With the development of technology and the proliferation of online stores, dropshipping became the new go-to business for several entrepreneurs looking to start a venture with a low budget. Dropshipping doesn’t require you to have an inventory for the products, which reduces operational costs and help you focus more on customer acquisition. All you have to do is showcase on your website the products of a supplier who ships the purchased product to the customer.


If you are considering dropshipping, follow these 5 steps and put in your hard work and dedication to build a successful business.


  • Choose your product

Choose a niche product and a product that you are passionate about. This will help you better target your customers and work harder on your business. In your selection of the product, you should take into account many factors, including:

  • Higher profits: Low-cost products and higher-priced products require the same marketing efforts. By choosing a higher-priced product you would be generating greater profit.
  • White-label products: Look for a product you can white label. Selling a product as your brand with personalized packaging and branding will have more value.
  • Low shipment cost: If you find a low shipping cost product, you will encourage buyers to get your product and you will have the option to offer free shipping to increase your sales.
  • Appealing products: Your products should not be easily found locally and it should be something that customers are actively looking for.


  • Build your e-commerce website

One of the main assets of a drop shipping business is the online platform/website you use to showcase your products and prices. If you don’t have a tech background, you can use Shopify to get your website up and running in a fast and easy way.


With the website, come the privacy policy, the terms of use, and the return policy which limit your liability as a store, organize your relationship with your customers, and describe how a product can be returned or exchanged. Having a detailed return policy affects the customer’s choice since his/her decision will be highly impacted by whether he/she has a choice to return the product or not. Check out our website package for more details.


  • Set up a business entity to limit your liability

Whenever you decide to start a business, it is important to consider forming a legal structure for that business. This will help you protect your personal assets and separate yourself from your company. Since dropshipping is somewhat a small business, a limited liability company is the best fit for any person considering a drop shipping business in the United States.

Choosing a tax-efficient jurisdiction is also essential to reduce your expenses. Book a consultation with a lawyer through Lexyom to choose the best legal entity and jurisdiction for your drop shipping business.

Lexyom can also help you scale up and set-up your company with a few simple clicks


  • Secure a supplier

This is a core element of your business since the supplier is the one supplying your store with products and the one responsible for shipping the products to the customers.


Conduct proper due diligence on your supplier. Make sure that the supplier has a wide experience in the business, charges reasonable fees, and provides fast shipping options. Communication is another extremely important factor especially when the drop shipping supplier is located overseas. If you are not 100 percent confident in the communication abilities of a potential supplier, do not engage with him/her. Your fellow entrepreneurs can help you in your search. It is therefore always a good idea to ask around and avoid costly mistakes.


  • Good marketing and advertising

With good communication and advertising skills, you can sell almost anything and reach the widest customer platform available. Having advertising skills to persuade a customer of your product is the captivating effect. Consult a marketing expert or get familiar with Facebook ads and social media marketing tools.



Dropshipping requires a lot of hard and comes with many complexities you’ll need to address. However, it also offers a lot of advantages including the flexibility of the location. A dropshipping business can be run from almost anywhere with an internet connection, as long as you can communicate with suppliers and customers easily. Roll up your sleeves and start working because you have no excuse not to be able to start a business while confined at home!