June 27, 2023
Reading time: 10 minutes

How to Build a Profitable Dropshipping Business

Dropshipping to Success: A Step-by-Step Guide for eCommerce Entrepreneurs

Welcome to the world of dropshipping! Are you ready to start your own online store? We have a step-by-step guide just for you. Dropshipping is a simple and popular way to sell products online. It’s perfect for new eCommerce entrepreneurs.

In dropshipping, you don’t need to stock items yourself. Instead, you work with suppliers who send the products straight to your customers. This means less risk and less work for you. Plus, you can focus on marketing and customer service.

Choosing the right eCommerce platform is crucial for dropshipping success. It helps manage products, orders, and suppliers easily while providing a smooth shopping experience for customers.

In this article, we’ll explain how to set up your dropshipping store. We’ll cover choosing platforms, selecting products, finding dropshipping suppliers, and setting prices. We’ll also give you tips for marketing and managing your store. Follow our guide, and you’ll be on your way to success!

So, let’s get started on your dropshipping journey. With hard work and dedication, you can build a thriving online business. Let’s dive in!

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Dropshipping vs eCommerce

eCommerce is buying and selling things online. It makes shopping easy for people all over the world. Websites, apps, and online marketplaces are examples of eCommerce platforms.

Dropshipping is a type of eCommerce business. The seller doesn’t keep products in stock. When a customer orders something, the seller sends the order to a supplier. The supplier ships the product straight to the customer. This way, the seller doesn’t have to worry about storing or shipping items.

Dropshipping is popular because it costs less to start. It also has fewer risks than other businesses. Sellers can focus on marketing and helping customers. But they must find good suppliers and work well with them. This helps make sure customers get their items on time and are happy with their purchase.

So, is dropshipping eCommerce? The short answer is yes. Dropshipping is one of several eCommerce business models.

Key differences between dropshipping and eCommerce

Below are key eCommerce vs dropshipping differences you should know. 

InventorySeller purchases and holds inventoryNo inventory held by seller
Startup CostHigher due to inventory costsLower, no upfront inventory cost
StorageRequires storage space for productsNo storage needed
ShippingSeller handles shipping logisticsSupplier handles shipping
Product RangeLimited by investment in inventoryWide range, easy to add new products
RiskHigher due to unsold inventoryLower, since no inventory held
Profit MarginGenerally higherUsually lower due to supplier fees
SupplierMay not be involved directlyCrucial for dropshipping success
FocusInventory management, shipping, marketingMarketing and customer service

Case studies: Successful dropshipping and eCommerce businesses and their strategies


  1. MVMT Watches: MVMT started by selling cool watches at low prices. They used social media and worked with famous people. Now they keep their own stock but they started with dropshipping.
  2. Wayfair: Wayfair sells furniture online. They use dropshipping for some items. They offer many choices, good prices, and great customer service. They work with trusted suppliers.
  3. Inspire Uplift: Inspire Uplift offers helpful and fun products. They focus on creating a community of happy customers. They use email marketing, social media, and influencers to grow their business.


  1. Amazon: Amazon is a giant online store selling various products. They focus on a wide product range, fast shipping, and excellent customer service. They also offer services like Amazon Prime for added benefits.
  2. Etsy: Etsy is a marketplace for handmade and unique items. They connect artists and crafters with buyers. Their strategy includes a strong community feel, easy-to-use platform, and support for small businesses.
  3. Zappos: Zappos sells shoes, clothing, and accessories online. They became successful by offering free shipping, easy returns, and outstanding customer service. They focus on creating a great shopping experience.

Dropshipping vs eCommerce: Which Model is Right for You?

Should you open an eCommerce or dropshipping store in 2023? Below are factors to consider when choosing between dropshipping and eCommerce:

Factors to Consider When Choosing Between eCommerce and Dropshipping

  1. Startup Cost: Dropshipping requires less initial investment as you don’t need to purchase inventory. eCommerce may require more capital to buy and store products.

  2. Inventory Management: With dropshipping, suppliers handle inventory, saving time and effort. eCommerce means managing stock levels and storage space yourself.

  3. Shipping: In dropshipping, suppliers take care of shipping, reducing your workload. With eCommerce, you’re responsible for shipping logistics.

  4. Product Range: Dropshipping allows you to offer a wide variety of products without upfront costs. eCommerce may limit your range based on inventory investments.

  5. Risk: Dropshipping has lower risks due to no unsold inventory. eCommerce can have higher risks if products don’t sell.

  6. Profit Margin: eCommerce usually offers higher profit margins, while dropshipping margins can be lower due to supplier fees.

  7. Supplier Reliability: Dropshipping success depends on finding reliable suppliers. eCommerce allows more control over product quality and customer experience.

  8. Business Focus: Dropshipping lets you focus on marketing and customer service. eCommerce requires attention to inventory management and shipping as well.

Advantages and Disadvantages of Dropshipping eCommerce


  1. Low Startup Cost: No need to purchase inventory upfront, reducing initial investment.
  2. Easy to Start: You can quickly launch your store without worrying about inventory management or shipping logistics.
  3. Wide Product Range: Offer a variety of products without investing in stock or storage space.
  4. Flexible Location: Operate your business from anywhere with just an internet connection.
  5. Scalability: Easily expand your product offerings or scale your business without significant additional costs.


  1. Lower Profit Margins: Suppliers’ fees may result in smaller profits compared to traditional eCommerce.
  2. Limited Control: Dependence on suppliers for inventory and shipping means less control over product quality and customer experience.
  3. Shipping Complexities: Different suppliers may have varying shipping times and costs, which could confuse customers.
  4. Inventory Issues: Suppliers may run out of stock or discontinue products without notice, causing potential disruptions.
  5. Increased Competition: The low barrier to entry means more competitors, making it harder to stand out in the market.

Setting up Your Dropshipping eCommerce Business

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Choosing the best eCommerce platform for dropshipping

Your first step is to choose a reliable platform to host your store. You can decide to self-host, but that will be expensive and harder to maintain, especially for a beginner. 

Below is the checklist for picking the best platform:

  1. Easy to Use: Pick a platform that’s simple to set up and manage your store.
  2. Supplier Connection: Choose one that works well with dropshipping suppliers for smooth processes.
  3. Customization: Find a platform with many themes and templates to make your store unique.
  4. Growth Friendly: Ensure the platform can handle more traffic and sales as your business grows.
  5. Pricing: Check the costs of different platforms, like monthly fees and transaction charges.
  6. Payment Options: Make sure it supports popular payment gateways for easy customer checkout.
  7. SEO & Marketing: Look for built-in tools to help you promote your store and get more visitors.
  8. Customer Support: Pick a platform with helpful support through live chat, email, or phone.
  9. Security: Your chosen platform should have strong security features to protect customer data.
  10. Community & Resources: A good platform will have a helpful community and lots of resources for guidance.

Some well-known eCommerce platforms for dropshipping are Shopify, WooCommerce, BigCommerce, and Magento. Use these tips to find the best platform for your dropshipping business.

Selecting profitable products to sell

How do you know if a dropshipping product is a winner? There is a checklist for that too. Below is a guide to help you decide on profitable products to sell on your dropshipping store.

  1. Trending Items: Look for products that are popular and in high demand to attract customers.
  2. Niche Market: Focus on a specific group of customers with unique needs to reduce competition.
  3. High Profit Margin: Choose items with low costs that can be sold at higher prices for more profit.
  4. Lightweight & Easy to Ship: Picking small, light products makes shipping easier and cheaper.
  5. Evergreen Products: Select items that are always in demand, not just seasonal or temporary trends.
  6. Quality Matters: Ensure the products you sell are of good quality to keep customers happy.
  7. Unique Value: Offer products that stand out, have special features, or solve specific problems.
  8. Supplier Reliability: Find trustworthy suppliers with consistent inventory and fast shipping.
  9. Check Competitors: Study other sellers in your niche to learn what works and what doesn’t.
  10. Test & Validate: Test different products to see which ones sell well before fully committing.
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Lacking ideas? Check out our recent post on the 15 best dropshipping products to sell. There are lots of examples there to help you out!

Finding reliable eCommerce dropshipping suppliers

Here’s a simple 5-step guide for finding great suppliers for your dropshipping business.

  1. Research: Search online for suppliers in your niche or use supplier directories to find potential partners.
  2. Check Reviews: Look at supplier reviews and ratings to learn about their reliability and product quality.
  3. Contact Suppliers: Reach out to potential suppliers, ask questions, and evaluate their communication skills.
  4. Order Samples: Test product quality and shipping times by ordering samples before committing to a supplier.
  5. Compare Pricing & Policies: Assess suppliers based on pricing, return policies, and inventory updates to ensure a smooth partnership.

Maximizing Your eCommerce Dropshipping Business’s Success

Strategies for effective product research and selection

  1. Analyze Trends: Stay up-to-date with market trends by using tools like Google Trends or TrendHunter. This helps you identify popular and in-demand products that can attract more customers to your store.
  2. Focus on a Niche: Cater to a specific group of customers with unique needs. This allows you to specialize in particular products, reduce competition, and build a loyal customer base.
  3. Competitor Analysis: Study successful competitors in your niche to understand what products sell well. Learn from their strategies and identify areas where you can offer better value or differentiate your products.
  4. Customer Feedback: Pay attention to customer reviews and feedback on online marketplaces or social media. Use online surveys to collect data. This can help you identify pain points, preferences, and potential product improvements to meet customer needs better.
  5. Test & Iterate: Start by offering a small range of products and analyze sales data to see what works best. Continuously refine your product selection based on performance, market trends, and customer feedback to maximize profitability.

Tips for optimizing your eCommerce store’s design and functionality

Mobile-Friendly Design

Ensure your store is responsive and works well on mobile devices. Many customers shop using smartphones and tablets.

Easy Navigation

Organize your products into clear categories and provide a search bar. This makes it easy for customers to find what they’re looking for.

High-Quality Images

Use professional, high-resolution images for your products to showcase them accurately and attractively, encouraging customers to make a purchase.

Detailed Product Descriptions

Write informative and engaging product descriptions that highlight key features, benefits, and specifications, helping customers make informed decisions.

Fast Loading Times

Optimize your site’s performance by compressing images. You can use a content delivery network (CDN) and minimize scripts to ensure pages load quickly.

Secure Payment Options

Offer popular and secure payment gateways like:

  • PayPal
  • Stripe
  • Apple Pay
  • Gpay

They make the checkout process smooth and trustworthy for customers.

Customer Reviews & Testimonials

Display customer reviews and testimonials to build trust and social proof. This will show potential buyers that others have had positive experiences with your products.

Ways to improve customer satisfaction and retention

Follow these steps to make customers happy and keep them coming back.

  1. Ship Fast: Work with eCommerce dropshipping suppliers who ship quickly. Customers love fast delivery.
  2. Choose Quality Products: Pick suppliers with top-notch products. This reduces complaints.
  3. Offer Great Support: Answer customer questions fast and kindly. Solve problems quickly.
  4. Easy-to-Use Website: Make a simple, mobile-friendly website. Help customers shop with ease.
  5. Clear Communication: Update customers about their orders. Tell them about delays or changes. TrackMage is the best tool to automate this process and provide the best post-purchase experience for your customers.
  6. Good Return Policy: Make returns easy and fair. Customers will trust you more.
  7. Reward Loyalty: Give loyal customers discounts and special offers. They’ll keep coming back.
  8. Listen to Feedback: Ask customers for their opinions. Use their ideas to improve. TrackMage also allows you to automate feedback collection.

Using TrackMage to Streamline Your eCommerce Operations

TrackMage is your go-to eCommerce tracking and analytics tool. Our easy-to-use platform keeps track of shipments and boosts your store’s success. With TrackMage, you’ll enjoy better shipping updates, happier customers, and more sales. This service offers you the chance to grow your eCommerce dropshipping business like never before!


TrackMage offers several features to help Shopify and Woocommerce store owners improve their order tracking, shipping, and customer service. They include:

  • User-friendly dashboard
  • Real-time tracking data
  • Customizable notifications
  • Multiple branded tracking pages
  • Detailed analytics reports
  • Seamless Shopify integration

Testimonials from satisfied users

Metal Family

Alina and Dima

Metal Family Creators

“I can’t remember life before TrackMage.”

We’d like to take this opportunity to remind you about our online store, which heroically survived the sanctions period, largely thanks to the competence of the guys from TrackMage, who are responsible for this site. They fixed every little problem and automated a ton of processes in order to minimize the chance of human error. For example, the address is automatically checked when filling out the order, and if something is written incorrectly, then the error is indicated. Everyone is now receiving notifications about the status of the order and the package. You could say, we’re evolving

TrackMage results:

Returned packages that were not picked up on time:

Before: 1018 After: 77

Undelivered emails:

Before: Every 3d email After: 0

Collected customer reviews: 2150

Michael Orlov

Founder of TopOfArt

“Your system best suits my needs.”

I can say that I checked and tested almost all “tracking systems for e-commerce” on the Internet and finally I selected TrackMage :). Your system best suits my needs, is very clear and most importantly – works (all the tracking numbers I tested, were processed). In a few days I will switch to your paid plan. I will be happy to work with you for many years.


In the end, to build a successful eCommerce dropshipping business, focus on great products, trustworthy suppliers, and top-notch customer service. Optimize your website and use smart marketing tactics. Tools like TrackMage can improve order tracking and boost customer happiness, helping your business thrive.

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