Introduction

where to start drop shipping is the single question that stops many aspiring entrepreneurs before they even choose a product. The practical reality: dropshipping lowers inventory risk but raises supplier, margin, and marketing challenges. Knowing where to begin short-circuits months of trial and error and saves hundreds to thousands of dollars.

This article gives a clear, tactical roadmap for selecting a niche, sourcing reliable suppliers, launching a store, and scaling with numbers, timelines, and tools. Expect concrete checklists, pricing examples, a 90-day launch timeline, supplier vetting criteria, and marketing budgets tied to expected conversion rates. The focus is action: how to set up a legal, profitable dropshipping store, test products with minimal spend, and avoid common supplier and fulfillment pitfalls.

where to start drop shipping is covered here from concept to first sale and early scale, using real platforms like Shopify, WooCommerce, Spocket, AliExpress, DSers, Printful, and ad channels like Meta (Facebook) Ads and Google Ads. Read on for exact steps, tools with prices, common mistakes, and a 90-day plan you can follow.

Where to Start Drop Shipping

Overview - What Dropshipping is, When to Use It, and Basic Financials

Dropshipping is a retail fulfillment model where the store sells products it does not stock. When a customer buys, you forward the order to a supplier who ships directly to the customer. Use dropshipping when you want low startup capital, rapid product testing, or limited warehousing capacity.

Key financial assumptions you should plan for:

Average product cost to supplier: $8 to $25, depending on category.
Retail price range: $25 to $120 for typical impulse or niche gadgets and lifestyle items.
Typical gross margin target: 30% to 50% after COGS (cost of goods sold), shipping, and marketplace fees.
Conversion rate target: 1.0% to 3.0% for a new store; 3%+ after optimization.
Customer acquisition cost (CAC): $12 to $60 per purchase depending on price point and ad channel.

When to use dropshipping:

Testing product-market fit quickly without inventory risk.
Selling wide SKU ranges or niche products with low inventory demand.
Launching complementary product lines for an existing brand before committing to stock.

When not to use dropshipping:

If you need tight control over packaging and branding from day one.
If the product requires warranty, complex returns, or regulatory compliance that suppliers cannot support.
If margins are below 25% after ad spend - scaling will be impossible.

Example numbers for a realistic first-month test:

Store setup: Shopify Basic $29.
App/plugins: DSers free or $19/month; Klaviyo free to $30 for email; Oberlo is discontinued.
Ad test budget: $300 to $1,000.
Expected orders with 1% conversion and 2,000 unique visitors: 20 orders.
If average order value (AOV) $45, revenue = $900; with 35% gross margin, gross profit ~ $315; if CAC $30/order, ad spend = $600, net = -$285 (this shows need to optimize offers and reduce CAC or increase margin).

Business Model and Niche Selection

Choose a niche with demand, margins, and defensibility. Niche selection is the most decisive factor for success in dropshipping because it influences supplier options, customer acquisition, pricing, and repeat-buy potential.

Niche selection framework (use this as a rubric):

Demand validation: Search volume, Amazon/Bestseller ranks, Google Trends rising interest.
Profitability: Supplier cost, shipping cost, target retail price, estimated ad CAC. Aim for a minimum 30% gross margin after supplier and shipping.
Competition and defensibility: Look for niches with at least moderate demand and not dominated by Amazon or huge brands.
Repeat purchase potential: Consumables, accessories, or complementary products can increase lifetime value.

Practical steps with examples:

Shortlist 5 niches in 1 week. Example shortlist: silicone phone wallets, ergonomic mouse pads, keto snacks, LED plant grow lights, dog travel harnesses.

2. Validate demand in 1-2 weeks:

Use Google Trends, Amazon Best Sellers, and eBay completed listings.
Search keyword monthly volumes with tools like Ahrefs or Ubersuggest (Ahrefs pricing starts around $99/month).
Check Facebook interest audiences and cost-per-click (CPC) ranges for niche keywords.

3. Build pricing model per SKU:

Example product: LED plant grow light
Supplier price (AliExpress) $12.50
Shipping (ePacket or ePacket-like) $3.50
Platform fee (Shopify + payment processing) ~3% + $0.30 per order
Target retail price $39.99
Gross margin before ads = (39.99 - 16) / 39.99 = 60% gross margin
Realistic net margin after CAC $25/order = ~5% or negative; needs optimization (higher price, bundle, or lower CAC).

Selection tactics and examples:

Avoid products with complex customs/regulatory needs (e.g., supplements, medical devices, baby car seats).
Lean into products that solve a problem or have strong Instagram/TikTok visual appeal (gadgets, beauty tools, pet accessories).
Test 1 to 3 SKUs first, not a dozen. Focusing reduces ad noise and gives clearer data.

Supplier Sourcing and Relationships

Reliable suppliers are the backbone of dropshipping. Bad suppliers cause late shipments, poor packaging, missing tracking, and chargebacks.

Supplier channels and what they offer:

AliExpress (Alibaba group): Cheap suppliers, high SKU variety, long shipping times unless using ePacket or local warehouses.
Alibaba (trade site): For bulk orders, not pure dropshipping unless supplier offers dropship service.
DSers (dropshipping order manager): Connects AliExpress for bulk ordering; free plan exists, paid plans $19.90+/month.
Spocket: Focus on US/EU suppliers for faster shipping; Starter $24/month.
CJdropshipping: Offers product sourcing, US warehouses, and quality control; charges per service or subscription for advanced features.
SaleHoo: Directory and vetted supplier access; $67/year or $127 for lifetime (pricing varies).
Modalyst: Integrates with Shopify, curated suppliers including name brands; free tier with paid tiers $35+/month.
Printful/Printify: Print-on-demand (POD) for apparel, home goods; no inventory needed, depending on product base price $8-$30.

Supplier vetting checklist:

Shipping times and options: Confirm ePacket or local warehouse availability for target markets.
Sample testing: Order samples to check quality, packaging, and shipping times.
Minimum order requirements: Many offer none for dropshipping, but check for bulk discounts.
Returns policy and damaged items: Define supplier responsibilities in writing.
Communication and English proficiency: Test responsiveness within 24 hours.
Tracking and fulfillment automation: Confirm API or integrations so orders auto-forward.

Practical supplier examples and pricing:

AliExpress seller: 1-week test sample, $12.50 + $4 shipping, sample quality check.
Spocket US supplier: item cost $18, shipping $5, 3-7 day transit within US; Spocket fee $24/month for Starter.
CJdropshipping: sourcing fee may be $5-$15 per product only first time; warehouse shipping $3-$10 depending on weight.

Negotiation tips:

Start with small test orders and then request lower prices for consistent monthly volume (e.g., after 50 orders/month ask for 10% cut).
Ask about private labeling or custom packing after proof of stable demand.
Use DSers automation to bulk place orders but maintain a manual check until trust is built.

Store Setup, UX, and Launch Process

A clear store and smooth user experience (UX) maximize conversion. Use platforms that let you iterate quickly.

Platform choices:

Shopify Basic $29/month for storefront, themes, app ecosystem.
WooCommerce (WordPress): Free plugin but requires hosting ($5-$25/month) and more technical setup.
BigCommerce: $29.95+/month, good for built-in features but fewer beginner apps.
Wix: $27+/month for business plans, simpler DIY approach.

Essential store pages and UX elements:

Homepage with clear value proposition and hero product.
High-quality product pages: 3-5 photos, 1 product video, benefits bullets, shipping timeline, returns policy.
Checkout optimized for conversions: reduce fields, enable guest checkout, show trust badges.
About page, contact page with clear email and phone or chat, and return policy.

Launch process timeline - 30/60/90 day plan:

Days 1-7: Set up legal basics (business registration if required, bank account), choose platform, install key apps (DSers, Klaviyo for email), pick theme.
Days 8-21: Create product pages for 1-3 SKUs, order and review samples, set up payment processors (Stripe, PayPal), and set shipping profiles with accurate delivery times.
Days 22-30: Launch with soft traffic (friends, micro-influencers), set up analytics (Google Analytics, Facebook Pixel), and run initial ad tests with $300-$1,000 budget.
Days 31-90: Optimize creatives, scale winners, refine supplier agreements, implement email flows and retargeting, and expand to marketplaces if profitable.

Pricing and margin rules:

Cost-plus baseline: Retail = Supplier cost x 2.5 to 3 for low-ticket impulse items.
Value-based pricing: If product solves a higher-value pain, you can command 3x to 6x supplier cost.
Consider AOV tactics: bundles, BOGO (buy one get one), shipping thresholds to increase AOV from $45 to $60+.

Basic conversion math example:

Traffic: 2,000 visitors/month
Conversion rate: 1.5% -> 30 orders
AOV: $45 -> Revenue $1,350
Gross margin after COGS/shipping: 40% -> Gross profit $540
Ads spend to acquire 30 orders at CAC $25 -> $750
Net after ads = -$210 -> Need to either improve conversion to 3% or reduce CAC to $10-$15 via organic channels or influencer content.

Marketing, Pricing, and Scaling Strategies

Acquisition channels to test in order:

Organic social (TikTok, Instagram): Low-cost content testing, viral potential; invest time first.
Influencer marketing: Micro-influencers (10k-50k followers) often charge $50-$500 per post; negotiate affiliate deals.
Paid social ads (Meta/ Facebook): Best for visual products; expect $0.20-$1.50 CPC and CAC $20-$60 early on.
Google Shopping and Search: Good for high-intent queries; CPC varies widely by niche.
Email marketing: Use Klaviyo free tier then scale; welcome flows typically convert 2-5% of store visitors.
SEO (search engine optimization): Longer-term; aim for category and buyer-intent content.

Example paid ad budget and expected outcomes (first 90 days):

Month 1: $500 test across 10-20 ad creatives. Expect to identify 1 winner or kill the test.
Month 2: Scale winners to $1,500 with CAC optimization, add retargeting audience sets.
Month 3: $3,000+ if profitable, focus on scaling ROAS (return on ad spend) above 3x.

Pricing strategy examples:

Retail product cost $15, shipping $4, target gross margin 45% -> retail price = $15 + $4 / (1 - 0.45) = $33.64 -> round to $34.99.
Offer free shipping threshold: set free shipping at $50 to increase AOV; advertise shipping included for perceived value.

Retention and scaling:

Implement post-purchase emails immediately: order confirmation, shipping notification, review request. Expect 10-15% second purchase rate in good niches.
Offer subscription or replenishment models for consumables to increase lifetime value (LTV).
Expand supplier base and move high-volume SKUs to forward stock or fulfillment centers (e.g., Amazon FBA or third-party logistics) once monthly order volume exceeds 200-300 orders.

Tools and Resources

Essential tools with pricing and a reason to use them:

Shopify Basic - $29/month: Quick setup, secure checkout, app ecosystem.
WooCommerce (WordPress) - hosting $5-$25/month: Full control, lower ongoing fees if you can manage hosting.
DSers - Free to $19.90+/month: AliExpress order automation replacement for Oberlo.
Spocket - Starter $24/month: US/EU suppliers, faster shipping options.
CJdropshipping - Free to use, variable fees: sourcing and fulfillment with US warehouses.
Printful - No monthly fee, product base costs: Print-on-demand for custom apparel; recommended for low-risk custom products.
Klaviyo - Free up to 250 contacts; then starts around $20+/month: Email and SMS flows.
Google Analytics 4 - Free: On-site analytics and funnel tracking.
Meta (Facebook) Ads - variable: Advertising platform for social and catalog ads.
Ahrefs - $99/month or Ubersuggest - $12/month: Keyword and competitor research.
Stripe - 2.9% + $0.30 per transaction (US rate): Payment processing, alternative to PayPal.
PayPal - 2.9% + $0.30 per transaction (US rate): Broad consumer acceptance but higher dispute risk.

Free or low-cost testing options:

TikTok organic videos: free to post, high potential virality.
Micro-influencers on commission: pay per sale using an affiliate link.
Facebook/Instagram shops: free to list with checkout redirection.

Common Mistakes and How to Avoid Them

Choosing the wrong niche or too many SKUs

Problem: Spreading resources across many products dilutes data and ad budgets. Avoidance: Start with 1-3 SKUs, test hard for 30-60 days, then expand only after clear winners.

Ignoring supplier reliability and shipping times

Problem: Long shipping times create customer complaints and refunds. Avoidance: Order samples, prioritize suppliers with ePacket or local warehouses, show realistic shipping times on product pages.

Underpricing or not accounting for ad costs

Problem: Selling at tight margins without including CAC means negative unit economics. Avoidance: Model expected CAC before launching ads. If CAC > profit per order, reprice, bundle, or target cheaper channels.

Poor customer service and no returns policy

Problem: Negative reviews and chargebacks destroy growth. Avoidance: Create clear returns and refund process, set expectations on shipping, and offer fast, polite support via email or chat.

Relying only on paid ads

Problem: High CAC and platform risk. Avoidance: Invest time in content marketing, email automation, and building organic channels as contingency.

FAQ

How Much Money Do I Need to Start Dropshipping?

A basic test can be started for $500 to $1,500, covering platform fees, sample orders, and initial ad spend. A more comfortable launch budget is $2,500 to $5,000 to test multiple creatives and scale a winning product.

How Long Does It Take to Get the First Sale?

With paid ads and a well-built product page, many stores get their first sale within 1-14 days of launch. Organic channels can take weeks or months. Expect to iterate creatives and landing pages during the first 30 days.

Are Aliexpress Suppliers Reliable for Long-Term Business?

AliExpress suppliers are useful for testing; many are reliable, but quality varies. For long-term stability, move to vetted suppliers, US/EU warehouses, or private-label agreements after you validate demand.

Do I Need a Business License to Dropship?

Regulatory requirements vary by country and state. Many sellers register a business (LLC or limited company) for tax and liability reasons. Check local rules and consult an accountant for tax filing and business structure.

What Margins Do Successful Dropshippers Target?

Successful dropshippers commonly target gross margins of 30%-60% before ads, and aim for a net margin (after ads) of 10%-25%. Achieving this depends on product type, price point, and CAC.

Can Dropshipping be Automated?

Yes. Order management tools like DSers, CJdropshipping, and Spocket automate order forwarding. Fulfillment and returns still require oversight, especially in the first 100-300 orders.

Actionable Checklists

Launch checklist

Register business if required and set up a business bank account.
Choose platform and theme, install DSers/Spocket/CJdropshipping.
Create 1-3 product pages with high-quality images and video.
Order samples from suppliers and confirm shipping times.
Set up Stripe and PayPal, tax settings, and shipping profiles.
Install Google Analytics and Meta Pixel, set up conversion tracking.
Prepare three creatives for paid ads and a 30-day $500 ad plan.

Supplier vetting checklist

Order sample within 7 days to inspect product.
Confirm processing time and shipping options in writing.
Validate tracking updates and packaging quality.
Negotiate price breaks after consistent orders (e.g., 50+ monthly).
Check return and warranty policy; document agreements.

90-Day Timeline Example

Month 1 - Setup and small tests

Complete store setup, create 1-3 product pages, order samples.
Run $300-$1,000 ad test across 10-20 creatives.
Build email welcome flow.

Month 2 - Optimize winners

Increase ad spend on winning creatives to $1,000-$2,000.
Implement retargeting campaigns and collect reviews.
Negotiate better supplier terms if consistent orders.

Month 3 - Scale and diversify

Scale ad budget if ROAS > 3x, shift some SKUs to fulfillment centers if volumes exceed 200 orders/month.
Add new SKUs or bundles based on customer feedback.
Explore marketplaces or international targeting.

Next Steps

Pick one niche and create a short list of 3 SKUs to test. Spend 48 hours researching demand via Google Trends, Amazon Best Sellers, and 3-5 competitor stores.
Choose a platform and set up your store in 7 days. Use Shopify Basic $29/month for fastest setup and install an order automation app (DSers or Spocket).
Order samples from your top 2 suppliers within 10 days to verify quality and shipping times. Use one sample per SKU.
Launch a 30-day ad test with $500-$1,000 across 8-12 creatives, measure CAC, ROAS, and conversion rate, then iterate based on data.

Appendix:

Quick pricing summary (approximate, USD)

Shopify Basic: $29/month
WooCommerce hosting: $5-$25/month
DSers app: Free to $19.90+/month
Spocket Starter: $24/month
SaleHoo directory: $67/year
Klaviyo: Free up to 250 contacts, then $20+/month
Stripe/PayPal fees: 2.9% + $0.30 per transaction (US)
Sample product prices: $8-$25 plus $3-$7 shipping
Initial ad test budget: $500-$1,000 recommended

Concluding structure for execution: pick the niche, validate demand and margins, vet suppliers with samples, set up a lean store, run disciplined ad tests, and scale winners while improving supplier terms and retention.

Where to Start Drop Shipping Practical Roadmap