The Ultimate Dropshipping Guide for 2024 (From A to Z)

Dropshipping is an exciting way to start an online business.

But, like anything else, it comes with its own challenges. You'll need the right tools, platforms, and strategies to shine.

Whether you're a beginner or an established dropshipper ready to take your business to the next level, this guide will provide you with valuable insights for your dropshipping store.

We'll use clear language, give you actionable tips, and have a bit of fun.

Sounds good?

Awesome, let's dive right in!

What is dropshipping?

We will start with the basics.

Dropshipping is a business model where you don’t keep the products you sell in stock. Nope, there are no massive warehouses or rooms filled with inventory.

Instead, when you sell a product, you purchase it from a third-party supplier, and they ship it directly to your customer:

Here's a simpler way to see it:

1. A customer places an order from your online store.
2. You then forward that order to your supplier.
3. The supplier packs and ships the product directly to your customer.

Some pros of dropshipping include:

• Low start-up costs. You don't need a big budget to start. Without inventory to buy up front, the initial investment is way smaller.
• Flexibility. Want to sell various products? You can! Easily swap out products to find the best sellers.
• Less risk. Without stock to worry about, you're not left with unsold products.

But there are some cons to dropshipping, too. These include:

• Lower control. Since you rely on third-party suppliers, you have less control over stock levels and delivery times.
• Tighter margins. You might find profit margins to be slimmer compared to traditional retail since you're not buying products in bulk.
• Competition. Dropshipping is a popular online business, so there's some competition out there.

In a nutshell, with dropshipping, you handle the storefront and marketing while your supplier takes care of product storage and shipping!

How do you start dropshipping?

Ready to start dropshipping?

Great!

Here's a step-by-step roadmap to starting your dropshipping business:

1. Choose the right dropshipping product. Your first step is all about product selection. With dropshipping, you can sell anything from resistance bands to cat toys.
2. Find a dropshipping supplier. Partnering with the right supplier is essential. They’ll handle inventory and shipping, so ensure your supplier is reliable, delivers high-quality products, and communicates well.
3. Set up an online dropshipping store. Time to set up shop! Platforms like Shopify or WooCommerce simplify this process, letting you create a professional store without requiring technical knowledge.
4. Brand your business. This is where your store gets its unique identity. Design a memorable logo, create a color palette, and establish a consistent tone of voice. Branding helps your store stand out and resonate with your target audience.
5. Set up the legal and financial infrastructure. Before the sales roll in, ensure you’re legally compliant. Register your business, get the necessary licenses, and open a business bank account. Also, set up payment gateways like PayPal or Stripe to handle transactions smoothly.
6. Market your dropshipping business. Every great dropshipping store must be seen before it can generate sales! So, you'll use social media, email marketing, SEO, and maybe even influencer collaborations to reach your potential customers.
7. Grow your dropshipping store. Now that you've laid the foundation, focus on scaling. Regularly analyze your data to find areas of improvement.

Wow, that was quick, right?

However, covering each of these steps in detail isn't the purpose of this article.

If you want to follow this step-by-step process, you should read our article here: How to Start Dropshipping in 2024: Your 7-Step Guide.

Instead, in this article (yes, the article you're reading right now), we will focus on guiding you on each of the four components every successful dropshipping store needs:

• Your product.
• Your supplier.
• Your store.
• Your marketing method(s).

Whether you're taking your first steps now or have been dropshipping for a while, we'll tell you our top tips and make sure you nail each part!

Let's go!

Finding the best dropshipping products

Picking the right product is one of the most important steps in starting your dropshipping business.

Think about it: no matter how good your website looks or how stellar your marketing is, the shopping carts remain empty if your product doesn't resonate with your audience.

Characteristics of a winning product

Discovering that golden product can feel like trying to find a hidden treasure.

To make it easier, you must know what makes a winning product.

Here's what you should look for in a product:

1. 'Wow'-factor. Search for products that make people stop and say, 'I need this!'. Unique, quirky, or innovative products often have this factor.
2. Problem-solving. A product that addresses a specific problem always catches attention.
3. Good profit margins. If you can source the product for a fraction of the price you sell it at, your chances of profitability go up!
4. Not easily found in local stores. If your product is something unique that isn’t sold on every street, online shoppers will turn to you.
5. High-quality. It's not just about selling; it's about selling quality. Products that last and satisfy customers lead to repeat business and great reviews.

4 Winning dropshipping product examples

To give you a product example, here's a pet shampoo brush we found using Sell The Trend:

Let's walk through the criteria together:

1. The 'wow' factor. If you've never seen a pet brush like this, it can make you think, 'Wow, it looks amazing! I never knew a pet brush with a built-in soap compartment existed!'
2. Problem solving. This brush solves the struggle of juggling a soap bottle while shampooing a moving pet.
3. Good profit margins. This product is listed at just $1.20. You could probably get shipping for under $6 when you add shipping. That leaves plenty of room for a great profit margin!
4. Not easy to find in local stores. Customers will probably realize they can't just walk into any local store to pick up this unique item.
5. High quality. If this is a high-quality brush, your customers will be satisfied with their purchase!

And to give you even more inspiration, here are some other examples:

It's fun, and it dances to the music! This cute cactus is a conversation starter and appeals to kids and adults.

These glasses bring the party wherever you go! With bright LEDs and multiple flashing modes, you will stand out in any night event.

No one likes leaving the beach with sand in every nook and cranny. This mat uses clever tech to ensure the sand slips right through, providing a sand-free experience.

If you want to see more examples, check out our list of the best dropshipping products here!

Finding winning products using research tools

Cool products, right?

Now, remember, finding these winning products isn't just luck; it's more about using the right tools:

Tip: If you're feeling overwhelmed with all the options for product research tools, don't hesitate to try out our product research tool quiz!

Since Sell The Trend is our favorite tool, we'll show you how it looks on the inside as an example.

Once you've signed up and logged in, here's the main dashboard you will see:

Now, Sell The Trend has this awesome feature called 'Nexus.'

It's an algorithm that only shows products that are most likely to be winners, which is a fantastic starting point in your product research:

Once you're in the Nexus, it's browsing through the product grid and trying to find one that sparks your interest (remember those five characteristics?).

Now, here's a secret. You don't have to find a product that matches all five criteria to be successful.

For example, a product might not have a 'wow' factor and can be found in local stores. Still, it can be fantastic at solving a significant, common problem and simultaneously have exceptional margins:

So, if a product excels at some characteristics but misses others, it can still do well!

Partnering with the best dropshipping suppliers

Finding that perfect product is just half the battle of the supply side of your dropshipping business.

The other half? Partnering with the right supplier.

Local vs. overseas suppliers

Now, there are two main types of dropshipping suppliers.

First, you have the local suppliers. They are based in countries like the US, UK, Europe, and other locations close to your customers.

Their main selling point? Fast shipping times.

In 2024, customers don't like waiting. The faster you can get the product to them, the happier they'll be.

The trade-off? Local suppliers might have higher prices. But think about it: if a customer receives a product quickly and it's top-notch, they're more likely to return for more.

On the flip side are overseas suppliers, often based in China. Their prices are usually lower but remember, it also means longer shipping times.

Comparing dropshipping suppliers

So, what to do now?

Well, why not try finding your 'winning product' from both a local and an overseas supplier? This will give you a firsthand comparison of prices, shipping durations, and product quality.

Check out this overview table containing today's best dropshipping suppliers:

Supplier	Location	Pricing	Read Review
Spocket	US, EU, CA	$40 / $60 / $100 / $299 per month	Spocket Review
Syncee	US, UK, EU, CA, AUS	$0 / $29 / $49 / $99 per month	Syncee Review
AppScenic	US, UK, EU, CA, AUS	$29 / $59 / $89 per month	AppScenic Review
DSers	China	$0 / $20 / $50 per month	DSers Review
CJdropshipping	China / Worldwide	Free	CJdropshipping Review

For example, let's go back to our winning product example: the pet shampoo brush.

Here's that product on Spocket, a local supplier:

As you can see, the product price is $4.00, and the shipping cost is $4.99.

The product will ship from the United States. The supplier takes one business day for processing, and your customer will get it one to three business days after that.

We also found the product on CJdropshipping, shipping from a Chinese warehouse:

Here, the product price is $0.84, the shipping fee is $4.23, and the service fee is $0.58.

Meanwhile, the processing time is one to three days, while the shipping time is eight to fifteen days.

In summary, here's an overview of the options:

Product: Pet shampoo brush	Spocket (US supplier)	CJdropshipping (Chinese supplier)
Total cost (incl. shipping)	$8.99	$5.65
Total delivery time	2 to 6 days	9 to 18 days

As you can see, the local supplier, Spocket, has a higher product cost but much faster shipping times!

In this case, we would recommend using Spocket as your supplier. You can easily charge $3.34 more for the product if you can deliver it that much faster to your customers!

Deciding on a dropshipping supplier

Before you start a partnership with any supplier, there are some things to check:

• Platform integration. If the supplier connects to your ecommerce platform, it will save you a lot of time on importing products and processing orders. For example, Spocket has an app specifically for Shopify:

• Delivery time. Check their average shipping time. The faster, the better!
• Customer service. A responsive and supportive team can be a game-changer.
• Reliability. Read reviews to check whether other users are happy. If you can, order a sample product.
• Refund policy. Understand their terms. If a customer requests a return, you ideally need a hassle-free return and refund process.

Oh, and here's something you might not know yet:

If you're doubting about local versus overseas suppliers, why not find a dropshipping agent?

These middlemen combine the best of both worlds. While they offer products at prices similar to overseas suppliers, their shipping times are typically faster, giving sites like AliExpress a run for their money!

In the end, whether you go local, overseas, or find a middle ground with an agent, the key is to find a supplier that aligns with your brand's promises!

Choosing the best ecommerce platform and creating a store

You've got your winning product and a reliable supplier.

What's next?

Setting up a dropshipping store where your customers can shop!

And for this, you need an ecommerce platform.

The best ecommerce platforms for dropshipping

Again, we will make it easy for you! Here are some of the best ecommerce platforms for dropshipping:

You need:	The best option(s) for you:
The best platform overall	Shopify
The most flexible and best SEO performance	WooCommerce
The platform that's built specifically for dropshippers	ShopBase
The cheapest option	Shift4Shop (in the US) or ShopBase

Shopify is the best ecommerce platform for dropshipping overall for the following reasons:

• It is really easy to start a Shopify store as a beginner
• It is affordable and scalable
• It offers world-class customer support
• It has the speed and security you need
• It offers marketing and SEO tools
• It is mobile-friendly
• And lastly, it provides resources and apps specifically for dropshipping stores!

Tip: Have you already created your Shopify account? If not, sign up by clicking this link here to get a free 3-day trial + 3 months for $1 each!

If you don't know which ecommerce platform is best for your business, we also have a quiz for you!

Tips for creating a conversion-optimized dropshipping store

Once you've chosen your platform, the real fun begins: designing your store.

But this isn't just about aesthetics; it's about building a conversion magnet.

So, what are the crucial elements of a dropshipping store that generates sales?

• Trustworthiness. A professional-looking site garners more trust. High-quality images, well-written product descriptions, and a clear return policy are vital.
• Loading times. No one likes waiting, right? Optimize images and leverage caching to speed up page load times.
• Mobile optimization. About 59% of web traffic comes from mobile, so your store should look and function perfectly on mobile devices.
• Clear call to action (CTA). Guide your visitors. Whether it's 'Add to Cart' or 'Buy Now,' make sure it stands out.
• Focus on benefits. Don't just list your product's features. Instead, focus on the benefits and tell a story. Why is it awesome? How can it make life better? Keep it lively and straightforward.
• Easy checkout process. Minimize the steps to purchase. The quicker and smoother the checkout, the better.
• Payment gateways. Everyone has a favorite way to pay. From credit cards to online wallets, give your customers payment options!
• Product reviews. Let your customers do the talking. Reviews are like personal recommendations, and they build trust like nothing else.

Tip: Check out the 24 most common Shopify store mistakes and tips here!

Once you've got the basics right, you can improve your store even further.

Here are some more advanced tricks to optimize a dropshipping store:

• A/B testing. Regularly run A/B tests on product pages to identify which elements maximize conversions.
• Urgency & scarcity. Use apps to display low-stock warnings or countdown timers for special deals. (But make sure it doesn't look spammy.)
• Exit-intent popups. Implement popups that trigger when visitors are about to leave. Offer them a discount or ask them to join a newsletter to re-engage them.
• Using ChatGPT. From improving product descriptions to researching your audience, there are many ways to use ChatGPT for your dropshipping store!
• One-click upsells & cross-sells. After a customer decides to buy, offer complementary products or upgrades. Since they've already entered their payment details, adding an item can often be a one-click action using an app like ReConvert.
• Optimize for international sales. If you notice traffic from various countries, consider offering multi-currency checkout and multiple translations of your store.
• Loyalty & referral programs. Reward repeat customers with points or discounts. Also, encourage them to refer friends by providing incentives for referrals.
• Abandoned cart recovery. Use automated emails, retargeting ads, or even SMS messages to remind customers of products they left behind, possibly offering a small incentive to finalize the purchase.

Before we wrap up, here's a golden nugget just for you: When setting up your store, always put yourself in the customer's shoes.

Test your site's flow, make a purchase, and note down anything that didn't go super smoothly. You can also ask a friend or relative to do this, after which you can analyze their behavior and feedback.

Which apps do you need for a dropshipping store?

Before you start thinking about attracting customers, you'll have to add some apps to your dropshipping store.

Almost every dropshipping store uses apps, as they can transform a basic store into a professional one.

Here are some suggestions for apps you should consider:

1. Apps to connect with your supplier

Having an automated link with your supplier makes many things a lot easier.

All of our top five dropshipping suppliers listed earlier (Spocket, Syncee, AppScenic, DSers, and CJdropshipping) have apps available on the Shopify App Store:

Exclusive Syncee Offer for Shopify and Wix users: Use DoDropshipping10 during checkout to enjoy a 10% off on the Pro, Business, Plus Marketplace plans. This offer is valid with your first subscription plan and for a limited time. Don't miss out!

2. Apps as part of your marketing strategy

You can improve your marketing with apps designed to attract, engage, and retain customers.

Here are our favorites:

• Omnisend. A one-stop app for all your email marketing needs, from newsletters to abandoned cart reminders.
• Plug In SEO. This app checks your Shopify store's SEO health and helps optimize search rankings.
• UpPromote. For your affiliate marketing strategy. (Remember our tip about loyalty & referral programs?)

3. Apps to add store features

As you build your store, you'll probably want to add features like reviews, FAQs, and GDPR compliance to improve user experience:

• Loox. An app to add reviews to your product pages.
• HelpLab. To add FAQ sections to your store.
• Pandectes GDPR. To make your store GDPR compliant.

4. Apps to boost sales

Every dropshipper's dream? Maximizing sales.

Thankfully, there are apps to help you with that:

• ReConvert. Enable post-purchase upsells and cross-sells.
• Free Shipping Bar. Encourage customers to add just a bit more to their cart by offering free shipping thresholds.

Lastly, while it's tempting to fill your store with apps as if it's a free buffet, here's a word of caution: Too many apps can be bad.

Why?

• You'll slow down your store. Each app adds some load time. A sluggish site can deter customers, remember?
• Complications. More apps mean more potential glitches and bugs.
• Cost. Oh, yeah, not all apps are free, which means those monthly fees add up. So, ensure every app you choose genuinely adds value.

When it comes to apps, it's about quality over quantity!

The best marketing methods for dropshippers

Now, you've got a dropshipping store, but how do you ensure people find it?

That’s where marketing comes in.

Overview of marketing methods

In today's digital world, there are plenty of ways to let your brand shine.

The most popular way to market a dropshipping business is through social media.

Platforms like Instagram, Facebook, and TikTok are fantastic to showcase products, share customer reviews, and engage directly with your audience.

Here is an overview of what marketing methods fit you:

Learn more: Marketing for Dropshipping: How to Pick the Right Method

Creating the perfect ad

With your marketing methods chosen, it's time to start advertising.

As you gain more experience in marketing, one thing becomes clear: visuals matter. As the saying goes, 'A picture is worth a thousand words.'

When you're battling for your audience's attention, the looks of your ad are essential. Here are some tips to optimize it:

• High-quality images. Crisp, clear product images can make a world of difference. Consider investing in professional photography or quality graphic designs.
• User-generated content. Real users showing your product can be really powerful.
• Consistent branding. Keep a consistent color scheme, font, and tone.

After the visuals catch someone's attention, it's the written word that persuades.

Writing the ideal ad text is an art in which you must balance being informative, engaging, and concise.

Here are some components of a strong ad text:

• Catchy headlines. The attention span on social media is about two seconds. So, start with a headline that sparks curiosity.
• Clear value proposition. What makes your product unique? Why should someone buy it?
• Strong CTA. Don't leave your audience hanging. Direct them with a clear 'Shop Now,' 'Learn More,' or 'Grab Yours Today.'
• Keep it concise. Ad space is limited. Avoid jargon or overly technical language.

Lastly, always, and we mean always, keep your target audience in mind.

Understand their pain points, desires, and behaviors.

Write your message to resonate with them.

For example, as mentioned, it's generally better to avoid jargon or technical language.

But if your audience loves using that kind of language? Go for it!

A generic strategy will get lost in the noise, but a tailored one? That's where the magic happens!

5 Common dropshipping mistakes

Starting a dropshipping store is much like setting out on any new journey.

It’s exciting but easy to trip over a few stones along the way.

But guess what? Mistakes are the best teachers!

Here are some of the most common dropshipping mistakes:

1. Not treating dropshipping as a real business

Here's the truth: dropshipping won't make you a millionaire by next Tuesday. And it probably also won't make you any money by next Tuesday.

Sure, the internet is full of success stories, but behind each one (if they're real in the first place) is hard work, research, and patience.

So, treat your dropshipping store as the serious business it is, and be prepared for both ups and downs.

Learn more here: Dropshipping: A Real Business, Not a Get-Rich-Quick Scheme

2. Rushing the product selection

It's tempting to dive head-first into the first cool product you stumble upon.

But remember, a rushed choice can lead to difficult times down the road.

So, take the time to research and honestly evaluate the product's potential.

Learn more here: How to Choose What to Dropship: Finding the Right Products

3. Not having a pricing strategy

Imagine selling gold for the price of chocolate. Sounds crazy, right?

Equally crazy is setting prices without thinking.

While it might be tempting to slap on a high markup and dream of the profits, or race to the bottom to beat every competitor, neither is a strategic move.

So, don't just pick a random number. Understand your audience, work on your product's perceived value, and make sure you're making a profit after all expenses!

Learn more here: Dropshipping Pricing Strategy: The Definitive Guide (2024)

4. Ignoring customer service

In a time when consumers can (and do!) tell about their experiences globally, neglecting customer service is like pouring cold water on your fiery ambitions.

So, always try to answer their questions, solve their problems, and keep them updated, especially about when they will get their cool products delivered.

Learn more here: Customer Service for Dropshipping Stores – Complete Guide!

5. Not doing any retargeting

So, a visitor looked at your product but didn't purchase it? It doesn’t end there!

Maybe they got a phone call, or their cat knocked over a vase.

With retargeting, using little reminders like ads or emails, you can bring them back. It's like saying, 'Hey, remember that cool thing? It's still here!'

Learn more here: Facebook Ad Retargeting for Dropshipping: A Beginner’s Guide

Summary

Before we go to the conclusion, we've created a quick summary of this article for you, so you can easily remember it:

• Dropshipping is a business model where the seller doesn't keep products in stock but purchases them from a dropshipping supplier only after an order is placed.
• Want to start dropshipping? You'll need to pick a product, find someone who sells it (that's your supplier), set up an online shop, do your marketing, and then watch your store grow.
• Wondering what to sell? Look for products that make people go 'Wow!', solve problems, have a good price tag, aren't seen everywhere, and are of top quality.
• Comparing suppliers is essential, considering factors like connection to your ecommerce platform, delivery time, customer service, and refund policies.
• Top ecommerce platforms for dropshipping include Shopify, WooCommerce, Shift4Shop, and ShopBase.

Conclusion

Alright, let's wrap things up!

After starting a dropshipping store, you'll experience highs, lows, surprises, and lessons around every corner.

The one thing you have to remember is that every step counts.

So, as you move forward, keep learning and remember: you've got this!

Good luck with your dropshipping store, and let us know in the comments below if you have any questions!

Want to learn more about dropshipping?

Ready to move your dropshipping store to the next level? Check out the articles below:

• 9 Tips to Learn Dropshipping Faster (Without a Course)
• The 40 Most Insightful Dropshipping Statistics in 2024
• The 17 Top Dropshipping Store Examples (Get Inspired Now)

Plus, don’t forget to check out our in-depth guide on how to start dropshipping here!