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A Beginners U.S. Guide to Creating a Dropshipping Business

Nov 22, 2024By Jonathan Groethe
Jonathan Groethe
E-Commerce Visual, E-Commerce and Dropshipping 3D Visual Design. (3D Render)

What Is Dropshipping & How Do I Make Money?

Dropshipping is a retail fulfillment method where a store sells products without holding inventory. Instead, when a customer makes a purchase, the order is sent to a third-party supplier who ships the product directly to the customer. Starting a dropshipping business is a powerful way to launch an online store with low upfront costs and minimal risk.

My simple guide will walk you through every essential step to successfully start a dropshipping business in the U.S., covering everything from setup expenses to choosing trusted platforms, suppliers, storefronts, payment gateways, and advertising options.

Each resource is handpicked to ensure reliability and quality. Simply click on the links provided to explore each recommended platform and connect with companies that can help turn your business idea into a thriving reality. 











Dropshipping Basics & Shop Setup

Dropshipping is a streamlined business model where you sell products without holding inventory. When a customer makes a purchase on your site, you forward the order to your supplier, who ships the product directly to the customer.

Advantages: Low startup costs, flexibility.
Disadvantages: Lower profit margins, dependency on suppliers, potential shipping delays.











Choosing Your Niche

1. Identify Your Interests: Choose a niche that aligns with your interests. This will keep you motivated.

2. Research Market Demand: Ensure your niche has demand. Check tools like Google Trends and Amazon Best Sellers.

3. Analyze Competition: Look at your competitors on Google and major marketplaces like Amazon.

4. Evaluate Profit Potential: Calculate costs and expected profit margins using tools like Shopify’s Profit Margin Calculator.

5. Check Product Trends: Use resources like Exploding Topics to find trending or evergreen products.











Platform Costs in the USA

1. Shopify

  • Monthly: $39 - $105
  • Annual: $399 - $1,068
  • Best For: Beginners needing an all-in-one solution.

2. WooCommerce

  • Monthly: $7 - $20 (Hosting)
  • Annual: $84 - $240
  • Best For: Those familiar with WordPress who seek flexibility.

3. BigCommerce

  • Monthly: $39 - $79
  • Annual: $468 - $948
  • Best For: Established businesses ready to scale.










Reliable U.S. Suppliers and Costs

1. Oberlo

  • Monthly: Free - $29.90
  • Annual: Free - $358.80
  • Key Features: Product sourcing and automated order fulfillment.

2. Spocket

  • Monthly: $24 - $99
  • Annual: $288 - $1,188
  • Key Features: U.S. and EU suppliers for faster shipping.

3. Printful

  • Monthly: Free
  • Key Features: Print-on-demand custom products.










Domain and Hosting Costs

  • Domain Name: $10 - $15/year
  • Hosting (WooCommerce): $7 - $20/month
  • SSL Certificate: Free - $70/year










Setting Up Your Online Store

Choose A Theme

  • Shopify: Free themes like Debut, or premium themes.
  • WooCommerce: Free themes like Storefront, or premium options.

Customize Pages

  • Key Pages: Home, Product, About Us, Contact, Shipping Info.
  • High-quality visuals and detailed product descriptions are essential.

Install Essential Apps

  • Shopify: Oberlo, SEO Booster, Klaviyo.

WooCommerce: WooCommerce Dropshipping, Yoast SEO.











Payment Gateway Setup

For U.S. businesses, major gateways include:

  • Stripe: 2.9% + $0.30 per transaction
  • PayPal: 2.9% + $0.30 per transaction










Marketing & Advertising Costs & Social Media Marketing

  • Use Instagram, Facebook, and TikTok to promote products.

Paid Advertising

  • Google Ads: $100 - $500/month
  • Facebook Ads: $50 - $300/month

Email Marketing

  • Monthly: $10 - $50 depending on subscriber count.










Monthly & Annul Startup Costs

Platform (Shopify)
Monthly: $39 – $105 | Annual: $399 – $1,068

Suppliers (Oberlo/Spocket)
Monthly: Free – $29.90 | Annual: Free – $358.80

Payment Gateway Fees
Variable (depends on provider and transaction volume)

Marketing
Monthly: $100 – $500 | Annual: $1,200 – $6,000

Total Estimated Cost
Monthly: $139 – $634.90 | Annual: $1,599 – $7,426.80











My Final Thoughts

Starting a dropshipping business in the USA can be a cost-effective way to enter e-commerce with minimal overhead. By choosing a niche you’re passionate about, a reliable supplier network, and a user-friendly platform, you’re well on your way to building a successful online store.

With the right planning, your store can be positioned to grow, making it a profitable and fulfilling venture in the long run.  Above all, remember that you can do this!  It's just one step at a time and is not a race, more like a mini marthon that is so satifying when you actually do it. 











*Please note, if you sign up to any listed and recommended 'affiliate' supplier, I will make a small commission for referring you.*