How to Start a Dropshipping Business

Dropshipping is one of the easiest ways to start selling online. With minimal startup costs, you can launch a store, connect with suppliers, and begin taking orders quickly. But while it’s simple to get started, scaling a dropshipping business into reliable revenue requires more than a storefront and suppliers. That’s where technology like electronic data interchange (EDI) becomes a competitive advantage.

This guide walks through how to start a dropshipping business step by step, then shows how EDI helps you grow from side hustle to scalable operation.

What Is Dropshipping And How Does It Work?

Dropshipping is a retail model where you sell products without holding inventory. Instead of buying stock upfront, you partner with suppliers who ship directly to your customers after each sale.

The process looks like this:

1. A customer places an order in your online store.
2. You send the order details to your supplier.
3. The supplier fulfills the order and ships it directly to the customer.

This setup eliminates inventory costs and warehouse management. You earn profit on the margin between the supplier’s price and your selling price. The tradeoff is that margins are smaller, so success comes from efficiency and scale.

Why Start A Dropshipping Business?

Dropshipping attracts entrepreneurs because it lowers the barriers to starting an online store.

• Minimal startup costs: You don’t need to purchase bulk inventory or rent storage space.
• Low financial risk: If your store doesn’t take off, you can stop without the burden of unsold stock.
• Flexibility: You can run your store from anywhere with an internet connection.
• Scalability: Since suppliers handle shipping, you can grow your sales volume without major overhead.

These benefits explain why dropshipping has become a global industry. But scaling successfully requires more than building a storefront. Once you begin selling on platforms like Walmart, Amazon, or Target, you’ll encounter one of the biggest hurdles for small businesses: meeting retail compliance requirements with EDI.

6 Steps To Start A Dropshipping Business

1. Choose A Niche

Pick a focused category of products you’re passionate about. Narrow niches often perform better than broad catalogs because they help you stand out in a crowded market.

2. Find The Right Platform

Popular platforms for dropshipping include Amazon, Walmart, and Shopify. Amazon and Walmart offer straightforward seller programs, while Shopify gives you the flexibility to build a custom storefront.

3. Select Reliable Suppliers

Look for suppliers who provide quality products, consistent fulfillment, and transparent pricing. Since customer experience is tied directly to supplier performance, reliable partnerships are essential.

4. Build Your Online Store

Your store is the face of your business. Whether you build it yourself or use Shopify, focus on design, speed, and ease of use. A well-designed store inspires confidence and keeps shoppers engaged.

5. Register Your Business

Protect yourself legally by registering your company with the state. Creating an LLC separates personal assets from your business and positions you to build trust with partners and platforms.

6. Start Marketing

Use social media, paid ads, or influencer partnerships to reach your target audience. The best results come from testing multiple channels and tracking performance closely.

Why EDI Matters For Dropshippers

When you sell directly to consumers, you can manage orders with spreadsheets or built-in platform tools. But when you start selling to major retailers, the requirements change.

Walmart, Amazon, and other retail giants mandate EDI to standardize order information. Legacy EDI solutions are expensive and slow to implement, which creates a barrier for smaller dropshippers who want to grow.

That’s why modern Web EDI is so important. Instead of complex integrations, Orderful’s Web EDI connects directly with retailers and suppliers, letting you scale without building an IT department.

Legacy EDI Vs. Web EDI

How Orderful Web EDI Helps Dropshippers Scale

Orderful makes EDI accessible for businesses of any size. With a free Web EDI plan, you can connect with retailers like Walmart and Amazon without upfront investment.

• Go live in under 9 days
• No IT resources required
• Flat per-partner pricing with no hidden fees
• Cloud-native and API-first design for scalability

Dropshippers who begin with Orderful’s free plan often upgrade as they grow, unlocking more automation and integrations that keep pace with their sales.

Frequently Asked Questions About Dropshipping And EDI

Do You Need EDI For Dropshipping?

If you plan to sell only through your own website, you can operate without EDI. But once you partner with major retailers like Walmart or Amazon, EDI compliance is required.

How Do Dropshippers Get Walmart Compliant?

Walmart mandates EDI for suppliers. The fastest way to meet those requirements is by using a Web EDI solution like Orderful, which provides out-of-the-box compliance without manual setup.

Can Small Businesses Afford EDI?

Yes. Unlike legacy providers that charge high setup fees, modern Web EDI platforms like Orderful offer free trials and affordable pricing that scale as you grow.

What’s The Difference Between Dropshipping And Wholesale?

Dropshipping involves selling products one at a time through a supplier who ships directly to customers. Wholesale involves buying products in bulk, holding inventory, and reselling at a markup.

Start Free With Orderful Web EDI

Dropshipping is one of the fastest ways to start selling online. To move from startup to growth, you’ll need tools that scale with you. Orderful’s Web EDI makes retail compliance simple and affordable, helping you go from free sign-up to Walmart-ready in days.