How To Start Dropshipping With No Money

Dreaming of starting a dropshipping business but don’t have much money to start? The beauty of the dropshipping business model lies in its low startup costs and minimal barrier to entry. Unlike traditional retail, there’s no need for large inventory investments. With just an internet connection and the drive to succeed, you can launch your dropshipping business.

This step-by-step guide walks you through the process of how to start dropshipping with no money, or a small upfront investment. We’ll cover everything from setting up your online store to attracting customers and scaling your dropshipping venture, with advice from Jacqui McLellan, a Shopify Community Moderator who helps merchants thrive on the platform.

What is dropshipping?

Dropshipping is an inventory-free business model for selling products online. When a customer places an order through your store, the order is forwarded (manually or automatically) to the supplier, who ships the product directly to the customer—so you never touch or store the item yourself. 

The dropshipping business model connects three parties: you (the retailer), your customers, and your dropshipping suppliers. You run the online store, market products, and handle customer service, while reliable suppliers manage inventory, packaging, and shipping. This setup lets you focus on marketing efforts and building customer relationships without the overhead of traditional retail.

Why is dropshipping cost effective?

Since you don’t have to invest in stock, dropshipping allows you to test different products and niches with minimal risk. You can also save money by automating many dropshipping processes, like order forwarding and inventory management, with supplier apps. 

This makes dropshipping an ideal online business model for entrepreneurs with limited or no capital. That said, starting with $0 means you need extra grit, creativity, and hustle to make it work.

How to start dropshipping with no money 

1. Look for a profitable niche
2. Find reliable suppliers
3. Create your online store
4. Leverage social media
5. Build out a blog
6. Monitor and optimize performance
7. Seek funding

Starting any business without upfront capital and a few months of runway can be challenging, but dropshipping is relatively less capital-intensive than many other business types. Moreover, there are ways to stretch whatever money you do have by using free tools and some tricks of the trade. Here’s what you need to know: 

1. Look for a profitable niche

Successful dropshipping businesses start with thorough market research. That market research includes finding your dropshipping niche. Jacqui recommends starting with a category you’re already interested in—your existing knowledge will make it easier to market the products. Areas like pet supplies, fitness equipment, or hobby-related items often perform well.

Focus on areas where you can provide exceptional customer service in order to build trust and stand out. Use free tools like Google Trends, Keyword Planner, Meta Audience Insights, and TikTok Shop Top Products to explore what people are searching for. You can also use these tools to research high-demand niches and trending products. 

Once you’ve narrowed down your niche, research your potential competition by studying their social media posts, customer reviews, and product offerings. What are customers complaining about? Where do these potential competitors fall short? This reconnaissance can help you spot gaps in the market and position your own dropshipping business.

2. Find reliable suppliers

Building relationships with trustworthy suppliers is crucial for your dropshipping venture’s success—your reputation depends on their performance. Take time to find partners who meet your business standards. When evaluating dropshipping suppliers, prioritize those offering quality products, reasonable shipping times, and responsive communication. Always read merchant reviews carefully.

Dropshipping services and directories make it easy to browse products and connect with suppliers.

If you want added peace of mind, order samples. “I don’t see a lot of people that are terribly successful with dropshipping without product samples,” Jacqui says. While many suppliers charge for samples and shipping, it’s worth asking for free samples to assess product quality firsthand.

3. Create an online store

Creating your own store doesn’t require spending money upfront. Shopify, for example, offers a three-day free trial, followed by an introductory rate of $1 per month for the first three months. During the trial, you can import as many products as you want, customize your Shopify store, and even start processing customer orders. 

Your online store is often the first impression customers get, so it’s worth investing time to make it look professional and trustworthy. Use free themes and customize them to reflect your brand and build customer confidence. 

To start dropshipping on Shopify, you can leverage Shopify Collective, connect your store to a dropshipping app, or partner independently with a supplier.

4. Leverage social media

Social media is another free option to start dropshipping. “I have seen people do it with Instagram,” Jacqui says. “Set up a free Instagram store and start selling products that way, and then buy them on Aliexpress manually. This method takes either a lot of skill or a lot of manual work.” You can also start selling products on Facebook Marketplace (which is a good place for product validation) or TikTok, while manually ordering products from your supplier. 

Even if you aren’t directly selling on social media, those channels are critical if you want to attract customers and build brand awareness. In the dropshipping world, non-paid marketing approaches are known collectively as organic dropshipping. Organic dropshipping requires more time and effort than paid advertising, but eliminates ad spend. 

To do this, create valuable free content on TikTok, Pinterest, YouTube Shorts, and Instagram reels that speaks directly to your target audience’s problems and interests. Share helpful tips, behind-the-scenes moments, or product demos. Building an authentic presence on these platforms costs nothing but time and effort, and can drive meaningful traffic to your online store.

Post marketing materials consistently (but not constantly), and don’t forget to use relevant hashtags and keywords to help your content appear on Discover or For You pages. Be active on the social media platforms your audience uses most. For example, if you’re in the beauty niche, investing in TikTok and Instagram is a good idea since that’s where a lot of makeup brands market their products.

5. Build out a blog

Want to get discovered without blowing your budget on ads? You can write blog posts about topics related to your niche, incorporating relevant keywords that help improve your search engine rankings without spending money on paid advertising. 

“You can also use AI to help you with the SEO of your product pages themselves,” Jacqui says. “Make sure that the product pages are really descriptive, that they hit the right keywords, but that they also make sense.” There are a number of free tools that help you find trending keywords, run a competitor keyword analysis, and audit your website for search engine optimization (SEO) rankings. 

Create social media business accounts and use email marketing platforms like Mailchimp or Klaviyo with free plans for small subscriber lists. These tools help you maintain professional communication with customers and build your brand presence online. Free SEO tools like Ahrefs or services with free plans like Moz can help you find the best keywords to target. 

6. Monitor and optimize performance

Regularly analyze your store’s performance informed decisions about where to focus your limited time and resources. Shopify Analytics reports crucial data like site traffic, conversion rate, and how much money your store is making across channels. Learn what’s working and where you need to improve. 

A/B test different product descriptions, pricing, and marketing messages. Small optimizations can lead to significant improvements in conversion rates and boost profitability. For example, you can create multiple Instagram posts with different photos of your eyebrow pen as the main image and see which image creates the highest engagement. You can then decide to use that image as the main one for your product page as well. 

7. Seek funding

Once you’ve proven that your dropshipping idea has legs—ideally, you’ve started making regular sales—it might be time to think about funding. Just because you start without a lot of capital, it doesn’t mean it has to stay that way forever. 

You don’t need a pitch deck or venture capital to grow. You can explore local crowdfunding platforms, grant programs, pitch contests, or small business centers at community colleges. The US Small Business Administration (SBA) also offers microloans of up to $50,000 for new entrepreneurs. 

For flexible funding tied to performance, look into revenue-based financing. You’ll get upfront cash and repay it through a percentage of your monthly sales—no fixed interest rates or rigid payment timelines. When you’ve already learned to do a lot with a little, even modest funding can give your dropshipping business the boost it needs to go from side hustle to full-time income.

Tips for running a successful dropshipping business

• Diversify your product range
• Automate key business processes
• Prioritize excellent customer service
• Build secure payment systems
• Network in online communities

Diversify your product range

Avoid relying on single bestselling items by gradually expanding your product range. Diversification protects your dropshipping business from market fluctuations and supplier disruptions. Monitor market trends and customer feedback to identify new products that complement your existing lineup. Consider adding evergreen products to help keep sales steady.

Introduce new products gradually, not in bulk. This measured approach allows you to evaluate performance and customer interest before committing significant resources to marketing. Remember, it’s better to excel with a focused range of quality products than to overwhelm customers with too many options.

Automate key business processes

As your dropshipping store grows, look for opportunities to automate repetitive tasks. Many ecommerce platforms offer built-in automation features for order processing, inventory updates, pricing changes, and customer communications. 

Automation saves time and reduces the chance of errors that could impact customer satisfaction. Dropified, for example, features a tool for automatically applying pricing markups based on global percentages, cost tiers, and fixed amounts. AutoDS sends automated order tracking updates.

Prioritize excellent customer service

Outstanding customer service differentiates successful dropshipping businesses from the competition. The goal is to build customer loyalty through consistent, reliable service that encourages repeat business and positive reviews.

Set clear communication protocols, like creating form letters for specific inquiries, and respond quickly to customers. Even with limited resources, use a human, personable tone when addressing customer questions and feedback.

Customer relationships don’t end at checkout. Follow up to ensure buyers are satisfied with their purchases, resolve any concerns promptly, and keep customers informed about order status or potential delays. This ongoing engagement builds customer loyalty and increases the likelihood of repeat orders.

Build secure payment systems

Even a business on a shoestring budget needs secure payment systems. Choose an ecommerce platform that includes secure payment gateways by default, like Shopify. Display trust badges and security information prominently to reassure customers that their information is protected. Consider offering multiple payment options to accommodate different customer preferences. 

Network in online communities

Join forums, Facebook groups, and other online communities where your target customers spend their time. Provide helpful advice and build relationships before promoting your products. Respond to comments in a genuine, human voice. Many successful dropshipping entrepreneurs grow by becoming trusted community members who share their expertise.

*Shopify Capital loans must be paid in full within a maximum of 18 months, and two minimum payments apply within the first two 6 month periods. The actual duration may be less than 18 months based on sales.