How To Start Dropshipping in the US for Non-Residents

If you're eyeing the US market for launching a dropshipping business but you're not based there, you might feel a bit lost about where to begin. Setting up shop in one of the world’s largest and most competitive markets can seem like a mammoth task from afar. But with a few strategic steps, you can navigate this process smoothly. In this guide, we'll walk you through the essential steps to get your dropshipping business up and running in the US, even if you're not a resident.

Part 1: Create a US Bank Account

One of the first steps in launching your dropshipping business in the United States is setting up a US bank account. This will help you handle transactions, manage your earnings, and pay your suppliers with ease.

Why You Need a US Bank Account

Having a US bank account makes it easier to deal with all financial aspects of your business within the country. It ensures faster processing of payments from customers and to your suppliers. Plus, it often offers better exchange rates and lower fees for transactions than international banks might offer. A local account also lends credibility to your business, showing your commitment to your US customers.

Choosing the Right Bank

The challenge for non-residents is finding a bank that doesn't require a Social Security Number (SSN) or a physical visit to the US. Fortunately, there are excellent options tailored for international business owners.

Use Wise for Easy Banking

Wise is a standout choice for non-residents who want to set up their business banking without the fuss. It allows you to open a multi-currency account online, giving you bank details to operate in the US without needing a US address or SSN.

Benefits of Using Wise:

• No US address required: Everything is done online.

• Multi-currency capabilities: Very handy if you deal with transactions in different currencies.

• Transparent and low fees: Keep more of your profits thanks to their minimal fees.

• Fast and straightforward setup: You can get your account up and running quickly, letting you focus on other aspects of your business.

Click here to open your Wise account.

Part 2: Register Your Business

Once you have your bank account ready, the next crucial step is to legally register your business. This not only formalizes your venture but also protects your personal assets and enhances credibility.

Why Register Your Business

Registering your business establishes it as a separate legal entity, which is crucial for protecting your personal assets, fulfilling tax obligations, and building credibility with suppliers and customers.

How to Register

Depending on where you reside, you might choose to register your business in your home country. For instance, if you live in Australia, you might need just an Australian Business Number (ABN) and continue paying taxes there. However, we highly recommend consulting a tax agent first to ensure compliance with both local and international tax laws.

If you choose to register your business in the US and pay taxes there, here are the basic steps you should follow:

1. Choose a Business Structure: Common structures include LLC (Limited Liability Company), Sole proprietorship, Partnership and Corporation. LLCs are favored for their simplicity and flexibility.

2. Select a State: Some states, like Delaware and Wyoming, offer benefits such as lower fees and favorable tax conditions. Choose a state that aligns with your business needs.

3. Apply for an EIN: The next step to register your business in the US is to apply for an Employer Identification Number (EIN). The EIN is a unique nine-digit number assigned by the IRS, and receiving one helps to establish its legal identity. This can typically be done online through the through the IRS website (if you have an US address) or by using a service that specializes in setting up US businesses for non-residents. But if you are not in the US, the easiest way is to do this over the phone directly with the US government, and there is no fee involved. This is a straightforward process and a great option for those looking to minimize startup costs. Click here for more information on how to register your business over the phone: https://www.irs.gov/businesses/small-businesses-self-employed/how-to-apply-for-an-ein

Part 3: Find Reliable Suppliers

Securing trustworthy suppliers is crucial for a successful dropshipping business. Since you won't handle the products directly, it's essential that your suppliers are reliable in terms of product quality and shipping.

Choosing the Right Suppliers

1. Research: Utilize platforms like Alibaba or Global Sources to find suppliers. Also, consider using eBay by filtering for "US only" to connect with local suppliers. This can significantly improve shipping times and product quality.

2. Check Supplier Credentials: Look for suppliers with excellent reviews and a solid track record. Avoid new suppliers as they might not have proven their reliability yet.

3. Communication: Ensure that the supplier provides good customer service and is responsive to inquiries. This is crucial since you'll rely on them to handle any issues that arise with product quality or shipping.

Part 4: Set Up Your Online Store

Your online store is your business’s home. Make sure it’s inviting and easy to navigate.

Building Your Store

1. Choose a Platform: Platforms like Shopify or WooCommerce are popular because they are user-friendly and can be customized extensively.

2. Design Your Website: Ensure that your website is visually appealing and easy to use. Consider hiring a professional web designer if needed.

3. Optimize for SEO: Make sure your website is optimized for search engines to improve visibility and attract more customers.

Using Fiverr for Affordable and Quality Design

If you're concerned about the potential high costs of hiring a web designer, platforms like Fiverr offer a solution. Fiverr connects you with freelance web designers from around the world who can deliver high-quality work at a fraction of the cost you might expect. Whether you need a complete website overhaul or just some tweaks to improve usability and aesthetics, Fiverr makes it easy to find the right talent at the right price.

1. Browse Portfolios: Look through portfolios to find a designer whose style matches your vision.

2. Read Reviews: Check reviews from other clients to ensure reliability and quality of service.

3. Discuss Your Needs: Communicate your requirements clearly to make sure the designer understands your business and its needs.

Invest in Your Website

Investing in a professional website design is not just about aesthetics; it’s about creating an effective online presence that engages and converts your target audience. A well-designed website can be the difference between a prospective customer staying to learn more about your products and leaving to find a better user experience elsewhere.

By utilizing platforms like Fiverr, you can achieve a professionally designed website without breaking the bank, ensuring your dropshipping business makes a great first impression and stands out in the competitive online marketplace.

Part 5: Automate The Process

Setting up and managing a dropshipping business involves multiple steps and processes, from managing your inventory to processing orders. Automating these processes can save you a significant amount of time and reduce the risk of errors.

Using Dropified to Simplify Your Business

Dropified is a tool designed specifically for dropshipping businesses. It helps automate various aspects of your operation, such as order processing, product imports, and price tracking. This can significantly streamline your business operations, making it easier to scale and manage.

Benefits of Using Dropified:

• Automation of daily tasks: Save time by automating tasks like order fulfillment and product updating.

• Easy integration: Dropified integrates seamlessly with platforms like Shopify and WooCommerce, making setup a breeze.

• Enhanced scalability: As your business grows, Dropified can help manage increased order volumes without a corresponding increase in errors or delays.

Click here to subscribe to Dropified.

Part 6: Start Advertising on Search Engines and Social Media

Once your online store is set up and you have reliable suppliers, it's time to attract customers. Effective advertising on search engines and social media platforms is crucial for driving traffic and increasing sales.

Advertising helps you reach a broader audience, target potential customers based on specific demographics, and boost brand awareness. Without visibility, even the best online store can go unnoticed.

Using Search Engines

1. Google Ads: Set up a Google Ads account to run pay-per-click (PPC) campaigns. These ads appear in search results when potential customers look for products you sell.

2. SEO Optimization: Ensure your website is optimized for search engines. This increases your chances of appearing in organic search results, reducing dependence on paid advertising over time.

Leveraging Social Media

1. Choose the Right Platforms: Depending on your target audience, choose platforms that best fit your demographic. Instagram and Facebook are great for visual products, while Twitter and LinkedIn might be better for niche markets.

2. Create Engaging Content: Post high-quality images, engaging videos, and useful information about your products. Regular posts keep your audience engaged and help build a community around your brand.

3. Run Targeted Ads: Social media platforms offer powerful targeting tools that allow you to customize your audience based on interests, behaviors, location, and more. Use these tools to ensure your ads are seen by potential customers who are most likely to buy.

Measuring Success

Track the performance of your ads to understand what works and what doesn’t. Adjust your strategies based on data from your ad campaigns to optimize spending and increase ROI.

Starting a dropshipping business in the US as a non-resident can be challenging, but with careful planning and execution, it's entirely possible to succeed. From opening a US bank account with Wise to setting up your online store, each step you take builds the foundation of a robust business. Keep learning, adapting, and growing, and you'll set yourself up for success in the competitive US market.