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Key highlights

  • Guide to dropshipping simplifies starting an online business by eliminating inventory and logistics management. 
  • What is dropshipping? It’s a retail model where suppliers ship products directly to customers for you. 
  • Understanding the fulfillment process is key to ensuring smooth order management and customer satisfaction. 
  • Retail arbitrage involves buying discounted products and reselling them through a dropshipping platform for profit. 
  • Choosing reliable dropshipping partners and overseas suppliers can impact product quality and delivery times significantly. 

Looking to launch an online business without having to deal with the hassles of packaging, shipping, and inventory management? Doesn’t it sound like a dream? Welcome to the world of dropshipping, a business concept that enables you to accomplish exactly that!

Imagine this: A third-party provider distributes the product straight to the buyer after you put up a stylish web store and promote items, you’re enthusiastic about. You just need to concentrate on your strengths, which include brand expansion, customer service, and marketing.

Hold on, though—what is dropshipping exactly? Is it the best model for you, and how does it operate? In this guide to dropshipping, we’ll breakdown the essential beginning stages and examine how this business model compares to others.

Are you prepared to dive right in? Let’s explore the wonders of dropshipping!

What is dropshipping?

Dropshipping is an eCommerce model where a store sells products without holding inventory. When a customer orders, the store buys the item from a third-party supplier that ships it directly to the buyer. This approach reduces overhead and risk for the store owner, making it an appealing choice for new entrepreneurs. This guide to dropshipping will help you understand how this model works and why it’s a popular choice in the world of online business.

Let’s say you run an online store selling eco-friendly products. A customer places an order for a bamboo toothbrush on your site. Instead of having to stock up on inventory, pack the toothbrush and ship it, the order goes directly to your dropshipping supplier.

The supplier handles everything – from picking and packing the product to shipping it to the customer’s doorstep. This means no warehouse space, no upfront inventory costs and minimal risk.

How dropshipping differs from traditional retail or wholesale models?

In a traditional ecommerce business model, you’d purchase inventory upfront, manage it and handle the shipping process. This requires significant investment, storage space and time spent managing the supply chain. 

With dropshipping, the inventory management is handled by your supplier, which means you don’t need to worry about warehousing or stock management. But this comes with limited control over aspects like product quality, shipping fees and shipping times.  

You may also face lower profit margins compared to a traditional model because the dropshipping supplier will charge you a higher price for the same product. 

Here’s a simple breakdown: 

Feature Dropshipping model Traditional eCommerce model 
Inventory No need to pre-purchase inventory Must buy and store inventory 
Shipping Handled by dropshipping suppliers Handled by the seller 
Risk Lower risk, as you only buy when a customer places an order Higher risk with unsold stock 
Profit margin Typically, lower margins, as you’re buying from a third-party supplier Higher margins, but you bear the full cost 

Hence, dropshipping is an appealing option for new entrepreneurs because of its low startup costs. Unlike traditional eCommerce business models where you need to manage inventory and deal with shipping logistics, dropshipping lets you focus on marketing and selling while someone else takes care of fulfillment.

How does dropshipping work?

Step 1: You first need to establish an online store showcasing products. 

Step2: Customers order products from your website. 

Step 3: You forward customer orders to the supplier, who ships the product directly to the customer on your behalf. 

Step 4: You get paid! You can calculate profit by subtracting the product cost and advertising cost from the customer’s payment, resulting in a profit. 

In dropshipping, the retailer acts as a middleman between the supplier and the customer. The store owner doesn’t handle the product. The profit comes from the difference between the customer’s price and the cost of buying the product from the supplier. 

For example, say you run a dropshipping store that sells eco-friendly products. You’ve partnered with a supplier, and you use its images for advertising on a website like Facebook. 

A customer visits your website and orders a reusable water bottle for $30. For simplicity, let’s assume it costs $5 in ads to bring the customer to your website. 

You forward the order to your supplier for order fulfillment. The supplier ships the water bottle directly to your customer. You pay your supplier $15, leaving you with $10 in profit.  

How dropshipping works.

Types of dropshipping 

With the dropshipping business model, you can source products in several ways. Here are the three most common types of dropshipping.  

The types of dropshipping.

Type 1: Product reselling 

Product reselling leads the list as the most common type. It includes subcategories like shipping from China, branding dropshipping products with logos and creating niche stores. 

Product reselling has the most competition and the lowest barrier to entry. It’s also the most suitable type for beginners because of the light upfront costs. 

Product reselling has the most competition and the lowest barrier to entry. 

Type 2: Print-on-demand 

Print-on-demand (POD) dropshipping specializes in customizing products with designs you or your customers provide. As orders come in, your POD supplier prints the designs on items like T-shirts, mugs and posters. Then, the supplier sends the finished products directly to your customers. 

This model is popular among creative entrepreneurs who want to monetize their designs without worrying about inventory and shipping logistics. However, converting buyers to creative items is hard unless there’s a “wow” factor. So, you’ll need a higher budget to succeed. 

Type 3: Wholesale dropshipping 

Wholesale dropshipping involves partnering with a traditional retail business to sell its products at a higher price, earning a profit from the markup. In this model, you market and sell the products, while the wholesaler handles inventory and shipping. 

This model is an excellent choice if you already have a relationship with a brick-and-mortar business. If not, getting started could be challenging since many wholesale dropshippers are already online. 

Type 4: Custom product creation 

In custom product creation dropshipping, the retailer collaborates with suppliers to design and create unique products.  

The retailer may provide specifications, branding or design elements and the supplier manufactures and ships the customized products directly to customers.  

This approach allows for a more unique product offering in the market while still leveraging the dropshipping model. 

Type 5: Business extensions 

Business extension involves expanding a brand’s product range by partnering with suppliers who offer complementary or related products.  

For example, if a business initially sells clothing and accessories, it might extend its product line to include beauty products or home goods through collaboration with different suppliers.  

This allows retailers to diversify their offerings without managing the entire product range themselves, enhancing the overall customer experience and market presence. 

Key players in the dropshipping model 

Key player 1: Seller of Record 

The Seller of Record is the entity responsible for facilitating the sale, managing transactions and ensuring compliance with legal and regulatory requirements.  

In the dropshipping model, the online retailer or store owner often assumes the role of the Seller of Record. They handle customer orders, payments and overall customer experience, even though they don’t physically handle the products.  

The Seller of Record may also manage marketing, customer service and returns. 

Key player 2: Manufacturers 

Manufacturers are the entities responsible for producing the actual products.  

Manufacturers collaborate with retailers to supply products directly to customers without the retailer having to stock inventory.  

Manufacturers play a crucial role in maintaining product quality, ensuring timely production and often dropshipping products in bulk to retailers. These retailers, in turn, fulfill individual customer orders on demand. 

Key player 3: Wholesalers 

Wholesalers act as intermediaries between manufacturers and retailers in the dropshipping model. They purchase products in large quantities from manufacturers and then sell smaller quantities to retailers, often at a discounted price.  

Wholesalers enable retailers to access a wide range of products without having to deal directly with multiple manufacturers.  

In dropshipping, wholesalers may be involved in the supply chain by providing products to retailers who, in turn, use the dropshipping model to fulfill orders directly to customers. 

Top eCommerce platforms for dropshipping business models 

To get started with dropshipping, it’s important to choose the right eCommerce platform that will allow you to easily integrate suppliers, manage orders and handle your business efficiently. Here are some popular platforms that can help you launch your dropshipping business: 

WooCommerce 

WooCommerce

A great option for WordPress users, WooCommerce allows you to turn your existing WordPress site into a fully functional eCommerce store. It’s highly customizable and budget friendly. With WooCommerce, you can integrate dropshipping suppliers easily and use Bluehost’s eCommerce hosting to get your online store up and running with minimal effort. 

Shopify 

Shopify

Shopify is one of the most popular platforms for dropshipping because it offers a straightforward setup and seamless integrations with dropshipping suppliers. You can easily add products, set up your store and manage customer orders all in one place. 

BigCommerce 

BigCommerce

BigCommerce offers strong features for dropshipping, including built-in tools to help you find dropshipping suppliers and manage your store. It’s a solid choice for businesses aiming to scale. 

Wix 

Wix

Wix is another user-friendly platform that makes setting up a dropshipping store quick and easy. It also has a marketplace of dropshipping suppliers ready to work with you. 

Squarespace 

Squarespace

Squarespace is a popular website builder that offers eCommerce functionality. While it’s not as robust as Shopify or WooCommerce for dropshipping, it’s a good option for beginners looking for an easy, visually appealing online store. 

Step-by-step guide on how to start a dropshipping business in 2025 

Starting a dropshipping business in 2025 is easier than ever, but success depends on the steps you take and how well you plan your business. Here’s a step-by-step guide to help you get started: 

Step 1: Choose a profitable niche 

The first step in setting up your dropshipping business is choosing a niche. A niche refers to a specific segment of the market you want to target. This could be anything from eco-friendly home goods to pet accessories or fitness equipment.  

Your niche should be something that not only interests you but also has strong demand and minimal competition. To choose a profitable niche, consider the following: 

  • Market research: Analyze trends, customer preferences and competitors. 
  • Demand: Use tools like Google Trends, SEMrush or industry reports to gauge demand. 
  • Passion and expertise: Select something you’re interested in, as it will help with marketing and customer engagement. 

For example, let’s say you decide to sell eco-friendly home goods. You’ve found that this niche is growing in popularity and there are multiple reliable dropshipping companies offering these products. Now, you can narrow down your product list and focus on items that meet the criteria of high demand and reasonable profit margins. 

Or if you’re passionate about fitness, a niche like eco-friendly yoga mats or sustainable workout gear might appeal to a growing audience concerned about sustainability. 

Step 2: Set up your online store 

Once you’ve settled on a niche, it’s time to build your eCommerce store. There are several platforms available to launch your online store, with the two most popular options being WooCommerce and Shopify. Let’s take a closer look: 

WooCommerce

It is an excellent option due to its flexibility and ease of customization. If you’re looking for more control, WooCommerce can be a great option for starting your store.

You can start with Bluehost WooCommerce hosting plans for reliable performance, great customer support and an easy-to-use platform to integrate with various dropshipping suppliers. 

Shopify

It is another popular choice for dropshipping businesses because of its ease of use, customizable themes and built-in integrations with multiple dropshipping suppliers. 

For example, using WooCommerce allows you to create a professional online store with a minimal initial investment. Bluehost offers affordable hosting plans and integrates seamlessly with WordPress, making it a popular choice for new dropshippers.  

With Bluehost you can easily set up your online store using AI-powered Wondersuite. To get started, use Bluehost AI site creator which will help you create a unique, customized store. With the help of WonderTheme you can choose a template and begin designing. You should include photos, videos and compelling copywriting on your website. Then, install a WordPress eCommerce plugin like WooCommerce to automate fulfillment. 

Step 3: Find reliable dropshipping suppliers 

One of the most crucial aspects of running a successful dropshipping business is finding dropshipping suppliers you can trust. You want suppliers that offer high-quality products, have reliable shipping times and maintain a good relationship with their customers. 

Popular dropshipping platforms provide access to a wide range of dropshipping suppliers. Some popular dropshipping suppliers include: 

  • AliExpress: A massive platform offering millions of products from suppliers worldwide. 
  • SaleHoo: A directory of verified suppliers with a focus on product quality and customer service. 
  • Doba: A platform that allows you to access a range of suppliers and integrate them directly into your store. 
  • Spocket: Specializes in suppliers from the US and Europe, offering faster shipping times compared to other dropshipping companies. 

Always vet potential suppliers by reading reviews, checking product quality and understanding their dropshipping agreement contract. 

For instance, if you’re in the beauty industry, you might partner with a supplier that offers organic skincare products. When a customer places an order, the supplier will ship it directly to the customer, without you needing to handle the product yourself. 

Or if you’re in the fashion niche, suppliers like Printful (for print-on-demand items) or Spocket (for US-based suppliers) can be good options. You want to ensure these suppliers can handle customer orders efficiently and meet your standards for product quality. 

Step 4: Create your product listings 

Now that you’ve selected a niche and dropshipping supplier, it’s time to create your product listings. Your product listings should be clear, engaging and optimized for search engines. Include: 

  • High-quality images: Showcase your products with clear, attractive images that help customers make decisions. 
  • Compelling descriptions: Write descriptions that not only explain the product but also highlight its benefits and features. 
  • SEO optimization: Use relevant keywords like “dropshipping business” and “dropshipping suppliers” to ensure your products are discoverable online. 

Make sure to include key details like shipping fees, estimated delivery times and any guarantees related to product quality. Effective product listings can significantly impact on your ecommerce sales by increasing customer trust and driving conversions. 

For example, let’s say you’re selling eco-friendly water bottles. Your product listing should include information about the material, size options and any environmental benefits. Include a few lifestyle images showing the product in use. 

Tip: Don’t just copy the supplier’s product descriptions—create unique and engaging copy that appeals to your target audience. This will also help with SEO, making it easier for potential customers to find your dropshipping store online. 

Step 5: Set competitive pricing and shipping rates 

Pricing is a critical part of your dropshipping strategy. With the dropshipping model, you don’t have the overhead costs of own inventory, but you still need to factor in the cost of your products, shipping costs and any other associated fees. To stay competitive, you’ll need to research pricing models in your niche and adjust accordingly. 

For instance, if your dropshipping supplier offers products for $20 and shipping costs are $5, your total cost is $25. If you sell the product for $35, you’d make a $10 profit per sale, minus transaction fees. Ensure that your shipping rates are clear and competitive and don’t forget to factor in any additional costs like shipping fees when determining your final price. 

Advantages of dropshipping 

If you want to make your eCommerce dream a reality, dropshipping might be the best business model for you. 

Here are the benefits of dropshipping: 

The advantages of dropshipping.

Low startup costs 

Traditional eCommerce stores often require significant investments in stock, employees and shipping infrastructure. With dropshipping, you don’t need to purchase inventory upfront or manage a warehouse, like with other fulfillment methods. 

Instead, you can start your business with a minimal initial investment. According to business.org, you can start a dropshipping store with around $500, depending on your state. And you can save thousands of dollars by avoiding the costs of carrying inventory

No inventory management 

Your supplier will handle product creation and inventory management, including shipping and handling. Meanwhile, you can allocate your time and resources to marketing and customer service to scale your business. 

Imagine you own a clothing company and need to keep various colors, sizes and styles in stock. You’d have to manage the inventory yourself or outsource to a warehouse, which can be expensive. 

But with a dropshipping clothing store, the supplier would stock and ship the product. This model saves you money on shipping because there are fewer transit points. And you can pass the shipping and handling costs to the customer.  

Wide product selection 

Another unique advantage of dropshipping is the flexibility to test, scrap and launch new products without paying for inventory. As a result, you can experiment with multiple niches and trends without financial risk. 

For example, you can start a general store. This is like a mini-Amazon where you sell products across niches. You can test a wide variety of products to find your store’s winning items. 

Another option is a niche store. Say you want to sell a face-washing device. You can create a beauty niche store around it and upsell complementary products, like makeup, brushes and cleansers. Plus, you can test other beauty products to see what interests your audience. 

Flexibility and scalability 

Dropshipping provides flexibility to adapt and scale your business quickly. You can easily expand or pivot your product offerings based on customer preferences or market trends. 

You also can scale your business without worrying about increasing storage space or hiring additional staff. As a dropshipping entrepreneur, you can grow your business and revenue by adding new products and marketing channels. 

Generally, you can scale your business horizontally by adding new ad variations, ad networks or marketing channels. 

Or you can scale your business vertically by increasing the budget on existing ads or channels, allowing for more reach and higher sales. 

Either way, the only major limiting factor is how much product your supplier can produce. 

Disadvantages of dropshipping 

Although this business model has some major advantages, there are some downsides. Here are the potential disadvantages of dropshipping. 

The disadvantages of dropshipping.

Low profit margins 

Dropshipping often results in low profit margins because of marketing and product costs. 

When you start with cold ads, the algorithm needs time to target the right audience, which can be challenging and expensive. 

Also, suppliers need to make a profit. Product and shipping costs can be high, especially when shipping from the USA. 

To see your profit margin for a certain product, first add the costs of the product, shipping and marketing. Then subtract that number from your listing price.  

To mitigate these issues, focus on a market you know well. That can help you get a higher return on investment (ROI) on your marketing efforts and increase your profit margins. And if you can, negotiate with the supplier for lower product or shipping costs.  

Inventory and supplier issues 

Dropshipping businesses rely on suppliers, which introduces variables you can’t control. For example, suppliers may have production limits or require a minimum order quantity (MOQ) to fulfill orders. 

Also, you don’t have full control over packaging. The product can get destroyed, not be what the customer ordered or never get to the customer. And when a customer is unsatisfied, the burden falls on you as the seller. 

Working with high-quality suppliers who receive good reviews is essential to the product selection phase, which we’ll discuss later. 

Limited control over shipping 

When dropshipping, you have limited control over shipping times, especially when sourcing products from China. Shipping by freight can be expensive, so you’ll likely use sea shipping, which typically takes 14+ days. 

That’s too long for many direct-to-consumer (DTC) websites. An Attest report found that 47% of buyers expect their DTC purchases to arrive in 3-5 days. And 22% want their packages in 6-8 days. 

Two solutions to this challenge are: 

  1. Once you have a winning product, buy in bulk from China and rent warehouse space in the U.S. for faster shipping. 
  2. Source products from U.S. suppliers. 

Also, be upfront about your shipping times to avoid potential customer service issues. 

Customer service challenges 

Dropshipping businesses may need help with customer service challenges because of shipping and product quality issues and refund requests. Long wait times, damaged or incorrect products and other unforeseen issues can lead to unhappy customers. 

Consider addressing these issues preemptively before you scale your business. Once you start multiplying sales, the potential for customer service problems will increase. 

Common misconceptions/myths about dropshipping 

Dropshipping has gained popularity as an accessible way to start an online business, but some misconceptions persist.  

It is often believed that dropshipping is illegal or unethical but that’s certainly not the case. Some people mistakenly believe that dropshipping is illegal or unethical. Dropshipping is 100% legal and can be a legitimate business model when conducted properly, respecting legalities and ethical business practices. 

 Here’s the truth about such five misconceptions to help you understand what’s real and what’s not. 

The major misconceptions about dropshipping.

Myth: Dropshipping is a get-rich-quick scheme 

As with any method to make money online, some sellers have quickly profited by making outrageous claims and promises. However, dropshipping is not a guaranteed path to instant wealth. It requires hard work, dedication and strategic planning to succeed — just like any other business. There’s also a misconception that no investment is needed. While it’s true that inventory costs are lower compared to traditional retail models, expenses like website hosting, marketing and product sourcing still require investment.   

Myth: It’s impossible to build a brand with dropshipping 

Contrary to this belief, many successful dropshipping businesses have built strong brands. The key is to provide exceptional customer service and select high-quality products. Also, remember that dropshipping is just a business model, not your brand’s identity. You need to craft a unique identity to set your brand apart from the competition. 

Myth: You don’t need to put in any effort 

Dropshipping requires effort in areas such as product selection, marketing, customer support and supplier management. While it may be less labor-intensive than a traditional eCommerce business, you still need to invest time and energy into building and maintaining a successful business. Don’t expect to make millions on your first store with little effort. 

Myth: Dropshipping guarantees high profit margins 

The profit margins can be low due to supplier and marketing costs. Efficient marketing strategies, strong supplier relationships and high-quality products that resonate with your target audience are essential to achieving higher profits. 

Myth: All dropshipping suppliers are reliable 

Not all suppliers are equal. Working with unreliable suppliers can lead to issues with product quality, shipping times and customer satisfaction. It’s crucial to research and vet potential suppliers thoroughly to ensure they meet your standards. 

Tips for successful dropshipping 

Keep the following tips in mind to increase the chances of your dropshipping business succeeding. 

Tip 1: Choose the right products 

When starting a dropshipping business, product research can be a struggle for some. There is a tendency to overthink it or simply choose products that don’t sell. 

When you’re searching for the perfect product for your dropshipping business, keep an eye out for products that: 

  • Solve a real problem. 
  • Have a “wow” factor. 
  • People feel passionate about it. 

Products that solve a problem tend to be the easiest to sell. For example, many people sit at a desk chair all day, resulting in poor posture. As a result, the dropshipping community recently had success selling a posture corrector. 

Dropshipping on Alibaba - Supplier product page for a posture corrector.
Image Source: Alibaba

 This product was cheap to make and easy to ship and could sell at a decent price range of $20 to $30 plus shipping. It solves a problem, making it easy to market. Plus, it’s a product that someone could easily impulse buy. 

Also, look for products with a unique twist. For example, the product below offers a “wow” factor that could cause people to buy it immediately. 

Dropshipping on Alibaba - Supplier product page for an alarm clock.
Image Source: AliExpress

This alarm clock jumps off a desk or nightstand, forcing the user to get out of bed and turn it off. 

Lastly, look for products in niches that people are passionate about. Some examples include beauty, pet and garden products. 

Tip 2: Select a platform with reliable, fast hosting 

Your website’s loading speed and uptime can significantly impact on your customer experience and your store’s conversion rate. According to Bidnamic, your website speed correlates with your conversion rate. The study found that you can increase your conversion rate by 17% for each second you shave off your loading time. 

With WordPress WooCommerce hosting, you can build a fast WordPress website with an eCommerce plugin. You can have full control over the design or choose from pre-built, winning eCommerce templates. 

Tip 3: Find dependable suppliers 

Dropshipping companies often supply products from either China or the USA. You’ll need to ensure your supplier offers high-quality products regardless of which source you choose. 

Here are some common websites to explore third-party suppliers: 

Look for shippers with solid reviews, fast shipping times and quick response times. Once you’ve made your choice, contact your supplier and build a relationship. You will be business partners, after all. 

And because it’s mutually beneficial, you can often negotiate prices on product cost at scale. 

Tip 4: Create an appealing online store 

When building an online store that converts visitors into customers, you’ll need to optimize these factors: 

The factors that go into an appealing online dropshipping store.

First, you need to ensure your brand aesthetic matches the products you offer. For example, a beauty store benefits from colors like white, light pink or light orange. 

Conversely, a sleep store benefits from soothing shades of blue, purple and white. 

Next, focus on positioning your products as the go-to, best-in-class options available. Because many sellers use the same supply chain, your marketing and positioning must differentiate your brand. Maybe it’s your brand story or a unique marketing angle — find a way to stand out. 

Pro tip: Highlight the benefits, not the features, on your product pages. If you’re selling a posture corrector, don’t say it will straighten their back. Focus on how the customer will feel more confident once they achieve perfect posture. This distinction separates good copywriting from great copywriting. 

Tip 5: Craft effective marketing strategies 

Your marketing strategies will make or break your business. They will set your brand apart from the competition while driving targeted traffic. And when done properly, they can help you scale to extraordinary heights. 

First, choose an ad platform: TikTok, Facebook/Instagram or Google. This choice depends on your target audience. Try to guess where they spend the most time and where they’d most likely purchase. 

Each platform has different formats. For TikTok, you likely need to film yourself or an actor with the products. However, you simply need text for Google. 

As for filming or designing the ads, you want to hone in on the first two seconds. 

In essence, the first two seconds should communicate why the viewer should stop and watch your ad. 

It could be a surprising benefit or fact, a compelling visual or an intriguing question. 

Finally, focus on your ad’s copywriting, including the script for your video and the text that goes along with it. Your copy should be clear and concise and invoke an emotional response. 

Final thoughts 

Dropshipping offers aspiring online entrepreneurs a unique and enticing business model. It eliminates many of the traditional barriers to entry, like inventory and shipping costs. That allows you to focus on building your brand, connecting with customers and finding the best products possible. 

Before you start your dropshipping business, here’s a checklist to ensure you’re fully prepared: 

  • Have a reliable internet connection to manage your eCommerce store and communicate with suppliers. 
  • Choose the right business model by selecting a niche with solid demand and manageable competition. 
  • Set up your store on an eCommerce platform that integrates easily with dropshipping suppliers. 
  • Select trustworthy dropshipping suppliers to ensure quality products and timely fulfillment. 
  • Set competitive pricing and shipping rates to attract customers and cover your costs. 
  • Monitor inventory management to avoid stockouts and overstocking. 

To succeed in your new dropshipping venture, a reliable and efficient online store platform is essential. 

Bluehost WonderSuite

Bluehost provides an all-in-one WordPress website-building solution for your online store that integrates with popular dropshipping apps and plugins, like WooCommerce. With Bluehost, you can launch your dropshipping business and grow it to new heights with reliable, fast hosting. 

Learn about our web hosting products today. 

FAQs

What is dropshipping?

Dropshipping is worth it for the right person. If you’re looking for a quick way to make money, it’s likely not a good option. If you’re looking to play a long game, test several products and build a brand, dropshipping is for you. 

How does dropshipping work?

In dropshipping, the retailer acts as a middleman between the supplier and the customer. The store owner doesn’t handle the product. The profit comes from the difference between the customer’s price and the cost of buying the product from the supplier.

What are the pros and cons of dropshipping?

The pros of dropshipping are: It’s cheap to start, you can test an abundance of products and you can scale up easily with ads. The cons of dropshipping are: The products can be low quality, the profit margins are low because of competition and customer service can be difficult.

Is dropshipping worth it?

Dropshipping is worth it for the right person. If you’re looking for a quick way to make money, it’s likely not a good option. If you’re looking to play the long game, test several products and build a brand, dropshipping is for you.

How much money do I need to start a dropshipping business?

As a rough estimate, you’ll need $500 to $5,000 to start a dropshipping business. This amount accounts for product costs, software fees and marketing. The more you test new products and marketing techniques, the higher your success rate will be.

Can I start a dropshipping company with $100

Starting a dropshipping business with $100 is possible, but it’s a lean budget. This minimal investment can cover basic costs like domain registration and launching a basic website. However, success often demands more for quality marketing, product research and customer service tools. A $100 start might be a steppingstone, but scaling to a profitable operation usually requires further investment. Exercise caution and be prepared to reinvest earnings for growth. 

How long does it take to see success with dropshipping?

You could begin selling products within a week or not see success for three months. It all depends on the product you choose, how you advertise it, and what you’re willing to sacrifice to achieve success.

Can I build a brand with dropshipping?

Yes. In fact, we recommend it. Correctly building a brand would allow you to sell your business in the future. Also, building a brand helps you stand out from the competition, meaning you can charge higher prices.

How do I choose products for my dropshipping business?

When you search supplier websites, seek industries where you have knowledge. When you understand the pain points and benefits of a product, you can market it more effectively. Ask yourself if you’d be willing to buy the product.

How do I set up a dropshipping store?

To get started with Bluehost’s online store builder, choose a template and begin designing. You should include photos, videos, and compelling copywriting on your website. Then, install a WordPress eCommerce plugin like WooCommerce to automate fulfillment.

Is dropshipping easy money?

While dropshipping may seem like an easy route to financial freedom, it’s not a guaranteed goldmine. Success requires a strong understanding of eCommerce, effective marketing strategies, and continual optimization. You’ll also face challenges like inventory issues, customer service, and shipping logistics. It’s not “easy money,” but for those willing to invest the time and effort, it can be a profitable venture.

  • Devin is a Senior Event Marketing Manager for the Bluehost brand. He is our brand steward for all things Bluehost and WordPress. You'll always see him supporting Bluehost at WordCamps around the world!

  • Minal is the Director of Brand Marketing at Bluehost. With over 15 years of business experience in the technology industry, she strives to create solutions and content that fulfill a customer's needs. She is a dog mom and a stickler for calendaring.

  • Punya is a seasoned marketing strategist with over 5 years of experience, specializing in simplifying complex technical concepts into simpler insights. A culinary adventurer at heart, she enjoys exploring exotic cuisines, fusing her passion for creativity with a zest for life.

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