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Dropshipping is a low-risk, retail fulfillment method where a store doesn't keep the products it sells in stock as inventory. Instead, when a store sells a product, it purchases the item from a third party and has it shipped directly to the customer.
The beauty of starting a dropshipping business is that it allows you to run an online store without the hassle of manufacturing, inventory management or distribution. You're the middleman between the customer and the supplier, taking the orders and handling the customer service while your supplier takes care of the rest. It's a world of opportunity right at your fingertips.
In this article, we'll introduce you to the eCommerce dropshipping business model and provide a step-by-step guide on how to start dropshipping from scratch.
Ready to start selling? Take our dropshipping website builder for a spin.
What is a dropshipping business?
Dropshipping is a retail fulfillment method where sellers list products for sale on their website but they don't keep physical stock or inventory of the products. Instead, when an order is placed, the seller purchases the product from a third-party dropshipping supplier who then ships the product directly to the customer. The seller acts as a middleman between the supplier and the customer (see is dropshipping legal).
Dropshipping is a popular eCommerce business model with minimal startup costs, since there is no need to stock inventory, pay for warehouse space or manage order fulfillment. You also don’t have to worry about manufacturing. This keeps your operating expenses much lower than they would be for a traditional retail business.
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How to start a dropshipping
If you’ve decided this is the business for you, below you’ll find a full guide for how to start dropshipping.
01. Research a niche and choose products to sell
Dropshipping is a huge corner of the retail sector. Custom Market Insights estimates that the global dropshipping market will be valued at approximately $1.6 trillion by 2033, with a compound annual growth rate (CAGR) of around 24.7% during the forecast period.
When you build a dropshipping business, you’ve got thousands—if not millions—of products to choose from. It can be a challenge to decide what to sell in this massive market in order to gain footing for your business idea.
To find your product focus, take the following steps:
Research your target audience: Investigate their values, preferences, needs and shopping behaviors. Pro tip: avoid using broad statements to describe your niche, such as “outdoor hobbyists,” “music fans” or “young women.”
Research trending products: What categories are popular among your target buyers and what products are trending? Use resources like Google Trends, Google Keyword Planner, social media and online marketplaces (like Amazon, AliExpress, Etsy and eBay) to see what shoppers are currently buying.
Do some competitor analysis: Make a list of your top competitors. What’s selling well for them? Study their websites to see how they price, describe and market their products. Sign up to their email lists to get insight into their marketing tactics. What can you learn from them, and on the flip side, what can you do differently in order to establish your unique selling proposition (USP)?
Establish your business idea: Once you’ve done your research and settled on a niche, determine the breadth of products you want to sell and how they all fit together. For example, if you start an online business in home décor selling big-ticket items like furniture, will you also stock smaller household accessories like lamps, decorative pillows and rugs? The great thing about dropshipping is that you don’t have to worry about overstocking your inventory. If products don’t sell well or a trend passes, you can easily swap out items from your product catalog.
See more: For more dropshipping business ideas, check out our list of the best dropshipping products to sell online or this article on choosing products to dropship.
02. Select the right eCommerce platform
Building a defensible dropshipping business requires having all the right tools at your fingertips to get your online retail venture off of the ground. Ideally, the best eCommerce platforms will set you up for success with easy-to-use features and integrations, backed by a secure and crash-resistant infrastructure.
Wix’s eCommerce solution offers baked-in dropshipping features, along with a suite of professional tools to establish, design, manage and grow your online store. Set your prices, product descriptions, shipping policies and payment options directly from your Wix dashboard. And, you can trust Wix to automatically sync inventory so that you don’t accidentally oversell on any sales channel—whether you choose to sell from your online store, an external eCommerce marketplace (like Amazon) and/or social media platforms.
03. Partner with the right dropshipping supplier(s)
Finding great suppliers is key to your success: industry research suggests that 84% of dropshipping merchants consider the process of finding a good supplier the most significant obstacle when starting a dropshipping business.
You not only need a supplier who can fulfill a small scale of orders but one who can also scale with your business as it grows.
Fortunately, there are various sources for finding the right supplier:
Independent suppliers: You can search for suppliers (like dropshipping app, Importify) directly on Google. You’ll want to research reviews, talk to other sellers (if possible) and vet suppliers carefully. For this reason, manually finding suppliers can be time- and research-intensive.
Dropshipping marketplaces: Alternatively, you can find suppliers through a dropshipping marketplace that can connect you with a wide range of pre-vetted partners. Make sure to choose a marketplace that integrates well with your eCommerce platform. With Wix eCommerce, you can browse and install a wide range of dropshipping platforms via the Wix App Market.
Print on demand (POD): For a more bespoke offering, it’s best to integrate with print-on-demand companies, like Modalyst, Printful, Printify. Print on demand is a form of dropshipping that allows you to sell customized products with your own design or logo on them. Just like with traditional dropshipping, you can select from hundreds of products and outsource printing and fulfillment to your supplier.
As you consider which suppliers to work with, check that your suppliers provide realistic and transparent shipping estimates. Make sure to order samples of your products and use reviews from other merchants to help gauge your supplier’s reliability.
Learn more: Best dropshipping website builders
04. Build your eCommerce/online store
A thoughtfully built online store will enhance your credibility, compel shoppers to stick around and make them feel secure when hitting “buy.” It’s the cornerstone of learning how to start a dropshipping business.
With Wix eCommerce, you can create an eCommerce website using an intuitive site editor. Follow these steps to get started:
Pick a template: Choose from hundreds of designer-made eCommerce website templates to get your website design in the right direction from the start. Select one that fits your brand, style and target market, then customize the content to make the site your own.
Develop a brand identity: Create a cohesive branding strategy, starting with a concept statement that highlights your core values and ending with your visual identity. Decide on a store name that reflects your brand story, mission and/or personality (you can use Wix’s free Business Name Generator for inspiration or check out this list of dropshipping business name ideas). Then, register a matching domain name and create a logo using the Wix logo maker.
Connect to a dropshipping platform: Install your chosen dropshipping or POD app by going to the Wix App Market, searching for a dropshipping platform and clicking the “Add to site” button. Create an account with your platform of choice and start your hunt for great products.
Add products and descriptions: Once you’ve chosen and imported products to your store, fight the urge to simply copy and paste product descriptions from your supplier. Instead, take the time to write unique descriptions that fit your company’s tone and are optimized for search engines. Short on time? Use Wix's AI text creator to automatically generate product descriptions for you in a few simple clicks.
Set your pricing and shipping rules: When setting your pricing rules, take wholesale and shipping costs into account as well as any additional business expenses. Consider your competition, differentiators and perks that you can offer (e.g., free shipping or white-glove service). Then, establish a dropshipping pricing strategy that keeps your products competitive yet affordable. As a general rule of thumb, avoid competing on price alone. This is a losing strategy for most businesses and will inevitably throw you into many price wars.
Be transparent: Learn about your suppliers’ shipping and return policies so that you can write clear store policies. Let customers know what to expect when purchasing from your store. Wix merchant The Boho Birdy sells a broad range of dropshipped goods—from clothing to home décor—with a touch of bohemian style. Within its site, the company clearly states that it sources from multiple, international suppliers. It additionally anticipates customer questions about shipping and delivery with a detailed FAQ page. This strategy allows the company to manage expectations and prepares customers for the trade-off that comes with purchasing from its store.
Optimize the checkout flow: Keep customers happy by offering multiple payment options on your site. Connect your store to Wix Payments, which allows you to accept debit/credit cards, Apple Pay, Pay Now by Klarna and other popular online payment systems.
Go live: Click that “publish” button and make your store visible to the world. Congratulations. Your hard work has paid off and you’re now in business.
05. Set up finances
Separating your personal banking from your business can help you simplify accounting and make better decisions about pricing. Learn how to set up your finances for your dropshipping business:
Create a budget: Outline your expected expenses and projected revenue. Include costs for website hosting, marketing, inventory management software and transaction fees.
Open a business bank account: Keep personal and business finances separate to simplify accounting and tax filing.
Use accounting software: Monitor cash flow, track sales and manage expenses efficiently.
Set up a payment gateway: Ensure you can accept payments securely and easily from customers.
Consult a financial advisor: Work with an expert familiar with eCommerce to ensure compliance with local tax laws and position your business for financial stability and growth. Make sure to consider taxes and fees when deciding on pricing.
06. Nail down a seamless order fulfillment process with your supplier(s)
Once you sell a product, you need a process for forwarding those orders to your suppliers. The best processes are automated, saving you time and reducing the potential for any errors.
Having an automated fulfillment process is especially important as your business grows and your order volume multiplies. While evaluating different platforms to use, you should make note of the differences in their fulfillment solutions and ultimately select the one that best suits your business.
Pro tip: White labeling, or private label dropshipping, is an increasingly popular add-on service you can consider when you start learning how to get into dropshipping. With white label dropshipping, your supplier adds your branding and/or labeling to the product packaging during the fulfillment process. You pay a little bit extra to make a product look uniquely your own. Although this can cut into your profit margin, branded packaging builds trust, looks professional and helps customers remember your business.
07. Brand your dropshipping business
Branding your dropshipping business means creating a unique identity that resonates with your target audience. It often begins by going back to your niche and understanding your ideal customer. Combine that with your business values to develop a compelling brand story that highlights your values and mission. A large part of branding your business involves creating a logo and choosing a consistent color palette plus typography, that reflects your brand’s personality.
You'll also need to apply your branding to your website design. When it comes to a dropshipping website you'll want to use high-quality images and detailed product descriptions to build trust with potential customers.
Consistency is key to branding a business—making sure your branding is uniform across all platforms, from your website to your social media and email marketing. Always back your brand up with excellent customer service.
08. Register your dropshipping business
To register your business, start by choosing a unique business name and checking its availability.
Next, decide on a legal structure (sole proprietorship, LLC, as examples.) and register with the appropriate state authority.
Obtain an Employer Identification Number (EIN) from the IRS if required. Then apply for any necessary local business licenses or permits. Always research and register for state and local taxes, ensuring compliance with sales tax regulations in your state.
Open a business bank account to separate personal and business finances. Finally, consider consulting with a legal professional to ensure all regulatory requirements are met and your business is properly registered.
09. Market and optimize your dropshipping business
As a dropshipper, the bulk of your time will be spent drawing attention to your store. Your primary responsibility is to develop a strong brand that earns your customers’ trust. Start spreading the word with a well-rounded marketing plan that includes these elements:
SEO (search engine optimization): SEO is foundational for increasing your visibility online and making it easier for shoppers to find your products on search engines like Google. Boost your product pages with unique descriptions and content that take on-page SEO factors into consideration (think: short-tail and long-tail keywords, meta descriptions and more). You may even want to start a blog that lets you publish fresh content regularly and reach buyers at various stages of the customer journey.
Email marketing: Keep your brand top of mind with a thoughtful business email strategy. You can incentivize site visitors to subscribe to your email list by offering a special discount or gift for their subscription. Use email to engage customers at various stages of their journey (e.g., send abandoned cart emails reminding them to complete a purchase or request feedback on a recently purchased product). Promotional emails can keep customers coming back as well, plus provide insight on the types of products and seasonal campaigns that appeal to your target audience.
Social media: These days, one viral TikTok video or Instagram Reel could get your product in front of millions of potential customers. When building a social media strategy, be selective of the channels that you invest your time and money into. It’s better to start with one or two strategic channels than to blindly test every channel possible; each channel has its own quirks and algorithms that you’ll need to get used to. Test various types of content like videos, hashtag contests and posts featuring user-generated content. If it’s within budget, teaming up with influencers who align with your brand is an effective marketing method for dropshipping.
Paid ads: Reach new customers with targeted ad campaigns on Facebook, Instagram, YouTube and search engines like Google. Experiment with various ad types until you find what works for your business. Wix users can take advantage of integrated Facebook and Instagram Ads and Google Ads right from their website dashboard.
According to Lilach Goldis, social media manager at Wix:
"We can all agree that consistency is crucial across all social media platforms, but it's equally important not to overwhelm your audience. Always keep in mind to provide value while addressing both the social and media aspects. It's about being where your audience spends time and showcasing your content in the best light possible."
When it comes to starting a business, there’s always room for improvement. That’s why from the get-go you’ll want to set clear and measurable goals for optimizing your site that help to guide your growth as a dropshipping business.
Use performance-measuring tools like Wix Analytics, Google Analytics and Google Search Console to gain valuable insights into what’s working and what’s not. There are a number of key performance indicators (KPIs) that you can and should measure. To name a few:
Traffic growth: How is your website traffic growing over time? Which sources are people entering your site from and which pages do they tend to engage with?
Conversion rate: How many site visitors end up buying from your site? Conversion rates will vary by niche and industry, but several estimates note that 3% is a good benchmark.
Monthly sales and profit margin: How much return on investment (ROI) are you seeing from your marketing and advertising efforts? Again, profit margin can vary depending on what you're selling, but estimates place a good range somewhere between 10% and 30%.
Purchasing trends: What products are selling best and why? Is demand for those consistent year-round, seasonal, etc.?
Average order value (AOV): Do you see any opportunities to upsell and cross-sell customers and thereby influence larger cart sizes?
Customer retention: How many customers are new versus returning in a given period of time? Is there a way that you can encourage repeat buyers and reward their loyalty?
Cart abandonment rate: Over 70% of shoppers abandon their carts without finishing their purchase. How many people are leaving your site before they complete their order? Is there an issue with your eCommerce checkout flow or payment options?
10. Expand to other sales channels
While you’ll want to build a strong online store for your dropshipping business, it pays to offer your products on other channels that have large, established audiences. You may find that certain products sell better on your website, while others sell like hotcakes on Amazon. In fact, 87% of consumers are more likely to buy something via Amazon than any other online site.
Fortunately, when using a tool like Wix’s multichannel campaigns, you can automate and better manage certain processes. For example, you can easily import your store products to Amazon or eBay, while retaining the ability to customize your offer to each channel. You can additionally avoid complexities that come with managing a multichannel strategy, such as keeping inventory synced and routing orders to the right fulfillment partner.
Whichever channels you choose to sell on, make sure you’re keeping a close watch over their performance. Test various offers, messaging and/or product assortments to find what resonates best with each unique audience.
Understanding how dropshipping works
The process for this type of business is simple and widely used:
You list a product for sale on your site: Most dropshipping suppliers and marketplaces offer a catalog of products to choose from. For example, Modalyst offers millions of ready-to-ship and print-on-demand products, ranging from decorative mugs to jewelry.
A customer completes a purchase on your site: Once you’ve listed and priced your products, customers can purchase them from your online store, just like any other online order.
You forward the order to your supplier: Many solutions allow you to automate this step. With Wix’s all-in-one eCommerce platform, you can automatically route orders to your suppliers for fulfillment.
Your supplier handles the rest: Your supplier preps, packages and ships out the product directly to your customer.
Dropshipping isn’t a one-size-fits-all model—there are plenty of ways to structure your business based on your goals, budget and target market. Some approaches focus on convenience and low upfront costs while others emphasize branding, faster shipping or niche product selection. Understanding the different types of dropshipping can help you find the right balance between control, profitability and customer satisfaction.
Learn more: eCommerce vs dropshipping
Dropshipping logistics models
Each dropshipping model has its own pros and cons. Traditional dropshipping is ideal if you’re after a simple, low-risk way to get started. For more control over branding, private label or print-on-demand models let you customize. If fast shipping is key, local or hybrid dropshipping might be your best bet. Understanding these options will help you pick the right approach for your business goals and customer needs.
Traditional dropshipping
Traditional dropshipping is a popular way to start selling online without upfront inventory costs. You list products, take orders and your supplier handles the rest. It’s beginner-friendly but has challenges like limited control over product quality and shipping times.
Inventory management: No stock to manage since your supplier holds all inventory
Product quality control: Minimal control depending on your supplier’s standards
Shipping times: Can be long especially with overseas suppliers
Overhead costs: Low as you’re not buying inventory upfront
Pros: Easy to start, low risk, large product selection
Cons: High competition, unpredictable quality, slow shipping
Third-party (3PL) fulfillment centers (hybrid dropshipping)
Hybrid dropshipping mixes bulk buying with third-party fulfillment centers. Businesses buy inventory upfront and store it at these centers, which handle warehousing, packaging and shipping. This method offers faster and more reliable delivery compared to traditional dropshipping but does need a bigger initial investment.
Inventory management: Your inventory is stored at a fulfillment center, not at your location.
Product quality control: You get some control by choosing suppliers, but you won’t inspect every product.
Shipping times: Typically faster than traditional dropshipping, averaging 2–5 days depending on the fulfillment center.
Overhead costs: Higher than traditional dropshipping since inventory is purchased upfront.
Pros: Faster shipping, better branding and reliable fulfillment.
Cons: Upfront investment, storage fees and inventory risk.
Private label dropshipping
With private label dropshipping, you can add your branding to products before they ship. Instead of selling generic items, you create a unique branded experience that helps you stand out. While it takes more planning and investment, it’s a great way to build long-term customer loyalty.
Inventory management: Some suppliers offer on-demand branding while others require bulk orders.
Product quality control: You get more control and can work directly with manufacturers.
Shipping times: Often faster with local suppliers but it depends.
Overhead costs: Higher due to custom packaging, branding and bulk purchases.
Pros: Builds a strong brand, increases perceived value and boosts customer loyalty.
Cons: Requires more investment and limits flexibility in product options.
Reverse dropshipping
Reverse dropshipping flips the traditional model. Instead of selling low-cost products from China to Western markets, you source high-quality products from countries like the U.S. or Europe and sell them in regions where demand is high. It’s a niche with big potential but comes with its own challenges.
Inventory management: Suppliers in developed markets handle inventory and ship directly to customers abroad.
Product quality control: Products are high-quality but supply can be limited.
Shipping times: International shipping can mean longer wait times.
Overhead costs: Higher due to premium sourcing and shipping fees.
Pros: Less competition, premium margins and stronger customer trust.
Cons: Higher costs, complex logistics and possible import restrictions.
Print-on-demand (POD) logistics
POD dropshipping is all about custom-designed products like apparel, accessories and home decor. When a customer places an order, the product is printed, packaged and shipped on demand. This model works great for artists and entrepreneurs who want to sell unique branded items without keeping inventory.
Inventory management: No inventory needed—products are made to order.
Product quality control: Limited since sellers rely on POD providers for printing and materials.
Shipping times: Depends on the provider and location, usually 5–10 days.
Overhead costs: Low upfront costs but per-item production costs more than bulk ordering.
Pros: No inventory risk, full creative control and strong branding opportunities.
Cons: Longer fulfillment times, fewer product options and higher per-unit costs.
How to find dropshipping products
Check out trending products using tools like Google Trends, TikTok and Amazon Best Sellers. Watch what’s going viral on social media—popular products often take off quickly. Browse AliExpress or other supplier sites to see what’s selling, but don’t just copy what’s already hot. Instead, look for unique items that solve a problem. Avoid super competitive markets and steer clear of branded or trademarked products to dodge legal trouble.
Got some ideas? Validate them before diving in. Check customer reviews to uncover common complaints—if you can offer a better version, you’ll stand out. Use Facebook Ad Library and TikTok Creative Center to find products with big ad spend. If you keep seeing the same product, it’s probably performing well. Consider seasonality too—some trends fade fast, while evergreen products bring long-term success.
Before committing, test your product. Order a sample to check the quality and run a small test campaign with Facebook or TikTok ads. Work with micro-influencers to gauge interest. If you see engagement, clicks and early sales, you’ve got a winner! If not, adjust your strategy or move to another product. Dropshipping success comes down to testing, adapting and staying ahead of the trends.
How to choose dropshipping products in a nutshell
Follow trends: Use tools like Google Trends, TikTok or Amazon Best Sellers
Check demand: Look for products getting lots of ad engagement
Read reviews: Spot pain points and sell improved versions
Avoid oversaturation: Too much competition makes scaling harder
Test before scaling: Use ads or influencers to measure interest
Tips for starting a dropshipping business
You’ve learned everything you need to know about how to start dropshipping, and it’s time to get your business off of the ground. Here are some additional tips for creating a dropshipping business:
Set realistic expectations: Don't expect to get rich quickly with dropshipping. It takes time and effort to build a successful business. Some estimates say you can be profitable in around three months, but this timeframe can vary depending on multiple factors, including how much time and energy you have available to invest in your business.
Stay up-to-date on trends: The dropshipping market is constantly changing, so it's important to stay up-to-date on the latest trends. This will help you find products that are in demand and that will sell well.
Offer competitive prices: One of the best ways to attract customers is to offer competitive prices. However, you need to make sure that you still make a profit after you factor in the cost of the product, shipping and other expenses.
Run effective marketing campaigns: You need to let people know about your dropshipping business if you want to generate sales. There are many ways to market your business, from social media to email marketing to advertising.
Build a strong brand: Your brand is what will set you apart from your competitors. Make sure your brand is consistent across all of your marketing materials and your website.
Track your results: It's important to track your results so you can see what's working and what's not. This will help you make necessary adjustments to your business to improve your chances of success.
Dropshipping business stats you should know before getting started
Starting a profitable business depends a great deal on the research you do before even getting it off the ground. With this in mind we've put together this list of dropshipping stats to help you make the right choices with what you choose to sell and how.
The dropshipping business market is growing: The U.S. dropshipping market is forecasted to reach $424.3 billion by 2030, with a compound annual growth rate (CAGR) of 22.3%.
Dropshipping business profit margins are good: Typically between 10-20%. These are not a guarantee and depend on what you sell and how well you promote your business.
How to start a dropshipping business FAQ
What are the best products for dropshipping?
The best dropshipping products are unique, solve problems and have growing demand with low market saturation. Winning categories include smart home gadgets, pet accessories, health and wellness items, eco-friendly products and trending fashion accessories. Focus on lightweight, high-margin, evergreen products that aren’t easy to find in local stores.