How to make money with an online drop shipping business

Photo of author

By CraigNewby

There are many ways to answer all your questions in the vast internet entrepreneurship world. Although you could make your own products, this can be time-consuming and costly. You could also buy bulk products from manufacturers and ship the products to your customers as they purchase. This is a costly solution. You have to be willing to invest that money in stock and inventory storage. It can also lead to a lack of sales.

Must Read:

There’s a way to get around all of those problems. It makes it easier to start your online business. Drop shipping is what it’s known for. Drop shipping has become a huge success in the online business world. Drop shopping is an easy and low-risk way to start your online business.

Learn how to start a drop shipping company, what the model is, and what you need to know before you get started.

This table can assist you in your decision-making process and provides an overview of all the benefits and drawbacks of starting a drop shipping business.


  • You can sell almost any product, in any niche.
  • A proven business model is one that large retailers like Amazon use.
  • There is no need to keep inventory
  • You don’t need to ship or pack your products
  • There is no requirement for upfront capital
  • Drop-ship fees and expensive handling can eat into profits
  • Not all companies will drop their shippers.

Drop shippers must provide accurate in-stock numbers to ensure that you don’t lose items if they run out of stock

Drop-ship suppliers may have poor service, slow shipping times or difficult returns policies.

Drop Shipping Business

Although estimates vary, industry watchers estimate that drop shipping is used by between 20 and 30 percent of online retailers. Drop shipping is a well-established business model. You’ll be in good company if this happens. Even big retailers like Amazon use drop shipping.

It can be expensive to store your products and you may need to rent space in a warehouse.

Packaging or shipping products, packing orders, and then boxing them multiple times per day before heading to the postoffice

You will need to pay upfront for products you don’t know if they sell.

Drop shipping allows you to avoid these issues and minimize the risk of losing any initial capital investment.

Drop Shipping: How Does It Work?

Drop shipping is when you partner with a distributor or wholesaler that offers drop shipping. Drop shipping is not offered by all wholesalers and manufacturers, but there are many that do.

All marketing is handled by you. You set up your website and a shopping cart, or a virtual Amazon storefront, write your blog and do email marketing. They will be told all about the products, and you will use your selling and marketing skills to explain how the products will improve their lives. You are responsible for all aspects of marketing, advertising and promotion in order to sell the product.

Never Miss:

Drop shippers are responsible for fulfilling the order and shipping it out. Drop shippers have the inventory in their warehouse. Drop shipper receives the order and pays the wholesale price.

You don’t have to risk your money up front. These fees are only charged if the product is sold.

Which products can be dropped shipped?

You want to be in a “hot” market where people are willing to purchase the products you offer. The niche that you choose to specialize in should match your personal interests.

Passionate about a market or a product will help you market your business and make it more successful. You’ll also enjoy your job, which will make it more enjoyable.

Drop shipping companies can work with almost any market niche and type of product. These include baby products, electronics, clothing and yoga clothes, as well as books, beauty and health supplies, supplements and home and garden items.

Also Read:

Amazon and eBay are great places to look for niches that are hot. Drop shipping could be an excellent option for any item that is on the bestseller list. Keep an eye out for trends on Facebook and other social media. Look out for products in the news and listen to what your family is talking about.

Selecting a drop shipper

You should go through the ordering process from the customer’s perspective before you begin working with a dropshipper. It is important to understand how easy it is for you to order the product and how fast it takes to ship. Also, learn how the drop shipper handles returns.

Ask potential drop shippers how often they will inform you about their stock levels for each product. This can create a problem for you and your customers if you try to sell the item but the drop shipper is out of stock.

You will be able to see the product’s quality. You want to be proud of the product and offer it to your customers. Drop shippers may offer to send you a free product to evaluate or even sell it at your expense.

Most Popular:

These are the top drop shippers today and their drop shipper directories:

  • Sunshine Wholesale
  • Dropship Direct
  • International Brands
  • Oberlo
  • Salehoo

To find drop shipping companies, you can also Google “drop shipper” and “(niche + drop shipper”.