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How to Make Money from Dropshipping?

Make Money from Dropshipping
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Nowadays, you can buy whatever you want while sitting on your couch at home. Everything is available online on the internet. The business of Dropshipping grew very rapidly to meet the high demand for products online. It is a model in which you sell products without having to carry any inventory. You simply create an online store, add the products you want to sell, and wait for buyers to come to your store. Do you want to know how it happens and how you get money out of dropshipping? Then, continue reading!

What is dropshipping?

Dropshipping is a business scheme in which dropshippers list products on their online stores. Customers place orders in the online store. The dropshippers take the payments and pass them on to the suppliers, withholding a commission. The suppliers send the orders to the buyers. So, dropshipping is an online business where dropshippers can make money online without having any products. The products are stored by the supplier/manufacturer.

Dropshippers can sell products on a variety of platforms. They can use a full-fledged website with an online store or just an account on a social network. The choice depends on the products and their potential buyers, and often on what platforms the dropshippers understand how to promote. 

Who is Involved in Dropshipping?

  • Consumers/ Buyers: They are the customers who buy products from online stores.
  • Dropshippers: They are the online store owners who advertise and bring traffic to their stores in order to make sales. 
  • Suppliers: They are the wholesalers, importers, or manufacturers of the products that must be sent to the final consumers who made sales.

How to Start a Dropshipping Business and make money?

1. Select a sales region:

A dropshipper can sell in one country or all over the world. However, it is better to start with a specific country where the need for your product is high. 

2. Choose a sales strategy:

You can combine sales strategies and open a store with different products. When there is a decline in sales in one store, sales in the second store compensate for it, and vice versa.

3. Choose a niche and a product:

Choose a niche in which you understand or at least are interested and ready to understand. It’s better to start with what other dropshippers are already selling. This means that there is a demand for the product.

4. Register an individual entrepreneur or LLC:

It is important to register your business as an individual entrepreneur or LLC in order to conduct agreements with suppliers, be able to accept payments online through an online store, and show reliability to customers.

5. Find a supplier:

Do your research and find good quality suppliers who work under a contract, send the goods immediately after payment, pack them well, and accept refunds. 

6. Conclude an agreement with the supplier:

There is no special agreement for the dropshipping system in the law, but an agency agreement is enough. In order for the contract to become valid and be able to defend in court, you need to specify its subject and parties.

7. Create a sales platform:

Create an online store or a page on social networks. You can drive traffic to your website with the help of SEO and advertising on the Internet. Social networks offer convenient trading features and a large potential audience. 

8. Connect a payment system:

You need to build an online payment system that allows customers to pay in different ways: a bank card, Google Pay, or Apple Pay directly on your store. You need a cloud-based online checkout so the buyer receives a check from you after paying for the order.

9. Run ads:

As a dropshipper, you don’t need money to purchase goods or rent a warehouse, but you need a budget for advertising. Without promoting your online store, there will be no sales.

10. Scale up

Dropshipping business is easy to scale. Place more products on your online store and attract more potential customers. Carefully, control the amount of stock left in the supplier’s warehouse and price changes.

Advantages of Dropshipping:

Dropshipping, which helps you make money online, has the following benefits:

1. It does not require large initial investments:

No need to spend money on the purchase of goods, warehouse rental, logistics, and a team of workers. You only need to open an online store or create pages on social networks to attract potential customers. It does not require a large start-up capital and you can do it yourself.

2. Minimum organizational costs:

In dropshipping, you are responsible for three processes: creating and filling the marketplace, attracting customers, and communicating with them. Everything else (order processing, packaging, shipping of goods, …) is the responsibility of the supplier. 

3. Wide opportunities for cooperation:

Since there is no physical warehouse, there are no restrictions on filling the trading platform. You can partner with multiple suppliers under this scheme.

4. No location binding:

You can manage your dropshipping business from anywhere in the world with a device connected to the internet. All processes are online only. 

5. Easier to test new stuff:

There is no need to buy a batch and wait for delivery. All you need is to find a supplier, add a product to your store, and launch advertising.

6. Less risk:

The only risk that a dropshipper has is that a supplier does not send the goods to a buyer. Then you will have to return the money for it from your pocket.

7. You can quickly test a niche:

Dropshippers can test several new products at once, and if there is no demand, they will lose only advertising costs. After verifying the demand, they can move to promote the products in high demand.

8. It’s easier to catch up with the trend:

Dropshippers can quickly launch sales for trendy products. And when the trend goes away, they will find new popular products and quickly switch to them.

Disadvantages of Dropshipping:

Although dropshipping is a good way to make money online, it has the following downsides:

1. High level of competition:

Since entering this business is not difficult, many join and try. Usually, the same products with the same delivery conditions are offered by many dropshippers for different prices. 

2. Problems with cash on delivery:

Because the goods are not bought directly, these usual processes can turn into a red tape that will damage your reputation. If the goods are not delivered on time due to the fault of the supplier, then in the eyes of the buyer you will be blamed.

3. High reputational risks:

The supplier can let you down by sending the wrong products or packaging products poorly. The negativity will go to you since in the eyes of the buyer you are the seller.

4. The supplier may cheat you:

An unprincipled supplier can collect your customer base, break the agreement with you, and contact them directly.

5. You need to invest in advertising:

If you do not invest in advertising your store, the first sales may not be soon.

6. Lack of product in hand can complicate marketing and advertising:

As a dropshipper, you don’t have the product in your hand. Therefore, cannot take a picture of it or understand the properties in order to use it for content on your online store or in advertising. Often you have to rely only on the information that the supplier himself provides.

7. Return by dropshipper:

Some suppliers do not accept returns from customers and do not issue refunds. If the product did not suit the client or it arrived damaged, you have to return the money. You will also have to return the money if the supplier fails and does not send the goods at all.


  • Dropshipping is a sales scheme in which the seller/dropshippers only takes orders from buyers, but suppliers ship the products to the customers.
  • Working with dropshippers allows suppliers and importers to sell their goods without looking for customers and investing in promotion and advertising.
  • Dropshipping gives you the chance to start a business and make money with minimal investment and save themselves the risk of illiquid assets. 
  • To start a dropshipping business, you will need to register an individual entrepreneur or LLC, conclude an agreement with suppliers, create a sales platform, set up a payment process, connect an online cash register and start promoting goods.
  • You can find suppliers on platforms like Aliexpress, on social networks, or through search engines. You can write to the manufacturer directly and offer cooperation.
  • A dropshipper can sell products on a website, social networks, marketplaces, or aggregator sites.
  • You can work with suppliers under an offer agreement or an agency agreement.

See also Other Ways to Make Money Online:

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