Over 80% of Brits do at least some of their shopping online now, and the U.K. eCommerce industry rises in value year after year. Clearly, there’s a lot of money to be made in this field. But setting up an online store takes a lot of hard work, and quite a lot of initial investment, too.

At least, it does if you do it the old-fashioned way, finding and buying products – or making your own – before selling them on to your customers. But there’s an alternative. A simpler, more convenient alternative, with lower up-front costs and fewer risks.

It’s called dropshipping, and you’ve most likely already heard of it. After all, “dropshipping” has been a big buzzword over the last few years, especially during the pandemic. Back then, tons of people decided to launch their own dropshipping stores and start making money from the comfort of home.

However, while plenty of people have heard of dropshipping, many are unfamiliar with exactly what it is, how it works, and why it’s such an appealing option for those entering the eCommerce world. 

High Ticket is here to help, with a deep dive guide into the world of dropshipping. Read on to learn everything you need to know.

Understanding Dropshipping

First, the basics. Let’s define dropshipping and explain the basics of how it all works.

What Is Dropshipping?

Here’s the dropshipping model in a nutshell: It’s a type of eCommerce business where you sell products online without actually needing to buy, manage, and maintain those products. You just find suppliers to do it all for you.

With dropshipping, you advertise products on your store. Then, when an order comes in from a customer, you pass it on to your third-party supplier. They fulfill the order. You pocket the profit. In other words, you can think of a dropshipping business as a middleman, bridging the gap between customers and suppliers.

How Dropshipping Works

To understand how the basics of dropshipping work, here’s an example. 

Let’s say you want to set up a dropshipping business selling exercise equipment. You make an online store – with the help of an eCommerce platform like Shopify – and design a brand based around the theme of exercise. Then, you find a dropshipping supplier who sells exercise items, and market those items on your site.

Next, a customer comes along. They land on your site (ideally with the help of Google Ads or other marketing materials you’ve invested in) and pick a product or two they’d like to buy. Just like in any other store, they add the products to their cart and pay for their order. 

Now, that order needs to be fulfilled, and this is where the unique advantage of dropshipping kicks in. Usually, with a regular store, you’d have to have all your store’s items in stock and stored somewhere like a warehouse. Then, you’d have to find the item your customer ordered, pack it up, and send it out yourself.

Not with dropshipping. 

With dropshipping, order fulfilment is so much simpler. You just pass the order through to your supplier. They handle all the packaging and shipping of the products to your customer. All you have to do is check that everything gets delivered as it should, and handle any customer service tasks – like responding to questions or resolving any issues with the order. 

Getting Started With Dropshipping

By this point, you might be intrigued by the idea of dropshipping and are perhaps even considering setting up your own store. But you might be concerned about how complicated and confusing the process might be. Fret not – starting a dropshipping business is surprisingly easy, once you know how.

Steps to Start a Dropshipping Business

Here’s how to start dropshipping for free (or with only minimal spend) in three easy steps.

Step 1 – Market Research

First comes research. This is critical and can make or break your business’ future success. So, it’s worth doing right. Take your time to research the market and your target audience. Find a niche that suits you and has a good chance of turning a profit, and dig deep into the details to find out what sorts of products work best and how to market them.

Step 2 – Setting Up Your Online Store

Naturally, every dropshipping business needs a store. That’s where you list and market your products, allowing customers to browse your catalogue, make purchases, and contact you. While this might seem tricky for first-timers, eCommerce platforms like Shopify make it super easy to start a dropshipping business and build a store in a matter of minutes. If you don't have the time or expertise to do that, try our Done-For-You Website Design service.

Read our “How Does Dropshipping Work on Shopify” guide. 

Step 3 – Finding Supplies

Last, but certainly not least: products. You need stuff to sell, so you have to find suppliers to provide the kinds of products your audience wants. A lot of people look overseas here, to countries like China, where you can find items much cheaper than you would at home, making it easier to turn a profit. Do your research once again and look at reviews to find trusted, reliable suppliers who won’t let you down.

Get access to a private database of expert-vetted high ticket suppliers and distributors.

Choosing the Right Products

Selecting the best dropshipping products is a crucial part of the process to set up your store. It’s also the part where many people make mistakes, picking dropshipping products that simply won’t sell enough or failing to find a decent dropshipping niche. 

It’s important to explore trends to find out which products are selling well – niches like apparel and beauty products always tend to be popular. Additionally, you might like to find a niche that you’re passionate or knowledgeable about. That’ll help you market your store appropriately and understand the buyer persona you’re trying to target.

The Business Model and Its Benefits

We’ve covered the “What?” and the “How?” of dropshipping. Next, let’s explore the “Why?” Why would you want to pick this sort of eCommerce business model over the alternatives? Let’s dive in and find out.

Understanding the Dropshipping Business Model

As touched on earlier, the dropshipping business model can be summed up in one simple word: middleman. As a dropshipper, you act as a middleman between your customers and your suppliers. Customers come to your store to buy products, and suppliers provide those products. All you have to worry about is marketing and making sure orders are fulfilled accordingly.

This is why dropshipping is classed as a low-risk business model, as it removes much of the risk often associated with running an online store. Garages, warehouses, massive investments in stock and products – none of that applies to this business model. 

That’s not to say it’s completely risk-free. There are still costs to cover and risks of failure if you can’t keep up with the competition. Dropshipping is also super competitive, too, and has other downsides – like the risk of working with a bad supplier and suffering the consequences when customers aren’t content. But, overall, it’s much lower risk (and lower investment) than a typical eCommerce store.

Benefits of Dropshipping

By now, the many benefits of dropshipping are beginning to emerge. Here’s a closer look at a few more of them.

Cost-Effective

Arguably the No. 1 benefit of dropshipping is how affordable and accessible it is, even for beginners. It’s a genuinely profitable business model with remarkably low overhead and startup costs, as you don’t have to invest in stock to succeed. Just buy your items as and when customers order them.

Flexible

It’s no exaggeration to say that dropshipping allows you to work the way you want. You can run your business all from the comfort of home, pick and choose products that speak to you, design and build a brand in your own image, and put in as much time, effort, and money as you’re willing to.

Scalable

Dropshipping is effortlessly scalable. As you gain customers and make more sales, you can easily add more products to your store, expand your marketing reach, and reinvest some of the money you make to broaden your eCommerce empire.

Dropshipping in 2024: Trends and Predictions

Dropshipping was hugely popular during the COVID-19 pandemic. But some expected its popularity to wane as the world got back to normal. In actuality, dropshipping has never been bigger, gaining value year after year. Let’s take a look at the here and now of dropshipping to explore what it means at the moment, as well as glancing towards the future.

Current Market Trends

Dropshipping in 2024 is worth more than $300 billion. It shows no signs of slowing down or going away, with experts predicting the industry will pass the $500 billion mark as soon as 2026. That just goes to show how fast-moving and popular this industry is, and with more people choosing to shop online, not just in the U.K. but worldwide, the potential for future growth is clear to see.

If you’re able to build a strong store, pick the right products, and market your dropshipping business effectively, money is absolutely there to be made. 

A big part of it, as discussed earlier, is picking the right products and staying on top of the latest trends. 

Right now, apparel and accessories lead the way in terms of best-selling items, along with health, beauty, homeware, pet products, and baby products. But that can all change as levels of supply and demand change, and we may see other products, like office supplies or DIY gear, take off in the years ahead.

Is Dropshipping Worth It in 2024?

Short answer: yes!

Long answer: without a doubt, dropshipping is worth it in 2024. This is a fast-growing, high value industry, with experts predicting a colossal compound annual growth rate in excess of 23% between now and 2030. That’s huge, and even though there are way more dropshippers now than there were just a few years ago, it’s still a fantastic time to get involved and grab your slice of the pie.

At the same time, the increasing amount of dropshipping businesses does present challenges for those trying to break into the industry. There’s more competition than ever, and it’s highly likely that dropshipping may become even more intensely competitive in the years to come. It’s a challenge to get your store seen in such a saturated market, and around 90% of dropshipping businesses fail early on in their existence as a result.

So, is dropshipping worth it, when you take everything into account? Absolutely. But you have to be prepared to put in the necessary time and work, and seek help when you need it. Joining a trusted and proven program, like the High Ticket Program, is a great way for new dropshippers to get ahead of the game and have a much better chance of success.

Practical Considerations

You might already be raring to go, eager to sign up for the High Ticket Program, and tread your own path to dropshipping success. But hold on just a moment longer. While there is an inordinate array of advantages of drop-shipping, there are a few practical matters that have to be taken care of if you hope to succeed with your store.

Financial and Legal Aspects

A lot of people are drawn to dropshipping since it’s so much cheaper than setting up a standard eCommerce business. 

But that doesn’t mean it’s free.

You’re still going to need at least some start-up capital to get going. You’ll need to invest in creating your online store and getting it hosted on a platform, as well as marketing and so on. Then, there are other financial considerations and ongoing costs for ads, apps, transaction fees, etc.

Next, there’s the legal side.

There’s nothing illegal about dropshipping in the U.K. But you still need to follow the law and meet all legal requirements to set up and run your business. That means registering your business correctly and being aware of your tax obligations for the money you make. 

Managing Your Dropshipping Store

This is where a lot of newbie dropshippers go wrong. They hear the hype about dropshipping and assume they can just pick a few products, make a store, sit back, and let the money roll in. 

It doesn’t quite work that way.

Every online store – even a dropshipping store – needs management. Orders need fulfilling, customers need service and support, problems need addressing, and so on. 

It’s like in any other industry. You have to nurture and manage your business if you wish to see it grow. That means working on order fulfilment to ensure customers get their products in a safe and timely fashion, as well as offering reliable and friendly customer service to answer questions or help out when things go wrong. Remember, 96% of customers will leave brands that have bad service.

Tools and Resources

We’ll finish up with a look at some of the many helpful tools and resources you can use on your dropshipping journey.

Essential Tools for Dropshipping

To build a winning dropshipping business, you’ll need the following:

An eCommerce Platform

Shopify. Wix. WooCommerce. There are a bunch of different platforms out there that help you make, manage, and host your online store, even if you’ve got zero experience. Shopify dropshipping is one of the most popular options, thanks to its usability and huge audience.

Dropshipping Apps

There are hundreds of apps designed with dropshipping in mind. Like Zopi, which connects you to a gigantic catalog of products, or DSers, which is handy for managing multiple stores simultaneously. Other apps can help you identify trending products, build your brand, market your store, and more.

Google Ads

Google Ads is essential for a new high-ticket dropshipping store because it provides instant access to a large, targeted audience, driving immediate traffic to the store. It also enables precise targeting with high-intent keywords, helping to attract potential buyers who are actively searching for premium products, which is crucial for early sales and growth.

However, Google Ads can be a bit too complex for a newbie. Here's what to do if you get your Google Merchant account suspended for a minor infraction. 

Learning and Support

Dropshipping is complex. No doubt about it. Even experienced dropshippers admit they still have a lot to learn, as fresh trends and new tools and platforms are always bursting onto the scene. 

Fortunately, there are plenty of helpful, educational resources and networks out there you can leverage to achieve long-lasting dropshipping success:

• Educational Resources: The internet is awash with helpful articles, eBooks, dropshipping FAQ, and guides like this one, covering everything from dropshipping basics to advanced strategies.

• Communities and Networks: You can also find helpful communities, forums, and online groups, where dropshipping experts share their wisdom to help beginners get off to a good start.

Conclusion: Start Your Dropshipping Adventure Today

If you came into this guide unfamiliar with dropshipping, or looking to learn more about how it all works, we hope your questions have been answered. To sum up, dropshipping is a clever, low-risk way of running an online store, without all the hassle that typically comes with managing and maintaining your own stock.

The benefits of this model speak for themselves, and the number of success stories rises day after day. Like the story of Kabrin, who went from having no eCommerce experience to pulling off six-figure deals every single month. You can learn more about Kabrin’s and other people’s stories , get in touch with the High Ticket team and take your first steps to dropshipping success today.