You have probably heard about a business model called Drop Shipping. If you are like most people you thought it sounded like a great way to get started online. But when you sat down to get started you were thrown against the wall in confusion. Don’t worry though as this post will show you the basics.

I got tired of all of the BS Drop Shipping articles out there so I decided to tell you what I know. You will learn the steps to starting a drop shipping store.

From there you will have to learn how to make money. Anyone that shows you exactly how they are making money is just trying to up sell you to their next Webinar.

Take this article and get started with building your online business.

What Is Drop Shipping

Drop Shipping is a business model where you can sell products without ever having any inventory costing you money or space.

For example a Private Label business requires you to invest a good chunk of money into things such as inventory and storage space.

Many people favor drop shipping because of the low-cost to get started. Here are the pros and cos to starting a drop shipping business.

Here are the Pros of building a Drop Shipping business:

  1. Low Startup
  2. No Inventory
  3. You Can Test Products To See Which Sell Best
  4. Flexibility
  5. Little Risk
  6. You Are Building An Asset (You can sell it for 10x what it makes each month)

As with anything there are also downsides.

Here are the Cons associated with Drop Shipping:

  1. Low Profit Margin Depending On What You Sell
  2. Possibly High Competition
  3. A Lot Of Bad Information Out There

So drop shipping is essentially like you are setting up a store and then selling someone else’s products.

You purchase their product for a wholesale price and then keep the difference.


You create a store selling software from another company.

You can get the software for $150, but you charge your customer $200.

For every sell you get to keep $50.

That is a nice chunk of change after you start getting more sales.

5 sales a day and you are making $250 every day.

This Sounds Easy…

Hold on for a second.

While starting a drop ship website is VERY easy there is more to it.

It isn’t as simple as picking a product and then start making money

This really is a business so you will need to do your research and build it right.

If you are like most people and just dive in without a plan you will get burned.

You want to start this with the right expectations, otherwise you will quit before you start making money.

Treat It Like A Business

From day one you are going to look at your website as a business.

You will need to set goals and then take action.

With all things in life you must take action as nothing happens unless you make it happen.

To be taken seriously by your potential suppliers you will need to be legal.

You will need to have an EIN and register for a Business License.

As for a Business License, you can go down to your local government building.

Prices may vary, but where I live I got my License for $90 altogether.

Remember I am not an attorney and you must decide what’s right for you.

How To Get Started

Now that we have all of the basics covered let’s get to the fun part.

It is at this point where you will have an exact understanding of the steps you will take to start your drop shipping business.

Step by step I will show you everything that you must do to start your store.

Here is what you need to do:

  1. Decide On Niche
  2. Get A Business License And EIN
  3. Create Your Store Through Shopify
  4. Setup A Business Bank Account And Get A Business Credit Card
  5. Email Or Call Manufactures Of The Products You Wish To Sell
  6. Place The Products
  7. Get Traffic
  8. Make Sales

Decide On Niche-

Once you have an idea of your Niche it will make selecting your products even easier.

Do your research and make sure that there is enough opportunity in your Niche.

If there isn’t as much then you might want to choose another one as this is your first store.

After you get experience under your belt you can move into another Niche with another store.

Get A Business License And EIN-

We already went over this but I will clarify even more.

To run a real Drop Ship Business you will need to be legal.

If you aren’t then you will not be taken seriously by Suppliers.

Most Suppliers won’t even talk to you unless you have an EIN.

Show them that you are serious by having all of that ready.

Present yourself as a business person and not some desperate loser.

Create Your Store Through Shopify-

I highly recommend creating your store through Shopify.

Not only do they make it easy, but they also have a great platform.

Shopify has everything that you will need.

They have Premium themes some that are free and others you must purchase.

Also, Shopify has a lot of great resources to get information from.

I will go over more of what Shopify offers later on in this post.

Setup A Business Bank Account And Get A Business Credit Card-

When running a business you want your finances to be organized.

You don’t want your personal bank account getting intertwined with your business.

This can be a headache especially when you are making 5 figures a month.

As for the Business Credit card this is how you will purchase your products.

You are thinking, “But you said I didn’t need to buy Inventory!”

Yes I did and no you do not need to buy any inventory.

The way business is done with Drop Shipping is:

  • Customer Buys Product Off Your Site
  • You Purchase Product At Wholesale Cost From Supplier
  • They Put Your Site Name On The Product And Ship
  • You Keep The Difference

Until you have an established relationship with your supplier you will NEED a Credit Card.

Plus if you have any rewards with your Credit Card company you can rack them up this way.

Email Or Call Manufactures Of Products You Want To Sell-

The only way you will find any products to sell is by contacting the Manufacture.

You can email them but I have found it is much easier and effective to just call them.

Most people get nervous but after you have done it a few times you will not even think of it.

Place The Products-

Now that you have all of the business stuff setup and you have selected your products it’s time to place them.

It is much easier to just do it than to go through all of the steps here.

Shopify makes it very easy to do all of this.

(Create Your Store With Shopify)

Get Traffic-

Getting traffic to your store is a little different than what I’ve spoken about before.

You can use SEO to get traffic coming your way, but how most people do it is by creating Ads.

When creating an Ad start out with Facebook.

Facebook is easy and can be effective once you learn what you’re doing.

Make Sales-

Okay well you have your drop ship store setup and have your Ads running.

Now it is time to kick back and let the sales come in.

But don’t relax for too long as you will need to continue tweaking as time goes.

Make sure that you stay on top of your customer emails.

The best way to stand out from the crowd is to offer GREAT Customer Service.

What To Watch Out For

When you are building your site with Shopify you need to watch out for some things.

As you search for suppliers you will probably run into some shady companies.


When I first started I chose a company that required a $20 monthly subscription.

To make a long story short I wasted my time and money.

No legit company is going to charge a monthly subscription to sell their products.

They may charge a shipping fee or something, but that is the cost of doing business.

Another thing that you need to keep an eye on is how often do they run out of products.

You don’t want to have 10 customers waiting for their product.

If you have this happen you will lose money and your reputation will go down.

Find a supplier who always has a good amount of products in stock.

You can also find multiple people that offer the same products so you have two suppliers.

Why You Should Start With Shopify

Shopify is an established company that offers a platform for E-Commerce businesses.

Not only do they have great resources but they also make it simple to start your store.

They give you everything that you need to start your store.

Breakdown of their packages:

I recommend starting with the $29/month plan.

This gives you everything that you need without breaking the bank.

As your dropship business grows you can upgrade as you go.

Shopify provides a Buy Button and Point of Sale.

Those two things are crucial for making money from your store.

Without either of them how will your customers buy your product?

Another thing that I love about Shopify is that they offer a Free Trial.

Most people require you to go ahead and subscribe before you get to fully check them out. Instead, Shopify allows you to go ahead and start your store and not pay a dime for 14 Days.

  But WooCommerce Is Free

Yes, WooCommerce is free but where they get you is that you have to upgrade to certain things to really start your store.

If you don’t upgrade then you will lack the ability to make your store the way you need too.

So when deciding about Shopify or WooCommerce, go with Shopify.

I am not saying that because I will make money but because Shopify is better.

When it comes to Dominating in life you need to have access to the best to be the best.

Do not sell yourself short by being scared of doing business the right way.

Start Your Store

It is time for you to step up and start taking action.

I can only show you so much before you have to dive in.

Invest in yourself.

Invest in your future.

Show yourself that you can do it.

Get started with their free trial and give your store 6 months.

In 6 months you could be running a successful online business.

You could be making a full-time or part-time income from your site.

Your friend,

Dylan Madden

PS: Save yourself the headache of having to figure out everything.

The course below is how to effectively build your own profitable e-commerce store while skipping the middle man.

Read More About It Here

About Dylan Madden

My name is Dylan Madden. I've written over 300+ articles for those who want more out of life and are interested in traveling the world. I am from US city where most people work the same old job for their entire life. Now after traveling to 18 countries. I've set up a home in Dubai where I spend my days helping freelancers build successful businesses within The Real World and on the blog Calm and Collected. Within this website you will find the motivation and action steps to make your life better.

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  23. Intriguing. Can you actually get a 33% markup for software? Considering my own shopping habits – scan my favorite stores for the best price and go with it – I’m surprised!

    That reminds me: If the manufacturer is putting your name on it (also haven’t seen with software, I think), is that different than private label manufacturing? There’s so much contradictory stuff out there, as you know, that I’ve never sorted through to what’s really going on.

    • Possibly just work out a deal with the company who created the software.

      Generally their info will be used for shipping purposes. As for your sites name/logo they will put it where the customer will see it.

      Private Labeling is where you purchase the product in full and then sell it as your own. You will handle packing, shipping, selling, and everything else related. Keep in mind that you can use services such as E-Fulfillment warehouses. This will make everything much easier. But don’t do that until you are making a nice profit.

      Drop Shipping is different in the fact that all you do is act as the middle man. The manufacture takes care of shipping, storing, and everything else.

      Good question.

      • Thanks, man. You just solved a bunch of quandaries in a hurry. Now all I need to do to try this out is decide on a niche and generate traffic! The traffic’s always been the sticking point for me, but I’ll whack through to it eventually.

        • That is easy. Just take a product that you search for and has a demand. Figure out a way that you can sell it to people better. Start from there.

          The traffic will come from your Facebook Ads and other traffic sources.

  24. Hey Dylan, this is really well written and informative post. There is a successful business here in the UK called ‘Not on the High Street’ which is basically drop shipping high-end custom made gifts. It’s worth millions and started by a mom in her spare time. So there’s definitely money to be made.

    What’s your experience of products that sell well? Is software a good option or are products like electronics, hiking gear etc easier to shift?

    • I love hearing about those kind of stories.

      I would say to stay away from Electronics unless you are able to present it in a way like nobody else does. There are millions of electronics sites out there. If you can find software that you can Drop Ship then go for it as long as there is a demand.

      As for good products hiking gear seems to be a good one but I haven’t personally done that.

  25. Good stuff Dylan. As you know I tried this a while back and it was a nightmare! I ended up searching google for 12 hours looking for products that I can sell and wasting a lot of time dealing with all the BS i found. You know, people who really just want to sell me something or useless articles, the internet really makes me sick sometimes haha props for giving the real deal. Still doing the testosterone site?

    • Yeah it makes me sick as well with all of the crap floating around.

      No I took it down. Currently I am working on a few deals with some Suppliers and if I get the right one I will put it back out.

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