How to Start Dropshipping Business in 2021

Dropshipping business is a new era of eCommerce Busines. In this article, we will help to understand the complete dropshipping business development process and how can you start a dropshipping business in 2021 effectively. 

If you are still unsure to start a business online, then you should know eCommerce has scaled up to 3.5 trillion-dollar businesses worldwide in 2019. So it’s still a very lucrative domain to start a business with low capital.

Make sure to read the complete article, below we’re going to mention how to start a dropshipping business, how to find the right product for dropshipping, the Effect of covid on eCommerce, why ePacket Delivery Service & other eCommerce Shipping Solutions.

What is Dropshipping Business?

Dropshipping Business model helps to start an eCommerce without renting an inventory instead stocks & inventory are being taken care of by Original Equipment Manufacturer(OEM) & on receiving successful orders, you would only need to forward that order to OEM and save your margin in the deal. Even shipping is taken care of by OEM. So you will never need to worry about Stocking, Packing & Shipping your products.

Here’s OEM or Product Supplier who would ship the product from warehouse to customer’s doorstep.

How Profitable is Dropshipping Business?

As mentioned, Dropshipping is still a lucrative business model. You would not need to manufacture, keeping stocks, or inventory & shipping. You only need to keep margins & make repetition of orders to increase the margins. You can read Dropshipping FAQ here.

How does Dropshipping Business Model Work?

Here are the three key roles in the dropshipping model:

  • OEM or Product Supplier or Manufacturer
  • Retailer or You
  • End-Customer

Manufacturer or Products Supplier manufacture the product, stock into inventory & on receiving retailer order, ships the product to customer address. In case of a faulty product, the supplier takes care of returns & supply replacements. 

Retailer or You runs an eCommerce store & receive orders online. Retailers are responsible for the promotion & marketing of the store. On successful orders, retailers forward orders to product suppliers and keep the margins. Manufacturer gives wholesale prices to retailers and that’s where retailer margin exists.

And customers are those who buy your product. In case any problem persists with the product, you would be the point of contact for the customer & need to take care of replacement from OEM.

Step-By-Step Dropshipping Business Plan

1) Dropshipping  Business Idea

The success of your eCommerce store depends upon how well you understand dropshipping business ideas. So you should take time to find the best dropshipping business idea. The first thing here is to consider, how well you know about the product & buying customers.

Fashion, Travel, Tech, Shoes, Jewellery, etc are some of the evergreen niches to start an eCommernce Online Store. So have some time to research about different products & from a marketing cost perspective as well.

Use the following tips & tools while doing research about your niche:

  • Use the Google Keyword Planner tool to find new and related keywords to your niche. Keyword Planner helps to find niche-related profitable keywords with competition either low, medium, or high. Keyword Planner also helpful to know about the keywords of an existing store also.
  • Use Ubersuggest Keyword Tool similarly to find potential niche keywords for your dropshipping business idea.
  • Evaluate the best stores in your niche and check out their trending product categories
  • Use Oberlo to search our order volume for a product to understand product popularity.

2) Product Competition Analysis

Now you have decided over an idea, and now you need to analyze, who may be your competitors, how would you market product, how the customer would interact with your business, etc

  • Google has major traffic online. So write your product niche in Google & review the first 10-result, which comes up.
  • If you are planning to sell your products in a third country then start analyzing competition using some paid tools (SEMRush, Ahref, SimilarWeb, Alexa, etc), so you can have a clear idea about product searches & related competition in the desired country.
  • These paid tools not only show you search stats but also show you competitor premium ads, social media account, etc also.
  • Even social media platforms can help you to dig more about your niche like your competitor sell over social media using Ads, How many followers they do have, Their customer engagement strategy, etc.
  • Find what’s hot in social media. Use premium tool ‘BuzzSumo’ to find the most sharing content in your niche over social media, so you can get an inspirational idea & save time & money during the content creation process.

3) Find Product Supplier

Finding suppliers in your country made easy with search engines. Basically, you need OEM or Manufacturer so can buy products at wholesale price. So try the following platforms.

  • Supplier from China: You can browse suppliers for Fashion, Electronics, Beauty Products, Home & Tools, etc at china’s largest online wholesale market Alibaba
  • Supplier from India: You can browse hundreds of categories for Indian location at Indiamart
  • Supplier from Europe: You can find trusted suppliers in multiple categories at BigBuy
  • Supplier from USA/Canada: There may be multiple options, but you may start browsing from

Once you are ready with 4-5 suppliers, start contacting them and ask about the important questions like minimum quantity order, shipping timing, refund policy, etc.

Quick Tip: Once you have shortlisting 2-3 suppliers, place a demo order with them & compare the product quality, shipping time, packaging, etc & finalize by keeping your customer in mind.

4) Building Dropshipping Store

Here’s the complete process of building your first dropshipping eCommerce store at low cost:

  • Book a Domain Name: You can use Business Name Generator application to understand the process. Try to book the .com domain if possible. Avoid putting your name in the domain name, because if you sell your business you would need to transfer the rights of using your name legally.
  • Woocommerce or Shopify: For eCommerce store building, you can either use woocommerce, a WordPress-based eCommerce plugin, or Shopify, a subscription-based eCommerce platform.
  • You would need to decide whether to go with woocommerce or shopify, on the basis of the scope of store & investment point of view.

5) Marketing your Business Store

Now you’re ready with your dropshipping business store and marketing or promotion is the next step. Make sure to plan a dropshipping marketing strategy, which is a crucial process. Here are few business marketing ideas that you can use to drive customers to the store.

  • Social Media Advertising: In premium advertising, it all starts from ad testings. Social Media ads are comparatively affordable than search engine ads & convert well if optimized correctly. Create & test regional-specific multiple ads with optimized content: image ratio.
  • Retargeting Ads: Retargeting is the most successful key strategy of online marketing. Retargeting ads help you to retain your visitor back to your business and convert into a customer. You can do retargeting ads on both search engines & social platforms.
  • Influencer Marketing: If you’re a beginner with low money in pocket & can’t afford influencer cost for promotion then ask him to get paid for each sale as an affiliate. If an influencer having real follower’s then they can make more money as an affiliate from your store as compared to the one-time cost.
  • Sponsored Ads: You can avail of sponsored ads at a low cost on related traffic websites. helps to browse through websites with slots for rent as per impressions.
  • Google Display Ads: If your pocket allows, then you should also give a try to Google Display Advertising, which is low cost than Google Text Ads. We recommend consulting a PPC consulting agency before spending money on Google Ads.

6) Performance Optimization

Once you’re done with eCommerce store building and did some marketing for 1-2 months, start analyzing generated stats like visitors engagement sessions, bounce rate, exit pages, ad cost per click(CPC), Campaign ROI, etc.

So you can analyze what’s working and what’s not and scale up the conversion method with more investment.

Besides ad platforms, you can define goals, track organic traffic, etc using Google Search Console & Google Analytics tool. These strategies would help to keep scaling the customer traffic over the website & make a successful eCommerce store in your niche.  

Impact of Covid-19 over Dropshipping Business

The continuous impact of Corona Virus or COVID-19 around the world has made businesses take security measures to keep their working system and customers safe internationally. 

Everybody from Manufacturers, Product Supplier & Logistic Countries are facing disruptions in their operations. 

If you are already in or starting a Dropshipping Business, then the shipping process can be much longer in reaching customers. So let’s see what can you expect and what should you do during this pandemic situation.

If your product supplier has shut down the factory then contact him again whether they have resumed or open their processes. If the supplier has started then confirm the expected delivery time. Make sure to add a couple of days more in delivery while committing to the customer, in case of any disruption persist.

Make sure to provide consistent customer service to your customer, which will be an asset for business repetition from the same customer.

If you’re having any questions related to Dropshipping Business, write us in the comment.


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