How about starting a thriving home business with little to no money at all?

How is this even possible? Dropshipping of course. A great service anyone can use to make wholesale deliveries to consumers. If you’re thinking about starting your own online business, then dropshipping is something you should consider. Here, we’ll cover some of the basics dealing around drop shipping.

How Does Dropshipping Work?

You open up an online store and work with a dropshipper to deliver products directly to your customers/audience.

What makes this an ingenious opportunity is that you don’t need to have a warehouse. You can sell any type of product without purchasing a single item upfront. You only pay when the customer pays. The dropshipping company also processes returns. Just make sure to inquire about what returns are acceptable.

Little to No Capital is Needed

Right off the start, the capital needed to start an ecommerce business is greatly reduced. And this is likely the main benefit that draws entrepreneurs into the dropshipping industry. Many people start their online store from their home. In the past, you needed a warehouse to store thousands of dollars’ worth of products costing too much storage fees.

Access to a Bigger Selection of Products

Since you don’t purchase products in advance, you can offer a wider selection of items. Find dropshippers that deliver the products you want to offer.

The Risk is Minimal

Warehouses and storefronts are sometimes damaged by fires, bad weather, and vandalism, and then the amount of revenue lost can be substantial. This type of risk is diminished, since you don’t have an inventory to protect. If your business doesn’t work out well, you won’t have thousands of products to get rid of.

Operate Your Store from Anywhere

Nothing binds you when you have an e-commerce store. You can maintain it from anywhere in the world. As long as you have an internet connection and reliable phones to run your business.

It Offers Flexible Scalability

Unlike warehouses and shops, you can scale your business up or down based on the demands of your customers. i.e., during the holidays, you can easily scale up to meet high revenue.

What Are the Profit Margins for Dropshipping?

Your profit margin depends on the types of products you’re promoting. If you decide to go with costly electronics, then you can earn around 5% to 10%.

However, for the lower-priced accessories, you can collect margins around the 100% range. Most often, gross margins are around 10% to 15%.

Where to Find Customers?

Manage your dropshipping business just as you would a regular online store. i.e., you can have a website built to advertise your products.

It may look like a regular storefront, but your products will ship from elsewhere.

Some businesses places dropship-sell from sites like eBay and Amazon as well. The most important thing is to increase your visibility by all means necessary; Facebook let you connect your store so followers can buy from your page. A shop button is available to take users to your online store. Keep in mind the importance of having your own website so you have a dedicated spot where customers can shop.

Finding Drop Shipping Companies

There are many different ways you can find dropship suppliers for your business. Let’s review some of them:


Subscribe to a directory for dropshipping suppliers, these are available online. Just remember that these are typically lower quality entities that don’t provide much value. You might find some gems in there, so it’s worth checking out. Obviously, you’ll find thousands of suppliers worldwide.


A good option is to reach out directly to the manufacturer. If you have an idea of the product you want to sell, then find its manufacturers then contact for details. They can direct you to authorized distributors that offer dropshipping services.

Google Search

It’s a hard mission to find wholesale dropshippers, they don’t really market their services. You are very likely find yourself sifting through pages and pages before you find any good options. But don’t give up, eventually you will find suppliers for your e-commerce business.

What Are the Requirements for Working with Dropshippers?

In the U.S. you have to be an established business in order to conduct any type of business, register with an Employer Identification Number (EIN), it’s free to apply for and acts as a I.D. number for your business. Use this to file your taxes. In most cases, you’ll only pay a few hundred dollars.

How does drop shipping work when it comes to fees?

There are various fee structures for dropshippers:

Per Item Fee

One option is to pay a fee per purchase. It may range between $2 and $5 per item, to cover packaging and shipping. And it may be higher for bigger products, or products that are harder to process.

Monthly Fee

This is more ideal since it allows you to plan ahead your budget. However, at first, you may not want to go this route until you start making revenue. Pay attention to fake dropshippers that ask you for ongoing fees.

Purchasing Minimums

Some dropshippers have purchasing minimums, like wholesalers. Sometimes, this is only for your first purchase. Other times, it’s on a monthly basis. If you don’t meet the sales threshold, you have to pay a fee.

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