How To Start A Dropshipping Business in the USA

How to start a dropshipping business in the usa

We are often asked when it comes to dropshipping: how to start a truly successful and legal business in the USA? Everyone knows that the most profitable dropshipping model is to create an online store using WordPress, WooCommerce, and our Ali2Woo plugin for AliExpress (or/and our eBay2Woo plugin for eBay). But after we create it, we need to take care of acquiring payments. The US audience is known to be the most demanding in the world, but also the most solvent, with a formed habit of buying online, mainly on eBay (since traditionally it has always been cheaper to buy there), and paying by credit and debit cards, and PayPal. Payments by credit and debit cards are 80% of all online purchases in the US. To accept these payments, and gain 80% more profit from our dropshipping store, we need a Stripe account; and to have it, we must register our business in one of the countries that Stripe works with. The US residents won’t need to bother. Non-residents can still work with Stripe, though the scheme is a little more complicated, and the advice below is for them. There are other acquiring systems, such as 2Checkout and Authorize. But Stripe has always been better for dropshipping stores. It is more convenient, its fees are significantly less, the application approval is automatic, and you can withdraw cash much earlier. So, the scheme for the US non-residents is:

  • Your buyer makes a purchase in your dropshipping store and pays with a credit card;
  • His money is transferred to your Stripe account;
  • The money is transferred from your Stripe account to your Payoneer account;
  • You use your Payoneer plastic card to withdraw cash from any ATM.

Sounds complicated, but it is not.

What is dropshipping business setup procedure in the US? 5 steps take about a month: 1. Register your dropshipping business in the US. 2. Register a Stripe account. 3. Join Payoneer and apply for a debit card and a virtual US Bank account. 4. Connect your US bank account to Stripe. 5. Profit: withdraw the cash!

Our recommendation is to register your LLC online through a company that offers such services (like Myusacorporation and MyLLC). It takes 3-4 weeks and costs you $1000. You are not obliged to have the US address and phone number, but for $250 a year, you may order these, too. For registration addresses, we recommend Nevada and South Dakota, since there are no taxes there for business, while in states like California taxes may reach $800 a year. As soon as you receive the EIN, go to step 2. Everything else is easy.

What is dropshipping? It is your chance to fire your boss, make your family proud and happy, and live out the American Dream. Register a dropshipping store in the USA, set up the acquiring, and let it be your first and most important step towards your success. Good luck!

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