A dropshipping store does not need a 30-page business plan. It does need clear answers to a few questions, written down before you spend money. Writing them down forces you to check the numbers and stops you from chasing every new idea.
Copy the twelve questions below into a document and answer each one in two or three lines. At the end there is a worked example.
Part 1: The market
1. Who is the customer?
Describe one real type of person: age range, situation, what they are trying to do. “New parents in small apartments who want space-saving baby furniture” is useful. “Everyone” is not.
2. What problem do the products solve for them?
People buy solutions, not items. Write the problem in the customer’s words.
3. Where do these customers already look for products?
Search engines, a particular social network, marketplaces, forums, specific blogs? This becomes your marketing plan.
4. Who are three competitors, and how will you be different?
Find three stores that already sell to this customer. Note their prices, delivery promises and weak points. Your difference might be faster delivery, a narrower and better curated range, better advice, or your own designs.
Part 2: The supply
5. Which two or three suppliers will you use?
List them with where they ship from, their fees and their delivery times. Use the directory to compare options by category and location.
6. What did the samples tell you?
Write down delivery time, packaging quality and any problems. If you have not ordered samples, do that before going further.
7. What happens if your main supplier fails?
Name your backup for your best products.
Part 3: The numbers
8. What is your cost per order?
Product + supplier shipping + dropship fee + payment fees.
9. What will you charge, and what is left?
Your gross profit per order is your price minus the cost per order.
10. What can you afford to pay to win a customer?
Your gross profit per order is the most you can spend on marketing for one sale and still break even. If customers usually buy more than once, you can afford a little more, but be conservative at the start.
11. What are your fixed monthly costs, and how many orders cover them?
Add up platform, apps, domain, email tools and memberships. Divide by your profit per order (after marketing). That number of orders per month is your break-even point.
Part 4: The plan
12. What will you do in the first 90 days?
Three to five concrete actions with dates: launch the store, publish ten product pages, write four helpful articles, start one ad campaign with a fixed budget, reach 100 email subscribers.
Worked example
| Customer | Remote workers furnishing a small home office |
|---|---|
| Problem | A comfortable, good-looking workspace in a corner of a bedroom or living room |
| Where they look | Google searches, Pinterest, home-office blogs |
| Difference | Only compact furniture, with exact dimensions and room photos for each item |
| Suppliers | Two US furniture manufacturers with dropship programmes, one home-decor wholesaler |
| Cost per order | Desk $95 + shipping $0 (included) + payment fees $5 = $100 |
| Price | $169, so gross profit $69 |
| Marketing per sale | Up to $35, leaving about $34 |
| Fixed costs | About $120 a month, so 4 orders a month to break even |
| First 90 days | Launch with 30 products, publish 6 buying guides, Pinterest pins weekly, small search ad test |
The numbers here are illustrative. Use the real figures from your suppliers.
What to do if the numbers do not work
If question 10 leaves you with almost nothing to spend on marketing, change something before launching: a higher-value product, a cheaper supplier, a niche where you can win free traffic, or bundles that raise the order value. It is much cheaper to change the plan on paper than after three months of ads.
For the practical side of each step, follow How to start a dropshipping business, and find suppliers in the Dropshipping Deal directory.
