How to Start a Successful Dropshipping Business With No Money in 2024
Starting a business with little to no initial investment may be a daunting task, especially in the competitive world of ecommerce. However, the dropshipping model has revolutionised the way entrepreneurs approach online retail, offering a low-cost entry point with minimal financial risk. In 2024, the landscape of dropshipping continues to evolve, presenting unique opportunities and challenges for aspiring business owners. But is it truly possible to start dropshipping with no money?
In this blog, we'll explore the feasibility of starting a dropshipping venture without any starting capital. We’ll delve into essential strategies, explore free and paid tools, and provide practical tips to help you navigate the dropshipping journey from zero to your first sale. Whether you're a seasoned entrepreneur or a complete beginner, this guide will equip you with the knowledge to kickstart your dropshipping business and turn your ecommerce dreams into reality.
Can you actually get started with NO money and how?
Wondering how to start dropshipping business with no money? Starting a dropshipping business with $0 in the bank is not impossible, but it is incredibly difficult. The biggest hurdle for entrepreneurs without a budget will be the store itself. Legitimate web domains cost money - for ecommerce stores, there is no alternative. If you want to sell online, you’ll eventually need to pay subscription fees, registration fees, or other ongoing costs. However, there are many workarounds businesses can use to get their business started at little to no cost for the first few days, weeks or even months of business.
Leverage free resources
The best thing to do when starting a dropshipping business with no upfront capital is to take advantage of the numerous free resources available at your fingertips. These resources can come from people you know, or they can come from across the globe through the internet. With the right tools and techniques, you can even gather resources from your competitors. Let's dive into some of the key resources at your disposal.
Forums and groups
Internet communities such as forums, social media groups and other networking sites are a fountain of resources for budding entrepreneurs. Here, you’ll be able to connect with like-minded individuals who can offer advice, expertise, and inspiration for your own business plan. Participating in dropshipping forums can help business owners build their professional network through meeting potential suppliers, collaborators and mentors. These forums can also help you stay updated on the latest trends, both within the dropshipping industry and in marketing as a whole. For more information about where to find and how to interact with dropshipping forums, visit our blog “The 7 Best Dropshipping Forums to Join in 2024 To Grow Your Business”.
Free educational content
Forums are not the only place where you can find industry experts talking about dropshipping. Many sites offer free educational content for every kind of learner. These include everything from video tutorials to university-level accredited courses. Anyone with an internet connection can access these courses - conversely, anyone can publish them, meaning you’ll need to choose your courses carefully.
There are many websites where you can find educational content for free (or with a free trial) including:
Looking for something a little less intensive? See if your favourite content creators have a blog, podcast, or social media accounts. Many industry leaders use content marketing, and educational content is one of the top-performing content types. Some companies even provide resources such as templates, reports, guidelines or other useful content to help you get started.
For more educational resources specific to dropshipping, you can read our blog “19 Best Dropshipping Courses & Resources To Grow Your Business”.
Free trials
Unfortunately, free tools can only take you so far. Luckily, many paid tools offer free trials to aspiring business owners. These free trials can help you get your foot in the door and make that first sale. Some tools offer timed free trials, often between three days to one month. Other tools offer indefinite free plans with limited access to features.
Don’t forget to cancel your free trials before they run out! Many tools require card information upfront, and will automatically bill you after your free trial ends. Before signing up for any free trials, check the terms and conditions as well as their refund policy.
Finding reliable suppliers
A reliable dropshipping supplier will not work for free. However, suppliers may be willing to work with new dropshippers with no upfront capital by offering flexible payment terms and support. These suppliers often allow dropshippers to pay only after a sale is made, minimising financial risk and enabling the dropshipper to start without significant initial investment. Additionally, suppliers may provide product samples, marketing materials, product images, and descriptions to help new dropshippers effectively promote their products. By supporting new dropshippers in these ways, suppliers can expand their market reach and cultivate long-term partnerships.
If you’re looking for a reliable supplier on a budget, here are some things to consider:
-
Look for suppliers with no minimum order quantities or subscription fees and a large product range.
-
Avoid suppliers that make grand or unrealistic claims about your earning potential. Review listings closely to ensure their prices match their product quality.
-
If you’re unsure about the legitimacy of your desired supplier, do your research. Seek out customer testimonials and reviews, see how long they’ve been in business, and check their online reputation. You may also want to look up their company details, such as ABN, to ensure the business is legitimate.
If you’re not sure where to start, start with Dropshipzone. We’re Australia’s B2B2C marketplace, where local Suppliers can connect with retailers (such as yourself) at minimal cost and risk.
Choose the right products
The most important part of owning an online business is finding the right products. There is no amount of marketing that can convince your target audience to buy a product they don’t want.
One of the easiest ways to choose the right product for your online store is to look at what’s trending. You can do this by watching your own social media accounts. What is popping off on your feed or For You page? If you’re seeing it, chances are your target market is too. For more concrete data, you can use tools such as Google Trends and Exploding Topics to see what people are searching for online.
Use SEO to optimise your website
Using search engine optimisation (SEO) to optimise ecommerce stores can significantly help dropshippers with no money make sales by improving their website’s visibility and ranking on search engines like Google. By using keywords, creating quality content, targeting local consumers and enhancing the user experience, SEO helps your dropshipping store appear higher in search engine results pages (SERPs), which attracts more organic traffic - views you don’t have to pay for by using ads.
Optimising your dropshipping store for search engines will do more than just boost your rankings. By improving your site performance, accessibility and visibility, you’re more likely to attract your target audience. Sites that rank higher in SERPs are more likely to be perceived as trustworthy and credible, building trust with potential customers. User-friendly sites with fast loading times and easy navigation will see higher engagement, longer site visits, and increased chances of converting visitors into customers. Finally, unlike paid advertising that stops driving traffic when you stop paying, SEO provides long-term benefits that will continue to attract organic traffic over time.
Embrace content marketing
Content marketing is an inexpensive, yet highly effective lead generation method. Consumers in 2024 love being informed when it comes to both products and businesses. 44 per cent of buyers consume three to five pieces of content before engaging with a vendor, which may explain why 67 per cent of B2B marketers say content marketing was an effective lead generation strategy in 2023. For dropshippers with little to no budget, the right content marketing strategy can be highly effective. One of the biggest trends in content marketing right now is authenticity - consumers want a genuine peek behind the curtain of their favourite brands, how they operate and what they stand for. With highly filtered, posed and produced content falling out of fashion, more brands are making waves by filming straight onto their phones or laptops with whatever equipment is on hand, giving you a high chance of going viral without using specialised equipment.
There are many ways you can employ content marketing to your advantage. You can post blogs, podcasts, social media posts, short and long-form videos or photos to many different platforms. Your content can be entertaining or educational, and easily target consumers at any stage of the buyer's journey. Struggling to come up with content ideas? You can use free generative AI programs such as ChatGPT to help with research and inspire your posts. To find out effective strategies for content marketing for dropshipping stores, you can read our blog “Content Marketing Advice and Strategies for Dropshipping Stores”.
Choosing your dropshipping product category
The key to starting a successful dropshipping business without money is to do your research and find winning products to sell right away. The first step is to find a profitable niche.
To find the right niche for your dropshipping business, you’ll need to perform market research. This involves collecting data on your target market to identify their buying habits, discover emerging trends, and determine the most profitable product niches and their most successful target demographics. From here, you can find popular product categories that are most likely to succeed and grow in the coming year, or you can look for evergreen product categories that consistently perform well. In 2024, popular product categories include fashion, car accessories, sustainable products, homewares and child and baby products.
Another method is to choose a niche market with low competition. Buyers in niche markets often look for hyper-specific products to solve specific problems, and they don’t have the flexibility to look elsewhere. This has the added benefit of not flooding the market - if every dropshipper is seeing the same trending product, there’s no distinction between your brand and your competitors. You’re more likely to stand out in an emerging niche market. This makes niche products a high-risk, high-reward venture.
Finding profitable products to dropship
Once you’ve found your perfect niche, it’s time to find profitable products to sell. You should already have an idea of high-performing products from your previous market research, but there are many more ways to find trending and relevant products to make your first sale.
Product research tools
There are many different online tools dropshippers can use to grow their business. Some of these tools are designed specifically for product research, making them an essential addition to an emerging dropshipper’s toolbox. Many of these tools offer free trials or plans, enabling you to gather data on trending items, analyse sales performance, and understand market dynamics without any financial investment. Using these tools, you can make informed decisions on which products to test and sell, minimising risk and maximising their chances of success.
You can find more information about product research tools, and other kinds of tools to help grow your dropshipping business, by reading our blog “Best Dropshipping Tools in 2024 For Business Growth”.
Test products
Testing products on the market without upfront investment is difficult, but it can be done with some creative thinking and leveraging the right resources. You can use your social media presence, email marketing and content marketing methods to gauge audience opinions regarding specific products. You can also join online forums or communities and ask your target audience directly: what products are you interested in buying, and what are your biggest hurdles? There are also many options when it comes to your suppliers. Some suppliers will be happy to provide samples of their products. Others, such as Dropshipzone, won’t charge you upfront: rather, you’ll only have to pay for products that you sell.
Competitor analysis
Competitor analysis is a crucial method for finding profitable products for your dropshipping business. By examining successful dropshipping stores, you can identify what products are in high demand and what creates satisfied customers. Tools like SimilarWeb and SEMrush allow you to track competitors’ traffic sources, product offerings, and marketing strategies. This insight helps you discover popular items and gaps in the market that you can exploit. Additionally, by observing competitors’ pricing and customer feedback, you can refine your product selection and positioning to offer better value and capture a share of their market.
Ecommerce platform options
A key strategy for entrepreneurs looking to start a dropshipping business with no money is to leverage free or low-cost ecommerce platforms. There are many options available to new and existing dropshippers that offer free or low-cost plans.
Shopify
Shopify is a versatile ecommerce platform where you can easily build a modern, appealing dropshipping store. The platform also comes with various tools and an extensive app store to help you fully represent your brand and make the most of your marketing. Unfortunately, Shopify’s services don’t come for free, but you’ll get plenty of bang for your buck - literally. Shopify offers a three-day free trial for you to set up your store and start it running, after which you can continue to build and improve your dropshipping store for just $1 for your first month.
WooCommerce
WooCommerce is a free, open-source ecommerce plugin designed for WordPress, which transforms a WordPress website into a fully functional online store. It offers many features including product management, secure payment options, and customisable storefront designs. For dropshippers looking to start selling with no money, WooCommerce is a cost-effective option. The plugin itself is free, and you can start with minimal investment using free WordPress themes and other plugins. It is flexible, allowing for plenty of customisation and integrations with various dropshipping tools and extensions. WooCommerce can also scale with your dropshipping business, helping you grow at every stage of development. While both WordPress and WooCommerce are free, open source software, you’ll still need to pay for web hosting and your domain name. You can do this through WordPress or choose your own hosting provider for more control over costs.
BigCommerce
BigCommerce is a cloud-based ecommerce platform that provides businesses with the essential tools needed to create and manage online stores. It offers a comprehensive suite of features, including product management, secure payment options, customisable templates, and advanced marketing tools. While BigCommerce is a robust platform, it’s not a free service. The platform offers a free 15-day trial, but after that, you’ll need to choose from one of their subscription plans starting at $39USD per month. The free trial does not include all the platform’s features either, but it can give you the right start for that first sale.
Squarespace
Squarespace is a user-friendly website builder and hosting platform ideal for dropshippers with limited funds. It offers professional, mobile-responsive templates and integrated ecommerce features like product management, secure payment processing, and order fulfillment. With a 14-day free trial, dropshippers can set up a professional store without coding skills or significant upfront investment. Built-in marketing tools for SEO, email campaigns, and social media integration help you create and maintain marketing campaigns to attract customers, while their mobile-responsive designs ensure your store looks great and functions well on any device. Once your free trial ends, subscriptions start at $22 per month, or you can save up to 28 per cent by paying annually. This makes it an affordable option for sellers on a budget.
Dropshipzone
Dropshipzone is Australia’s B2B2C marketplace. The platform connects dropshipping Suppliers and Retailers on one easy-to-use platform. The platform has no upfront costs for both Suppliers and Retailers, but you’ll need to have a website and ABN to get started. Suppliers pay a commission fee on products sold, while Retailers can set their own profit margins and only pay for products their customers order. There are no other hidden fees or subscriptions, making it a straightforward payment process for the entire supply chain.
Building and designing your online ecommerce store
Once you’ve picked the right ecommerce platform for your business, it’s time to build your online store. Unlike the early days of online shopping where store owners needed to understand coding and design, modern platforms offer easy, customisable formats that anyone can use to create a functional and appealing storefront. You can choose from many themes, templates and assets to suit your brand voice while making your products shine. Many of these platforms also offer templates for essential pages, from your Contact Us page to your store policies.
Building your store doesn’t have to start and end here, though. There are many other free tools you can use to create assets for your business and help your store stand out from the competition. These tools include:
Free marketing options to get that first sale
Social media networks
Social media platforms like Facebook, TikTok and Instagram are necessary for the success of your dropshipping business in today’s marketing landscape. It’s estimated that over 5.17 billion people use social media worldwide, giving you the opportunity to reach thousands of potential customers at once. Luckily for businesses, they’re also free to join and come with many free tools to help your content marketing succeed. For starters, many of the top social media platforms come with native insight tools:
TikTok
Business accounts gain access to extensive databases and tools, each with its own set of benefits.
-
The Web Business Suite allows access to the Analytics, Workspace, and Activity & Support features, giving you extensive data regarding your audience, promotions and other creative ideas.
-
The Business Creative Hub gives creators and marketers tips on content strategy, video creation and best practices.
-
The Commercial Music Library is a collection of songs and sounds pre-approved for commercial use. This means brands can choose from thousands of trending audio clips without paying individual licensing fees.
Facebook and Instagram
As both Facebook and Instagram are owned by Meta, their analytics have been consolidated into the Meta Business Suite and Meta Ads Manager. From these tools, you can access insights and manage your ad campaigns with ease. You also have access to the Meta Ads Library, a comprehensive advertisement database that lets you see all active ads across Meta platforms, including Instagram and Facebook. You can use it to view ad information such as target audience, ad reach, and advertisers. The library is free to access, and you don’t need a social media account to use it either. It is the perfect tool for marketers to spy on the competition and get inspiration for their own campaigns and strategies.
Business account owners have access to Pinterest Analytics, helping you to measure your most popular pins and learn which topics your audience is interested in and how they interact with your account.
Snapchat
If you are a verified user or have more than 1,000 followers, you’ll be granted access to Snapchat Insights. Snapchat Insights shows you how long people are watching your videos, your daily unique story views, your fallout rate (how many people open but don’t complete your story) and your target audience’s camera usage. You can use these insights to compare custom audiences and explore your current audience demographics.
Even when it comes to paid advertising, the options are incredibly affordable. Many platforms allow you to set your own budget and automate the advertising process, so you can enjoy the benefits of paid advertising within the restraints of your budget.
Ubersuggest
Developed by Neil Patel, Ubersuggest is a free SEO tool and Chrome extension that can be used to conduct keyword research, audit websites, and perform competitor analysis. Coupled with their extensive tutorials and knowledge base, Ubersuggest is an excellent platform for ecommerce beginners who need a running start.
Alongside its free and subscription plans, Ubersuggest offers lifetime memberships at several tiers for a one-off fee. Compared to other paid tools, these plans are incredibly affordable for small businesses, making Ubersuggest a great investment at any stage of development.
Google tools
Google is not only the top search engine, but it comes with an entire suite of tools for ecommerce businesses. Best of all, many of these tools are free to use.
-
Google Trends: Provides data on actual search requests from Google, including search volume, frequency and trends over time.
-
Google Analytics: Tracks site performance and collects visitor insights that you can use to optimise your store.
-
Google Search Console: Track and troubleshoot your site’s presence in Google search results, which can improve SEO.
-
Google Business Profile: Control how your business appears in Google search results and local listings.
-
Google PageSpeed Insights: Reports on the user experience of web pages, both on desktop and mobile. These can be used to optimise and debug your site performance.
Mailchimp
Mailchimp is a popular email marketing platform that allows businesses to create, send, and analyse email campaigns. It provides a range of features, including email templates, marketing automation, analytics, and more, making it a comprehensive tool for managing email marketing efforts.
Mailchimp is a robust and versatile email marketing tool, and its free plan offers a solid foundation for new online stores. While there are some limitations, it provides essential features that can help you grow your email list, engage with your audience, and analyse your marketing efforts without any initial investment. These features include basic email templates, up to 500 email contacts, marketing CRM, landing pages, social posting, surveys, a marketing calendar, and branding tools. With various app integrations and a mobile app for managing your account on the go, Mailchimp is an excellent free tool to get your online dropshipping store off the ground.
Post-sale advice for customer growth
Responsive customer service
Customer service is an essential aspect of ecommerce and a key strategy for customer retention. Customers are willing to pay up to 16 per cent more when the customer experience is exceptional. In contrast, 89 per cent of consumers will stop shopping with a brand completely after a bad customer experience. It’s just as important to provide excellent customer service after the first sale as during the sales process.
By providing excellent customer service, you show customers that your dropshipping business cares about customer satisfaction beyond the initial profit. These positive after-sales experiences will help you build a loyal customer base and retain customers.
Encourage reviews and testimonials
Encouraging reviews and testimonials is crucial for post-sales growth as they build trust and credibility among potential customers. Positive reviews act as social proof, reassuring new buyers about the quality and reliability of your products or services. Testimonials highlight customer satisfaction and success stories, creating a persuasive narrative that can influence purchasing decisions. Moreover, feedback from reviews provides valuable insights into customer preferences and areas for improvement, helping you refine your offerings and enhance customer experience. Overall, fostering a culture of reviews and testimonials can drive higher conversion rates, repeat purchases, and long-term customer loyalty.
Don’t forget to respond to reviews and customer inquiries that you receive online. At least 48 per cent of customers expect a response to an online review within 24 hours, and 89 per cent of customers reported they would be more likely to use businesses that respond to all reviews.
Upselling and cross-selling
Upselling and cross-selling are powerful strategies for post-sales growth because they maximise the value of each customer transaction. You can increase the average order value and overall revenue by recommending higher-end products (upselling) or complementary items (cross-selling). These tactics enhance the customer experience by providing tailored suggestions that meet their needs and also build stronger customer relationships through personalised attention. Moreover, upselling and cross-selling introduce customers to a broader range of your offerings, encouraging repeat business and fostering strong brand loyalty. Implemented effectively, these strategies can significantly boost sales and contribute to sustained business growth and profitability.
Social media engagement
Social media engagement can significantly improve post-sales growth by fostering a community around your brand and maintaining ongoing customer relationships. By actively engaging with customers through comments, messages, and interactive posts, you can address their questions, gather feedback, and provide exceptional customer service. This interaction builds brand loyalty and trust, encouraging repeat purchases and word-of-mouth referrals. Additionally, sharing user-generated content and customer testimonials on social media amplifies social proof, attracting new customers. Engaging content and promotions tailored to your audience’s interests can drive higher engagement rates, increasing the visibility of your products and leading to sustained post-sales growth.
Retargeting
Retargeting significantly improves post-sales growth by re-engaging customers who have previously shown interest in your products or services. By targeting ads specifically to individuals who have visited your website or interacted with your brand, you can remind them of their initial interest and encourage them to complete their purchase. This personalised approach keeps your brand top-of-mind, increases the likelihood of conversions, and drives repeat sales. Additionally, retargeting helps to nurture customer relationships by offering relevant product recommendations and promotions based on their browsing behaviour, ultimately leading to higher customer retention and long-term growth.
Email marketing campaigns
Email marketing campaigns can significantly enhance post-sales growth by maintaining regular communication with customers and fostering long-term relationships. By sending personalised follow-up emails, exclusive offers, and product recommendations based on previous purchases, you can encourage repeat sales and increase customer lifetime value. Additionally, informative content and newsletters can keep customers engaged and informed about new products, upcoming sales, and company news, driving continued interest and loyalty. Overall, effective email marketing nurtures customer relationships and supports sustained post-sales growth.
Summary
Starting a dropshipping business with no money is a difficult but not impossible task. Your most valuable resource is your own time. By leveraging free tools, taking advantage of free trials, and finding the right platforms and suppliers to work with, you can make the most of the dropshipping business model and its key benefits.
