Dropshipping Product Research Checklist and Tips

The eCommerce industry is sure to have an amazing year in 2020. Dropshipping would also be a great way to succeed in the eCommerce market.

This checklist will help you avoid making mistakes that could lead to your death in the first steps of launching a dropshipping business.

Dropshipping: An Overview

Dropshipping is a new concept that many people are unfamiliar with. Let’s get started.

Dropshipping: What does it mean?

Dropshipping is a method of retail fulfillment in which merchants don’t hold stock or handle the products. Instead, the retailer forwards details of the order to third parties, such as manufacturers, wholesalers, or distributors, after the customer places an order. Now the product is shipped directly from your warehouse to the customer.

Dropshipping is a way to sell physical products without having to set up a warehouse or involve in the packaging, shipping, and handling returns.

Dropshipping: How does it work?

The diagram below shows three main parties in dropshipping: suppliers, retailers and customers.


Dropshipping store owners act as intermediaries between initial suppliers and end consumers.

  • The manufacturers’ merchandise are listed on the retailers’ websites.
  • Customers place orders at retail prices. Merchants purchase identical products at wholesale price and forward order information to suppliers.
  • Now, the suppliers are responsible for shipping the products to customers under the business name.
  • Dropshipping store owners keep the markup amount, or the difference in prices, as profit.

Dropshipping is a great way to start your business.

Dropshipping can be a profitable way to do business. Dropshipping is a more profitable way to make money than stocking your own inventory. Dropshipping is gaining popularity due to these main benefits.

No capital is required: Your initial investment in a dropshipping company is only for the building and running of your website. Only the domain, hosting, theme and app are required.

Dropshipping is easy to learn. It usually involves three main tasks: finding suppliers, defining your niche and setting up an online store.

Low overheads: Dropshipping is a business that uses a simple structure to cut down on overhead costs. You don’t have to manage the associated expenses because you don’t own inventory and you don’t deliver products.

Dropshipping is easy to scale: Dropshipping allows you to expand your business without requiring as much effort or resources as other business models. You can grow faster if your expenses and workload are not increasing quickly.

Lower risk: Dropshipping is a great way to reduce the risks associated with a retail store. The fact that you don’t have an inventory does not mean you are not at risk for broken or unsold products.

Important checklists for launching a dropshipping shop

Dropshipping is a great business idea to begin with. Dropshipping is a great business idea, but many dropshippers close within a month because they can’t make enough money.

These failures are caused by people who don’t know how to proceed and skip crucial steps.

Here is an eCommerce checklist to help you build a dropshipping business.

  1. The idea

Many people believe that building an online store is the first step in starting an online business. To achieve long-term success, successful entrepreneurs often take several steps before they launch an online store. You should not jump in too quickly. Instead, build a foundation.

Selecting a niche

Spending time researching the best dropshipping business ideas is crucial. It is important to choose a niche you are passionate about. However, you must ensure that the niche is financially viable.

Google Trends, Ubersuggest’s Keyword Tool and Google Keyword Planner are some of the tools you can use to find niches in high demand.

Dropshipping products that work well are not dominated or dominated by large brands. They should be non-seasonal and small. The price range should fall between $15-$200.

Perform competition research

Once you have chosen a niche, it is important to conduct an analysis of the competition. Dropshipping is relatively competitive because it has a low barrier to entry. Anyone can start this business model. Research can provide valuable insights that will help you create strategies and tactics that will allow you to stay ahead of the competition.

Locate a supplier

Unprofessional and unreliable partners can spell doom for your business. When evaluating a supplier, you should take the time to consider these factors.

  • Dropshipping is a service that has been successful
  • Customer service is active and responsive
  • Shipping times
  • Pricing terms, quantity discounts, and dropshipping fees
  • Option for automated data interchange

Dropshipping is difficult because it can be hard to find a supplier. There are a few ways to find potential partners.

  • It is easiest to contact wholesalers and inquire if they offer dropshipping.
  • You can also order from your rivals. The address of the supplier is indicated by the return address on the package. You can then Google the address to find out the name of your supplier.
  • Trade shows are a great way to meet potential suppliers and make use of online directories.
  1. Create your dropshipping website

Dropshipping is an option that allows you to manage your business on either Amazon or eBay.

While building a website takes more effort and time, it is worth the effort. Dropshipping websites allow you to control branding, design and layout of your online shop.

It is not necessary to create a website from scratch these days. Many eCommerce platforms make it easy to create an online store. Shopify is a well-known platform for dropshipping.

First, choose a domain for your store. Your store’s unique address is the domain name. For example, www.pipsnacks.com. Your domain name should be concise, easy to remember, and related to your niche.

Next, you must take care of the hosting. Web hosting simply means that your website is hosted on a server. Shopify is a hosted solution that takes care of all the hosting, installation, and maintenance.

  1. Theme tweak

The way your products are displayed is crucial when you run an online store, particularly a dropshipping-based one. Your potential customers won’t buy if you don’t show your products in an attractive way.

Shopify already provides a free theme. You can customize this theme. You can make your store stand out and distinguish yourself from your competitors by investing in a premium theme that includes dropshipping features.

  1. Start your dropshipping business

Now it is time to set up your website.

Dropshipping is legal and you must comply with tax regulations. You are usually required to pay income tax and sales tax.

Dropshipping taxes can be set up easily if you have a Shopify shop. Shopify will automatically calculate and collect sales tax for each order that you place after you have completed the necessary information.

  1. Make a marketing plan to promote your dropshipping business

Once almost everything is in order, it’s important to create a strategy plan for customer acquisition.

To increase your online store’s visibility on search engines, you must first implement various SEO strategies.

You can then promote your products efficiently by optimizing different channels, such as:

Content marketing: Building a blog to provide useful, up-to-date information for your customers.

Email marketing: Create opt-in lists and send them emails on a consistent basis.

Social media: Create some social accounts to connect with your customers and place paid ads.

  1. Final step

The final step to ensure sustainable growth is to optimize and analyze your strategies and activities.

Recheck your website’s responsiveness on various devices, such as desktop, mobile phone and tablet.

To determine which marketing channels are most effective, you should evaluate them. To track data and metrics, you can use tools such as Google Analytics, Google Search Console, or Facebook Pixel.

You can adjust your offerings with in-depth analysis to keep your competitive edge.

Dropshipping Product Research Checklist

A product research tool is simply a tool that helps you find the most successful products and provides all the information necessary to help you decide whether or not to purchase them. Dropshipping tools often have the following main features:

  • Use the keywords to search for products on different sites.
  • Display the prices at many eCommerce sites as well as the sites of the suppliers.
  • Display the most popular products in the market based upon order rate
  • Data on potential profits, engagements and video ads via FB, targeting and even competitors.
  • It integrates with your eCommerce platform to allow you to import products quickly.

Shopify is the most popular eCommerce platform for dropshippers to sell because of its ease-of-use. Even if you don’t have any programming knowledge, it is possible to create a beautiful online store that can be dropshipped in less than an hour. After reading the top dropshipping products research tools, you should consider Shopify.

What are the benefits of a product research tool for your business?

Dropshipping products research tools are great for finding new ideas and understanding what customers need.

Let’s say you suddenly get the idea to dropship funny cat shirts because so many of your friends love them. Dropshipping products research tools can help you evaluate your idea to determine if it is needed and what your potential customers want. You can also get an idea of the profit margin by looking at the current price.

There are high chances of you gaining customers if there are several stores selling funny cat shirts, but none in your area. It’s possible that they are a passing trend and don’t appeal to people anymore. These insights will help you to think differently about how to serve your customers better and surpass your competitors.

You can modify your prices and product designs, speed up shipping times, target new customers, create engaging marketing campaigns, or ads. You have a lot of options to make your products stand out in the marketplace. Dropshipping research tools are the best to help you quickly make these changes.

Final thoughts

Dropshipping is a great way to get into the eCommerce market. It is not easy to start. With the checklist above, we hope you feel more confident about your dropshipping business.

Author bio: Jasmine works as a content creator for Avada Commerce. She enjoys reading, travelling and shopping online. She is an average customer and has a special interest in E-commerce platforms as well as online distribution channels.