5 Proven Tips To Earn From Dropshipping

Dropshipping is a new business emerging rapidly across the globe. It is worth saying it is much easier and cheaper than a real business. The hype has been going on for a while now and we have been asked time and again how to earn from dropshipping.

The dropshipping industry is expected to reach a market valuation of $557.9 billion before 2025, registering a CAGR of 28.8%.

5 Proven Tips To Earn From Dropshipping

Well, if you are here with the same question, this article is just for you. Through this article, we will be covering the very basics. What dropshipping is, how it emerged, how to earn from dropshipping, whether is it profitable, and much more!

What is dropshipping?

Dropshipping is a service offered by a seller who sells a commodity that actually doesn’t exist in his stock. He transfers the commodity to be sealed from a wholesaler to a consumer. One may wonder, “does it really exist?” And if the answer is yes, then how?

So, the first point to get understood is that the process runs virtually. A drop shipper doesn’t need a warehouse to store his products. But, he does need a website or online platform where he offers the service. Nowadays, dropshipping has been expanded to such a large extent that online marketing platforms like amazon and eBay also work as alternatives to drop shippers.

Where did drop shipping emerge first?

The dropshipping business first emerged in China. Nowadays, the competition among drop shippers has increased so much there.

Here, the question is, ” Why did dropshipping emerge despite traditional and online business?” The answer requires common sense and a bit of intelligence. All of us know that most consumers no longer prefer traditional marketing because of the unavailability of time.

Also, they get a better price online despite bargaining in the market from one shop to another. It led to the emergence of the online market. Also, the online sellers with a range of products in their warehouse for sale in the online market may not have sufficient transport to deliver the product to customers. This may cause the seller to keep the delivery person, which costs extra money. At this spot, traditional and online markets are complex and cumbersome to handle.

Exactly opposite to these, drop shippers are much easier to handle. The drop shipper doesn’t have to stress about the availability of products in stock. He doesn’t have the tension of paying rent for a warehouse or shop. He doesn’t have to look after the maintenance of products.

He only takes orders from customers, sends orders to wholesale sellers, makes arrangements for the delivery of products, and earns money. Another reason for choosing a dropshipping business is that people don’t want to work under any company or institution anymore. But, they want to work as per their will. Also, they prefer less hectic jobs and work from home. Hence, they prefer dropshipping. Also, nowadays, online sellers want drop shippers to reduce the stress and loads in their business management. 

How to start earning with dropshipping?

To start as a drop shipper, you should start from the beginning:

  1. You have to work on a website on which you will enlist the items for sale.
  2. You will have to search for a good wholesale supplier to supply you with products to deliver orders.
  3. You will decide which items you prefer to sell and market to suppliers.

You will enlist your items on the website. You may start with yourself and need a team later when your business increases. Once you start getting orders, then you will have to collect orders. After that, you will have to send orders to the supplier to complete the orders. Then, you will have to take care of the delivery of the products to the consumer. Now, you are automating your business and will start to earn from dropshipping

Is it profitable to dropship?

How to earn from dropshipping?

After understanding the ease of managing dropshipping, we question whether it is profitable or not. So, now we should look after data. A drop shipper earns 15 to 20% profit in the early stage of business. After becoming a good drop shipper, one can earn a 20 to 30% profit. You can think to earn from dropshipping earning by just handling the delivery of the product is amazing. Thus, you can say drop shipping is not a bad business idea.

Can a drop shipper become a billionaire?

It’s the most awaited question. In my opinion, the answer is yes, it’s possible. If a drop shipper works consistently with a good product supplier merchant and stands upon the consumer’s expectations, the day is not far when he will be recognized for his business. He can expand his dropshipping business across the globe and can also become a billionaire. Haven’t we heard of Amazon? The company provides services to sellers, the same as that of drop shippers. People know this brand and also believe in its quality products and services. 

Important things to remember before you earn from dropshipping:

This is the golden time to earn from dropshipping. A person who thinks of starting an e-commerce business thinks about dropshipping at least once. But dropshipping isn’t so easy that it won’t require a plan. Adding products to stores and making a well-designed online store doesn’t attract customers.

First, remember, if you start any work without a plan, the chances of your failure are very much higher. After failing, you will think of escaping this idea. But don’t worry. Here are some points to remember before starting to earn from dropshipping:

  • Choose a trending dropshipping niche.

You should opt for a niche like health, personal care, kitchen, grocery, home, cell phone accessories, etc., with huge demand.

  • Market analysis 

 The way dropshipping is easier and more profitable, it is also competitive. So, before starting, one must analyze the market for a less competitive niche. 

  • Categorize the products

  You must have noticed that brands like amazon categorize their products based on their ranking, cost, and details. Customers find it helpful in choosing the desired product for them and prefer these types of sites for shopping. 

  • Review Section 

 The product may look fantastic online, but customers believe most other consumers’ reviews. Therefore, you should make a section for customer reviews on your dropshipping website. 

What does a legal dropshipping business require?

Most of the places require a sales tax ID or reseller’s permit. Also, you have to pay applicable charges for the products you sell.

    Pros Of dropshipping 

  • Require low startup costs. 

Dropshipping doesn’t need a large investment like a traditional commerce business. It can be started with low investment. It gives the benefit of never falling into the debt trap. And also, after starting a business mindfully, a person starts to earn from dropshipping very quickly. 

  • Low cost of inventory Here, in dropshipping, the person doesn’t have to pay for warehouses and can start with zero inventory cost.
  • Low order fulfillment cost

Here the drop shipper has to pay only for the delivery of products and the website management. In return for that, he gets more profit. 

  • Less risk A drop shipper has much lesser risk than the traditional commercial e-business. He has the choice of selling the best products as per his preference. 

Cons of dropshipping 

  • Dependent on other people’s stock- due to the unavailability of products, the drop shipper has to depend on the wholesale supplier for the product. It may cause a longer lead time, and the drop shipper may lose customers. 
  • Less profit the drop shipper enjoys lesser profit in comparison to that traditional sellers.
  • Poorer customer service- if the wholesale seller delivers damaged products to the drop shipper, the customers find the drop shipper responsible. Also, for late service, customers regret drop shippers.
  • Highly competitive industry – people find it easier to work as drop shippers than as shopkeepers or online sellers. This is creating a huge crowd in this field and thus increasing the competition. 
  • Tricky to build a brand- yes, it’s reality. Dropshipping is full of plenty of tricks to make it brand. You have to work not only on your website, on your online store but also on SEO. You have to search for what the people searching for buying the most and whether you provide them with a range of that product for choosing or not.

These conditions result in bad reviews for dropshipping stores and a lesser chance to earn from dropshipping.

The success rate of drop shippers 

Comparing all the pros and cons of dropshipping, we have reached the conclusion that dropshipping is much more profitable as a startup business with lesser risk and stress of handling business. But roses come with thorns. The success rate of dropshipping is very less. The highest success rate is around 10%. It is because of much more competition in this field. Another reason is that most drop shippers come to this field without planning and dreaming of money. If a person comes with proper understanding and a strong determination to provide the best service to his customers, he must be the winner. He will definitely achieve the tag of being a successful drop shipper.

How to earn from dropshipping?

How to earn from dropshipping?

We have seen the pros and cons of dropshipping and its success rate. But you how exactly should you earn from dropshipping? Here’s how to get started:

Be determined

Dropshipping requires low monetary investment and it is easy to go with. But, you will have to devote your time and efforts completely to it to succeed. Before starting, you must consider what you can do for your customers. Here are a few points.

  •  A deep understanding of your customer’s preferences- the more you understand your customers, the more you will get from the market.
  • Believe in yourself- you must have been con enough to make tough decisions like giving priority to quality and saying no to low-quality products. 
  • Focus- You must have a pointed focus to gain customers’ attention.

Find your niche

We have previously mentioned that niche is of prime importance for a dropshipping business. Just as customers choose what to buy, you must think about what to sell. You must ensure that customers are keen to purchase whatever you are selling. A lot of drop shippers are selling random cheap items. You have to look for quality in your products. You have to be out of the crowd for your motive to become successful. 

  • Take care of shipping charges- data shows that around 30% of customers refuse to purchase a product due to high shipping charges. You must have to find what your competitors are charging and then should decide shipping charge. 
  • Find out their market strategy- you can opt for social media marketing and affiliate marketing. You should always try to remain ahead of your competitors.
  • Look at how they sell their products- Don’t steal their ideas. Just invent ideas yourself for your business. What’s the strength of your business may be the weaknesses of others.

Product testing: 

In dropshipping, there is the preference of selling products to customers as per your choice. So, you must test the product before selling it. After all, a product review can degrade the reputation of your business. 

Find the best suppliers- you must remain searching for the best supplier even if your business becomes stable. After all, it can spread your business to other areas and customers. 

  • Always prioritize local factories around you for ordering the products rather than a far one. You can start dropshipping with artisans and sellers near you.

Build an incredible store: 

It is said that first impressions are everything. You should leave no stone unturned to design your store well. 

Make your marketing plan: 

Dropshipping stores have market strategies to increase sales. To promote your business, you can choose paid ads. You can start a blog, a youtube channel, or a podcast, which will increase the popularity of your dropshipping business. Also, you can try for a best-tested method, influence marketing that is relatively affordable and effective too.

So, following these measures, I believe you can be a top drop shipper business person in a time interval lesser than a year.


What is dropshipping?

Dropshipping is a virtual business model where sellers don’t need to store inventory. Instead, they take orders from customers and transfer them to wholesalers for fulfillment.

How to start earning with dropshipping?

To start earning from dropshipping, create a website, find reliable wholesale suppliers, and select profitable products to sell. Manage orders and arrange for product delivery to customers.

Is dropshipping profitable?

Dropshipping can be profitable, with early-stage profits ranging from 15-20% and potential to increase to 20-30% with experience. Success depends on market demand, niche selection, effective marketing, and providing excellent customer service.


Today, we discussed the concept of dropshipping, a virtual business model that allows sellers to earn without storing inventory. We explored the steps to start earning with dropshipping, including creating a website, finding reliable suppliers, and managing orders. While dropshipping can be profitable, success relies on factors such as market demand, niche selection, marketing strategies, and customer service.

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