How to make money dropshipping

How to make money drop shipping

There are many ways you can make money with dropshipping. Dropshipping is a form of eCommerce that does not require the upfront costs associated with storing and delivering products to your customers.

Dropshipping has been used by sellers on eBay to list products on the platform without having to own those products before they are ordered. With this business model, stores never take possession of inventory, which eliminates stock-outs due to supplier issues and storage space requirements.

In addition, dropshipping requires no additional equipment costs because the only equipment you need is a web server and an acceptable inventory management system (if you choose to use one).

This guide is meant as a way for first-time drop shippers to get their heads around the concept of dropshipping. It gives examples of how to think about inventory management and explains how to start counting your profits with minimal risk.

This guide is not an in-depth tutorial on how to sell products on Amazon, eBay, or any other website.

Why do dropshipping?

With drop shipping, you won’t have to give out any cash upfront for the inventory you need to be successful. The only cost required is hosting space on your web server and a quality online inventory management system (software). As long as you have a web server, the inventory management system can be free.

Drop shipping is a very simple and effective way to build a brand and make money with virtually no startup costs or ongoing expenses.

You can focus on growing your business through marketing, not a stocking product. You don’t need to worry about manufacturing or delivery options. This means you can launch your dropshipping business in just minutes and begin making money within hours.

How to make money dropshipping

With dropshipping, there are three main steps that you need to follow in order to start making money with this business model. These steps can be thought of as the three “Rs” of successful dropshipping businesses: research, review, and repeat.


Doing a bit of research can give you a huge advantage so you can get into the market on day one. Knowing exactly what product you are going to sell is the cornerstone of any profitable dropshipping business.

There’s a lot more money to be made if you choose one that is already selling well. But, be careful not to choose a hot product just for the sake of it is popularity because it will be harder to find and compete with other sellers. You’ll end up losing sales and having a hard time building your brand and engaging with customers the easy way.

Also, think about the price point you want to achieve and how much money you want to make. If you want to make a lot of money, try selling products that cost between $20-$50. If you are looking to eventually sell higher-priced items then narrow down your product variety a bit (only 3-5 products at different price points).

Step#2: REVIEW

Once you have chosen a product it’s time to review your options. There are two main categories you can choose from when looking at the different products sold on Amazon, eBay and other marketplaces: top sellers, and daily deal products.

Most drop shippers who want to be successful choose daily deal products because they are easier to source and they are cheaper than popular products on other marketplaces. There are occasions when you will need to directly compete with other sellers by choosing a popular product yourself.

Getting your products approved on Amazon and eBay is the first step to success you must take in order to launch your dropshipping business. The more products you sell, the easier this becomes.

When searching for product listings on these marketplaces, be careful about viewing the actual images and details of those items because some of the listings may not be up-to-date or can contain false information.

Be sure to search for the best prices and current inventory levels for those items you are choosing to sell. The best way to find the most current inventory levels is to join a drop shipping forum like Reddit’s /r/DropshipCompany.

Step#3: REPEAT

Once you have researched and reviewed your product options, very rarely will you be able to get an exact price list from other sellers when you decide to launch your dropshipping business?

In most cases, you will have to price products using your best-educated guess and then adjust those prices as necessary to stay competitive. It’s a good idea to price a product for about $10-$15 cheaper than the other sellers on the marketplace. This allows you to make money from customers who are willing to buy at a lower price.

Once you have launched your dropshipping business, it’s important that you start selling as soon as possible. If you are selling a popular product on Amazon, the process of getting your listing approved can take anywhere from 1-3 months.

If you do not launch quickly, you may lose sales to other drop-shippers who get their listings approved first. The main advantage of starting a dropshipping business is that it does not require a large initial investment. You do not need to spend thousands or hundreds of dollars on inventory for your business to get off the ground.

With drop shipping, you can start making money as soon as possible.

To get your inventory, you will need to connect a product feed to your account on the marketplace you have chosen to sell on. This can be done through the Amazon Seller Central, eBay ProStores or by using an inventory management system. With this software, the marketplace will be able to see your available inventory and automatically add it to all of your product listings when they are displayed online.

Inventory management systems have a lot of additional features that greatly improve your dropshipping business. Some of the most useful ones are automated repricing, order fulfilment, and inventory storage.


Dropshipping has been around for quite some time and it’s been very popular. There are many pros and cons to the business model, however, dropshipping is easily the quickest and easiest way to start a profitable business that doesn’t require a large initial investment.

Starting a successful dropshipping business will not be easy or quick, but the rewards are considerable if you can follow along with our simple 3-step plan: research, review and repeat.

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