Step-By-Step Guide To Start A Shopify Dropshipping Store


Are you interested in starting your own business but don’t want to deal with the hassle of managing inventory and shipping products? Consider starting a dropshipping business! With this Shopify dropshipping store model, you can sell products without physically handling them. Sounds too good to be true?

In this guide, we will provide you with a detailed step-by-step process to help you start a thriving dropshipping business.

But first, let’s find out what exactly dropshipping business is.

What is Dropshipping?

Dropshipping is a business strategy where store owners don’t keep products in stock. Instead, they purchase goods from other stores and sell them to customers. This method is perfect for entrepreneurs who want to start their businesses without inventory management or a distribution system. Drop shipping is a popular option for businesses of all sizes, offering numerous benefits over traditional retailing.

8 Steps to Start a Dropshipping Business

Below are some steps that you need to follow when starting a Shopify dropshipping store:

1. Develop a competitive business concept

First, you must develop a central concept as the focal point for your brand, content, and product collection. This concept can stem from your interests or be inspired by current sales trends.

As a dropshipping seller, you can brainstorm and explore various ideas, adjusting and improving your business as you progress. The beauty of dropshipping is that you’re not limited by costly inventory, allowing you to make changes at any point in your journey.

Here are some examples of a niche dropshipping store:

  • Fitness equipment for exercise enthusiasts
  • iPhone covers for iPhone users
  • Beauty and skincare products for skin lovers, etc.
2. Analyze your competitors

After identifying the products you intend to sell to your customers, the next crucial step is to research your competition and gain insight into their business practices. Your competitors may have insights into achieving business success and can assist you in developing a robust marketing plan for your dropshipping business.

Here are the best ways to research your competitors:

  • Run a Google search: When researching your competitors, search engines like Google can be helpful. Enter key search terms, such as “iPhone cases,” and review the top 10 results to identify your top five competitors and learn about their product promotions. To narrow your focus to a specific country, consider using a third-party tool such as Ahrefs or SEMRush to gather keyword data for that region.
  • Go through social media: Check out Facebook ads related to your niche and the top brand in the market. Look at how businesses connect with their audiences, check their feed designs, etc. Apart from this, you can also follow their feed and get new ideas.

All in all, this information will help you to stand out from other competitors and improve your social media marketing techniques.

3. Select a dropshipping supplier

You need to choose a dropshipping supplier to create your successful dropshipping business. Without a supplier, you could not ship your products to your consumers; as a result, it no longer exists.

Simply put, you need to examine what products you want to sell and hire a reliable supplier who gives you high-quality services and helps you to grow.

4. Develop your eCommerce store

The next step is to start a dropshipping store in Shopify. In Shopify dropshipping stores, you can sell many products, send traffic, and process payments.

Shopify helps you to make your perfect eCommerce website, find a domain, and add marketing plug-ins. It is one of the best platforms that allow you to sell your products in different places, in multiple currencies, and easily handle and accept multiple payments.

You can hire the best Shopify designer and developer to create your best eCommerce store.

5. Decide on a business structure

You’ll want to set up a legitimate business entity if you’re serious about your venture.

  • Sole proprietorship

Implementing this structure is easy but doesn’t protect your personal assets. The filing requirements are minimal; you must report your business earnings on your personal taxes. You don’t need to file any other state or federal business documents.

  • Limited liability company (LLC)

Forming an LLC can better safeguard your personal assets by legally establishing your business as a separate entity. Although it’s not entirely foolproof, it offers more protection than a sole proprietorship. Additionally, you’ll need to meet specific filing requirements and pay incorporation and ongoing fees.

When deciding on a business structure, seeking advice from a lawyer is recommended. Typically, small business owners choose between a sole proprietorship or an LLC.

6. Organize your finances

One of the common mistakes that every business owner may make is combining their personal and business accounts. This can create confusion and make your accounting difficult.

To avoid such mistakes, you need to create your new business account and open the following things:

  • Credit card: It is advisable to procure a business credit card only for business-related expenses and purchasing inventory for dropshipping. By doing so, you could earn significant rewards using the appropriate rewards travel cards, mainly since you will procure a large quantity of merchandise from suppliers.
  • Local business license: To operate a business, most cities and towns need a business license that must be renewed. However, the rules may vary for dropshipping eCommerce businesses. It is essential to research your local laws and regulations to determine if any requirements apply to your business.
7. Market your dropshipping store

Now you understand how to start a dropship Shopify store, it’s time to discuss marketing it. You must make the perfect marketing and advertising strategies to stand out from other marketers.

Here are some ways that you should know about:

  • Paid ads: When it comes to advertising, Facebook ads have the potential for growth, can yield positive results, and effectively cater to people’s impulsive buying tendencies. Alternatively, you can opt for Google Shopping Ads targeting specific long-tail keywords, often leading to more purchases. While Google ads may come with more price competition, it could be a good idea to try them out and see if they work for you.
  • Influencer marketing: As a beginner, you may have a limited budget to market your business. Influencer marketing is one of the best techniques to reach a wider audience because people can easily trust it rather than traditional advertising.
  • Content strategies: If you want long-term traffic to your Shopify dropshipping store, choose the content marketing strategy. Make content relevant to your audience and help them understand your business.
8. Examine and improve your offering

Once you have been marketing and managing your dropshipping business for a while, it is essential to evaluate the outcomes of your efforts. Shopify analytics offers valuable insights to answer crucial questions about your online store, such as:

  • Sales: What are your best sales channels?
  • Shoppers behavior: Are your customers buying more from mobile devices or desktops?
  • Profit margins: What are your monthly sales and gross profits looking like?


After going through all the steps mentioned in this guide, it is clear that starting a dropshipping business is not easy but can be highly rewarding if done right. The most important things you need to remember are finding the right niche, selecting reliable suppliers, and creating an attractive website.

In addition, it is crucial to focus on marketing and customer service to build a loyal customer base. With hard work and dedication, you can take your business to the next level. If you need any help, feel free to contact us!

And before you sign off, you might also love to read our detailed blog on How To Sell Worldwide Via Shopify – A Complete Guide

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