A Beginners UK Guide To Dropshipping Business

Sep 24, 2024By Jonathan Groethe
Jonathan Groethe
Worker checking the storages in warehouse

What I s Dropshipping & How Do I Make Money?

Put simply, dropshipping 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 UK, 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

As I just mentioned, dropshipping is a retail model where products are shipped directly from the supplier to the customer, so you never need to hold inventory. Here’s an overview of how it works:

  • Customer Orders: A customer places an order on your online store.
  • Forward the Order: You relay the order to your supplier.
  • Supplier Ships: The supplier sends the product directly to the customer.

Advantages: Low startup costs, no need for stock storage, and flexibility.
Disadvantages: Lower profit margins, reliance on suppliers, potential shipping delays.











1. Choosing Your Niche
Selecting the right niche will define what products you sell and influence your customer base.  Here’s how to approach it...

2. Identify Your Interests and Passions:
Pick a niche that aligns with your interests to keep motivated. Create a list of potential topics or products that excite you.

3. Research Market Demand:
Use Google Trends to gauge interest, Amazon Best Sellers for popularity insights, and social media to identify trending items.

4. Analyze Competition:
Search your chosen niche on Google and marketplaces like eBay or Amazon to see the competitive landscape.

5. Evaluate Profit Potential:
Estimate product costs, shipping fees, and potential profits. Profit margin calculators like Shopify’s can provide a clearer picture.

6. Consider Trends and Longevity:
Assess whether your product is evergreen or seasonal. Use tools like Exploding Topics for trending products.

7. Test the Market:
Before diving in, test your product idea with a landing page and small ad campaigns to gauge demand.











Selecting a Dropshipping Platform

A few platforms are particularly well-suited for dropshipping in the UK, each with varying setup costs:

1. Shopify
Monthly Cost: £31 to £83
Annual Cost: £319 to £850
Best For: Beginners seeking a comprehensive platform

2. WooCommerce (requires hosting)
Monthly Cost: £5 (hosting only) to £16 (with plugins)
Annual Cost: £60 to £192
Best For: Users already on WordPress looking for flexibility.

3. EKM
Monthly Cost: £34.99 to £209.99
Annual Cost: £377.88 to £2,519.88
Best For: UK-specific businesses needing localized support.











Finding Reliable Suppliers

Choosing reputable suppliers is essential for timely order fulfillment and customer satisfaction.

Here are some UK-friendly suppliers:

1. Avasam
Monthly Cost: £25 to £45
Annual Cost: £300 to £540
Key Features: UK-based suppliers with fast local shipping.

2. Wholesale2B
Monthly Cost: Approx. £15 to £40 (converted)
Annual Cost: £180 to £480
Key Features: Offers access to multiple suppliers, with automated processing options.

3. Printify
Monthly Cost: Free to £25 (for premium)
Annual Cost: £0 to £300
Key Features: Print-on-demand service with UK-based printing partners.











Domain & Hosting Costs

Your website’s domain and hosting will be fundamental to launching your store.

1. Domain Name:
Cost: £8 to £12 per year
Choose a name that aligns with your brand and resonates with your target audience.

2. Hosting for WooCommerce
Monthly Cost: £5 to £15
SSL Certificate: Free to £50 per year (for security).











Store Setup

1. Choose a Theme: Select a clean, mobile-responsive theme for an attractive, user-friendly website.

  • Shopify has free options like Debut, or premium themes.
  • WooCommerce offers free themes like Storefront, or paid options like Astra.

2. Customize Essential Pages: Include key pages like Home, Product, About Us, Contact, and Shipping Info, with high-quality images and descriptive text.

3. Install Essential Apps/Plugins:

  • Shopify: Oberlo for product import, SEO Booster, and Klaviyo for email marketing.
  • WooCommerce: WooCommerce Dropshipping plugin, Yoast SEO, and Mailchimp.










Gateways That Offer A Secure & User-Friendly Payment experience

  Recommended gateways for the UK:

  • Stripe: 1.4% + £0.20 per transaction
  • PayPal: 2.9% + £0.30 per transaction

Tip: Consider offering additional options like Klarna for installment payments.











Marketing and Advertising

1. Social Media Marketing: Utilise platforms like Instagram and TikTok for promotions, or collaborate with influencers to boost visibility.

2. Paid Advertising:

  • Google Ads: Starting around £80 to £400/month
  • Facebook Ads: Approximately £40 to £250/month

3. Email Marketing: Tools like Mailchimp allow you to engage with subscribers at around £10 to £50 per month based on the list size.











Monitoring and Optimisation

1. Analytics: Use Google Analytics and Shopify or WooCommerce’s built-in reporting tools for insights into store performance and customer behavior.

2. Customer Feedback: Regularly review customer feedback and adjust product offerings or improve service based on their responses.

3. Scaling Up: Expand your product range, invest in new marketing channels, and explore new markets.











Total Estimated Cost Overview

Platform (Shopify/EKM) – Monthly: £31 - £209.99 | Annual: £319 - £2,519.88
Suppliers (Avasam/Wholesale2B) – Monthly: £25 - £45 | Annual: £300 - £540
Domain & Hosting – Monthly: £5 - £15 | Annual (inc domain): £68 - £192
Marketing & Advertising – Monthly: £80 - £400 | Annual: £960 - £4,800

Total Estimated Cost – Monthly: £141 - £669.99 | Annual: £1,647 - £8,051.88











Final Thoughts

Starting a dropshipping business in the UK can be an accessible, scalable, and rewarding venture. With thoughtful planning and the right tools, you can build a successful e-commerce store that reaches customers locally and internationally, offering them a seamless shopping experience. Now’s the time to turn your business idea into a reality—launch, learn, and scale!

You’ve got this! Remember, it’s not a race—it’s more like a half marathon. The key is to keep moving forward, one step at a time. Stay steady, stay determined, and before you know it, you’ll cross the finish line and feel the incredible reward of your effort!











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