fbpx
Start a Dropshipping Business
Reading Time: 6 minutes

How to Start a Dropshipping Business in 2021?

Start a scalable online business and reach your entrepreneurial potential with Shop1’s suite of American suppliers and e-commerce website templates. Before you get started, read on to learn how to dropship successfully using our tried and tested tips. 

What is Dropshipping?

You Don’t know what is Dropshipping? that’s ok! read What is  Dropshipping article to know about it. In the rest of this article we’re going to teach you how you can start your Dropshipping business just in 5 step, and at the end we have a surprise for you. 

Start a Dropshipping Business

Start a scalable online business and reach your entrepreneurial potential with Shop1’s suite of American suppliers and e-commerce website templates. Before you get started, read on to learn how to dropship successfully using our tried and tested tips. 

Step 1:
Find Your Niche & Choose Your Products
Best dropshipping products

Choosing a niche is the first step to starting a dropshipping business. A niche is a segment of a market, and the more specific it is, the better. The rising popularity of dropshipping makes it harder to find niches that aren’t already saturated.

When choosing a niche, ensure that it is profitable. Ideally, you want a profit margin of at least 40% after shipping costs, seller fees, and taxes, but you should be aiming for margins of 100% or more.

Once you’ve chosen your niche, it’s important to know what to look for in products so you can fill your store with best the sellers. Know the kind of that products sell so that you can set yourself up for success. Make sure to research your competition to give yourself an advantage. We suggest selecting products that are consumable, replaceable, or disposable with wide profit margins.

Learn more about the best dropshipping products here.

Step 2:
Find a Supplier (if you're not using Shop1)
how to find dropshipping suppliers in usa

For those starting a dropshipping business, finding a reliable supplier is the hardest part. You rely on suppliers to keep your product in stock, uphold product quality, and ensure orders are shipped to your customers in a timely manner. As a dropshipper, your supplier is your most important business partner.

At Shop1, we make this step a little easier for you by finding and vetting US-based suppliers to maximize product quality and reduce shipping times. With your potential customers being in the US, providing them with a seamless shopping and delivery experience is essential for long-term business success.

We also pay the fees for B2B only suppliers, so you don’t have to. We organize and update supplier product files into the system for accurate stock counts at any time. If you have any supplier issues, we’ll take care of them.

we suggest you read this article : How to Find Dropshipping Suppliers in USA

Step 3:
Get a Sales Tax ID

If you’re setting up your business in the US, you’ll need to get a sales tax ID to start selling products legally. Sales tax is a tax added to all sales of physical goods and is typically about 6-9% of the sale price. The sales tax amount varies based on the sale price and the state the customer is shipping to. Each state has different state tax regulations. Businesses usually pass on this expense to consumers by adding it to the retail price. 

Most states require online retailers to have a tax ID, but there are some exceptions, including Alaska, Delaware, Montana, New Hampshire, and Oregon. To apply for a tax ID, you will need to visit your local county clerk’s office in-person or online. Rest assured, we can help you manage all your sales tax requirements, making sure no detail is overlooked. 

Step 4:
Create Your Marketplace
Optimization Dropshipping​

So you’ve decided on a product, and you’ve lined up a supplier – now you need a place to start selling and making money. Your revenue will depend on the market value that you will create over time. Make sure the products displayed on your homepage have competitive prices but don’t undercut your profits. You can set up your profit margins on your Shop1 store dashboard.

Choose from one of our many template options and customize your site with features that will give your marketplace a unique look tailored to your tastes and needs. Shop1 is the most affordable, comprehensive, and beginner-friendly option on the market for dropshippers of all experience levels. When you choose us, you get a single platform that can create a popup store within minutes without needing any plugins for added functionality. 

Unlike other more expensive platforms, we only charge a single monthly fee. That fee includes all supplier, processing, and royalty fees. Free shipping is also available to business-tier memberships, allowing you to maximize sales and conversions. 

We even handle all returns, which are often the most complex part of the dropshipping business. Once an item is returned, it’s been with someone else, classifying the product as used, meaning some suppliers won’t take it back. Shop1 handles this process for you so you aren’t stuck with the returned merchandise and can keep on selling. This way, you won’t ever have to see or handle the product, and instead, our platform will take care of it for you.

Step 5:
Market Your Online Store
advertising dropshipping

Now that you’ve set up your online store, you need to attract customers to it. This is where an effective marketing strategy comes in. Advertising and marketing don’t have to be expensive. 

Suppose you don’t want to spend that much money on acquiring new customers. In that case, you can take the slower route of marketing through various blogs relevant to your niche, organic social media marketing, and even email marketing.

Start promoting your site to your current customers and new clients as well. The more people you talk to about your marketplace, the more business you will have. The key is to stay on top of your promotional efforts. Refine your ads, run contests, and market like crazy.

Now It's Time for Shop1's Surprise

You can create an eCommerce website with a thousand amazing products and start your Dropshipping business in less than a minute! Shop1 will do all the rest, and you have to just focus on selling and growing.

Dropshipping Business

Let Shop1 Be Your Reliable Dropshipping Partner

Easy Payment Integration

We make it easy for your customers to make their payments. No need to set up additional functionality with a built-in payment system!

A Stylish Online Store

With tons of themes and styles to choose from, your Shop1 store is bound to stand out from its competition!

Access To The Best American Suppliers

We’ll vet and manage only the best suppliers to make sure you don’t have to deal with overwhelming paperwork or fall into bad scams.

Regular Inventory Syncs

Consistently updated inventory information based on supplier information. We update records usually twice a day.

Automated Fulfillment

Once it’s set up, it’s all on autopilot! No need for you to get involved. Keep marketing your products and watch the sales roll in.

Extensive Training

Use our tried and tested step-by-step training videos made by experts to get your first dropshipping store set up and ready to go!

Packages

Starter
$ 39
99
Monthly
  • Product Limits:
    500
Entrepreneur
$ 59
99
Monthly
  • Product Limits: 10,000
Business
$ 149
99
Monthly
  • Product Limits: Unlimited

Your Top Choice For Starting a Dropshipping Business

With over XX years of experience, Shop1 helps new entrepreneurs build their dream store and turn it into a profitable business. With a focus on the American dropshipping market, Shop1 handles the back-end tasks for you so that you can focus on selling and promoting your website.

Shop1

Sign Up Today

Now that you know how to start a dropshipping business – check out our free trial to get full access to your website and our entire catalog of products. Use a dropshipping platform that truly enables you to succeed in today’s competitive American online retail industry.

no credit card required

Related Post

Leave a Comment

This site uses Akismet to reduce spam. Learn how your comment data is processed.

© 2020 Shop1. All rights reserved.