{"id":1988,"date":"2020-05-19T09:34:56","date_gmt":"2020-05-19T09:34:56","guid":{"rendered":"https:\/\/www.oddsmonkey.com\/sidehustle\/?p=1988"},"modified":"2025-11-25T16:38:17","modified_gmt":"2025-11-25T16:38:17","slug":"a-guide-to-dropshipping","status":"publish","type":"post","link":"https:\/\/www.oddsmonkey.com\/sidehustle\/a-guide-to-dropshipping\/","title":{"rendered":"Dropshipping in the UK: How to start a dropshipping business"},"content":{"rendered":"<p><span style=\"font-weight: 400;\">The number of UK dropshipping businesses is growing year-on-year. Dropshipping is an alternative model to the traditional online store as it involves selling products using a third-party supplier to fulfil your customer orders. Although the profits vary between businesses, it can be one of the best and slightly less <\/span><a href=\"https:\/\/www.oddsmonkey.com\/sidehustle\/7-unusual-ways-make-money\/\"><span style=\"font-weight: 400;\">unusual ways to make money online<\/span><\/a><span style=\"font-weight: 400;\">; if you know what you\u2019re doing\u2026<\/span><\/p>\n<p><span style=\"font-weight: 400;\">But don\u2019t worry if you don\u2019t. Our OddsMonkey guide to dropshipping in the UK covers everything you need to get started. This guide covers the basics of dropshipping, such as:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">What is dropshipping?<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">How does dropshipping work?<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Dropshipping FAQs<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Advantages and disadvantages<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">But for those of you that are seriously thinking about starting a dropshipping UK business, we\u2019ll also look at:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">What you need to start a dropshipping business<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Running a dropshipping business<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Ways to increase your chances of making money from dropshipping<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Is dropshipping worth it?<\/span><\/li>\n<\/ul>\n<h2><span style=\"font-weight: 400;\">What Is Dropshipping?<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Dropshipping goes on behind the scenes. It is a form of retail \u2013 usually e-commerce \u2013 which uses a different product delivery method to the direct retailer-to-customer shipping we\u2019re used to.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">It should not be confused with other e-commerce businesses like <\/span><a href=\"https:\/\/www.oddsmonkey.com\/sidehustle\/how-to-sell-on-fiverr\/\"><span style=\"font-weight: 400;\">selling on Fiverr<\/span><\/a><span style=\"font-weight: 400;\">.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">With dropshipping, the retailer doesn\u2019t hold items in stock. Instead, items remain with a third-party supplier until they\u2019ve been bought. The customer\u2019s order details are sent directly to the supplier who then handles packaging and shipment on the dropshipper\u2019s behalf.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Usually, these third party suppliers are based overseas, mostly in China, where products are considerably cheaper than most places.\u00a0 Some of the biggest dropshipping companies include <\/span><a href=\"https:\/\/www.shopify.com\/collective\"><span style=\"font-weight: 400;\">Shopify Collective<\/span><\/a><span style=\"font-weight: 400;\">, <\/span><a href=\"https:\/\/www.spocket.co\"><span style=\"font-weight: 400;\">Spocket<\/span><\/a><span style=\"font-weight: 400;\"> and <\/span><a href=\"https:\/\/www.aliexpress.com\/\"><span style=\"font-weight: 400;\">AliExpress<\/span><\/a><span style=\"font-weight: 400;\">.\u00a0\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">There are also some big UK based dropshipping companies that shouldn\u2019t be ignored including <\/span><a href=\"https:\/\/syncee.com\/\"><span style=\"font-weight: 400;\">Syncee<\/span><\/a><span style=\"font-weight: 400;\">, <\/span><a href=\"https:\/\/www.cjdropshipping.com\/\"><span style=\"font-weight: 400;\">CJ Dropshipping<\/span><\/a><span style=\"font-weight: 400;\"> and <\/span><a href=\"https:\/\/www.avasam.com\/\"><span style=\"font-weight: 400;\">Avasam<\/span><\/a><span style=\"font-weight: 400;\">.\u00a0 The delivery times with UK dropshipping companies can be significantly reduced but the costs of items is likely to be more.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Running a dropshipping business can facilitate a \u2018one man business\u2019 being a global effort. For example, the owner of the dropshipping business could be in the UK and the supplier in China. If you would rather sell your own products directly from your hand to the buyer, you could look at setting up and selling on Etsy UK.<\/span><\/p>\n<h2><span style=\"font-weight: 400;\">How Does Dropshipping Work?<\/span><\/h2>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Find a supplier to work with, choose which items you like, and list them on your website.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Customers buy items from your store and the orders are passed directly to your supplier.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Your supplier ships the products to the customer.<\/span><\/li>\n<\/ul>\n<h2><span style=\"font-weight: 400;\">What You Need To Start A UK Dropshipping Business<\/span><\/h2>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Niche<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Business plan<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Brand<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Website to sell from<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">A stock and inventory management system<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Supplier or place to source stock from<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Payment options<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Email system<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">The list above isn\u2019t exhaustive. These are just some of the things you\u2019ll need to start a dropshipping business:<\/span><\/p>\n<h3><b>Concept or Niche<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">A niche is a specific theme or market segment that you choose to focus on or target.\u00a0 Your niche could determine how well your dropshipping business performs. There\u2019s a fine line between going too niche and too wide. This is why it\u2019s important to do customer research. You\u2019re looking for a niche that has low competition and high search volume.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">For example, a kitchenalia store will only offer things like cooking utensils and other items associated with the kitchen. If you list any and everything, you run the risk of looking like an online jumble sale and this can be confusing to site visitors. Choosing a niche will help you with your marketing efforts.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Some dropshippers choose to change their shop based on current trends. For example, looking at Google Trends data over the last 5 years, December 2023 was a peak time for the term \u2018essentials hoodie\u2019 in UK search. Many UK dropshipping businesses jumped on this as the ideal item for them to sell. They rode the wave of popularity.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">However, as demand dropped and the trend ended, these dropshippers will have had to make a decision. Remain a hoodie shop, expand the brand to feature similar items, or pivot and anticipate the next hot trend.<\/span><\/p>\n<h3><b>Business Plan<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">Dropshipping seems to sit on its own, away from retail. But really, it falls under the ecommerce umbrella. That means that it needs to be given the same considerations as a \u2018real\u2019 business. Because it is one!<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Setting up a business isn\u2019t as easy as buying a website template and hitting \u2018Publish\u2019. The best businesses have a solid plan behind them. The owner knows what they want to achieve.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Gov.uk has some fantastic resources on <\/span><a href=\"https:\/\/www.gov.uk\/write-business-plan\"><span style=\"font-weight: 400;\">writing a business plan<\/span><\/a><span style=\"font-weight: 400;\"> for your UK dropshipping business. You could also look at selling ideas or specific content-based products on other sites. Read all about how to sell on Etsy <\/span><a href=\"https:\/\/www.oddsmonkey.com\/sidehustle\/sell-etsy-setting-etsy-shop\/\"><span style=\"font-weight: 400;\">here<\/span><\/a><span style=\"font-weight: 400;\">, as one example.<\/span><\/p>\n<h3><b>Brand<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">A brand isn\u2019t just a logo, or a photograph. It\u2019s everything that makes up your entire business: including the look, feel, experience, voice, service and name. Obviously this can evolve over time, but it makes sense to think about how you want to be seen.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Depending on your skillset or budget, your initial branding exercise can be as shallow or in depth as you like. You can approach an agency, or hire a <\/span><a href=\"https:\/\/www.oddsmonkey.com\/sidehustle\/freelancing-freelance-work-home\/\"><span style=\"font-weight: 400;\">freelancer<\/span><\/a><span style=\"font-weight: 400;\"> from Fiverr or Upwork, or do it yourself. There\u2019s lots of information available online on branding for beginners if it\u2019s not something you\u2019ve done before.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">As a start though, here are some of the things you\u2019ll need to think about and do:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">What is your business and what is its mission?<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">What do you want potential customers to think about when they think of your business?<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The benefits and features of your products.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Create a tone. Is your brand chatty and conversational or more formal?<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Be consistent with your content to build trust through multi-channel marketing. A set of templates and brand guidelines can help with this.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Name, logo, and tagline. If your business had to be summed up concisely, what would that look like?<\/span><\/li>\n<\/ul>\n<h3><b>Register Your Business<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">Not only is it a legal requirement to register your business, it also helps keep your business and personal assets separate.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">If you choose to operate as a Sole Trader (UK), it\u2019s worth knowing that there is no official register of Sole Trader business names. To register a business name in the UK, you\u2019ll either need to form a limited company or get a trade mark.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">There\u2019s some useful information in this Government <\/span><a href=\"https:\/\/www.gov.uk\/set-up-business\"><span style=\"font-weight: 400;\">guide to setting up a business<\/span><\/a><span style=\"font-weight: 400;\">.<\/span><\/p>\n<h3><b>Online Store<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">You need somewhere to show off the items you have for sale. And an ecommerce website is probably the answer.\u00a0 This is possibly the most important aspect as it\u2019s the shop window for your business and first impressions count.<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">But don\u2019t worry if you don\u2019t know anything about building a website \u2013 you don\u2019t need to start from scratch. There are a number of website builders you can choose from to set up your store cheaply, quickly and without needing to have any knowledge of coding.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">One of the most popular options is Shopify who specialise in online retailers.\u00a0 Alternatively, you can use SquareSpace or WordPress which offer a more flexible system.<\/span><\/li>\n<\/ul>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">If you\u2019re starting out with just a few products, then it might make more sense to have a landing page rather than a full website. Instapage or Unbounce can help you set up a landing page. You can always scale up later if you need to.<\/span><\/li>\n<\/ul>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">One of the most important things you\u2019ll need to do is optimise your site to encourage sales. Each conversion point in the user journey needs to be looked at to make sure the buying process from start to finish is as smooth as possible.<\/span><\/li>\n<\/ul>\n<h3><b>A Management System for Stock and Inventory<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">With dropshipping, you can either list items manually or use a service to do it for you. If\u00a0 you choose to do it manually, you\u2019ll need to write, add, and update your product descriptions as and when your supplier has the stock. This is time-consuming and can be difficult to keep track of. Especially if your supplier doesn\u2019t keep their stock levels up to date or you\u2019re using multiple suppliers.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Oberlo is an example of a service that can do it all for you and streamline your processes. It integrates Shopify with AliExpress, meaning that you can find products for your store, add them to your site, and organise shipping quickly and seamlessly.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Oberlo also offers advice on things like what products to sell and what prices to put on them. It\u2019s up to you whether or not you take the suggestions onboard but it\u2019s handy info to have!<\/span><\/p>\n<h3><b>A Stock Supplier<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">Obviously, in order to sell products, you need stock.\u00a0 This leads us on to sourcing suppliers of products.\u00a0 When it comes to dropshipping, there\u2019s three types of suppliers:<\/span><\/p>\n<p><b>Manufacturers<\/b><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Manufacturers make products and usually sell in bulk to wholesalers and retailers, rather than selling directly to the public. There are pros and cons to choosing a manufacturer as your supplier:<\/span><\/li>\n<\/ul>\n<table>\n<tbody>\n<tr>\n<td><b>Pros<\/b><\/td>\n<td><b>Cons<\/b><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">It\u2019s the cheapest way to bulk buy<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Minimum orders are likely to apply<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Larger profit margin potential<\/span><\/td>\n<td><span style=\"font-weight: 400;\">You might need to hold stock and shpi the items yourself<\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p>&nbsp;<\/p>\n<p><b>Wholesalers<\/b><\/p>\n<p><span style=\"font-weight: 400;\">A wholesaler is a company that buys goods in bulk from a manufacturer before marking the prices up slightly and then reselling. They usually sell the goods on in large quantities at what are still relatively low prices (especially when compared to the final retail price). Again, here are some pros and cons:<\/span><\/p>\n<table>\n<tbody>\n<tr>\n<td><b>Pros<\/b><\/td>\n<td><b>Cons<\/b><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Tend to operate within a niche which makes it easier to find something suitable for your business.<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Most wholesalers choose to sell to retailers rather than directly to the public.<\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<h3><b>Retailers<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">In dropshipping terms, a retailer could be a seller on Ali Express. If you choose them as your third party supplier, they will take care of individual orders and items. This approach means you won\u2019t have to purchase in bulk or store stock.<\/span><\/p>\n<table>\n<tbody>\n<tr>\n<td><b>Pros<\/b><\/td>\n<td><b>Cons<\/b><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">A lower minimum order requirement (individual).<\/span><\/td>\n<td><span style=\"font-weight: 400;\">With so many options, it can be difficult to find the right seller for your business.<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Can ship directly to customer<\/span><\/td>\n<td><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<h2><span style=\"font-weight: 400;\">How To Find Dropshipping Suppliers<\/span><\/h2>\n<h3><b>Google<\/b><\/h3>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">If you do this, don\u2019t just rely on the first page of results as you may miss out on the perfect fit for your business. For example, wholesalers won\u2019t necessarily be optimised for online searches and you therefore may need to click a few pages deep.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">AliExpress is considered to be the most popular dropshipping supplier at the moment.<\/span><\/li>\n<\/ul>\n<h3><b>Check out the Competition<\/b><\/h3>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">If you know of an online shop which consistently receives good reviews and is a dropshipping company, you could try to find out who their supplier is.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">One way to do this would be to order something from the shop and then say you want to return it. You\u2019ll most likely be given the supplier\u2019s details rather than the shop you bought from.<\/span><\/li>\n<\/ul>\n<h3><b>Use a Supplier Directory<\/b><\/h3>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">There may be a small charge to access this data, depending on the directory. However, using a directory such as Wholesale Central or SaleHoo could save you a lot of time in searching.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Alternatively, if you know what your niche is or what you want to sell, you could call a manufacturer and ask for a list of the wholesale distributors they use.<\/span><\/li>\n<\/ul>\n<h3><b>Attend a trade show<\/b><\/h3>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">This offers you a one-stop opportunity to research potential products and make contacts at major suppliers. It\u2019s a great way to get to know suppliers in your identified niche.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Be prepared to have to iron out some details when it comes to finding the perfect fit for your dropshipping business. Do your research beforehand, but don\u2019t be put off if it doesn\u2019t work out the first time. The chances are that the first supplier you choose won\u2019t be the one you stay with for the lifetime of your business. Trial and error is ok.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">You probably won\u2019t be able to negotiate on prices at the start of your working relationship. It\u2019s always worth an ask but they might not be willing. In the beginning, it\u2019s more important to find a good, reliable supplier. The best price can be found later on.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">But how can you tell if you\u2019re picking a good supplier? There are a few signs to look out for when it comes to choosing a good dropshipping supplier:<\/span><\/li>\n<\/ul>\n<h3><b>Location\u00a0<\/b><\/h3>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Whilst location doesn\u2019t indicate the quality of a supplier, it\u2019s an important point to remember in terms of shipping times. And how long it could take for an item to reach the customer.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">For example, AliExpress (which is one of the most popular suppliers based on international search activity) is located in China and deliveries can take up to 60 days to arrive in the UK.<\/span><\/li>\n<\/ul>\n<h3><b>Good support<\/b><\/h3>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Something that keeps coming up again and again as a key element of a successful dropshipping business is the need for clear communication.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">A good supplier should provide you with a dedicated contact who is responsible for taking care of you and any issues you have.<\/span><\/li>\n<\/ul>\n<h3><b>Ordering via Email\u00a0<\/b><\/h3>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Believe it or not, some suppliers don\u2019t take orders through email. Instead, orders will need to be placed manually via their order system or by calling in each individual order. This is extremely time-consuming.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Dropshipping already has the potential to take up a lot of your time as it is, so try to save time where you can and choose a supplier you can contact via email.<\/span><\/li>\n<\/ul>\n<h3><b>Be Organised<\/b><\/h3>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Along with communication, organisation is a key part of running a successful dropshipping company. Unfortunately, you won\u2019t really be able to gauge how good a potential supplier is until you\u2019ve actually used it. Some will be amazingly efficient while others will mess up every other order.<\/span><\/li>\n<\/ul>\n<h3><b>Payment Options<\/b><\/h3>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">How will customers pay for their purchases, and how will you receive <\/span><a href=\"https:\/\/www.oddsmonkey.com\/sidehustle\/cash-for-clothes\/\"><span style=\"font-weight: 400;\">cash for clothes<\/span><\/a><span style=\"font-weight: 400;\"> or other products you are dropshipping? PayPal is an internationally recognised online payment system. It\u2019s a trusted method, but it\u2019s not the only option.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">You could also choose to let customers pay via debit or credit card. There may be fees associated with individual payment options, so do your research first to find the right fit for your business.<\/span><\/li>\n<\/ul>\n<h3><b>Email System<\/b><\/h3>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Communication is one of the most important parts of running a business. Especially a dropshipping business where there can be a number of people involved. You\u2019ll need to keep in touch with both your suppliers and customers.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Make sure everyone knows what\u2019s going on and that the ball hasn\u2019t been dropped along the way.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">You could even try some <\/span><a href=\"https:\/\/www.oddsmonkey.com\/sidehustle\/refer-a-friend\/\"><span style=\"font-weight: 400;\">refer a friend schemes<\/span><\/a><span style=\"font-weight: 400;\"> through emails, offering loyal customers the chance to receive a discount if they get somebody else to purchase a product from your store.<\/span><\/li>\n<\/ul>\n<h2><span style=\"font-weight: 400;\">Running A Dropshipping Business<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">While running a drop shipping business can be fun and profitable, it can also bring some challenges. Because of the way dropshipping works, there are a lot of moving parts and people involved.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The primary role of a dropshipper is communication. That\u2019s what you\u2019ll spend most of your time doing.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Next, we\u2019ll look at some of the potential issues you could face and some ways to fix them:<\/span><\/p>\n<h3><b>Things Will Probably Go Wrong<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">The sooner you accept this, the sooner you\u2019ll be able to fix any mistakes that happen. So how do you do that?<\/span><\/p>\n<p><span style=\"font-weight: 400;\">To the customer, you are the business. Therefore, when there\u2019s a mistake at the supplier\u2019s end, you have to take responsibility to sort it out and make it up to the customer. The best way to do this is through clear and fast communication. If the customer is kept updated with issues with their order, they\u2019re more likely to forgive a mix up or time delay.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">However, because you\u2019re not in control of orders in terms of dispatch, etc, it\u2019s difficult for you to know when an issue will be rectified. Hopefully, when you were researching potential suppliers, you\u2019ll have taken notice of their customer service, including things like how long it took them to reply to your messages.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The worry here is that you\u2019ll be left out of pocket. However, just because you have to take responsibility for mistakes doesn\u2019t mean you should have to pay for them. A reputable supplier will usually take care of any mistake it\u2019s made, including paying for shipping costs to return items.<\/span><\/p>\n<h3><b>Managing Inventory and Suppliers<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">Suppliers can and will run out of items. Because you\u2019re not in control (ie buying in and holding your own stock) it can be difficult to get around this. For this reason, it\u2019s a good idea to work with more than one supplier. That way, if there\u2019s a problem with stock levels, you may be able to find a replacement or suitable alternative.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">However, managing inventory status across multiple suppliers can be very challenging. There are some suppliers that will automatically send communications if stock levels are running low.\u00a0 You\u2019ll really need to keep your eye on the ball with this one.<\/span><\/p>\n<h3><b>Shipping and Delivery Problems<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">Knowing how much to charge for shipping is something a lot of dropshippers struggle with, especially in the early days of their business. It\u2019s made even more complicated if you choose to use multiple suppliers. So how do you decide how much to charge? There are a few methods but one example is Flat rate shipping.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">This is where you charge the same rate for a delivery, regardless of its weight or size. You could also choose to offer free shipping across all orders, which would make things easier but the cost would have to be swallowed elsewhere in your business.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">International shipping also comes with its own challenges. When you ship internationally, you\u2019ll need to think about things like the different weight and length limitations imposed for different countries, additional charges from suppliers for processing international orders, and higher costs for shipping large or heavy items.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">So is it even worth it? Really, that\u2019s up to you and what you\u2019re comfortable offering within the margins you\u2019re making on sales. For example, if you sell small items with higher margins, the increased market reach may mean that it makes sense for you to deal with the inconvenience and expense of offering international shipments.<\/span><\/p>\n<h3><b>Fraudulent Order<\/b><\/h3>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Most fraudulent orders will contain two different addresses: one for billing and one for shipping. However, some legitimate orders do this too. Therefore, removing this option may mean you miss out on real orders while trying to avoid fraudulent ones.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The AVS, or Address Verification System, is used to verify the address of a person claiming to own a credit card. It does this by checking that the billing address used matches the one held on file with the credit card company.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Riskified is a company offering fraud and chargeback prevention services. It can be a good idea to protect yourself and your shop in this way.<\/span><\/li>\n<\/ul>\n<h3><b>Customer Support<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">Responding to customer complaints and enquiries is where a lot of your time will be eaten up. This can be extremely difficult if you\u2019re running your dropshipping business alongside a traditional 9 to 5. Don\u2019t underestimate how much time you\u2019ll need to spend on customer service or the amount of work that is involved. Communication is key in dropshipping, so make sure you keep on top of things when it comes to speaking and listening to your customers.<\/span><\/p>\n<h3><b>The Returns Process<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">Part and parcel of the sales industry is customers wanting to return items.\u00a0 Research has found that 67% of shoppers check the returns page before making a purchase. Therefore, including a returns policy on your site is essential.\u00a0\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">However, before you jump into writing one, you\u2019ll need to check out the policies of each of your suppliers. Your terms will be somewhat dictated by theirs. There\u2019s no point saying that you\u2019ll accept returns within 30 days if your supplier will only accept items returned in 10. That doesn\u2019t give you enough time to sort things out. Always make sure you leave enough time to accommodate the strictest supplier policy.<\/span><\/p>\n<p><b>5 things to include in your return policy:<\/b><\/p>\n<ol>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The length of time a customer has to request a return. Remember, this will depend on your suppliers\u2019 returns policy.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Exempt items. Items like underwear are usually exempt from most stores\u2019 returns policies for hygiene reasons.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Who pays for returns? It\u2019s a good opportunity to give a little something extra to the customer and offer free returns. 95% of shoppers say that a smooth return experience would encourage them to buy from a business again.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Do you offer exchanges for returned items? And if so, is that only on defective products?<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">If you choose to ship internationally, are all countries eligible for returns?<\/span><\/li>\n<\/ol>\n<p><b>5 step return process:<\/b><\/p>\n<ol>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">A Customer contacts you to say they\u2019re unhappy with their item and would like to return it.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">To go ahead, contact your supplier and ask for a Return Merchandise Authorisation (RMA) number. (Plus offer a refund and\/or replacement if that\u2019s your policy).<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">You can either ask the customer to send the merchandise back to you, back to your supplier, or you can choose to let them keep the item. This may be cheaper and more cost-effective than you having to pay for return shipping.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Once the supplier has decided they\u2019re happy to process the refund, they\u2019ll refund you the wholesale price of the item.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">You then refund the customer for the full price of the item. Throughout this process, keep the customer updated as much as possible. Keeping your customer happy, especially if they\u2019ve requested a return\/refund is one of your key duties as a business owner. There are extras you can offer the customer in order to change a \u2018bad\u2019 experience into a positive. For example, you could offer the customer a free upgrade of a similar item or store credit. Obviously you have to be mindful of your margins, but a little customer care can go a long way.<\/span><\/li>\n<\/ol>\n<p><span style=\"font-weight: 400;\">Unfortunately, returns and refunds will probably be a large part of your dropshipping experience. So it\u2019s a good idea to have everything in place before you open your shop. That way, you won\u2019t be caught out.<\/span><\/p>\n<h3><b>Damaged or Defective Items<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">If damage can be shown beyond reasonable doubt to have been caused either by manufacturing or shipping, the customer is well within their rights to request (and be granted) a refund or replacement. Most dropshipping suppliers won\u2019t cover return postage for defective items.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">However, you should ALWAYS compensate the customer for the return shipping fees for defective items. It\u2019s a cost you\u2019ll have to swallow on individual sales, but you should be able to average things out across your entire pricing system.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Related to this, it might make more sense to provide a refund or replacement item without the customer having to return the original item. This can be a great way to offer refunds as part of your policy, providing great customer service, without having to sort out deliveries.<\/span><\/p>\n<h3><b>Stand Out From The Crowd\u00a0<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">When a customer wants to return a non-defective item, the buyer has to pay the costs of the return shipping. Therefore, if you\u2019re willing to offer free returns on everything, you\u2019ll definitely stand out.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">How often do companies just ship out a new product without asking for the old one back? The answer is: pretty much almost never! You\u2019ll score some major customer service points and maybe even some return custom. On top of that, the customer will get the new item much faster than if they\u2019d had to wait for the old one to reach the supplier before the new one could be shipped back out to them.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">However, this has the potential to get expensive, so please make sure this is a viable option for you and your business if it\u2019s something you\u2019re interested in doing.<\/span><\/p>\n<h3><b>VAT: Costs and Considerations<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">Costs such as VAT and import and export fees depend on where items are stored and where they\u2019re shipped from and to. For the purposes of this guide, we\u2019ll focus on the EU and \u2018third countries\u2019. A third country is one which isn\u2019t part of the EU and therefore doesn\u2019t share the same economic structure.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">For example, the EU has the single market and customs union. A third country business would need to fill in customs declarations when importing and exporting.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Since leaving the EU and coming to the end of the transition period of the Withdrawal Agreement, the UK is now a third country. As the owner of a dropshipping business in the UK, you\u2019ll need to establish where goods are stored and supplied from. This will help you with VAT charges.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">An importer of record is usually responsible for paying necessary import VAT upon receipt of goods.<\/span><\/p>\n<h3><b>Registering for VAT\u00a0<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">VAT registration is usually required when you reach a certain annual turnover. Also known as the VAT threshold. The VAT threshold as of April 2024 is \u00a390,000.\u00a0 A VAT identification number would also be needed if items are stored within an EU member state. This is why many UK dropshipping businesses choose to work with suppliers in China.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">At the time of writing, business-to-customers sales from the UK to the EU are regarded as exports from the UK, which are zero rated. However, if selling from the EU to the UK, you\u2019ll need to register for VAT. Make sure you do your own research first as this is a complicated area.<\/span><\/p>\n<h3><b>Changes in Legislation\u00a0<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">If you plan to accept orders from customers in EU member states, then you should be aware of the changes brought in during 2021. There have been a number of changes and some are still to be implemented but here are some of the most important:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Uniform VAT threshold for distance selling.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Abolition of LVCR (Low-Value Consignment Relief) which means that VAT has to be declared and payment made to HMRC on goods sold for \u00a3135 or less.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Introduction of a One Stop Shop (OSS) procedure to make it easier for businesses and online sellers to handle VAT requirements for importing\/exporting with multiple countries.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Abolishment of tax exemption for products from third countries.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Mandatory to declare EU imports to customs.<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">These changes will mean that many dropshippers will need to pay import tax for the first time. Something they may have been able to avoid previously. Obviously, this can eat into profit margins. But does it mean that dropshipping is no longer worth doing?<\/span><\/p>\n<p><span style=\"font-weight: 400;\">This is just an overview of the changes. For more details, see the Gov.uk site.<\/span><\/p>\n<h2><span style=\"font-weight: 400;\">Tips To Increase Your Chances Of Success With Dropshipping<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">There\u2019s a few ways to enhance your chances of dropshipping success, so let\u2019s take a look:<\/span><\/p>\n<h3><b>Research Your Niche<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">Make sure you\u2019re picking an area that has growth potential. Ideally, choose something you have a passion for and knowledge of. Once you\u2019ve chosen your niche, give it a chance.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">You could try <\/span><a href=\"https:\/\/www.oddsmonkey.com\/sidehustle\/print-on-demand-dropshipping\/\"><span style=\"font-weight: 400;\">print on demand dropshipping<\/span><\/a><span style=\"font-weight: 400;\"> for even more specific niches related to clothing or products like coffee mugs and phone cases.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Don\u2019t just start adding random adding items, unless you\u2019re looking to pivot. Otherwise, your shop will just be an Aladdin\u2019s cave of anything.\u00a0<\/span><\/p>\n<h3><b>Identify Your Target Audience<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">This will be driven by your niche to a certain degree, but you need to know who you\u2019re talking to. That way, you can make sure that you\u2019re delivering your message in a way that will appeal to them. More importantly, you want to encourage them to visit and buy from your site instead of another that sells the same or similar products.<\/span><\/p>\n<h3><b>Build Around Your Core Site to Increase its Visibility<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">You can do this in a few different ways, including: optimising your content for search engines (SEO), running paid ads, targeting potential customers via social routes, and beefing up your content offering.<\/span><\/p>\n<h3><b>A Content Plan\u00a0<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">This is one of the best ways you can add value to your dropshipping business. \u2018Content is King\u2019, so they say. And the term \u2018content\u2019 covers everything from blogs posts to video clips. A good online content strategy will boost your site\u2019s visibility meaning more eyes on your business and hopefully more sales!<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Think outside the box a bit too, when it comes to content. Instead of just copying and pasting an item\u2019s photographs and details from the supplier\u2019s site, why not create original content?\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Produce an unboxing video, film yourself giving a review, use the product in the real world, do a Q&amp;A vid, the possibilities are endless!\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">As long as your content is useful to the visitor and relevant to their needs, it\u2019ll have a positive impact on your business.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Think about the different places your content can be used, too. If you have longish videos onsite, you could repackage these to be suitable for social platforms.<\/span><\/p>\n<h3><b>Get Social<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">Speaking of social platforms, how are you going to use them to find new customers? Return custom is fantastic, but not a given and you need to find a way to attract fresh meat \/ people who haven\u2019t previously made a purchase from you.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">An active social strategy and overall outreach plan is something you should be aiming to produce, but there\u2019s no magic number of posts so don\u2019t just make noise for the sake of it. Again, this is linked to identifying your target audience and then finding the best way to talk to them. Asking social followers to share your posts is a good way to get more eyes on your content. And it\u2019s free!<\/span><\/p>\n<p><span style=\"font-weight: 400;\">However, organic can only get you so far with the mysterious algorithms. As part of your outreach plan, you should look at paid adverts and sponsored posts on social media. Cross-channel marketing and (re)targeting often requires the use of cookies. Cookies are small files which are dropped onto a user\u2019s computer or mobile when they visit your site to record and store information related to that visit and any interactions they make.<\/span><\/p>\n<h3><b>Be Responsible\u00a0<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">With the storing and using of personal data comes great responsibility. Please look into GDPR (General Data Protection Regulations) and make sure you stick to the guidelines. If you\u2019re outside of the EU, check your local data protection laws. Find more info on GDPR in the UK <\/span><a href=\"https:\/\/www.gov.uk\/data-protection\"><span style=\"font-weight: 400;\">here<\/span><\/a><span style=\"font-weight: 400;\">.<\/span><\/p>\n<h2><span style=\"font-weight: 400;\">Advantages And Disadvantages Of Dropshipping<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Al text: picture of a green hand with a thumbs up and a red hand with a thumbs down<\/span><\/p>\n<h3><b>The Advantages of Dropshipping<\/b><\/h3>\n<p><b>Low Start up Costs<\/b><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">No paying for stock in advance<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Low risk compared to normal retail<\/span><\/li>\n<\/ul>\n<p><b>No Stock Management<\/b><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Suppliers take care of storage and shipping<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">No logistical problems or costs<\/span><\/li>\n<\/ul>\n<p><b>Good Product Range<\/b><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">You can sell thousands of items with no physical stock<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Easy to add new products<\/span><\/li>\n<\/ul>\n<p><b>Flexible Location<\/b><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Can be done anywhere in the world<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Ideal for remote working<\/span><\/li>\n<\/ul>\n<p><b>Scalable<\/b><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">No extra stock or storage when growing the business<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Focus can be on finding new customers<\/span><\/li>\n<\/ul>\n<h3><b>The Disadvantages of Dropshipping<\/b><\/h3>\n<p><b>No Control Over Orders<\/b><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Reliant on suppliers to provide a good service and products<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Any supplier errors reflect badly on you<\/span><\/li>\n<\/ul>\n<p><b>Low Profit<\/b><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Items costs are higher than bulk buying<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Competition can force reduced prices<\/span><\/li>\n<\/ul>\n<p><b>Shipping Delays<\/b><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Deliveries can be delayed for overseas suppliers<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">You might lose customers due to delays<\/span><\/li>\n<\/ul>\n<p><b>Stock Problems<\/b><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Stock levels change quickly, risking cancelled orders<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">No control over supplier stock levels<\/span><\/li>\n<\/ul>\n<h2><span style=\"font-weight: 400;\">Dropshipping UK FAQs<\/span><\/h2>\n<h3><b>Is Dropshipping Profitable?<\/b><\/h3>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">As with most forms of commerce, profits come from the difference between the wholesale and resale prices. How much do you buy the item for, versus how much can you sell it on for? The bigger that gap, the more profit you\u2019ll be able to make. Therefore, how profitable dropshipping is differs from business to business. It could be a way for you to supplement your regular income, but if you have a successful dropshipping business, it could even be a way to <\/span><a href=\"https:\/\/www.oddsmonkey.com\/sidehustle\/how-to-make-money-on-maternity-leave\/\"><span style=\"font-weight: 400;\">make money on maternity leave<\/span><\/a><span style=\"font-weight: 400;\"> or while on your holidays.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">However, things like return costs and discounts can eat into this profit. It\u2019s up to you to find and optimise your dropshipping business\u2019 profit-making potential.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">It pays to shop around when looking for suppliers because product prices can vary. The cheaper the cost for you, the better, and it could be a fierce competition between your prices and someone else.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Speaking of competition, take a look at <\/span><a href=\"https:\/\/www.oddsmonkey.com\/sidehustle\/comping-how-to-win-money\/\"><span style=\"font-weight: 400;\">Comping<\/span><\/a><span style=\"font-weight: 400;\"> and how to <\/span><a href=\"https:\/\/www.oddsmonkey.com\/sidehustle\/can-you-make-money-doing-surveys\/\"><span style=\"font-weight: 400;\">make money from online surveys<\/span><\/a><span style=\"font-weight: 400;\">.\u00a0<\/span><\/li>\n<\/ul>\n<h3><b>Is Dropshipping Legal in the UK?<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">Yes, dropshipping is legal. It\u2019s just a method of outsourcing order fulfilment to a third party supplier, using a supply chain to manage packaging and shipping.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">There are a few areas of legal understanding you\u2019ll need so you can stay protected. Things like:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Local taxes.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Import fees (We cover the associated costs in more detail further on in the guide).<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">If the supplier ships counterfeit or damaged goods, you will be responsible. That means that it\u2019s up to you to apologise to the customer and put things right.<\/span><\/li>\n<\/ul>\n<h3><b>How Do I Start a Dropshipping Business in the UK?<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">Spend time researching everything that goes into a dropshipping business so that you know what to expect beforehand. If you just jump straight in, you\u2019re likely to run into any number of problems.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Once you have researched enough into creating a business and have a functioning, profitable dropshipping company, you could further supplement your income by setting up a workshop to <\/span><a href=\"https:\/\/www.oddsmonkey.com\/sidehustle\/online-tuition\/\"><span style=\"font-weight: 400;\">make money through online tuition<\/span><\/a><span style=\"font-weight: 400;\">, or even potentially make <\/span><a href=\"https:\/\/www.oddsmonkey.com\/sidehustle\/what-is-patreon\/\"><span style=\"font-weight: 400;\">money on Patreon<\/span><\/a><span style=\"font-weight: 400;\"> as a content creator.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">In the UK, you\u2019ll need to register as a sole trader or limited company.<\/span><\/p>\n<h3><b>Is Dropshipping Worth It?<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">According to Google Trends, searches for dropshipping peaked at the end of 2022 but make no mistake, it\u2019s still very much alive and kicking.\u00a0\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">In fact, in the Reddit r\/dropship group, there\u2019s over 300,000 members.\u00a0 It would be worth having a look through that group to see what members have to say about dropshipping.\u00a0 You should get real answers as it\u2019s a community type forum that avoids letting business involved in gaining customers.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Another way to check is via social media.\u00a0 There\u2019s plenty of <\/span><a href=\"https:\/\/www.oddsmonkey.com\/sidehustle\/interview-instagram-tips-successful-influencer\/\"><span style=\"font-weight: 400;\">Instagram influencers<\/span><\/a><span style=\"font-weight: 400;\"> that participate in <\/span><a href=\"https:\/\/www.oddsmonkey.com\/sidehustle\/affiliate-marketing-uk\/\"><span style=\"font-weight: 400;\">affiliate marketing<\/span><\/a><span style=\"font-weight: 400;\"> to make some extra money.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Ultimately, you\u2019re best placed to decide the answer to the question \u201cis dropshipping worth it?\u201d. The worth of something depends on what you want out of it. If you\u2019re looking for a way to get rich quickly, dropshipping most likely isn\u2019t the answer. Unless you nail your product choice, marketing, and sales.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Instead, it takes a lot of hard work. The more time, effort, research, working capital, and good customer service you can put in, the better. And the higher your chance of success is.<\/span><\/p>\n<h2><span style=\"font-weight: 400;\">Dropshipping Predictions For The Future<\/span><\/h2>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">No one knows what the next big thing will be. Which is why research and testing are so important. Use a tool like Google Trends to see what the most popular search terms are. You can then narrow this down to retail items. Engage with a supplier, add and test products, and see what happens.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">As with most things, dropshipping is constantly evolving. For example, dropshipping through Amazon has become its own thing. Fulfilment by Amazon (FBA) has emerged as a popular offshoot of the wider dropshipping method. The OddsMonkey\u00a0 <\/span><a href=\"https:\/\/www.oddsmonkey.com\/sidehustle\/what-is-amazon-fba-uk\/\"><span style=\"font-weight: 400;\">Amazon FBA article<\/span><\/a><span style=\"font-weight: 400;\"> can provide more information on this.<\/span><\/li>\n<\/ul>\n<h2><span style=\"font-weight: 400;\">Other Ways To Make Money Online<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">We know doing dropshipping as a side hustle or full time might sound low risk but there\u2019s quite a bit of hard work involved in getting it right.\u00a0 This can be quite time consuming.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">If you\u2019re looking for something a little less taxing but with income potential, you might consider <\/span><a href=\"https:\/\/www.oddsmonkey.com\/sidehustle\/how-to-sell-on-fiverr\/\"><span style=\"font-weight: 400;\">selling on Fiverr<\/span><\/a><span style=\"font-weight: 400;\">, <\/span><a href=\"https:\/\/www.oddsmonkey.com\/sidehustle\/how-to-make-money-on-twitch\/\"><span style=\"font-weight: 400;\">making money on Twitch<\/span><\/a><span style=\"font-weight: 400;\"> or <\/span><a href=\"https:\/\/www.oddsmonkey.com\/sidehustle\/refer-a-friend\/\"><span style=\"font-weight: 400;\">making money from refer a friend schemes<\/span><\/a><span style=\"font-weight: 400;\">.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">There\u2019s one other side hustle that is lesser known and can be extremely rewarding when done correctly\u2026\u2026Matched Betting.\u00a0 This involves using promotions offered by money and turning them into real cash.\u00a0 The OddsMonkey \u2018<\/span><a href=\"https:\/\/www.oddsmonkey.com\/matched-betting\/what-is-matched-betting\/\"><span style=\"font-weight: 400;\">What is matched betting<\/span><\/a><span style=\"font-weight: 400;\">\u2019 guide will reveal all and show you how to make a guaranteed tax-free income.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">OddsMonkey has put together a plethora of information on <\/span><a href=\"https:\/\/www.oddsmonkey.com\/sidehustle\/\"><span style=\"font-weight: 400;\">how to make money from side hustles<\/span><\/a><span style=\"font-weight: 400;\"> if you\u2019re interested.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Drop shipping is often touted as a gold mine but just how simple is it to get started?<\/p>\n","protected":false},"author":2,"featured_media":1991,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_breakdance_hide_in_design_set":false,"_breakdance_tags":"","footnotes":""},"categories":[9],"tags":[],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v22.4 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\r\n<title>Dropshipping Side Hustle | Dropshipping Complet Guide | OddsMonkey<\/title>\r\n<meta name=\"description\" content=\"Learn the popular Dropshipping Side Hustle and how make money online from it at OddsMonkey, the home of all things side hustle and matched betting-related.\" \/>\r\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\r\n<link rel=\"canonical\" href=\"https:\/\/www.oddsmonkey.com\/sidehustle\/a-guide-to-dropshipping\/\" \/>\r\n<meta property=\"og:locale\" content=\"en_US\" \/>\r\n<meta property=\"og:type\" content=\"article\" \/>\r\n<meta property=\"og:title\" content=\"Dropshipping Side Hustle | Dropshipping Complet Guide | OddsMonkey\" \/>\r\n<meta property=\"og:description\" content=\"Learn the popular Dropshipping Side Hustle and how make money online from it at OddsMonkey, the home of all things side hustle and matched betting-related.\" \/>\r\n<meta property=\"og:url\" content=\"https:\/\/www.oddsmonkey.com\/sidehustle\/a-guide-to-dropshipping\/\" \/>\r\n<meta property=\"og:site_name\" content=\"Side Hustle\" \/>\r\n<meta property=\"article:published_time\" content=\"2020-05-19T09:34:56+00:00\" \/>\r\n<meta property=\"article:modified_time\" content=\"2025-11-25T16:38:17+00:00\" \/>\r\n<meta property=\"og:image\" content=\"https:\/\/www.oddsmonkey.com\/sidehustle\/wp-content\/uploads\/2020\/05\/dropshipping2.jpg\" \/>\r\n\t<meta property=\"og:image:width\" content=\"1200\" \/>\r\n\t<meta property=\"og:image:height\" content=\"800\" \/>\r\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\r\n<meta name=\"author\" content=\"Jenna OddsMonkey\" \/>\r\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\r\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Jenna OddsMonkey\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"27 minutes\" \/>\r\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.oddsmonkey.com\/sidehustle\/a-guide-to-dropshipping\/\",\"url\":\"https:\/\/www.oddsmonkey.com\/sidehustle\/a-guide-to-dropshipping\/\",\"name\":\"Dropshipping Side Hustle | Dropshipping Complet Guide | OddsMonkey\",\"isPartOf\":{\"@id\":\"https:\/\/www.oddsmonkey.com\/sidehustle\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\/\/www.oddsmonkey.com\/sidehustle\/a-guide-to-dropshipping\/#primaryimage\"},\"image\":{\"@id\":\"https:\/\/www.oddsmonkey.com\/sidehustle\/a-guide-to-dropshipping\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/www.oddsmonkey.com\/sidehustle\/wp-content\/uploads\/2020\/05\/dropshipping2.jpg\",\"datePublished\":\"2020-05-19T09:34:56+00:00\",\"dateModified\":\"2025-11-25T16:38:17+00:00\",\"author\":{\"@id\":\"https:\/\/www.oddsmonkey.com\/sidehustle\/#\/schema\/person\/68a9e8e9c6fb421a7a1a0ffb94c9e1b9\"},\"description\":\"Learn the popular Dropshipping Side Hustle and how make money online from it at OddsMonkey, the home of all things side hustle and matched betting-related.\",\"breadcrumb\":{\"@id\":\"https:\/\/www.oddsmonkey.com\/sidehustle\/a-guide-to-dropshipping\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/www.oddsmonkey.com\/sidehustle\/a-guide-to-dropshipping\/\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/www.oddsmonkey.com\/sidehustle\/a-guide-to-dropshipping\/#primaryimage\",\"url\":\"https:\/\/www.oddsmonkey.com\/sidehustle\/wp-content\/uploads\/2020\/05\/dropshipping2.jpg\",\"contentUrl\":\"https:\/\/www.oddsmonkey.com\/sidehustle\/wp-content\/uploads\/2020\/05\/dropshipping2.jpg\",\"width\":1200,\"height\":800},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/www.oddsmonkey.com\/sidehustle\/a-guide-to-dropshipping\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\/\/www.oddsmonkey.com\/sidehustle\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Dropshipping in the UK: How to start a dropshipping business\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/www.oddsmonkey.com\/sidehustle\/#website\",\"url\":\"https:\/\/www.oddsmonkey.com\/sidehustle\/\",\"name\":\"Side Hustle\",\"description\":\"\",\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/www.oddsmonkey.com\/sidehustle\/?s={search_term_string}\"},\"query-input\":\"required name=search_term_string\"}],\"inLanguage\":\"en-US\"},{\"@type\":\"Person\",\"@id\":\"https:\/\/www.oddsmonkey.com\/sidehustle\/#\/schema\/person\/68a9e8e9c6fb421a7a1a0ffb94c9e1b9\",\"name\":\"Jenna OddsMonkey\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/www.oddsmonkey.com\/sidehustle\/#\/schema\/person\/image\/\",\"url\":\"https:\/\/secure.gravatar.com\/avatar\/5304c928af400e49be33d582110008f9?s=96&d=mm&r=g\",\"contentUrl\":\"https:\/\/secure.gravatar.com\/avatar\/5304c928af400e49be33d582110008f9?s=96&d=mm&r=g\",\"caption\":\"Jenna OddsMonkey\"},\"url\":\"https:\/\/www.oddsmonkey.com\/sidehustle\/author\/jenna\/\"}]}<\/script>\r\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"Dropshipping Side Hustle | Dropshipping Complet Guide | OddsMonkey","description":"Learn the popular Dropshipping Side Hustle and how make money online from it at OddsMonkey, the home of all things side hustle and matched betting-related.","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/www.oddsmonkey.com\/sidehustle\/a-guide-to-dropshipping\/","og_locale":"en_US","og_type":"article","og_title":"Dropshipping Side Hustle | Dropshipping Complet Guide | OddsMonkey","og_description":"Learn the popular Dropshipping Side Hustle and how make money online from it at OddsMonkey, the home of all things side hustle and matched betting-related.","og_url":"https:\/\/www.oddsmonkey.com\/sidehustle\/a-guide-to-dropshipping\/","og_site_name":"Side Hustle","article_published_time":"2020-05-19T09:34:56+00:00","article_modified_time":"2025-11-25T16:38:17+00:00","og_image":[{"width":1200,"height":800,"url":"https:\/\/www.oddsmonkey.com\/sidehustle\/wp-content\/uploads\/2020\/05\/dropshipping2.jpg","type":"image\/jpeg"}],"author":"Jenna OddsMonkey","twitter_card":"summary_large_image","twitter_misc":{"Written by":"Jenna OddsMonkey","Est. reading time":"27 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"WebPage","@id":"https:\/\/www.oddsmonkey.com\/sidehustle\/a-guide-to-dropshipping\/","url":"https:\/\/www.oddsmonkey.com\/sidehustle\/a-guide-to-dropshipping\/","name":"Dropshipping Side Hustle | Dropshipping Complet Guide | OddsMonkey","isPartOf":{"@id":"https:\/\/www.oddsmonkey.com\/sidehustle\/#website"},"primaryImageOfPage":{"@id":"https:\/\/www.oddsmonkey.com\/sidehustle\/a-guide-to-dropshipping\/#primaryimage"},"image":{"@id":"https:\/\/www.oddsmonkey.com\/sidehustle\/a-guide-to-dropshipping\/#primaryimage"},"thumbnailUrl":"https:\/\/www.oddsmonkey.com\/sidehustle\/wp-content\/uploads\/2020\/05\/dropshipping2.jpg","datePublished":"2020-05-19T09:34:56+00:00","dateModified":"2025-11-25T16:38:17+00:00","author":{"@id":"https:\/\/www.oddsmonkey.com\/sidehustle\/#\/schema\/person\/68a9e8e9c6fb421a7a1a0ffb94c9e1b9"},"description":"Learn the popular Dropshipping Side Hustle and how make money online from it at OddsMonkey, the home of all things side hustle and matched betting-related.","breadcrumb":{"@id":"https:\/\/www.oddsmonkey.com\/sidehustle\/a-guide-to-dropshipping\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/www.oddsmonkey.com\/sidehustle\/a-guide-to-dropshipping\/"]}]},{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/www.oddsmonkey.com\/sidehustle\/a-guide-to-dropshipping\/#primaryimage","url":"https:\/\/www.oddsmonkey.com\/sidehustle\/wp-content\/uploads\/2020\/05\/dropshipping2.jpg","contentUrl":"https:\/\/www.oddsmonkey.com\/sidehustle\/wp-content\/uploads\/2020\/05\/dropshipping2.jpg","width":1200,"height":800},{"@type":"BreadcrumbList","@id":"https:\/\/www.oddsmonkey.com\/sidehustle\/a-guide-to-dropshipping\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/www.oddsmonkey.com\/sidehustle\/"},{"@type":"ListItem","position":2,"name":"Dropshipping in the UK: How to start a dropshipping business"}]},{"@type":"WebSite","@id":"https:\/\/www.oddsmonkey.com\/sidehustle\/#website","url":"https:\/\/www.oddsmonkey.com\/sidehustle\/","name":"Side Hustle","description":"","potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/www.oddsmonkey.com\/sidehustle\/?s={search_term_string}"},"query-input":"required name=search_term_string"}],"inLanguage":"en-US"},{"@type":"Person","@id":"https:\/\/www.oddsmonkey.com\/sidehustle\/#\/schema\/person\/68a9e8e9c6fb421a7a1a0ffb94c9e1b9","name":"Jenna OddsMonkey","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/www.oddsmonkey.com\/sidehustle\/#\/schema\/person\/image\/","url":"https:\/\/secure.gravatar.com\/avatar\/5304c928af400e49be33d582110008f9?s=96&d=mm&r=g","contentUrl":"https:\/\/secure.gravatar.com\/avatar\/5304c928af400e49be33d582110008f9?s=96&d=mm&r=g","caption":"Jenna OddsMonkey"},"url":"https:\/\/www.oddsmonkey.com\/sidehustle\/author\/jenna\/"}]}},"_links":{"self":[{"href":"https:\/\/www.oddsmonkey.com\/sidehustle\/wp-json\/wp\/v2\/posts\/1988"}],"collection":[{"href":"https:\/\/www.oddsmonkey.com\/sidehustle\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.oddsmonkey.com\/sidehustle\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.oddsmonkey.com\/sidehustle\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.oddsmonkey.com\/sidehustle\/wp-json\/wp\/v2\/comments?post=1988"}],"version-history":[{"count":22,"href":"https:\/\/www.oddsmonkey.com\/sidehustle\/wp-json\/wp\/v2\/posts\/1988\/revisions"}],"predecessor-version":[{"id":2951,"href":"https:\/\/www.oddsmonkey.com\/sidehustle\/wp-json\/wp\/v2\/posts\/1988\/revisions\/2951"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.oddsmonkey.com\/sidehustle\/wp-json\/wp\/v2\/media\/1991"}],"wp:attachment":[{"href":"https:\/\/www.oddsmonkey.com\/sidehustle\/wp-json\/wp\/v2\/media?parent=1988"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.oddsmonkey.com\/sidehustle\/wp-json\/wp\/v2\/categories?post=1988"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.oddsmonkey.com\/sidehustle\/wp-json\/wp\/v2\/tags?post=1988"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}