How To Be Successful In Dropshipping In 2020

How To Be Successful In Drop Shipping In 2020

Dropshipping is a business on a marketplace or an online platform that takes orders for a large number of products and then delivers the order with the help of a manufacturer. Here the manufacturer and the vendor are two separate parties who are on a contract basis. 

Dropshipping is a very simple business, to begin with. It saves you from a lot of generic business problems like having a warehouse, managing an inventory, handling refunds and other shipping problems, all you need is an online platform where you can take orders from customers. Apps such as Sell The Trend help provide millions of Trending Products at your finger tip. 

A dropshipper has a different role as compared to wholesaler or manufacturer. He/she has to only manage the stock from the product source supplier. As a result, a dropshipper would never have to worry about the number of products. One of the best things about being a dropshipper is that all you need is a useful internet and a comfortable place to sit and connect with your clients and potential customers. 

The Dropshipping Business is very easily scalable. Suppliers take care of the growing demand giving you the chance to improve and expand your business. In this business, you do not need to have a stock of the product, so you can display a large number of products online while placing the order for them later. 

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How Does This Business Work? 

In a dropshipping business, a vendor first receives an order from the online platform or marketplace, from here the vendor informs the supplier about the product the supplier will directly send the product to the customer or would give an order to their manufacturer and the manufacturer would directly deliver it to the customer. The role of the dropshipper is to market, advertise, and take orders online. 

How To Be Successful In Drop Shipping In 2020

Getting Started in DropShipping 

Dropshipping has a good future scope, and getting started in this business is not that difficult. One can either start a dropshipping social media account (which is very popular these days), or you can simply go on the marketplace and start your brand the old fashioned way. 

1. Find your niche

Before setting up all the contracts and deals, you would want to think about dropshipping something you are very well versed in. Choosing a comfortable niche would not only keep you interested in this business, but you would know every specification and detail of the products, which will give you an estimate on things like the manufacturing time, shipping, particular parts of the products, etc. 

  • Search for the problems you can solve easily 

You have to figure out where you stand in society and where your skills and passion can help society get better. Unless your passion and problem-solving skills do not align, you might never have a successful business. Find how your ideas and knowledge can help people and then put a price on that. 

  • Calculate scalability 

Though there is always an untapped market for every niche, let us be more practical here and say that not “all” niches help the business grow. Before choosing a type of product, look at its potential to grow in the future and how your company can pivot into something better. Conduct market researches and make sure you can go on the right track

  • Know your competitors 

Always know your competitors in this business. The easiest way to do this is to search the keywords of your business online simply. Look at all the top competitors and see how they do their business. Keeping track of where you stand in this business chain helps you evaluate your goals and set a clearer path for your growth. 

2. Choose A Good Supplier 

This is one of the most important procedures when you are starting in this business. A good supplier can be a huge asset to your business, whereas a lousy supplier can be the greatest threat to your business. There are plenty of ways to find the right supplier, researching online forums and directories, and taking references from established dropshippers is the best way. 

3. Get A Tax ID

Many different countries have different tax regulations on dropshipping companies. So, go and register yourself with the required tax authorities and get your company a tax ID of sorts. 

4. Choose a platform

There are plenty of places you can be a dropshipper; for instance, there is always the traditional marketplace, then there is the online platform or simply any other medium you can think of. The market is the easiest place to start your dropshipping business, leading marketplaces like Amazon, eBay can be a massive help for you to expand your customer base. 

Pros and Cons of dropshipping on a Marketplace


  1. It is easy, to begin with, many marketplaces like Amazon and eBay have a very simple procedure for dropshipping. All you need to do is create an account and start your business. 
  2. On places like Amazon and eBay, you get exposure to a larger audience, and hence you have the scope for getting more orders. 
  3. You do not have to market a lot to gain online traffic, all you need to do is be consistent with your sales and orders, the better you are at that, more customers will come to your business. 


  1. You have to pay listing fees. Many popular marketplaces charge from 10% to 15% on each listing you put, this can be a little costly at times. 
  2. Many marketplaces mostly accept “products” rather than promoting a merchant. So there is a huge communication gap between the seller and the buyer. So, in the long run, it does not suit the dropshipping goal. 
  3. In many of these marketplaces, there are pre-defined templates that you would have to use. You have no creative control of how you show the products. 


Dropshipping really has the potential to grow into an accurate business when all of the aspects of it are aligned to the long-run goal. From the product to the platform you choose to dropship on, everything plays a major role in this, so do your research and only then step into the dropshipping world.