What Is Dropshipping? And How Does It Work? (2023)

What Is Dropshipping

As businesses continue to evolve and expand the ways they reach their customers, the concept of dropshipping has become popular in recent years. Dropshipping is a fulfillment model that allows a company to sell products without having an inventory or pre-purchasing items. It’s a cost-effective way to do business that has been embraced by many entrepreneurs. In this blog post, we will explore what dropshipping is, how it works, and why it’s becoming increasingly popular in 2023. We’ll take a closer look at how this method of selling products can benefit businesses and provide insight into the future of dropshipping. So read on to learn more about what this process entails and how you can get started with it!

What is Dropshipping?

Dropshipping is a business model in which e-commerce entrepreneurs sell products without having to carry any inventory. When a store owner receives an order from a customer, they simply contact the supplier, who will then ship the products directly to the customer’s door. Dropshipping is a great way to start an online business with little up-front investment, and it’s also perfect for entrepreneurs who are looking for a low-risk way to test out new product ideas.

How Does Dropshipping Work?

Dropshipping is a business model in which eCommerce entrepreneurs sell products without having to carry any inventory. When a store owner receives an order from a customer, they simply contact the supplier, who will then ship the products directly to the customer’s doorstep. Dropshipping apps like Oberlo let you add products from various suppliers into your shop to fuel your product offering.

There are numerous benefits of dropshipping. Perhaps the most appealing is that it’s possible to start a dropshipping business with little up-front investment. You don’t need to purchase products in bulk or worry about shipping logistics since your supplier handles those aspects of the business. Plus, you can test out different products and suppliers without incurring excessive risk since you only order the necessary amount of inventory for each sale.

Another advantage of dropshipping is that it’s relatively easy to get started. You can launch your own store in a matter of days (or even hours) and start selling products immediately. And, as your business grows, you can scale your dropshipping operation quickly and efficiently by adding more products and working with multiple suppliers.

The Pros and Cons of Dropshipping

There are a lot of things to consider when you’re thinking about starting a dropshipping business. It’s not a decision to be made lightly, as there are pros and cons to dropshipping that you should be aware of before making your final decision.

Let’s take a look at some of the pros of dropshipping:

1. Low Start-Up Costs: One of the biggest advantages of dropshipping is that it requires very little money to get started. You don’t need to invest in inventory or rent space for a warehouse. All you need is a domain name and hosting for your website, and you can be up and running in no time.

2. No Need for Stock: Another advantage of dropshipping is that you don’t need to worry about stocking inventory. When an order comes in, simply contact your supplier and they will ship the product directly to your customer. This means you can save on storage costs and avoid the hassle of dealing with inventory management.

3. Easy to Get Started: Dropshipping is also one of the easiest businesses to set up. There’s no need to build a complex website or create products from scratch. You can find suppliers who already have products in stock and simply list them on your site for customers to purchase.

What You Need to Start Dropshipping

If you want to start dropshipping, there are a few things you need:

1. A niche idea
2. A domain name and hosting
3. A Shopify or WooCommerce store
4. Oberlo or another supplier
5. A way to accept payments
6. Some marketing know-how

Niche Idea
The first step is to come up with a niche idea. This can be something you’re passionate about, or something you think has the potential to sell well online. Once you have your niche idea, it’s time to do some research.
Domain Name and Hosting
Next, you need to choose a domain name and set up hosting for your website. You can usually buy both of these through your Shopify account (if you’re using Shopify as your eCommerce platform). If you’re using WooCommerce, you can find hosting through WordPress.org/hosting providers like SiteGround or WP Engine. Once you have your domain name and hosting set up, it’s time to install WordPress (if you’re using WooCommerce) or set up your Shopify store.
Oberlo or Another Supplier
Now it’s time to find products to sell! If you’re using Oberlo, this is easy – we have a marketplace of suppliers with millions of products that you can add to your store with just

Finding Products to Sell

Assuming you’re starting a dropshipping business from scratch, the first step is finding products to sell. This can be a daunting task, but there are a few methods you can use to make it easier.

The first method is to look for products that are already being sold in brick-and-mortar stores. These products will have an existing customer base, so you know there’s demand for them. To find these products, you can either visit stores in person or search for them online.

If you’re searching online, a good place to start is Amazon.com. You can use Amazon’s “Search” bar to find products that are being sold in brick-and-mortar stores. Once you find a product you’re interested in, take note of the seller’s information. This will help you find the supplier later on.

Another method for finding products to sell is to look for trends. You can research trends by visiting sites like Google Trends and Trend Hunter. These sites will show you which products are increasing in popularity so you can get ahead of the curve and start selling them before everyone else does.

Once you have a few ideas for products, it’s time to start sourcing them from suppliers. The next section will cover how to do this.

Creating Your Shop

1. Creating Your Shop

The first step to starting a dropshipping business is creating your shop. You can create a dropshipping shop on any eCommerce platform, such as Shopify, WooCommerce, or Magento.

Once you’ve created your account on an eCommerce platform, you’ll need to choose a theme for your shop and add products. For help choosing a theme, check out this guide: How to Choose the Perfect Shopify Theme for Your Store ().

When it comes to adding products, you can either add products one at a time or import them in bulk using a CSV file. If you’re just starting out, we recommend adding products one at a time so that you can get a feel for the process and make sure everything is set up correctly.

Once you’ve added your products, it’s time to start promoting your store! You can promote your store through social media, online ads, or by partnering with other businesses in your niche.

Marketing Your Shop

The first step to dropshipping is finding a niche and building a store around it. This can be done with Shopify, which is the most popular platform for dropshippers. Once you have created your store, you need to drive traffic to it. This can be done through SEO, paid to advertise, or social media marketing.

Once you have built up a customer base, you need to focus on retention. This can be done by providing great customer service and creating loyalty programs. You also need to continue to drive traffic to your store so that you can keep growing your business.


Dropshipping has become an increasingly popular way of doing business in today’s digital world. By understanding what dropshipping is and how it works, business owners can take advantage of the low costs and minimal risks associated with this model. With a little research and planning, entrepreneurs can benefit from increased profits and lower overhead expenses by utilizing dropshipping for their businesses. With so many advantages available to those who pursue a dropshipping venture, it is easy to see why this online strategy has proven successful over time.

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