How to start a dropshipping business: a beginner’s guide

In 2020, over 2 billion people participated in ecommerce transactions, and global ecommerce sales reached $5.5 trillion in 2022, with projections to hit $7.3 trillion by 2025. Dropshipping has emerged as a favorable business model within this expanding market, allowing entrepreneurs to sell products online without the need to handle inventory or logistics directly, thus reducing risk and overhead costs. In this model, dropshippers focus on customer service, marketing, and branding, while suppliers manage the inventory, packing, and shipping. Although dropshipping presents a low-risk and capital-efficient opportunity to enter new markets and potentially achieve profitability, it is not without challenges, such as low profit margins, intense competition, and supply chain vulnerabilities. The dropshipping industry’s growth offers numerous opportunities, but success depends on navigating market trends, effective marketing strategies, and maintaining a strong online presence.