What is Dropshipping

Dropshipping is a popular and beginner-friendly method of running an online store without having to manage inventory or ship products yourself. It allows entrepreneurs to sell products directly to customers while a third-party supplier handles the storage, packaging, and delivery.

How Dropshipping Works

  1. You set up an online store and list products for sale.

  2. A customer places an order and pays the retail price you set.

  3. You forward the order to your supplier, paying the wholesale price.

  4. The supplier ships the product directly to your customer under your brand name.

  5. You keep the profit—the difference between your selling price and the supplier’s cost.

Benefits of Dropshipping

  • Low Startup Cost: No need to invest in inventory or warehouse space.

  • Easy to Start: All you need is a website and a supplier.

  • Wide Product Selection: You can sell a variety of products without buying stock upfront.

  • Scalable: Focus on marketing and growing your store, while the supplier handles fulfillment.

Things to Consider

  • Lower Profit Margins: You may earn less per sale compared to holding inventory.

  • Supplier Reliability: Your reputation depends on your supplier’s ability to ship on time and maintain product quality.

  • Customer Service: Even though you don’t ship the products, you’re still responsible for customer satisfaction.

Is Dropshipping Right for You?

If you’re looking for a flexible and low-risk way to start an online business, dropshipping can be a great option. It’s especially popular among first-time entrepreneurs, side hustlers, and anyone looking to test new products or niches without major upfront costs.