what is dropshipping, how to make money from dropshippping, passiveearningonline

Make money online by dropshipping (Earn upto $1000-$5000 per month)

How to make money online by dropshipping?

Do you ever get fascinated by the sight of customers flocking in large numbers into a specific store to buy stuff.

At the same time many shops vie for the customers to generate sales.

Well, I have had a first hand experience of witnessing this at one of my friend’s retail cloth stores in the city.

It USED TO GET a huge turnout long before whatsapp and facebook kept us busy on our phones.

I always used to wonder how amazing it would be if everything could be set up online without worrying about physical inventory and delivery to customers…

Today this business model is a reality and courtesy what we call “Dropshipping”.

Many people are into the business of dropshipping and generate a good revenue online.

The Internet is filled with such success stories but this can be a great source of passive income if done correctly.

Today, we are gonna dig more about this and see what dropshipping is all about…

What is Dropshipping?

Dropshipping is an online business model where you, being the owner, can sell any product at your own store.

Here you can sell your own product or other’s product to your customer.

You don’t need to worry about storage of inventory or delivery to the customers.

This will be taken care of by third parties (suppliers) who will dispatch the orders directly to customers. 

It would come at an additional charge in the form of shipping costs, where applicable.

Here’s a quick example of how a dropshipping store would look like…

Image credit: Buy it Carl

Now, let’s have a look at a quick example to understand the entire process

How does dropshipping exactly work?

Suppose Ben wants to buy a watch from XYZ Co.. He lands up at your store “mystore.com” and finds the exact same watch (ABC) listed on your store.

Now your store “mystore.com” doesn’t have any watch (ABC) in its inventory but instead orders the supplier to send the watch directly to the customer.

So the customers would order the watch from your store and you would order the supplier to dispatch the watch to the customer’s address.

That is how the whole mechanism works.

Let’s see how dropshippers make money out of this process.

How do dropshippers make money from dropshipping?

Dropshipping explained (How dropshipping makes money online)

The process is pretty simple for dropshippers making money.

You set your own price for the products listed in your store that are to be sold.

Customer purchases it from your store at retail price and you pay the wholesale price to the supplier.

You keep the difference in between both as the PROFIT.

Continuing the same example as earlier, let’s say the watch is available at $30 at the store XYZ Co.

Now you have listed the same watch at $45 at your store “mystore.com”.

When the customer places the order from your store and the supplier ships it to the customer you would make roughly a profit of $15 from it.

This is how the dropshippers make money in the whole process.

The best part is you don’t need to worry about the inventory or shipping to the customer.

Isn’t it amazing!!!

But here’s what you might be thinking…💭

Why would anyone order from your store when the same product is available at a cheaper price from the official website?

The answer would be primarily based on 2 reasons:

  1. The internet in itself is a huge platform in itself and the huge market has a big platform.
  1. Along with this you never buy any product but you also look into other factors such as brand, reliability,reputation and much more before buying anything.

Don’t believe what I say, this is the exact reason why you prefer to buy from Amazon.

Even though it supplies to every customer sourcing the product from different customers across the globe.

Did you know: 

As per Techjury, Amazon accounts for more than 300 million active users.

As per Statista, Amazon will account for almost 50% of the market share for e-commerce business worldwide.

Okay now we know what dropshipping is all about and how dropshippers make money.

Let’s see what are the pros and cons of dropshipping.

Advantages and Disadvantages of Dropshipping (Pros and Cons of Dropshipping)

Manage the business easily and use effectivelyLower margins and competitive industry
Location freedom to start the business anywhereDifficulties in shipping
Infinite options to sell the productsAddressing the customer grievances due to supplier’s faults
Initial upfront investment is lower as compared to other businessesNo control over the products that are shipped for any customization and design
Minimum expenses to manage the business
Provides an added flexibility for addition of new products
Makes money 24/7 even when you are asleep
Pros and Cons of dropshipping

Advantages of dropshipping

  1. Easier management of business

This is the best advantage of the dropshipping business model.

Setting up an e-com store is easy and convenient to start rather than a physical store in brick and mortar form.

This doesn’t need any form of physical storage of products, monitoring of inventories and no shipping hassles as well..😎😎

  1. Provides freedom to start from anywhere around the globe

We all live in a digital era and you can start your business from anywhere.

You can track and monitor the business roaming in any of your favourite destinations or from the comfort of your home.

  1. Unlimited options to sell different products

Being the owner of the store it’s upon you how many products you want to sell to your customers.

  1. Requires less investment upfront

As everything operates in online mode, you require less capital upfront as an investment.

This is very less when compared to running any physical shop offline.

  1. Other benefits

Besides everything that we discussed upon, you can always enjoy a host of other benefits such as:

  1. Flexibility to add more new products to your website
  2. Less expenses to manage and sustain the business in the long run.
  3. Generates money even when you are asleep.

Now let’s have a look at the difficulties that you might face when setting up a dropshipping business.

Disadvantages of Dropshipping

  1. Less margin for the products sold and competitive industry

A stiff war is expected in between competitors in the industry who would lower their prices to win the customers.

They take a very aggressive approach when it comes to winning customers

  1. Managing stocks that are ordered from different vendors

The bigger issue that comes along is managing stocks when there are multiple suppliers involved.

This is due to the different warehouses involved together.

  1. Difficulties in shipping 

It gets complicated when you have multiple shipping orders coming in for different items and it is to be delivered from various vendors.

  1. Mistakes of the vendors creating issue with your shipping

You have to take the blame for the mistakes of the vendors and address the grievances of customers yourself.

  1. You don’t hold any ownership of the goods sold

There is no direct control of any ownership of other’s products listed on the site.

This is because the design and customization is done by suppliers altogether.

Now let’s cover what kind of products you can sell online through dropshipping.

What are the best dropshipping products to sell in 2022 and beyond

There are a plethora of options available at your disposal to sell and make good money out of it.🤑

It may vary from as small as selling as cheap as phone accessories to selling as expensive as jewellery online.

This may seem daunting at first , but here’s a good list of items that can be sold through dropshipping in 2022 and beyond:

NicheHealth Care and Personal UseKitchen and GroceryGamingCar AccessoriesOffice Products
ProductsFacemask for kids, 
Electric toothbrush,
Bamboo toothbrush,
Sleeping masks
Portable blenders
Electric kettles
Tea products
(all related to gaming)
Socket wrenches
Portable power stations
Ceramic coating
Pencil cases
Mechanical pencils
Podcast microphones
Mechanical keycaps
Dropshipping products to sell in 2022 and beyond (Make money online by dropshipping)

Info Source: shopify.com

Note: A primary point to consider in the dropshipping journey is the selection of the niche.

This needs a detailed analysis of your targeted audience and finding the right niche for yourself.

Let’s see what are the factors that goes into market research for dropshipping

How to do market research for dropshipping?

The core principle for success in dropshipping is the selection of products to sell and finding the correct market audience for your business.

This is crucial and thus requires proper validation from the customers in order to succeed.

Here are a few things to consider on how to do market research for dropshipping:

Amazon Best Sellers

Amazon best sellers as the name suggests, is a marketplace that shows you the best selling products for different categories.

This can be a good start for hunting down product ideas.

Amazon Best Sellers Market research for dropshipping (How to make money online by dropshipping)

Ebay watch count

Ebay has a similar feature as Amazon which is known as watch count. 

This specifies the hot selling products listed on the website.

Ebay Watch Count Market research for dropshipping (How to make money online by dropshipping)


Quora is a great place to find the interests of people and what they like to talk about.

People ask qs and you can address their qs by providing valuable answers and feedback.

You can join several spaces related to your product to see what is the talking point in the group and find validation for your product.

Quora Market research for dropshipping (How to make money online by dropshipping)


Pinterest is a great platform which gives a clear picture of the latest trends, needs of the people, ideas for the products and much more…

It is highly helpful for beginners to test out ideas on the basis of posting pins and checking the pulse of the audience.

Pinterest Market research for dropshipping (How to make money online by dropshipping)

Google Trends

Google trends is a tool by google which provides an insight about what is currently trending.

You can simply key in any product detail to see what is the forecasted trend for the product and get a fair enough idea about the future viability of the product.

Google Trends Market research for dropshipping (How to make money online by dropshipping)

Okay now you are a beginner and wondering what steps to follow to get started.

Here’s what can help you get started..

How can beginners start dropshipping business?

As a beginner, one can follow this 6 step approach to get started with dropshipping:

  1. Selection of the products to sell and determining the market audience before setting up a store online.
  2. Selection of the right platform for sale of the products. There are numerous platforms when it comes to setting up dropshipping stores, which we will cover up later.
  3. Finding the right supplier. A good supplier is always a key to success in dropshipping.
  4. Set up your store and list the items selected in Step-1 gradually. 
  5. Send the orders received to the suppliers for getting it shipped to the customers.
  6. Automation will be the last step where everything goes in loop time and again.

Info source: yakkyofy.com

Which platforms are good for dropshipping?

Following is a comprehensive list of 5 platforms which can be used for dropshipping.

ParticularsSetup Time and cost involvedFeatures Ease of use ScalabilitySupport and assistance
Magento– Investment of around $3000-$5000

– Time investment of 1-3 months
Fast page load speed, easy and smooth checkout, nice product and catalog page etc.User friendlyMost scalable platformNo difficulty in seeking assistance
WooCommerce -Investment of around $1500-$3000 for site development

-More time required if you are a non-technical person
-Basic ecommerce features available

-Around more than 75000 plus plugins available.
Very easy to use interface of the websiteGood for small dropshippersSupport available in the documentations
ShopifyMonthly fees of $29 to $299 per monthGood features are availableGood for people who are not tech savvyFlexibility in scalability of the businessMultiple channels of support available.
OpenCart-2 to 5 months in website development

-Lifetime free support and software updates
Lot of features availableGood for people who have little knowledge for website development.Suitable for small to medium e-commerce businesses.Email or raising a ticket to support team is the preferred mode of communication
BigCommerce-15 days trial period

– Choose one among the 3 templates (Standard,Plus and Pro)
Provides a lot of features similar to ones listed adobe.Easy for beginnersNot difficult to scale the productivity and Support available in the form of email, phone, char or ther forums
Platforms used for dropshipping

Info Source: tigren.com

Now let’s get to the most awaited part, INCOME💰💰💰

How much money do dropshipping businesses make? 

We will try to address your questions such as how profitable is dropshipping in 2022 and beyond or is dropshipping still profitable and much more!

Before we delve deeper let’s have a look at some of the interesting stats:

  • A total market valuation of $558 million 😵is expected for the dropshipping industry by the end of 2025. This would come at an astounding growth rate of 28.8%😲
  • As of 2020, the ecommerce industry has gathered roughly around 16% of the retail sales worldwide.
  • 27% of online retailers have shifted to dropshipping business models worldwide.
  • In the year 2017, 23% of all the online sales were covered through dropshipping models.
  • Dropshippers hold a potential to earn more than 50% profits as compared to those who stock and sell their inventory offline.

On an average an estimate shows that dropshippers usually earn somewhere in between $1000-$5000 profit monthly.

All these indicate that dropshipping is a profitable segment to dive into and can make good money.

Success in dropshipping can be attributed to several factors such as:

  1. Consistency in the work
  2. Placing correct strategies to sell the product
  3. Patience for running the business
  4. Persistence.
  5. Setting realistic goals for achieving profitability.

Here’s a list of a few dropshippers and their revenues to give you a glimpse of the potential in the business.

Irwin DominguezMore than $1Million in under 12 months
KateAround $30,000 every month 
Aloysius Chay and Galvin Bay5 figures earnings in a day
How much do dropshippers earn

To know more about them, read on crazylister.com

Dropshipping can be a great source of passive income over a period of time if done and implemented correctly.

Also read about How to earn money online as proofreader upto $54000 in a year.

Key Takeaways

Dropshipping continues to be a great source of passive income in 2022 and beyond.

More and more people are shifting to buying stuff online everyday.

Here’s what we talked about in the post today:

  1. Dropshipping is a great source of passive income business model where you dropship products ordered from your store. This comes without worrying about inventory storage or handling shipping issues.
  2. Several platforms can be used for dropshipping such as Shopify, Magento, WooCommerce, OpenCart, BigCommerce etc.
  3. Proper market research which includes testing customer preferences and proper market research is key for success in dropshipping.
  4. An average estimated profits of $1000 – $5000 can be expected from dropshipping business.

Leave a Comment

Your email address will not be published. Required fields are marked *