How to start a dropshipping business in 2025

Estimated reading time: 10 minutes

Picture this: You’re running a successful online store, processing hundreds of orders each month, but you’ve never touched a single product. Your customers receive their purchases directly from suppliers while you focus on what matters most—building your brand and connecting with customers. 

For many online sellers, this is reality—and in learning how to start a dropshipping business, you can join their ranks.

Whether you’re looking for a side hustle or a full-time venture, this guide will walk you through everything you need to know to start a successful dropshipping business in 2025.

What is dropshipping, and why try it in 2025?

Basically, dropshipping is retail without the inventory. You list products for sale online, and when someone makes a purchase, your supplier fulfils the order. It’s an ideal opportunity for e-commerce beginners because you don’t need a warehouse or a lot of capital. 

Dropshipping is a popular business model: Grand View Research notes that the global dropshipping market was valued at $365.67 billion in 2024 and is projected to grow at a compound annual growth rate (CAGR) of 22% through 2030. 

Dropshipping eliminates significant barriers to entrepreneurship: You don’t need storage space, large inventory investments or logistics expertise to get started. Anyone can do it.

According to Capital One, nearly 20% of all global retail sales happen online, and over 80% of Americans shop online—so dropshipping offers great potential if you want to start an e-commerce business.  

How to start a dropshipping business in 7 steps

1. Pick your dropshipping niche

Your niche has to feel right for what you want to sell, but there also needs to be an audience for the product. Start with products you know and love, then start doing some digging to find out if there’s demand. 

Some tools you can use for research include:

  • Google Trends: Spot trending products and seasonal interest over time. Good for finding consistent upward trends rather than viral spikes that quickly fade.
  • TikTok Creative Center: Find viral product ideas and analyze what’s currently catching attention. Useful for inspiration and competitive analysis.
  • Amazon Best Sellers: Identify consistently popular products across categories. Great for evaluating what customers are already buying in volume.
  • AliExpress Dropshipping Center: Find hot-selling items directly from suppliers. Offers product performance metrics like order volume and shipping speed.
  • e-Commerce Subreddits (e.g., r/dropship, r/entrepreneur): Tap into real-world conversations, product feedback and niche discovery from other sellers. 
Google Trends search for compression leggings

Search for “compression leggings” via Google Trends

The sweet spot exists where your interests intersect with market demand and manageable competition. Your niche could be something like fitness, home organization, pet care or tech gadgets. 

Before you land on a decision, there are a few more things to keep in mind:

  • Market oversaturation: If you see hundreds of online sellers selling similar products with engaged followers, that’s validation. But if the space is oversaturated with identical offerings, consider a more specific angle.
  • Profit potential: Products priced between $15-$80 often work well for dropshipping because they’re high enough for meaningful margins but low enough for impulse purchases. 
  • Be ready to test: Test your niche by joining relevant Facebook groups, Reddit communities or Discord servers. Listen to what people complain about, what they’re searching for and what problems remain unsolved. 

2. Find reliable dropshipping suppliers

Your supplier is your lifeline. One slow shipment can tank your store’s reputation.

Established dropshipping platforms connect you with pre-vetted suppliers with solid reputations. Domestic suppliers, while more expensive, usually have faster shipping times—which will make customers happy. 

Start your research with the following dropshipping suppliers and platforms:

  • DSers (AliExpress): Good for sourcing a wide variety of low-cost products from AliExpress. Integrates directly with Shopify and automates order fulfillment.
  • Spocket: Good for U.S. and E.U.-based products with faster shipping times. Ideal for targeting North American and European customers.
    Printful: Best for custom print-on-demand products like t-shirts, mugs and wall art. Great for personal branding and made-to-order designs.
  • Modalyst: Best for name-brand and indie fashion products. Offers a mix of U.S. and global suppliers with automated syncing to e-commerce platforms.
  • SaleHoo: Great for vetted suppliers and niche product research. Ideal for beginners looking for trusted sources and educational tools.
  • Wholesale2B: Best for access to millions of dropship-ready products across various niches. Offers integration with eBay, Amazon and Shopify
  • DOBA: A streamlined all-in-one platform with a large product catalog. Great for managing inventory, pricing and order fulfillment from one dashboard
Person modeling a print-on-demand t-shirt

Print-on-demand t-shirt by noodlemie via 99designs by Vista

As you’re evaluating the credentials of a dropshipping supplier, you’ll also want to look for the following:

  • Recent high ratings 
  • Positive reviews about shipping speed, communication and product quality
  • Extensive order histories
  • Detailed product information
  • Multi-year track record of being in business

Make sure to order samples of the products you plan to sell. This will let you verify quality firsthand, understand packaging and presentation, and experience the shipping process your customers will face. 

You can also consider working with multiple suppliers to avoid putting all your eggs in one basket. If your main supplier experiences inventory shortages or quality issues, backup suppliers keep your business running. 

4. Set up your online store

Your online store is your virtual shop window—it has to be attractive and draw people in.

When creating a business website, consider getting started for free with Vista x Wix. You’ll find over 900 templates and step-by-step guidance to set up the perfect e-commerce site. This is a great option for beginners who want to customize their online store with an easy drag-and-drop editor. There are also built-in tools for SEO, workflow management and accepting payments.

Some other platforms to explore include:

  • Shopify: Great for beginners and pros alike with a robust app store, dropshipping integrations like DSers and user-friendly design tools.
  • BigCommerce: Good for scaling fast-growing dropshipping businesses with strong multi-channel selling.
  • WooCommerce (WordPress): Best for full control and flexibility, ideal for users comfortable with WordPress.
  • Squarespace: Best for visually-driven brands that want simple, clean storefronts and basic dropshipping capabilities.
  • Ecwid: Lets you add dropshipping to an existing website or social platform with plug-and-play functionality.
  • Magento (Adobe Commerce): Best for enterprise-level dropshipping with advanced customization and support for large catalogs and complex logistics.

Once the foundation of your dropshipping site is live, it should be optimized for SEO and user experience:

  • Choose a clean template that loads quickly on multiple devices (especially mobile)
  • Display security badges, customer reviews and other trust signals
  • Write a detailed “About Us” page to tell your brand story
  • Write original product titles and descriptions; don’t use stock copy
  • Incorporate relevant keywords in website copy—if your niche is healthy pet treats, for example, use keywords like “all-natural dog treats” to help customers find your product through search
  • Set up essential pages like privacy policies, terms of service and return policies
Online clothing store

e-Commerce store by Wahabcreative via 99designs by Vista

5. Set up finances and business structure

Legal considerations sound scary, but it’s just a few boxes to check. 

Most beginners start out as sole proprietors—it’s free, fast and it’s the most common structure for small businesses in the U.S. The next most common is a limited liability company (LLC), which protects your personal assets if your business gets sued.

Your business structure impacts taxes, liability and growth options. Sole proprietors have less paperwork but just about no legal protection. LLCs cost more upfront, but they legally keep your personal and business assets separate. Sole proprietors report income on their personal tax returns, while LLCs have tax flexibility. Online sellers may also need to collect sales tax in multiple states, even without a physical presence.

You’ll also need to register your business name and get the right licenses. Requirements vary, but online stores typically need a basic license. Some products may also require special permits. Consider reaching out to a business attorney if you need guidance.

6. Market your online store

Once your store is live, it’s time to get the word out—and that’s where small business marketing comes in. In order to start marketing your dropshipping business effectively, you’ll need to:

  • Set up social media profiles: Create accounts on Instagram, TikTok and Facebook. Post product demos, behind-the-scenes content and customer reviews regularly.
  • Partner with micro-influencers: Reach out to influencers with large followings in your niche. Offer free products in exchange for a post or video.
  • Use email marketing: Set up a welcome email and cart abandonment flow using tools like Klaviyo or Mailchimp. Offer a discount to encourage first-time purchases.
  • Run paid ads: When you’re ready to spend some money, use Facebook and Instagram ads to drive targeted traffic to your store. Start small and track which products get the most conversions.

Marketing’s not about big budgets—it’s about smart moves. You’d be amazed how far a little social media marketing alone can take you, and at little to no cost.

Instagram posts for an online store selling hair products

e-Commerce Instagram posts by JѧʏJѧcҡsᎧη™ via 99designs by Vista

7. Prioritize customer service

Customer service is critical to dropshipping success. Send out prompt order confirmation emails, shipping notifications with tracking numbers and delivery confirmations. If customers reach out with questions, jump on a response within 24 hours. Remember: They see you as the face of the sale, not the supplier in the background.

An FAQ section on your website addressing common questions about shipping, returns and sizing can get ahead of many customer issues. This reduces your workload, too, saving you time spent responding to inquiries. 

If troubles do arise, always handle the situation with professionalism and try to find a resolution to your customer’s satisfaction. Unhappy customers who get exceptional service often become loyal to your brand, while poorly handled complaints can damage your reputation through negative reviews, word of mouth and social media complaints.

Common mistakes to avoid when starting a dropshipping business

When you’re learning how to start a dropshipping business, it’s key that you avoid the most common mistakes:

  • Choosing the wrong niche: Sellers go after saturated or trendy niches without considering long-term demand or profit margins. Focus on solving a specific problem or serving a defined audience.
  • Relying on one supplier: If that supplier has delays or quality issues, your entire business suffers. Always have a backup supplier and test their reliability before scaling.
  • Ignoring shipping times: Long shipping times from overseas frustrates customers. Be upfront about delivery windows and consider working with local or faster-shipping suppliers.
  • Using generic product descriptions: Copy-pasting supplier text makes your store look lazy and hurts SEO. Write unique, benefit-focused descriptions that build trust.
  • Underestimating customer service: Be responsive, clear with policies and ready to resolve issues to protect your reputation.
  • Skipping product testing: Selling untested products can lead to quality complaints and returns. Order samples to assess quality, packaging and overall customer experience.
  • Ignoring branding: Without cohesive e-commerce branding, your store looks like every other dropshipping site. Invest in your logo and visuals to stand out.

FAQs about how to start a dropshipping business

How can dropshipping help my business?

Dropshipping cuts out inventory risk and reduces startup costs since you don’t purchase any products until customers order them. This model allows you to test new products without significant investment, scale quickly without a warehouse and operate from anywhere you have internet access. 

What are some good dropshipping business ideas?

Popular dropshipping niches include home organization, fitness and wellness, pet accessories, tech gadgets, phone accessories, sustainable and eco-friendly products, hobby-related items and fashion accessories. 

What’s the best dropshipping platform to use?

The best platform depends on your technical skills and business needs. Vista x Wix is great for beginners with its intuitive drag-and-drop editor, built-in SEO tools and integrated payment processing. Shopify has specialized apps like Oberlo and extensive third-party integrations, though it comes with monthly fees. WooCommerce offers maximum customization for WordPress users but requires more technical knowledge.

Is dropshipping a time-efficient business model?

Dropshipping can be time-efficient once everything is up and running, but it requires significant upfront investment in setup and marketing. Once everything is running, you should still expect to spend at least 20 hours per week managing your online store.

Can I run a dropshipping business part-time?

Yes! Many successful dropshippers started their online stores while working full-time jobs. The key is setting realistic expectations—growth may be slower than full-time efforts, but the low startup costs and flexible schedule make it accessible for everyone.

Is dropshipping worthwhile in 2025?

Dropshipping is still worth it in 2025, though the landscape has become more competitive. Success requires focusing on customer service, brand building and niche expertise rather than just listing products. Generic stores and poor execution fail quickly. Treat it like a real business that requires marketing investment, quality suppliers and excellent customer service rather than a get-rich-quick scheme.