Dropshipping Business in 2020

Nowadays, more and more people utilize the web to discover Helium 10 coupon and  purchase goods instead of going to a physical store. If you are interested in putting up your online store, then you should learn more about drop shipping.

This guide will walk you through all the things you need to know and do in order to start a dropshipping business.

Step 1: Get on With the Necessary Paperwork

Generally, all types of businesses need to comply and go through the necessary steps to start operating. Dropshipping, alongside other business ventures, has to acquire the following:

  • Business name and DBA registration
  • Business Structure: LLC or Sole Proprietorship
  • Employee Identification Number
  • Business Permits and Licenses (this depends on where you live and what type of products you are selling)

Aside from the general operating permit your state requires you to get in order for your dropshipping business to operate, you may also be required to acquire the following business licenses:

  • Seller’s Permit
  • Sales Tax License
  • Home Occupation Permit (if you are running your business at home)

Step 2: Analyze a Market and Choose the Right Niche

In order to successfully market your dropshipping business, you will need to come up with your target demographic and identify which type of products are they most likely going to be interested in purchasing.

  • To find the right niche for your dropshipping business, follow these steps:
  • Consider your interest as it is easier to sell the products you are knowledgeable of.
  • Focus on a specific subset of people you want to sell your products to. For example, people who do Yoga, Pilates, or people who are into working out.
  • Keyword research can help you identify the right niche. Google AdWords can show the search volume for a product you would like to sell.
  • Search the web and Social Media channels for current on-demand products.
  • Once you figured out the right market, the next step is to see if the concept you have in mind can bring profitable results.

Step 3: Find a Supplier

There are numerous suppliers of products out there for drop shippers. Basically, you have two options when looking for the right supplier.

  • Dropshipping marketplaces – These suppliers are businesses operating solely for the purpose of working with drop shippers. Some of the most popular dropshipping marketplaces are AliExpress, Oberlo, Dropship Direct, and Wholesale 2B.
  • Importers and manufacturers – Working directly with importers and manufacturers is the best way to maximize your profits since you no longer need to pay the service of a middle man.

Step 4: Set Up Your eCommerce Website

Now that you identified your target market and found the right products’ supplier, the next thing you need to do is build your eCommerce website for your drop shipping venture. You can create a store on eCommerce websites such as eBay or Amazon or set up your own website through a platform provider such as WooCommerce or Shopify.

Step 5: Optimize Your Website

In order to bring in customers to your dropshipping e-store, you will need to optimize your site. Website optimization can be done through email marketing, social media marketing, blog posts, paid ads, and more. Basically, you’ll have to utilize all possible means through the web in order to drive your target demographic to visit your website and possibly make a purchase.


Now that you have a general idea of how to start a dropshipping business, you should be able to comply with the necessary steps and requirements in no time.

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