What is Dropshipping and how it works to earn money

Running an online store without buying merchandise, or having to manage shipping, is completely doable if you understand what Dropshipping is and how it works.

Without a doubt, this business model will make your life as easy as possible and will allow you to earn thousands of dollars a month if you learn to manage it.

What is it up to you to do? Boost your online sales, while the wholesaler is in charge of shipping to your customers.
Many people have doubts about whether this business works, the short answer is: Dropshipping does work , and you can start this business today to start generating a new source of income, from your computer and anywhere on the planet.

Learn more about Dropshipping:

Understanding what Dropshipping is will help you successfully balance your finances, and above all, start profitable businesses that will bring you closer to your financial independence.

In this article we will explain how this business model works, how much money you can earn with your online store , and how you can boost it through certain marketing strategies and market research.

The idea is that you become familiar with all the benefits of Dropshipping so that you can run your own business successfully.

What is Dropshipping:

When you understand what Dropshipping is, you will not only strengthen your entrepreneurial attitude, but you will have the necessary knowledge and information to motivate you to start your own business online easily and safely.

To begin with, this is a business model based on selling products online , without even having them in inventory. This means that you can create an online store and start generating substantial income by selling the products of a third party.

To do this, you must establish agreements, negotiations and alliances with a wholesaler, or with the manufacturer of the goods you want to sell digitally, because ultimately he will be in charge of shipping to your customers.

Dropshipping has become the ideal alternative for those people who want to make money from wherever they are, without having to deal with shipping logistics.

How Dropshipping works:

The first thing you should know if you want to create your own online store to sell someone else's products, is that you do not need to have a warehouse since you will not have the physical merchandise in your possession.

In simpler words, your job will consist of offering the products to your customers, since the rest of the process will correspond to the wholesaler, who is better known as a Dropshipper.

The operation of this business:

If someone tells you that you need to invest a large sum of money in merchandise to start your online store, they are telling you a big lie.

Or, most likely, you don't know what Dropshipping is and the immense potential it has to earn money online on a monthly basis.

Gone are the days when you were forced to make a large initial investment to buy products, store them, sell them and ship them to your customers on your own.

Dropshipping has simplified the process of online sales in an impressive way, since you do not have to deal with the logistics of storage and shipping.
Basically you should limit yourself to creating your e-commerce store and make sure it is fully operational so that your potential customers can make their purchases without problems.

For their part, the manufacturer or wholesaler will be in charge of always having them in stock, that is, they must have them available in their warehouse, so that this triangulation of shipments works with total efficiency.

5 Simple Steps to Understand Dropshipping:

Here are the five steps you need to understand to run a Dropshipping business:
  1. You create your online store through the ecommerce provider of your choice and start selling products. For example, you can use Shopify for this.
  2. Your customers visit your store and make a purchase from you at a fixed retail price.
  3. You buy the product from your Dropshipping suppliers at a wholesale price.
  4. Said wholesaler sends the products anonymously and directly to your customers because they are available in their warehouse.
  5. Your customers receive their products in the established time. In general, the Dropshipper is also in charge of managing the possible returns that your customers may request.

How to make money with Dropshipping:

Today, Dropshipping is one of the most lucrative jobs from home you can imagine, given its enormous practicality and effectiveness when it comes to boosting online sales.

In essence, your job as the owner or manager of your online store is none other than attracting customers and generating more and more sales.

Basically, you are the intermediary between the supplier of the products you offer in your store and the end customer, therefore, each time a sale is made, you will have to contact said supplier to proceed with the shipment.

The business model, or the way you earn money with Dropshipping, is due to dropshipping where, for each sale you make, you earn a commission. In addition, you have the possibility of setting the price of the products that you offer in your e-commerce, which makes this model more attractive.

Suppliers and channels to earn money with Dropshipping:

Currently there are other mechanisms to earn money from home through Dropshipping, and they are based on establishing favorable agreements with certain suppliers.

For this reason we want to list some of the most attractive on the market to triangulate your shipments without problems:

1. SaleHoo:

This company of New Zealand origin has a fairly extensive list of wholesalers or Dropshippers.

More than a supplier, SaleHoo is a very extensive directory (in fact it has more than 8,000 wholesale distributors, manufacturers or liquidators). Most of its suppliers are known to be located in the UK, US, Australia, New Zealand and China.

Currently it is a tool widely used by online resellers who are interested in getting products at wholesale prices.
SaleHoo allows you to do fast and efficient searches by brands, names, categories and more. When you get what you are looking for, you must use its interface to contact the suppliers and thus specify your wholesale purchases (and then start your Dropshipping business).

How much money can you earn thanks to SaleHoo?:

This will depend on the market niche you wish to enter, the product in question and the supplier with whom you decide to establish wholesale agreements.

However, we can give you a small example to give you an idea of ​​how lucrative SaleHoo can be for you
Portable treadmills, also known as treadmills, are listed for about $95 on SaleHoo, while on other ecommerces like eBay, the best price for this product is $189.95.

This means that if you decide to sell this product in your online store for $189.95, (after having achieved a wholesale price of $95), you would be generating a profit per unit of $94.95.

Link: Create your SaleHoo account

2. eBay:

To make money with eBay through this business model, you only need to have a seller account (this means that you do not have to create an online store to start billing).

Right there you can choose which products you are interested in selling in your account, as well as negotiate with another wholesaler, merchant or supplier, so that they take care of making your shipments quickly and reliably.

When you have defined these previous steps, all you have to do is dedicate yourself to promoting your products, boosting your sales online , and creating a good reputation as an online seller.

To earn money, the best advice we can give you is to contact a wholesaler on the Asian continent.
When buying in China you will be able to handle better profit margins, but you must take into account that customers must wait at least 30 or 45 days to receive their products.

How much money can you earn thanks to eBay?:

One of the best selling products on eBay are men's caps. The most popular ones are available in China for $3, and are then sold on eBay for $24.

The math does not fail: if you sell them for $24 dollars, you will be generating a profit of $21 dollars for each unit sold.


Without a doubt, Aliexpress is one of the largest Dropshipping platforms in the world.

This platform for the sale of products that come from China operates in more than 200 countries, and is one of the favorites of people who want to earn money by doing Dropshipping.

This is because they handle very low wholesale prices, and above all, because they have a huge catalog of products (it has more than 100 million products).

Most of AliExpress customers are resellers who have understood very well what Dropshipping is and how they can take advantage of it to earn money.

To start with, you need to find an attractive product on AliExpress, reach an agreement with its supplier and finally offer it in your online store.


In this list we could not leave out Amazon since it is one of the most influential e-commerce platforms on the planet.

To earn money with this global e-commerce giant, in addition to the Amazon affiliate program , you need to create a seller account and synchronize your provider's product catalog with this marketplace.
The rest of the work is done by Amazon through its Dropshippers and its excellent shipping logistics.

How much money can you earn thanks to Amazon?:

You should know that Amazon will charge you a fixed fee month after month, as well as a commission for each sale made in your seller account.

So your profit or benefit will be the difference between what your customers pay you, and what you pay to the supplier or wholesaler with whom you have decided to work through Amazon.

The advantage with Amazon is that its traffic is practically guaranteed, and it is also a very reliable e-commerce , so sales can be made more easily. However, the competition is just as high.

5. How it can be integrated with Shopify:

If you already have a good understanding of what Dropshipping is, you should be aware that your online store has to run on a platform, and this is where Shopify comes into play .

This is one of the best ecommerce platforms on the market, and that is why more and more people are using it to create and manage their stores with ease and practicality.

Shopify currently has several tools and applications that will help you choose your products, or synchronize them with your store instantly. For example, Oberlo is a Shopify app designed especially for:
  • Synchronize products automatically.
  • Track orders.
  • Find products from many different vendors.
In essence, once you get the products you're interested in selling, Oberlo takes care of immediately syncing them with your online store information.

Successful Dropshipping Strategies:

To significantly scale your Dropshipping business, generate more sales, and significant income, we recommend you put the following strategies into practice:

Discover potential market niches:

Don't be distracted or confused by the huge number of categories available for Dropshipping.
On the contrary, it is best that you focus on discovering valuable market niches that bring you closer to potential customers who are willing to buy your products.

That is, instead of selling different products, focus on selling a very good product that captivates your ideal customer so that they ultimately decide to buy it.

Sell ​​products that are profitable:

Dedicate all the time you need to research products that truly offer you a good return.
The good news is that there are many Dropshipping providers that have very powerful tools to identify the best-selling and lucrative products, and therefore, you should get the most out of it.

Once you determine the product that you will sell in your online store, you must evaluate what your main competitors do to promote it, or to make it profitable.

Evaluate the quality of the product, compare sales costs, and analyze its benefits and profitability to know exactly if you are doing the right thing, or if there is something you need to change before operating your online store .

Choose a good Dropshipping provider:

This is vital to achieve success with your Dropshipping business because as you already know, your supplier, or Dropshipper, will be in charge of all the logistics of storage, shipping and returns of the products you sell in your online store .

Study their reputation, the quality of their products, delivery times and the responsibility with which they operate their wholesale business to make sure that everything is in order.

Do not hesitate to consult the reviews and opinions of other companies that have worked with the provider that has captured your interest, as this will be very useful to define whether or not it is convenient for you to work with it.

Create an attractive online store:

If you really want to make money with your online store, it needs to be intuitive and attractive to your customers, so you need to make sure it looks good and is easy to use.

Make its interface pleasant, but above all, make sure that it works optimally so that the experience of your users is completely positive.

This means that payment gateways work smoothly, products are always available, store design is visually favorable, and much more.

Online course: Create your online store in Shopify with Dropshipping

Promote your business:

If you already have your store operating and you are ready to make money through Dropshipping, then you are required to promote your business through various marketing actions.

Some of the most effective and popular are search engine positioning -organic and paid-, better known as SEO and SEM respectively, content marketing, email marketing, or direct promotion on social networks.

These strategies will help you to publicize your Dropshipping business, capture leads faster, increase your web traffic and increase your sales exponentially.

Start earning money with Dropshipping:

Earning money with this business model is absolutely possible, the first thing you must do to start is to understand very well what Dropshipping is.

So go ahead and create your own online store and develop a drop shipping strategy that allows you to successfully improve your finances and from the comfort of your home.

Remember that you can earn thousands of dollars a year if you focus on doing things right, and especially, selling a product that offers profitability and a good profit margin.

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