filter, and respond to them. It is a great way to build trust with potential customers and encourage repeat purchases.

By using Ali Reviews, you can ensure that your customers have a positive experience with your dropshipping store. It will help you to build a loyal customer base and grow your business.

Apps like Ali Reviews can help you manage customer reviews and enhance customer experience


1. How to avoid dropshipping supplier scammers?

Do your research. Take the time to read reviews from other dropshipping businesses and check the reputation of potential suppliers. And don’t hesitate to ask questions about shipping times, return policies, and customer service.

If you have any doubts about a supplier, it is recommended to pay with a credit card so that you can dispute the charge if necessary.

Another option is to use a dropshipping platform that offers protection against scammers. These platforms will hold your money until the customer receives their product, providing peace of mind.

2. How to find winning products?

3. Can you start dropshipping with no money?

Yes, you can. In fact, according to Forbes Advisor, you can start a dropshipping business with less than $100 in initial investment. This shows that it is possible to start a dropshipping business with minimal, but it will require some hard work and dedication.

Here are some ways to do it:

Starting a dropshipping business with no money is a challenge, but it is possible. By following these ways, you can increase your chances of success.

Final words

Dropshipping is a great way to start an online business with little investment and can be profitable if done right.

It’s important to do your research on products, choose a reliable supplier, and many more aspects, but if you dedicate your time and effort, with the help of our guide on how to start dropshipping, we are excited to see you become an aspiring and successful merchant in the near future!

So what are you waiting for? Get started today, and stay tuned on OneCommerce Blog for more in-depth dropshipping guides and insights!

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