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Dropshipping 101(Part 1)

July 03, 2022


Brandon Craighead

Want to know how to start a dropshipping business? Look no further.

Dropshipping is a fast-growing trend of online middlemen who sell products online without storing inventory. Essentially, you sell a product on a website(Shopify in Part 2) and send the shipping information to a supplier who will then ship the product. Any markups on the product from the supplier would be pocketed by you.


Is drop shipping difficult to set up?

No, dropshipping is not difficult to set up. In fact, it's one of the easiest online businesses to start. All you need is a website (Shopify) and an advertising budget. Depending on how tech-savvy you are, the barrier to entry should be about a few hundred dollars.


How do I advertise my products?

The fundamental tool for success with dropshipping is Pay-Per-Click ads. They are a form of online advertising where you pay a fee each time someone clicks on your ad. You can run PPC campaigns on Google, Facebook, or other ad platforms. The best platform for you depends on the items that you're selling. We'll set up your ads in a way where you will always generate a net profit.


What products should I sell?

You can sell just about any physical product with dropshipping. The most popular items are in the following categories:

- Jewelry

- Clothing

- Home and garden

- Toys and hobbies

These are all great categories to start with because they have high demand and low competition. You can also find niche products in these categories that have even less competition.


How do I find suppliers?

The easiest way to find suppliers is through a Google search. For example, if you're looking for suppliers of women's clothing, you can search for "women's clothing drop shippers." This will bring up a list of suppliers that you can contact.

Another way to find suppliers is through trade shows. Trade shows are events where manufacturers and wholesalers meet retailers. These events are a great way to build relationships with suppliers and see what products are available.


When you're looking for a supplier, there are a few things you should keep in mind:

- Pricing: You want to find a supplier with competitive pricing. Remember, you'll need to make a profit on the products you sell, so you can't be too close to the wholesale price.

- Shipping times: You'll want to find a supplier that can ship orders quickly. Otherwise, your customers will be waiting weeks for their orders.

- Quality: It's important to find a supplier with high-quality products. Otherwise, you'll end up with a lot of returns and unhappy customers.


For our example, we're going to be using Modalyst, an online supplier that easily integrates with Shopify. 


How much money can I make?

According to BlueCart, dropshippers make an average of $100,000 per year. However, the amount of money you can make with drop shipping does depend on a few factors:

- The price of the products you're selling

- The margins you're able to achieve

- The volume of sales you're able to generate

As a general rule, the higher the price of the product, the higher the margin. This is because high-priced items typically have lower shipping costs and lower competition.


What are the risks?

There are a few risks associated with dropshipping:

- supplier issues: If your supplier runs into problems, it could delay your orders or cause other issues.

- inventory issues: If your supplier doesn't have the products you need in stock, you'll have to source them from another


Despite these risks, dropshipping is still a great way to start an online business. It's relatively easy to set up and doesn't require a large investment. Plus, you can get started with very little risk. So if you're looking for a way to start an online business, dropshipping could be the perfect option for you.


To learn how to create a drop shipping website(with products), please follow part 2 - which will be released in July 2022.




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