Dropshipping Business Ideas to Succeed

Dropshipping Business Ideas to Succeed

Dropshipping has become one of the most popular new business models since the pandemic in 2020. And there are obvious reasons why. However, just because of the benefits of dropshipping, it doesn’t mean you will succeed.

This article looks at the dropshipping business ideas that will help you succeed.

What is a Dropshipping Business?

Many people need clarification on what a dropshipping business is. To understand, it’s best to talk through the process of the sales and the different parties involved. In a transaction, there are three parties. These are the customer, seller, and merchant (and four if you include the courier).

The customer accesses a website and makes a purchase on that website from the seller. The seller doesn't stock the product, instead, they list the items for sale that are kept by a merchant.

Once an order is received by the seller, they send the order to the merchant. The merchant then packages products and sends them directly to the customer via a courier. The merchant then sends a bill to the seller.

The difference between the price the customer pays the seller, and the merchant charges the seller is the profit for the dropshipping business.

Why is Dropshipping So Popular?

There are numerous reasons why dropshipping has become so popular. One of these might be because they allow entrepreneurs to start a business with no funds for stock. Instead, they only need a website. Some websites, like those on Shopify, can cost as little as $30 a month.

And with no stock, entrepreneurs don’t face significant losses.

Another benefit is that it is easier to run when you don’t have to worry about fulfillment challenges. Though there are returns and refunds to consider.

That said, it can save a lot of time. And therefore, many dropshippers run three or four sites and earn a good income from those sites.

Is Dropshipping Easy?  

While dropshipping is easy to set up, it doesn’t mean that it is easy to operate. There are several pitfalls that some business owners don’t realize until it is too late. It can be quick for the business to run out of money, one of the main ways businesses fail.

Therefore, while dropshipping can be quick and easy to set up, you need to find dropshipping business ideas that will help you succeed.

Dropshipping Business Ideas

Not all dropshipping business ideas are based on what products you sell. Some of these relate to operations, money management, business structure, and more. Here are some of the ideas that you might want to consider.

Dropshipping Business Structure

The first thing to consider is the business structure you want to use. While the simplest option is to be a sole proprietor for your business, it doesn’t offer as much protection. Essentially, the business is an extension of you, and any debts from the business are your responsibility.

Therefore, it is best to consider registering your business as either an LLC or a corporation. There are benefits to both LLCs and corporations. While many people seek the help of a formation company, it can be done for a fraction of the cost by learning how to do it yourself.

Always Check Products

Space on the website is precious. The more you have on a website, the higher the levels of decision fatigue from shoppers. And this can lower sales. Therefore, it's often better to have a few choices on the website of popular, highly profitable products.

Regular checks on what is selling and profitable is the best option. This should be done monthly. Remove products that aren’t selling well, or if you’re getting complaints about a product.

In addition, you should look at adding new products that are trending. For example, during the pandemic, one of the most popular products was facemasks. Many dropshippers added these to their stores to increase sales, whereas other products had to be dropped because they were not valuable in the economic climate.

Profit Margins

One concern is always profit margin. While selling the product higher than the merchant chargers the seller is a good idea, there are other costs you need to factor in. For example, tax, website, marketing, licenses, and other aspects.

The best profit margin to aim for is between 40 and 70% above what the merchant charges. So if you’re being charged $10 for a product, you should charge somewhere between $14 and $17.

However, it is also important to consider what others are charging. If you’ve got two competitors who offer the same product at $16, you can’t charge $17 unless you add something unique, like faster shipping.

Free Shipping

One thing that used to attract customers was free shipping. In some cases, it does make sense. Many customers will make large purchases only if they can get free shipping. But you’ve got to make it worthwhile for your business.

For instance, if shipping costs you $5, then you’ve got to make sure the profit margin from the sales is worth that. It can be a rather complicated calculation to make. But you have to find the point where it makes economic value for you.


Discounting might be effective in some scenarios, but that doesn’t mean it is always effective. There are times when discounting doesn’t make sense, such as when the discounts will erode too much into your profits, or it will create issues with your customers.

There are alternatives to discounting that can make your dropshipping business much more effective. For example, you can build trust with your audience or have more effective sales strategies.

Smaller, More Focused Websites

Many dropshippers don’t operate one website. Instead, they operate several websites. Each of these websites is designed to specifically target an audience or a niche. For example, someone might own a camping site, a fashion site, and a kids’ toy site.

While there are higher costs for maintaining those websites, it means that the business owner can adapt SEO strategies for the specific websites. And this can lead to higher traffic and more sales.

And it is easier to manage certain websites if they’re more specific.

Use Valuable Marketing Techniques

It is important to consider what marketing techniques you are using. Many people consider using Google Ads, but this can be very expensive. Instead, focus on more cost-effective options, such as SEO, blogging, social media, and email marketing.

Using a range of effective options allows for higher levels of ROI. For example, email marketing has an ROI of about $44 for every $1 that you spend. SEO is another very effective tool and one that doesn’t have to cost a lot.

Final Word: Dropshipping Business Ideas to Succeed

Dropshipping business ideas are everywhere on the internet. Most of these focus on what products you are to sell. But the truth is that whatever product niche you want to work in, there are going to be good products.

What you need are dropshipping business ideas that will help you have a better business. And this is more about how your business is run and operates, rather than what your business sells.


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