Dropshipping Checklist: Must Know Before Starting Dropshipping

Dropshipping has become an increasingly popular way to start an online business. It’s a low-cost, low-risk way to start without investing in inventory or managing shipping and logistics. However, before you begin your dropshipping venture, there are a few important details you should know. This article covers all the essential items on the ultimate dropshipping checklist – what you need to know before you get started.

From understanding dropshipping basics to learning the legal requirements, this checklist will help ensure that your business is off to a strong start.

Get ready to equip yourself with the knowledge you need to ensure a successful dropshipping venture.

Dropshipping Checklist for Beginners

Many dropshipping businesses fail within the first month of operation. Because they lack a clear plan of action, they end up failing.

Here is a dropshipping eCommerce checklist to help you establish a successful dropshipping store. The Concept It is widely believed that creating an online store<span style=”font-weight: 400;”> is the first step in launching a successful online business.

Actually, successful business owners do a few things beforehand to set themselves up for sustained growth.

Choosing a niche

It is easier to sell something people need than make a new product. Creating a demand for a new product is riskier, and the chance of being successful is 50/50 chance.

It is essential to select a niche for your dropshipping business. Now the question is how to determine that.

For example, a niche like “parenting” would have a lot of interest, yet there would be a wide variety of products for sale—everything from diapers to baby food.

There are a couple of tools on the internet that can help you choose your niche. Let’s have a look at them.

Google keyword planner

To start with Google keyword planner, you need to open a Google ads account. Once you have a Google ads account, you are ready to start.

Go to Google keyword planner, type a word, and click on get result. The results will show how many people are searching for that item each month.

It helps to get a clear idea about the trending things and what people have been looking for recently.

Facebook audience insight

In terms of global user adoption, Facebook ranks among the top social media platforms. Over 2.96 billion people actively use Facebook; on average, they spend 40 minutes daily.

That’s why Facebook audience insight will give you a fruitful result to learn about the demanding products.

This tool is entirely free to use. You can determine your target audience by this result and select your niche.

Google Trends

Google trends give you more accurate results than google keyword planner. The detailed perspicuity will help you understand the marketplace better.

Here, you will get what people search geographically, seasonally, gender and age-wise. Google trends also shows the rising search items, which will help you determine which entity will hit the market in the future.

Researching the dropshipping market

Before starting a dropshipping business, you must research the market you’re trying to enter.

You’ll want to find out the following:

What goods are prevalent in your market?
Which price are ranges preferable to your target market?
What current vendors are there?
Which websites are the greatest for making purchases?

All of these inquiries have online solutions. Amazon, Alibaba, and eBay are a few of the world’s most popular e-commerce marketplaces where you will find your answers.

Visit the well-known markets and do some research there.

You can search for niche-specific forums to find out what people purchase nowadays. It will help you determine what products are selling well and their price points. Once you’ve done some research, you’ll have a better idea of what direction you want to take with your dropshipping business.

Understanding the legal requirements

Understanding the legal requirements is highly crucial to business owners. It will vary from country to country even state to state, so you will want to research your area’s specific requirements.

You need to look into two main things: sales tax and shipping settings. Check with your state or country’s tax laws to determine what percentage of sales you’ll need to collect and remit. Keep your records updated to avoid legal trouble.

Choose your supplier

No dropshipping business can run without a supplier. It takes a lot of effort to find a reliable and authentic supplier. So, what to look for in a supplier?

The first thing that you should emphasize is product quality. The e-commerce marketplaces are a great way to find a supplier. For example, e-commerce marketplaces like Shopify, Alibaba, and AliExpress are beneficial for finding a supplier that offers dropshipping services.

Secondly, look for the suppliers that offer the best deal. It is essential to provide lucrative prices to your customers. The dropshipping market is highly competitive. Dropshipping store owners act as go-betweens for the primary vendors and the final customers.

Thirdly, check the shipping cost and look for a safer shipping service. This way, you can cut the cost and make more profit.

After checking all these necessary factors, you can also check on delivery duration, warehouse facility, minimum order quantity, and quality control services.

Create your online store

To start a dropshipping business, you must obtain an online dropshipping store. You can open an e-commerce store on marketplaces or create your website on eCommerce platforms.

Get a domain name to start with the process. Pick a name that is easier to pronounce and takes less effort to spell. Make sure you make it brief. If you do enough research, you will see the top-ranked online stores are easier to pronounce, and the spelling is short.

Then pick a shopping cart platform. Choosing the right e-commerce platform makes everything easier for you. Shopify eCommerce platform is the most popular.

Select the business structure

There are a couple of business structures that are suitable for dropshipping businesses.

You’ll want to set up a legitimate business entity if you want your business to grow big. You can go for LLC, Sole proprietorship, and C-corporation.

LLC: LLC means limited liability company. It is a flexible business structure that offers simplicity. If you are a small business owner, starting with LLC will help you establish credibility and protect your asset.

Sole proprietorship: The sole proprietorship is a simple business structure that doesn’t offer any personal liability protection. It doesn’t require a business entity and no legal distinction between you and your business. You can start making sales without any legal paper works.

C corporation: C corporation is another famous business structure known for separate legal entities. The shareholders of a C corp (C corporation) pay taxes independently from the company itself. Each shareholder owns a little piece of the company, making them collectively the owners.

So, which business model is the best for dropshipping businesses? Experts say LLC or sole proprietorship is the best choice for dropshipping companies. You can start making sales almost instantly, and it takes less effort to establish the business.

Set up the payment process

To secure your online business, you must set up a payment process. It is a must for any sale to process through your website or online store. That’s why you must pick a payment process that is safe and less complicated for the customers.

Select a payment process that suits your dropshipping business model. You can create a third-party gateway system to make the payment process more flexible.

Start marketing

A well-researched and well-invested marketing policy can scale a business enormously. Strategic marketing doesn’t require much effort and can show you the results instantly. As an internet retailer, you may promote your wares via a wide variety of online sales channels. Here are some marketing strategies that you can implement in your business.

Influencer marketing

The Concept of influencer marketing is relatively new. And it started with social media influences. Influencer marketing is affordable and efficient. It helps you build trust in your consumers and increase your sales.

Paid sponsorship

Sponsoring different events can be a great way to market your Shopify store. However, it is a bit costly and takes more effort to execute. Big brands usually prefer to invest in sponsorship to attract mass people and celebrities.

Paid ads

Paid ads are another affordable and scalable marketing strategy for you. You can integrate with Facebook, Google, Instagram, and Tiktok for paid ads and create your marks on the market.

Content marketing

Content marketing will bring more traffic to your eCommerce website and scale your dropshipping business. You can make videos, blogs, and social media content and educate your customers about your products.

Search engine optimization, or SEO, is vital in ranking your store on Google search. A good SEO can level up your business in no time. So, take professional help to help you with SEO.

The combination of search engine optimization (SEO) and content marketing may do wonders for your company’s exposure in search engines.

Analyze your business and invest in the development

After going through all the hurdles, it’s time to analyze your business condition and work on it. Because of many online tools and AI, it has become easier to analyze sales, profit margins, customer feedback, and other necessary information.

Utilize social media and messenger marketing. Google Analytics and Search Console are handy tools for measuring traffic. Also, check monthly reports. This way, you can determine if there is any problem and how to overcome that.

FAQs About Dropshipping Checklist

How do I start a dropshipping store checklist?

Starting a dropshipping business requires a little study and lots of hard work. Research is the key to success in this business. From choosing the right niche to marketing, every phase requires enough research and quality implementation.

Dropshipping store checklist should include the following-

Choosing a niche
Researching the dropshipping market
Understanding the legal requirements
Choose your supplier
Create your online store
Select the business structure
Set up the payment process
Start marketing

What are the things we should avoid in dropshipping?

Check out the things we should avoid in dropshipping in the following list.

Depending entirely on the supplier.
Expect a trouble-free situation.
Wasting time on delivery.
Not having enough brand exposure.
System loss
Risk of cancellation
Difficult return policy

What is the easiest thing to dropship?

Countless items are easy to dropship. Considering all aspects, merchandise item is the easiest thing to dropship. Merchandise items don’t risk breaking or damaging in different weather conditions. It is almost damage-free if packaged well. Besides, it doesn’t require any safety measures to deliver the product. The products are not fragile, so there is no need to worry about safety packaging.

Some easiest dropshipping products for eCommerce business are-

Clothing
Baby parenting products
Automotive
Tools
Home & Kitchen Products
Health and Personal Care
Office Products
Gaming
Computers, Tablets, Networking
Cell Phones & Accessories

What should I include in my Shopify store launch Checklist?

Your Shopify dropshipping store launch Checklist should include the following-

Add your preferred sales channels and custom domain name.
Analyze the purchasing procedure and available payment methods.
Get ready with your standard pages.
Inspect your email’s notification settings.
Spend time perfecting your online store’s SEO.
Optimize the photos and product pages you use.
Prepare a marketing strategy ahead of time.
Transform your shipping policy and tax options.
Update tax and shipping rates of your eCommerce store
Keep your app load to a minimum.
Take care of your billing details now.

What should a dropshipping site include?

A dropshipping site must include a product listing, product description, customer review, third-party payment gateway, fast and secure shipping, etc.

Final Thoughts

The whole idea behind dropshipping is to reduce the workload you have to put into running your own eCommerce store. Dropshipping is an excellent choice for those who want to sell high-quality products but aren’t looking to spend huge money or resources setting up a store and inventory management system.

There are countless reasons why this can be a good idea, from saving money on inventory costs to finding better deals on shipping or sourcing higher-quality products.

You can set up a drop shipping store in just a few hours. But it can be a little scary to give it a try. So, in order to make it easier, we compiled this “must-know” dropshipping checklist.

Dropshipping Checklist: Must Know Before Starting Dropshipping

Dropshipping Checklist for Beginners