How to Make Money With an Online Dropshipping Business

Sharline Shaw

Want to make money dropshipping?

Of course, this is the most beneficial manner for making money online. So here is the ultimate guide for dropshipping online in 2021 and making money out if it.

In 2020,  the unprecedented situation has harmed many conventional businesses. Many people worldwide got unemployed. Savings of many are on the verge. Many are at disposal of their governments.

This chaotic situation has raised a question in the head of many insecure people. Many who were not favoring online businesses in the past are now thinking about it.

But everyone has anxiety of their own. Especially those who have not done any business in their life. People are thinking about making money online.

Yet, they are reluctant. There is a fear of loss, uncertainty, initiative, and inexperience.

People worldwide are in search of the easiest options online to make money. We have seen a surge in search terms like Dropshipping.

make money dropshipping 

 Make money dropshipping  (Volume: 1,300/mo), etc… This tells how much people are showing interest in dropshipping.

If you are one of them and reached this article then you are in the right place. Our motive is to give you a full-fledged understanding of the dropshipping.

Dropshipping is the most famous eCommerce technique. It has eased the path of many people worldwide. Many platforms are supporting dropshipping.

The reason for their support is that dropshippers are actually “super marketers”.

They gave marketing a whole new level. Dropshipping is the name of strategy, smartness, and efficiency. It compels people to buy the item.

Dropshippers have initiated viral marketing. They have discovered many new techniques to address the audience.

Social media indeed has its contribution to the enhancement. Yet, the dropshippers also have many efforts.

Take a deep breath, relax your mind. Let’s find out how to make money online with dropshipping.

How Dropshipping Works?

When you are dropshipping, it means you are marketing products for others. And you are taking the profit out of it. Suppose, a person A has a car. Person A wants to sell it.

One day you were walking through the shop X, you have seen the car on sale. You saw that person A  is demanding $1000.

You take pictures of that car. Note all the specifications with you and ask person A for the payment process.You committed with person A that I will buy your car but do not disclose the price to anyone.

Then you went to a place Y where people need that car. You showed all the pictures and specifications of the car mentioning the price of $1200.

Person B approached you and said I want to buy this car and paid you $1200. Now, you send $1000 to person A and tell him to deliver the car to person B’s address.

Then, person A delivers the car to person B.

This is how dropshipping works. Person A here is the seller, supplier, or Wholesaler. Shop X is the main marketplace where person A has displayed the car.  Place Y is the marketplace of the target audience. Person B is your customer. Here is one more thing is worth noticing that Person A has done the fulfillment not you.

It means with drop shipping, you work with a wholesaler or distributor. One who allows dropshipping. Not all manufacturers and wholesalers offer drop shipping, but most of them do.

If you are a dropshipper, you handle all the marketing for your business. This means that you set up your e-commerce website.

Mention the description. Do social media and email marketing. Or any other way you can contact your target customers. You will tell them all about the products.  You will use your marketing and selling skills.

Tell them how the products will enhance their lives. You do all the marketing, advertising, and promotion to get the customers and make the sale.

You send your supplier the orders that come in, paying the wholesale price for each order. The supplier then fulfills the order himself. The supplier will not include any pricing details or information. The customer thinks the package came from you.

How Dropshipping Works

Certain charges are depending on the services and payment methods. The following are some fees/charges that you must consider while deciding profits.

  • Marketplace subscription charges
  • Insertion fees.
  • VAT (if sales exceed a certain amount)
  • Web hosting and domain charges
  • PayPal, credit card charges
  • Monitoring tool fees
  • Ads campaign charges
  • Conversion fees
  • Delivery charges (if any)

Remember though, that you are not risking your money upfront. You will pay only when you sell any of the products from these.

Despite the thinner margins, you can still make a profit as a dropshipping business. If you want to increase your profits, you can raise prices keeping in mind the competition.

You can also sell more volume. And you can always contact your supplier to negotiate a lower handling fee.

You can also sell white-label products. In this method, you put your name or brand on your products. This is usually done when the supplier is ODM. Or the supplier is a white-label seller. Or the supplier offers customizable products.

For example, Printful is an on-demand fulfillment service.  These services allow you to avoid competing on price. By this, you can make a good amount of money with dropshipping.

Why choose to start Online Dropshipping Business?

There are many reasons to start online dropshipping and making money with dropshipping. Due to the current pandemic situation, dropshipping is trending on many platforms.

The following are the major reasons people are choosing an online dropshipping business.

Why choose to start Online DropshippingEasy to Get Started

The dropshipping does not need any big investment. Neither you need any physical movement. Nor you need any special conditions. All you need is an internet connection and a personnel computer.

A little investment of $100 is more than enough and a payment method. It is the fastest method of starting a buy and sell online business. It is very easy to get started.

No Business Entity Required To Start

For dropshipping, you do not need to register any company. You can start it as an individual. Though, when you start earning a handsome amount, it is better to have one.

But, if you do not have enough money to register at the store do not bother, start as an individual. Still, it is a good thing, if you want to get registered to start.

No Inventory Management

Inventory management for starters is not an easy thing. In dropshipping, you do not have to worry about the inventory. Because supplier are responsible for the fulfillment of products.

As we said earlier, the dropshippers are the Super Marketer. They only focus on marketing, advertising, and customer support to sell the products.

Easily Access to Millions of Products

As you do not have to store products, you can display thousands of products. So by experimenting with different products, you will understand which one is lucrative. Which one is workable for which season. Which products are event-based.

You can differentiate between seasonal and all-seasoned products. Thus, you can also select your niche product out of them.

You Set the Retail Price

You can decide the retail price yourself. There is no upper or lower limit. Yet, the best practice is to set retail prices lower than your competition.

But, if you have found a different audience who have no access to the product except you. Or you are the only one who is selling that product. You can select the profit according to the demand, need, and trend.

Suggested reading: Is Alibaba safe and legit?
Suggested reading: Top 50 Trending Products To Sell Online

It is very Flexible

Dropshipping is flexible. If your products are selling high, you can select a virtual assistant.

You can extend or reduce sales volume. You can also select many items. Also, you can change the whole products in the store. You can sell the product anywhere. You can offer a global store.

It can be big or small depending on the sale. This tells that the dropshipping is very flexible and you can scale at whatever level you want.

Does Dropshipping Business profitable?

Make money dropshipping is the highest searched trend in the US. Dropshipping is profitable. When we see the money circulation and compare it with the profit we earn.

It looks like it is not very profitable. Suppose you sell products worth $100,000 and earn a profit of $1000 it is not considered profitable. As money circulation is high but the profit is low.

But, there is one more thing to let you understand what I am trying to explain. In reality, dropshipping is not dependent on money circulation. Rather it is dependent on the time.

Does Dropshipping Business profitable

Suppose a person sells 200 products a day and earn $100. This means the person has earned a lot. But, you can not reach this level in a day unless you are an influencer or a supermodel with a fan following in millions.

But, the sky is the limit. Who knows,  a person can achieve. If you have a clear mind and you understand your audience, anything could happen.

A dropshipping is a profitable business it is true. But, one can not rely only on the dropshipping. It is the best option to search, analyze, and identify your niche product.

But, it should not be the only business to rely on. It is the best step when you are entering the world of eCommerce. It will give you deep insight. And will help you a lot in finalizing your niche.

Business depends on the person pursuing it. Many businesses are profitable but not everyone can run it. Likewise, dropshipping is profitable, but not for everyone.

Besides, in dropshipping chances for loss are negligible. You will bear loss only when you deny the key considerations.

Suggested reading: The Profitable Products To Import From China

How to Make Money With an Online Dropshipping Business?

Yet, make money with dropshipping looks very easy but it is not that easy as it seems. It needs a humongous amount of time.

While it does not take a lot of startup funds to launch a dropshipping, it needs an extensive amount of hard work.

So, we can say that to make money with dropshipping needs to have a lot of care and considerations. The following are few prospects to make money with the online dropshipping business.

Select a niche

One of the first steps in eCommerce is choosing a niche. It’s also the biggest point where we see people get hung up.

While you shouldn’t make niche selection harder than it is, it’s more important to not rush the process.

  • Selecting a niche can make or break your dropshipping business. Making it one part of the dropshipping process you don’t want to rush. Let’s see how to select a good nice.
  • Focused brainstorming
  • Research and check current dropshipping trends.
  • Drill down as much as you can into specific niches.
  • Select the niche that is profitable not the likable one.
Suggested reading: Alibaba Dropshipping

Sourcing and Working With Reliable Dropshipping Suppliers and Wholesalers

Source and work with reliable dropshipping suppliers and wholesalers. But, in dropshipping never rely on one source.

You must have one or more backup suppliers. You never know how much quantity someone can buy from you and how much the supplier has the product. Discuss return policies in advance.

Make good relations with ODM suppliers and keep the best of your relationship.

Perform competition research

Competition research is critical. Your sale depends on this. You must know about your competitors. You must know how much they are earning.

Are they targeting the same audience?

Are prices lower than yours?

What is the ranking of the competitor in the search engine?

It is an essential tactic for finding out what your competitors are doing.  Also, what kind of threat they present to the success of your company.

Building Excellent Online Dropshipping sites

Modern and Responsive design is essential to boost sales on your eCommerce sites. It allows users and visitors to get the best navigational experience.

Also, have a better user experience across various platforms, devices, and browsers. You should consider catering to the ever-growing eCommerce market.

It should permit customers to browse and shop online through a variety of devices.

Create a customer acquisition plan

A customer acquisition plan is very important to make returning customers. You should engage your prospective customers with your brand.

It is important to make them acquaint before they make a sale. Cut your spending. Establish your brand as an authority. Develop partnerships with other brands. Arrange Webinars.

Educate your customers about your company and products. Increase your organic customers. Also, start a Facebook ad campaign to attract more customers.

Facebook allows you to place your offer in front of a targeted audience. This gives you the ability to compete with the largest brands and retailers.

Analyze and optimize

You need to find all the data and information available to grow your business. This includes Google Analytics traffic and Facebook conversions. When you can track every single conversion it enables you to scale what works and end what doesn’t.

You will never have an advertising or marketing solution. You need to test new opportunities and fine-tune current campaigns. This will allow you to know when to optimize or shift the campaign spend.

The cause of failure When Making Money With an Online Dropshipping Business

Many reasons are precursors of failures when trying to make money. The following are the prospects that fail the dropshipping.

Too high Potential Competition

This is the most important cause of failure in dropshipping. There are some categories which have very high potential competition. Newbies when seeing the high selling in these categories, start working on these.

So, this leads to the loss in their ads campaigns and other services that they are in affiliation with.  Many mobile gadgets are in high competition. So never invest in categories like these. For checking the item selling potential for selection.

Do not go for the products that are very high in selling demand. But, rather go for products that are selling at normal quantities. This always happens when you do not have a proper study of your niche or product.

Picking the wrong supplier

Your supplier will impact everything from product quality to delivery times. So, it is a must that you select someone who will deliver the results you need.

Besides checking out reviews for your potential suppliers consider ordering samples. This will give you firsthand experience with the shipping process. And also allow you to see whether the products meet your expectations or not.

Becoming dependent on a single vendor

Never depend on the single vendor only. There are many uncertainties which we should keep in mind to address in advance.

If you depend on a single vendor. There are chances that the item can go out of stock. There might be any shipment issue or any other etc.

Always have a backup supplier ready. So, if anything happens to your primary vendor, you’ll still be able to make sales and fulfill orders. Be careful that your contract with your primary vendor does not prohibit you from others.

Surprise shipping fees

You must know all the hidden charges before placing the price tag on every item.

When listing product prices on your website, are you upfront with your shipping fees? To keep your customers happy, you need to make your shipping costs clear. It is better to add shipping charges within the sale price. Free delivery and fast shipping is always a catch.

Mention all charges in the sale price. Do not add hidden charges as they are not very lucrative in dropshipping. 90% of people prefer to buy items that offer free shipping. As they think the price is clear, with no surprise shipping fee.

No after-purchase tracking

Customers are always in despair until they receive their orders. Dropshipping fails or faces chargebacks when customers do not find the tracking information.

Customer satisfaction is very important. Deal with the suppliers who have a good track record of coordination.

Lackluster returns

One hundred percent customer satisfaction may be the goal, but it’s rarely the reality.

Like free shipping, refund and returns also cover the anxieties of the customer. We recommend not selling items that have a high probability of returns.

For example clothing products. Still, if you are selling these, mention the return and refund policy.  Also, mention the size and other variants. Coordinate with customers immediately if they have any concerns.

Only running a single-store

In dropshipping depending on a single store is not lucrative. Try to have more than two stores. And experiment as much as you can until you find your niche. More stores usually result in more profit. Many entrepreneurs have used and confirmed this technique.

Ideas and Strategies on Making Money With an Online Dropshipping Business

Making money through dropshipping business is easy.  You have streamlined your processes. We need proper research to identify the products for the eCommerce business.

Fitness Trackers

Fitness trackers are trending high on different marketplaces. These are the smart devices you wear like a watch. It measures things like steps, heart rate, distance traveled, and elevation gained. They are popular with both amateur and professional sportspeople.

Bluetooth Speakers

Bluetooth speakers have been in the market for a long time. Their new design and high definition sounds have made them trending for a very long time now. Some many new designs and companies are making high-quality speakers.

It is still very lucrative. You can connect these speakers to any product you can think of. These are compatible with both android and iOS. There is no set value for these products. So, you can sell it at any profit by exploring new marketplaces for these items.

Smart Watches

Smartwatches have been finding their way in recent years. They are also trending high. As they can check heartbeat, walks, etc, it is the center of attraction for many.

Smartwatches are now strapped around the wrists of technology. The rise of wearable technology is likely to see smartwatches become more a part of our lives.

What does this mean for your new startup ideas?

It means that smartwatches aren’t going anywhere soon.

Wooden Watches

Wooden watches are also worth considering. Wooden watches have become more popular. Wooden watched are products of the ODM industry.

You can design, customize, and brand to earn more profits. The Wooden watches are high in trend these days. Especially with the revival of wooden flooring.

Muslin Blankets

Muslin is a lightweight, finely-woven, breathable cotton fabric. If you are looking for a niche in the baby items, consider adding muslin blankets. It is a never-ending niche. As long as we keep having babies, there will always be a high demand for baby products.

Teeth Whitening

The high cost of dental treatment has increased interest in teeth whitening kits. Something happened in 2015 that saw these dental kits rise high.

They have continued on the ride of popularity. Everyone has teeth, so you can be sure there will be a steady demand. Teeth whitening treatment is very lucrative as well.

Some Tips about Starting Your Online Dropshipping Business.

The following are the tips about starting your Online Dropshipping Business.

  • Sell almost any products, in any niche.
  • Take into consideration the proper care of customers.
  • Develop an environment of follow up.
  • Satisfy your customer inquiries.
  • Brainstorm as much as possible.
  • Do not waste too much time on a single item if it is not selling, start a new ad.
  • Use a proven business model, which is even used by large retailers such as Amazon
  • No need to store any inventory.
  • No need to pack or ship out products.
  • No requirement for up-front capital.

Suggested reading: Dropshipping In 2020: How to Start a Dropshipping Business?

FAQ For makes money Dropshipping :

How to make money with dropshipping on Amazon?

To make money through dropshipping is expensive compared to the conventional dropshipping. You need at least $1000 to start an Amazon FBA dropshipping. It is a very lucrative and secure dropshipping method.

Can I make money with dropshipping?

Yes, you can make money with dropshipping. It is the easiest, fast and convenient method to run an online business. Making money depends on your strategy and alignment with your targets.

How to make money dropshipping on Shopify?

You just need a Shopify account and a domain name to start dropshipping. When starting dropshipping online all you need is to set up a Shopify website.

Shopify offers 14 days free trial. So you can experiment to make money dropshipping on Shopify.

Suggested reading: Shopify Dropshipping :Ultimate Guide 2020

Shopify Dropshipping: Ultimate Guide 2020

How quickly can you make money dropshipping?

It all depends on your responsiveness and agility to make money from dropshipping. You have to streamline your energies to make it profitable. Make money online drop shipping depends on the efforts that one makes.

Can you make money dropshipping Reddit?

No, you cannot make money on Reddit via dropshipping. It is not a platform for this. Yet, you can learn about dropshipping from the blogs written about dropshipping.

How to make money dropshipping on eBay?

eBay is the cheapest way of dropshipping online. You can buy products from marketplaces like Amazon, Walmart, Costco,  AliExpress, etc…

List the items at your eBay store you want to sell. Integrate monitoring tool and start making money with dropshipping.

Suggested reading:AliExpress Dropshipping Guide

Suggested reading: Aliexpress Reviews

How LeelineSourcing Help You make money from Online Dropshipping Business

Leeline is one of the best sourcing agents in China. With decades of experience, we can help you find the best suppliers and Wholesalers in China.

Leeline has sourced the items in almost every part of the world. That is why we know all the realities and modes of shipping and services. Experienced customer service will help you equip with all what you need in China.


Leeline is the best and complete solution. if you are looking for the products for your dropshipping or online retail store, we are here to help. Leeline Sourcing can help you find the wholesalers, and suppliers at competitive prices.

Leeline also provides Factory Audit and Inspection services. With this, you will be able to check the quality of the product before sending it to your warehouse.

Leeline Sourcing commits to giving the best service to valued customers. We can help you identify the best Dropshipping service for you.

We also offer Amazon FBA prep service. We will pack your products right according to the policy of Amazon.

Leeline Sourcing also provides a one-point collection service. That is you can collect your items at a single point and source it all together.

If you have any issue about dropshipping, Leeline sourcing will act as your eyes and ears. We will help you in every possible manner.  Simply contact us here.

Suggested reading:Best FBA Prep Services Help Your Sell on Amazon Successfully

Final Thoughts on make money dropshipping

Wrapping up, the ground reality, do not waste a lot of time figuring out the best possible solution. That is all you need to make money dropshipping online. What we have discussed here.

Now, you have to go through a few things in detail. Never lose hope 2020 is the best time to start an online dropshipping business. We always suggest starting with the dropshipping to understand the environment.

Do you know what is the top reason that much fail in dropshipping?  It is that they never try it.

You do not need to be too perfect. You need to start rolling. As the rolling stone, gather no moss. Likewise, you only have to take the first step, after some time you will understand all about it.

Take dropshipping as a first step to make your own business or brand. Follow your other dropshippers who are in your competition. Competitors will give you insight into that dropshipping business.

You will learn so many things using this technique. Simple is that, dropshipping is the must-have before starting online eCommerce business these days. No other time is better than today.

At start do not focus on making money, focus on the service you are providing your customer. The better you are at customer service, the better you can earn in the long run.

Never be afraid of mistakes. Every successful entrepreneur has gone through mistakes. So, it would never be a perfect way.

It is high time to do dropshipping. To make money dropshipping is trending high in the USA.

Dropshipping is highly profitable in 2021. People are turning towards dropshipping to make money online. But, it requires a lot of effort and time to achieve what anyone expects.

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Article by:

Sharline Shaw

Hey I'm Sharline, the founder of Leeline Sourcing. With 10 years of experience in the field of sourcing in China, we help 2000+ clients import from China,Alibaba,1688 to Amazon FBA or shopify. If you have any questions about sourcing , pls feel free to contact us.