How To Start Dropshipping in 2025: A Step-By-Step Guide

When you click that big “order” button while online shopping, you probably don’t think about how your purchase gets from the warehouse to your door. Today, many of these transactions rely on dropshipping: a business model that lets retailers fulfill orders without holding inventory themselves.

 

For entrepreneurs and online business owners, dropshipping offers a big opportunity. And with expected growth in the industry, now is a great time to get started.

 

But before diving in, there are a few key things to keep in mind. Read on for a guide on dropshipping in 2025 and beyond.

 

What is a dropshipping business?

Dropshipping is a type of ecommerce where you, the retailer, sell products without holding any stock. How is that possible? Rather than buy and sell products directly, you partner with suppliers who handle delivery instead.

 

The general flow of a dropshipping business is as follows:

 

• A customer places an order on your website for a product you offer.
• You get paid for the product and send the order details to your supplier.
• The supplier ships the product straight to the customer on your behalf.

 

Since you don’t have to manage inventory, you can spend more time on marketing and customer service. This makes dropshipping ideal for those looking to start an online business with minimal upfront costs.

 

Why start a dropshipping business in 2025?

As the world trends towards online shopping, dropshipping is expected to grow even more. Experts valued the global dropshipping market at $284 billion in 2023 and they predict a jump to $2.2 trillion by 2033.1

 

Besides the positive industry outlook, dropshipping is an attractive option thanks to advantages like: 

 

• Low startup costs – With no inventory or warehouse space needed, you can get started with little more than a laptop or smartphone.

 

• Flexibility – Dropshipping businesses can operate from anywhere with an internet connection. That makes it perfect for digital nomads or independent entrepreneurs. 

 

• Scalability – Digital tools and automation let you scale your dropshipping business up or down as needed. 

 

At the same time, dropshipping still requires effort. You’ll need to focus on building your online presence, marketing your products, and keeping up with customer and supplier communication.

 

Ready to learn how to start dropshipping? Read on for a step-by-step guide to getting started in 2025.

 

Step 1: Choose your product category

The first step in starting a dropshipping business is finding the right category of products to sell. Ideally, your focus area will include products with market demand and align with your interests.

 

According to Grand View Research, trending segments of the market include:2

 

• Fashion and apparel.
• Electronics and media.
• Toys, hobbies, and DIY goods.
• Beauty and personal care.

 

Competition is another consideration. Forbes notes that dropshipping businesses swap their offerings every five years or so to stay relevant.3  So finding a balance between short-term product trends and long-term growth can help you carve out your own space in the market.

 

Step 2: Find reliable suppliers

You won’t handle inventory as a dropshipper, so finding reliable suppliers is a must. That’s because if there are quality or delivery issues, customers will come to you for answers.

 

The platforms you operate on will also have an impact:

 

• AliExpress – AliExpress offers great product selection and built-in dropshipping integrations; it’s ideal for beginners. However, it sometimes lacks the quality control of other platforms. 

 

• SaleHoo – SaleHoo features a wholesale directory that vets suppliers for a more reliable selection but requires ongoing subscription fees.

 

• Spocket – This app integrates directly with ecommerce platforms, connecting dropshippers to suppliers (among other features) for a subscription cost.

 

Platforms like Amazon, eBay, and Etsy also support dropshipping. However, they often have tougher regulations and higher fees, which could make it more challenging for beginners to get started.

 

Step 3: Set up your dropshipping store

As a fully online business, a dropshipping store needs a solid digital presence. A well-made website serves as your virtual storefront, allowing you to:

 

• Show off your products.
• Accept orders and payments.
• Handle supplier handoffs automatically.

 

Ecommerce platforms like Shopify and WooCommerce support a range of dropshipping integrations. These tools help you handle technical details like payment processing and inventory updates, delivering a smooth shopping experience for your customers.

 

Plus, today’s website builder platforms make it easy to integrate ecommerce functions into your design.

 

Choosing a domain and hosting

Your digital storefront is essential, but so are the back-end operations. A professional domain name helps establish credibility, while reliable hosting ensures your store runs smoothly. 

 

Name.com provides both. 

 

With thousands of URL choices available via our domain name search and hosting services that deliver a proven 99.9% website uptime, Name.com sets you up for success in both functionality and professionalism. 

 

Step 4: Add products to your store

With your online store up and running, the next step is to fill it with products. The exact process may vary depending on your ecommerce platform and dropshipping app, but the general steps are:

 

1. Import products – Most dropshipping apps allow you to browse and import products directly from suppliers into your online store with just a few clicks.

 

1. Set prices – Set prices for your chosen products. Some apps even let you automate pricing based on preset criteria.

 

1. Craft listings – Dropshipping tools also allow you to edit and customize product details before publishing them to your store.

 

Spending time on customization helps your listings align with your brand and appeal to customers.

 

Step 5: How to make money dropshipping

Interestingly, learning how to make money dropshipping follows the same process outlined in the previous step. The key is how you do it:

 

1. Import products—the right products – Focus on high-demand items within your niche. Tools like Google Trends or Spocket’s data on popular categories can guide you to popular categories.

 

1. Set prices—strategically – Shopify states that dropshippers average a 10% to 15% profit margin after product and shipping costs.4 Set your price margins a bit higher than that to cover less obvious expenses, like marketing costs and transaction fees.

 

1. Craft listings—compelling listings – Use descriptions and photos to bring your product to life. Include specific information such as size, weight, color, and other attributes to help your customers make an informed purchase.

 

You might also consider cross-selling and upselling related items to increase the value of each order. For example, if you sell phone cases, offer screen protectors or accessories as extra options.

 

Step 6: Market your dropshipping store

Even the most well-designed dropshipping store won’t sell any products if no one ever sees it. Marketing is essential to drive traffic and convert visitors into paying customers. 

 

For an all-digital dropshipping business, this marketing usually takes the form of:

 

• Search Engine Optimization (SEO) – Use relevant keywords in product listings and descriptions.

 

• Social media – Share visuals, videos, and reviews on platforms like Instagram and Facebook to build brand awareness.

 

• Paid advertising – Use targeted ads on platforms like Google Ads and Facebook Ads to reach your ideal audience.

 

The goal is to funnel visitors back to your website. Be ready to catch those leads by ensuring your site’s links work properly and direct to the right products.

 

Best practices for running a successful dropshipping business

Though digital tools can help automate many processes behind dropshipping, you’ll still need to put in some effort to run the business effectively. Here are four tips to help you out:

 

1. Focus on customer service – Respond to questions promptly and professionally to build trust and maintain positive reviews.

 

1. Manage returns effectively – Establish a clear return policy and communicate with suppliers to streamline the process. Hassle-free returns help you keep customers happy.

 

1. Communicate with suppliers – Your business will rely on solid suppliers. Take time to address issues and occasionally review their performance to maintain quality.

 

1. Optimize your website – Your business will  heavily rely on your website. Stand out with a custom ecommerce domain name (with a descriptive top-level domain extension like .buy, .store, .supply, .shop, .boutique, .gifts, .shopping, .luxury, .jewelry, .fashion, or .clothing) and ensure website uptime with reliable hosting services.

 

Competition is fierce in the world of dropshipping, so setting yourself apart is the key to success. With the Wix Website Builder, you can choose from over 500 customizable templates to design a website that attracts customers even in a crowded market.

 

Common mistakes to avoid in dropshipping

The truth is that many dropshipping businesses fail to grow into profitable ventures. That makes sense—it’s easy to get started, so it’s also easy to give up when things get challenging. 

 

To aim for long-term success as you learn how to dropship, here are some common pitfalls to avoid:

 

1. Choosing poor suppliers – As a dropshipper, your supplier’s quality reflects your brand. Late, damaged, or incorrect deliveries might result in negative reviews, damaging your reputation and impacting future sales. 

 

1. Mispricing products – It’s a fine balance—if prices are too high, customers seek cheaper alternatives. Too low, and you won’t make a profit. Aim to strike a balance by researching your market and factoring in your expenses before deciding on a price tag.

 

1. Neglecting marketing – Even the best products won’t sell themselves. Invest time in building a solid marketing strategy that includes SEO, social media, and paid ads to drive traffic to your store.

 

1. Failing to secure your website – Website security is essential for both protecting customer data and safeguarding your business. Choose a reliable hosting service like Name.com and always keep your website’s SSL certificates up to date.

 

By avoiding these four mistakes, your dropshipping business has a higher chance for growth and success.

 

Final thoughts on starting a dropshipping business in 2025

Starting a dropshipping business in 2025 is more than just possible—it can also be profitable. There are a lot of choices to make along the way, such as choosing a niche, finding the right suppliers, and setting up your online store.

 

But with a little planning and the right tools, you can stand out from the competition—in 2025 and beyond.

 

To help you get started with your dropshipping business, Name.com offers best-in-class products for establishing a winning online presence. Use our domain search tool to secure a domain name, build a website with our website solutions, and project professionalism with our custom email hosting solutions.

 

Start your dropshipping venture today with Name.com.

 

Sources: 

 

Oberlo. Dropshipping Market Size (2023-2033). https://www.oberlo.com/statistics/dropshipping-market

 

Grand View Research. GVR Report cover: Dropshipping Market Size, Share & Trends Analysis Report. https://www.grandviewresearch.com/industry-analysis/dropshipping-market

 

Forbes. Navigating The World Of Dropshipping: Overcoming Challenges And Maximizing Opportunities. https://www.forbes.com/councils/forbesagencycouncil/2023/04/17/navigating-the-world-of-dropshipping-overcoming-challenges-and-maximizing-opportunities/

 

Shopify. What Is Dropshipping and How Does It Work? (2024). https://www.shopify.com/blog/what-is-dropshipping