Dropshipping FAQ: Get Your Concerns Answered

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Are you looking to start a dropshipping business but have some questions and concerns holding you back?

Get all your questions answered in this comprehensive dropshipping FAQ. I hope you’ll be able to clear up some of your concerns and start your dropshipping journey.

What is dropshipping?

Dropshipping is a type of eCommerce business where you as the seller of a product, do not keep goods in your warehouse but transfers the customer’s orders and shipment details to the dropship suppliers who now ship the goods directly to your customers.

You can read more about what is a dropship business here.

Is dropshipping legal?

Nothing is illegal about dropshipping. In fact, it is the same as a normal retail business. The only difference is that your supplier is handling the shipping for you. There is no law against the dropshipping business model.

However, some eCommerce platform may prevent their seller to dropship products in their platform such as Amazon. i.e if you plan to sell a product that you dropship in Amazon, then your account may get banned from Amazon.

But if you are planning to dropship with your own eCommerce store (which you really should), then there are no restrictions at all. You have full control and ownership of your own eCommerce store.

Is dropshipping worth it in 2019?

The answer is a definite YES! It is still a very profitable business model. But this doesn’t mean it is a sure win business.

Honestly, there is no sure win business or business that you can earn a lot without doing much work. But with the right strategy and guidance, you can increase your success rate tremendously.

Do you need money to dropship?

YES! You need money to start any kind of business. If someone tells you that you can start a business with high potential returns and zero startup capital, then that is most probably a scam.

BUT… you do not need a lot of money to start a dropship business. Read the next FAQ to learn how much money you’ll need to start a dropshipping business.

How much does it cost to start dropshipping?

Here’s a simple breakdown of the kind of cost you’ll need to start:

  • Domain Name ($10/Year): This is the identity of your online eCommerce store which your customer can access through the internet
  • Hosting Server ($60/Year): This is what you will need to host and store your online store on the internet
  • Dropship Store Creation ($0 if you build it yourself): This is where you need to build a functional dropship eCommerce store to sell and receive payment from your customers
  • Marketing (start from as little as $5): This is how you promote your eCommerce store and bring potential customers to your store. There are a lot of cheap marketing options available such as Facebook, Google, etc.

So how much is your startup capital? It’s just $70/Year!! What other businesses can you start with such a small amount?

Marketing is probably the biggest amount you’ll need to spend. But if you can spend $1 and make $2 out of it, then how much are you willing to spend on marketing? I’d spend as much as I can 🙂

How to start a dropshipping business?

To start a dropshipping business, you’ll need to do some initial preparations such as:

  • Niche Research: Research on trending product categories and select winning products to sell (i.e outer space decorations)
  • Get a Domain Name: After selecting your niche, get a domain name that is aligned with your selected niche (i.e outerspacedecor.com)
  • Create a Brand Logo: This is the branding that you will be using throughout your business
  • Get a Hosting Server: This is where you start to build and run your dropship store
  • Import Products: Add all the products that you want to sell into your online store, with a captivating product title, precise product description, and high-quality product images
  • Set Up Payment Gateway: Create and set up your Paypal or Stripe account into your store. This is how your store will accept the payment from your customers
  • Design Your eCommerce Store: Design a professional and trustworthy eCommerce store to encourage your customers to buy from your store
  • Drive Traffic: Start your marketing to drive potential customers to your store (check out my 7 Methods to Drive Traffic to Your Site)

Then just wait for the order to come and start sending them to your dropship suppliers to process and ship it to your customers.

Tips: Check out our service for a complete hassle-free dropshipping business

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