How to Launch a Dropshipping Business in the UK
Have you ever wanted to start a business without a warehouse and mountains of stock? Dropshipping is a way for solopreneurs to sell products direct from the supplier. You take care of the marketing and sales; they handle the packing and delivery to your customers. Job done. The million-dollar question: what products are you going to try to sell? This guide will take you through everything you need to know: UK rules, keeping costs low, finding suppliers, picking products, and steering clear of the common pitfalls so you can get your “dropshop” up and running. Key takeaways ☑︎ Dropshipping lets you sell products online without holding stock as your supplier handles packing and delivery. ☑︎ Low upfront costs let you test ideas and experiment without a big investment. Start small, test products and scale as you find what sells best. ☑︎ Get your own domain and professional email to build trust even if you also sell on marketplaces. ☑︎ Choose reliable suppliers. UK or EU-based options mean faster delivery and fewer customs issues. ☑︎ Focus on fast, honest and helpful customer service to build and protect your reputation. What is dropshipping? Dropshipping is a clever way to run an online shop without ever having to store a single product yourself. Instead of buying stock upfront, you list products from a supplier on your website — and when someone places an order, your supplier ships it directly to your customer. All you really need is a good website, a reliable supplier (or two), and a plan to get your products in front of the right people. Done right, that means less risk, lower startup costs, and no need to pile up stock in your spare bedroom. That leaves you free to focus on growing your shop — testing new ideas, honing your product range, and building a brand that people trust. Dropshipping is just one of number of fulfilment or order fulfilment models. Where some businesses manage their own stock, or ship made-to-order items, dropshipping stands out because it takes out the need to handle products directly. There are also lots of platforms and plugins out there to handle tasks like order syncing and stock updates for you, making your shop easier to manage. More on those later. For more on starting an online business, check out: A 123 Reg Guide to Starting an Online Business Closer look: Print-on-demand vs print-on-demand dropshipping One popular way to sell online today is print‑on‑demand — custom products like t‑shirts, mugs, or calendars that are only made after someone orders them. If you tried to run print‑on‑demand at home, you’d need a printer or heat press, blank items, packaging, and plenty of time to handle each order yourself. With print‑on‑demand dropshipping, then, you pass on both the production and delivery to a supplier. When someone buys from your site, the order goes direct to your print partner. They print the design, pack it, and ship it straight to your customer. No stock, no machines… no clutter in your house! What are the benefits of dropshipping? Dropshipping appeals to many small businesses because it keeps costs low and setup simple: ✓ You don’t need to invest in stock or warehouse space. A laptop, website, and a bit of creativity can get you going. ✓ Your shop can be live in days, once you’ve chosen your products and suppliers ✓ You can run your business from anywhere (kitchen table, café, or on holiday…) ✓ You’re not limited by what you can physically store, so you can test and sell a variety of items to see what works best ✓ More orders don’t mean more manual packing — as sales grow, your supplier does most of the heavy lifting ✓Because you only pay for products once they’ve sold, there’s less financial worry (even if they don’t fly off the shelves) Why might dropshipping work for me? Dropshipping can work for anyone who wants to sell online without big startup costs or storage. It can be a great fit for freelancers and creators, and you can test the idea before fully committing. It might also serve as a way to add an extra income stream to an existing business! When is dropshipping not the best option? Dropshipping isn’t for everyone. If you want full control over stock quality, packaging, or delivery times, the hands-off setup can be frustrating. Profit margins are often slimmer too, especially in competitive niches. It’s less suited to brands that rely on fast delivery or a premium unboxing experience, since you’re trusting third-party suppliers to meet those standards. UK customers expect clear delivery times and easy returns, so be aware that long waits or unclear policies can deter buyers. How does dropshipping work in the UK? In the UK, dropshipping works much the same as anywhere else, but with a few extra rules to keep your business above board. You still choose what to sell, set up your online shop, and connect with suppliers who handle packaging and delivery. When a customer buys from your site, you send their order details to your supplier, pay the wholesale price, and keep the profit. Most people start as a sole trader and only register as a business once things start picking up. If you’re selling regularly and taking payments, it’s good to know when registration is needed and what your responsibilities are. From a customer’s point of view, they’re buying from you. Is dropshipping legal in the UK? Yes, dropshipping is legal in the UK — as long as you follow all the basic consumer rules and you’re clear about how orders get fulfilled. Even if a supplier sends the product, you’re still the retailer, so you’re the one dealing with refunds, returns, delivery questions and any customer issues. As ever, we’re not qualified legal experts here at 123 Reg, so be sure to check out the Official HMRC Resources. Keep in mind VAT and import charges. If you’re selling