The Process and Management of a Dropshipping Business

dropshipping business

The rise of online shopping has opened immense opportunities for people who are seeking to enter into the retail business. A popular way nowadays is up a dropshipping business. It is a form of building an online shop where you affiliate yourself as a third party to a supplier and you take in orders and they handle the shipping of the item to the customer for you. It seems pretty easy given you won't need to do inventory and think about stocking up on supplies and everything. 

It also requires less capital and a chance to sell more variety of products for more sources of profit. You get to have the wholesale price even if you sell it for retail. That is an excellent way to earn money because you can do that even at the comfort of your own home while maintaining a full-time work. This is a dream side job for everyone or a chance for a job shift if you want to leave your old one. It may appear as simple as that, but the process and management of building your own dropshipping business is something you should study and research about to make it work. You will need to invest in time, money, and effort in order to start. 

Dropshipping Basics

Since dropshipping is acting like an intermediary between the supplier and the customer and the shipment is going to be delivered under your name, you have to register your own brand and create your own store website. Creating your own brand means you have to create a name for the dropshipping business. You will be using this name when you transact with the customers. When they make an order, you will forward this to the supplier and they will be the one to handle  the packing, shipping, and delivering of the product to the customer. The suppliers shipping out the orders made through your website will stamp your brand on the packaging so your customers will still see your name on it. You will get the credit of the customer's satisfaction and also get the blame if anything goes wrong throughout the process so you have to choose a dropshipping supplier or niche of products well.

In high-ticket dropshipping, when you create a website,  you have to make it enticing to browse through and strategic so your potential customers will be convinced to purchase from you. The design should look snappy and professional. The most important part of the website is the ease of finding information about an item, placing an order and checking out. Most people like to have a smooth transaction. Make sure you have a review page because this will ensure the legitimacy of your business to other customers and getting a lot of good reviews can boost your page in search engine sites.  

The Process and Management of a Dropshipping Business

Setting the Right Price

The main source of income for your drop shipping business depends on how much you resell an item for compared to how much the wholesale cost you. You can name the price and the shipping cost that's profitable for you while paying only the wholesale amount to the supplier. This process would entail smart picking items from suppliers that give discounts and promotions. You may also enlist different products from different suppliers to increase your potential sales.

According to sales experts from Shark Eyes, an eyewear importer based in Vernon, CA, you should provide various choices in your website that will cater to different needs and preferences of your customers. The areas should include different prices that range from affordable to expensive and exclusive ones, different color and sizes options, age-specific products, and more depending on what your customer might need. If you design your shop to be a shopping experience for all your customer's needs, they will likely purchase from you again. Consistency in these areas will make you a trusted brand. 


This is one crucial process of managing your dropshipping business. The supplier may be in charge of selling their own products, but you have the task to promote your own brand even if you get the items from them. You have to make sure that customers would consider buying through your online shop rather than going directly to the website of the suppliers. Offer perks and customer-centered services to make it easy for them to purchase and a wide selection of items that look pretty and functional from your website. Open a customer care line or email correspondence. You have to market your brand through social media as well. Since you have saved a lot of money for capital and inventory, you can spend what you can spare with marketing tools and strategies. 


To ensure that your business will continue operations without encountering shortage of supplies or internal errors, you have to build an efficient coordination system with your supplier. Whatever problem your customer will encounter will  be on your shoulders even if you are not to blame. This is one disadvantage of having a drop shipping business, but it is something manageable and avoidable. 

Choose a supplier with good reviews and reputation in the first place. They most probably have their own guidelines for potential partners like you. Choose one with provisions that are advantageous to you so you minimize encountering problems later on. You can test out multiple suppliers at the same time, so you can compare their services and then just choose a couple to work with. Once everything is up and running, you just have to confront any problem that pops up with competence and strategy. It helps to find a supplier who will be supportive of your business too. 

The world of online business could be the ground for new and upcoming businesses like dropshipping. Since this will not entail you to make a big risk and investment, it's a great opportunity to create an alternative or additional source of income. You just have to key in learning about the process and adapt management skills to increase the probability of success. Start making your own name now so you can start building and managing your own business soon.

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