How To Make Money With Drop Shipping

Have you ever wanted to sell stuff online like Amazon sellers?

What about dreaming of setting up your own online store?

Chances are that like a lot of people thinking of making money online you have.

However, just like with most people, what stopped you is the nightmare of having to go to a warehouse and physically handling that inventory. Who needs all that headache you may be thinking?

Well we have an ideal solution and that is Dropshipping. This is for people looking to make money online through physical product sales. However with drop shipping, you don’t have to have a warehouse. You don’t even have to touch the merchandise.

Here is how it works.

You set-up a website and you stock it with products that are actually sold by another online store. This is mostly a distributor or probably a wholesaler. When somebody comes to your store and buys something, you set up a software that automatically orders that inventory from your source. This difference in price between what the visitor to your store pays and what you source the product for is your profit.

Since a lot of drop shippers are based in China you can bet that the profit margin of most drop shippers is quite hefty. We are talking mark ups starting from 50% all the way to several 100%.  

In fact the difference between the wholesale price and online retail price of many types of products are so extreme that drop ship stores can absorb the loss made by refunds because their margins are huge. That is how lucrative drop shipping can be. It all boils down to automation, niche selection and finding the right supplier and driving traffic to your online store.

How do you do it.

The first step as usual is niche selection. You have to pick the right products to sell. Do understand that just because people in a specific niche are buying a certain type of product, it doesn’t necessarily mean that the product has good margins. So if the profit margin isn’t there, that product is not worth selling. Because it is just going to cost you too many headaches and sleepless nights.

You have to find products that have a high-enough return on investment and have a solid demand level while facing relatively low competition levels. This can be a tall order because you are balancing all of these factors. Furthermore, it may take you a while to get spot on. The good news is you can hire virtual assistants from places like Cognoplus or The great thing about hiring virtual assistants is you can pay them on a day to day basis. You can set the virtual assistant the task of finding different product and cross-referencing them in terms of consumer demand and online competition. Once you have found an ideal product the next step is to find suitable suppliers for that product on The great thing about is that you can set-up software to take orders that you get from the drop ship store and relay it automatically to So you can be asleep or on holiday and automation fulfils your orders as they come in. At the end of the day, you just see your profit margin. 

You can use set-ups like Shopify to quickly set-up your online store and then plug it into Oberlo, which automates inventory ordering and inventory entry. If you think this is too complicated or better use of your time then you can use freelances to manage the who process. 

If set up properly, and tracking is all in place, when visitors buy items from your store, your software will automatically order these inventory from your store.


The big advantage of this method is you don’t have to handle inventory

Another great solid point is that pretty much everything can be automated


The biggest downside to drop shipping is niche research and getting the right products to sell because if you pick the wrong types of product or product categories, you are not going to be successful at it. You wouldn’t make any money and either you’re not going to attract traffic, or the return on investment is simply not there or you just have too much competition.

So it is crucial that you pick the right niche