How To Start a Dropshipping Business: 9 Essential Steps (2026)

Dropshipping is a low-risk way to sell products online. Follow these nine essential steps to start your dropshipping website.

Starting a dropshipping business is an accessible path to entrepreneurship.

When a customer orders from your dropshipping store, your supplier ships the product directly, so you don't need to hold inventory or manage shipping.

Follow these nine steps to get your dropshipping business off the ground.

1. Decide if dropshipping is the right business model

Dropshipping is just one way to run an online store. Before diving in, make sure it fits your goals.

It suits people with marketing skills who want to run a store with little upfront investment. Since you don’t need to stock products, you can launch quickly with just a supplier and a store.

However, dropshipping has downsides: you may have less control over product quality, and competition can be fierce since others might sell the same items.

If your main focus is marketing—not developing unique products—dropshipping could work well for you.

2. Choose a dropshipping niche

A niche is a specific segment of a market. Choosing one helps you target the right customers and tailor your brand and product selection.

You can pick a niche based on:

Use tools like Google Trends, Facebook Audience Insights, or Keywords Everywhere to research keyword demand. Check for trends with consistent or growing popularity.

You can also do product research with dropshipping apps that show order volume and demand. Combining keyword and product research gives you a clear picture of a profitable niche.

3. Research competitors

Studying competitors helps you understand your market and spot opportunities.

Ways to analyze competitors:

Keep your research in a spreadsheet for easy tracking.

4. Choose a supplier

Your supplier handles sourcing, packaging, and shipping, so pick one carefully. Check for:

If sourcing internationally, learn about import tariffs and shipping codes to avoid surprises.

5. Select products and set prices

Curate a small, focused catalog that fits your niche and customer interests. Order samples before listing products to ensure quality.

When pricing:

  1. Calculate all costs (supplier price, shipping, ads, etc.)
  2. Set a profit margin that keeps you competitive

Always compare with similar stores to balance value and profit.

6. Build an ecommerce store

Your online store is your brand’s home. Use a clean layout with fast checkout and strong product pages.

Include:

Dropshipping apps can automate adding products and processing orders.

7. Decide on a business structure

Common options include:

Most US businesses also need an EIN (Employer Identification Number) for taxes and banking.

8. Set up finances

Keep business and personal finances separate.
Do this by:

9. Market your dropshipping business

Once your store is ready, focus on bringing in traffic. Try:

Common dropshipping mistakes to avoid

Start your dropshipping business in 2026

Dropshipping makes it easier than ever to start selling online. With the right research, supplier, and marketing plan, you can grow your store and build a sustainable business.

Reference: Shopify Blog