How Does Dropshipping Work? A Quick Guide

Looking for an easy side hustle that will bring you extra cash? If you’re here, chances are you’re considering dropshipping, and that’s a great choice. Dropshipping is one of the most accessible ways to start an online business without the usual headaches.

Simply put, dropshipping is a beginner-friendly ecommerce business model where you sell products online without ever keeping them in stock. It’s ideal for people who want to run a business with minimal overhead, limited time, and little technical experience, such as a student, a 9-to-5 worker looking for passive income, or a first-time entrepreneur trying new things.

Today, we will look deeper into dropshipping, helping you understand if it’s the right move for you and how to get started with minimal effort.

How does dropshipping work? (in simple words)

In dropshipping, you act as a middleman between your customers and suppliers. Here’s how it works: when a customer places an order on your online store, you forward that order to your supplier, and the supplier then ships the product directly to your customer. If you’re new to dropshipping, it might sound a little tricky. But don’t stress, we’ll make it simple. Let’s break it down together, step by step. how does dropshipping work

Step 1: Find a reliable supplier

First, figure out your niche (basically, what you want to sell), then who you want to sell it to, and who will supply you. Your dropshipping supplier is your business partner. You’re trusting them to handle storage, packaging, and shipping, so they need to be reliable. Once you’ve got that sorted, do some research. Look at reviews, check shipping times, see how they handle returns, and even test out their customer service. Don’t rush this step, your business’s reputation is on the line!

Step 2: Set up your dropshipping online store

At this step, you’ll need to choose an ecommerce platform that’s easy to use and works well with dropshipping apps. (We’ll discuss one of the best options a little later on.) Once that’s sorted, make your dropshipping store look professional and appealing. Use high-quality product photos, clear and catchy descriptions, and a clean, user-friendly layout to make your store look professional and keep customers coming back.

Step 3: Handle օrders

When someone buys from your store, you’ll get a notification. Let’s say you’re selling phone cases: when Alex places an order for a marble-patterned iPhone case, you should quickly confirm Alex’s order, send them a friendly email with shipping details, and double-check that the payment cleared without an issue. The faster and smoother you handle this process, the more confident Alex feels about their purchase. Happy customers are more likely to buy again (and maybe even tell their friends! Here is where word-of-mouth marketing comes in).

Step 4: Forward orders to your supplier

Once the payment is in, it’s go time. You’ll need to pass the order details to your supplier. Honestly, this step is way easier if you use an app that does it automatically (like Oberlo or Spocket). Automation is a lifesaver here because it cuts down on mistakes and keeps things moving fast. You want your customers to get their stuff on time, right? Then automate!

Step 5: Make sure your supplier ships it right

Here’s the part you don’t directly control, but it’s still super important. Your supplier will package and ship the product straight to your customer, often using your branding (which makes your store look more legit). To have some control over this, ask for tracking information so you can keep your customer in the loop. Choosing your partners is already a starting point. Communicate clearly about shipping times, product quality, and delivery updates. This will turn into a cycle of returning satisfied customers.

Pro tip: Clear and proactive communication about shipping updates goes a long way in keeping people happy.

Step 6: Provide good customer service after delivery

Your job isn’t over when the package arrives. Follow up to make sure the customer is happy with their purchase. If something’s wrong, handle it quickly and professionally. Be approachable, ask for feedback, offer solutions, and always aim to leave a good impression. This little bit of extra effort can turn a one-time buyer into a loyal fan. And that’s how you build a brand that lasts!

Pros and cons of dropshipping

Pros	Cons
Minimal upfront investment – Start without buying inventory, keeping risks low.	Lower profit margins – Individual product costs might reduce profit per sale.
Flexibility – Run your store from home, dorm, or anywhere with internet access.	Slower shipping times – Suppliers’ delays can affect customer satisfaction.
No inventory costs – Only pay for products once customers buy them.	Limited control – Less direct oversight over product quality and inventory management.

Create your online store in minutes!

Looking to sell online? Develop and launch your store with 10Web AI Ecommerce Website Builder.

Generate Your Store

How to find a dropshipping supplier (+ quick tricks)

Finding the right supplier can determine your dropshipping success. First, you need to explore popular supplier directories and marketplaces like AliExpress, Spocket, SaleHoo, or CJDropshipping. These platforms gather thousands of suppliers in one spot, making your dropshipping supplier search easier.

Here are some simple tricks to help you find the perfect dropshipping partner:

Check the suppliers’ reviews & ratings.
Evaluate product quality by ordering samples.
Test shipping speeds.
Assess the communication and customer support before committing.

To make choosing dropshipping suppliers easier, we’ve gathered some of the top suppliers in the market, which, no matter your niche, can be a helpful place to get started. These are big and reliable names. Let’s see if they are right for you and what benefits each offers.

Supplier	Best for	Key benefits
AliExpress	Beginners seeking variety & low prices	Extensive product selection, competitive pricing
Spocket	Premium products from US/EU-based suppliers	Fast shipping, high-quality items
SaleHoo	Accessing vetted and reliable suppliers	Verified directory, trustworthy vendors
Printful	Customizable print-on-demand products	Easy-to-use platform, custom branding, quality prints
CJDropshipping	Comprehensive dropshipping services	Branding options, custom packaging, extensive fulfillment
Doba	Easy product sourcing and order fulfillment	Access to millions of products, integration with ecommerce platforms

These are some of the big names. You can do deeper research for the top dropshipping suppliers, based on your niche and goals.

Build your dropshipping website (without the headache)

If you’re thinking, “Okay, I’ve chosen a supplier, but how do I build a website without coding or design skills?” A lot of beginners feel the same way. You might feel intimidated by the thought of building a website, but with 10Web AI Website Builder, it’s super quick and easy. All it takes is describing your dropshipping business, niche, your products, and let the AI take care of building your website. Let’s look at the steps in detail.

Go to 10Web.io > describe your dropshipping business in a few sentences > click Generate Your Website.
Review and edit (if needed) the website name, description, and structure.
Click Next > choose the website colors, fonts, and styles.
Click Generate to apply.

Your website is ready to customize. At this stage, you are not left to yourself to figure out how to change colors, images, or add a new section. Need to update product descriptions, change images, or adjust the layout? Ask the Co-Pilot right within the editor, and it will make the changes you want within seconds. It’s like having a personal developer by your side, just cheaper and faster.
A fully functional and editable website is not all you get with the 10Web AI Website Builder. Here is what’s included:

Management dashboard: Allows you to keep track of orders, inventory, and product listings in one place.
Secure payments with Stripe: Offer a simple checkout experience with options like Apple Pay and Google Pay.
Free custom domain: Make your brand look legit with a great domain name, free for the first year.
Reliable hosting: With Google Cloud-powered hosting, your site will be fast, secure, and scalable.

With 10Web, you can launch your dropshipping store in just minutes—no tech headaches, no stress. It’s built to make things simple, so you can focus on growing your business instead of getting stuck in setup.

Realistic income expectations & marketing tips

You did it, you built a professional website. How much money can I make with my new dropshipping store? This is the big question on everyone’s mind who’s just starting out in dropshipping. Let’s talk honestly: While dropshipping won’t turn you into a millionaire overnight, earning an extra $500 to $2,000 per month early on is very achievable. It’s possible to grow beyond that; even up to $10,000 a month or more; but that requires patience, smart strategy, and consistent effort.

Here are some simple yet powerful strategies to land your first few sales:

Social media: Show your products on visually-driven platforms like Instagram, TikTok, and Pinterest. Regularly post attractive images and engaging videos (people love seeing products in action).
SEO: Make sure people can easily find your store: Use clear, descriptive product titles that include popular niche keywords. Include common search phrases naturally throughout your store pages and descriptions.

While marketing drives traffic, don’t forget about your customers’ overall experience because it turns visitors into repeat buyers. Make sure your site loads fast, the checkout process is smooth, and you’re quick to respond to any questions or issues. A great first impression builds trust, and trust builds sales.

Start your dropshipping business today

By now, you have a clear understanding of how dropshipping works, what to expect, and how to overcome the common challenges. With consistent effort, smart strategies, and a realistic mindset, building a successful dropshipping business is absolutely achievable.

Don’t worry, if you don’t have the technical skills or deep pockets to get started. Create your professional store with 10Web’s AI Website Builder in minutes! Take the first step toward turning your dropshipping dream into reality today.

FAQ

How does a dropshipper make money?

A dropshipper makes money by acting as a middleman between customers and suppliers. When a customer places an order on the dropshipper’s online store, the dropshipper forwards that order to the supplier, who then ships the product directly to the customer. The dropshipper earns a profit by marking up the price of the product above what they pay the supplier.

Is $100 enough to start dropshipping?

Yes, starting dropshipping with $100 is possible, especially if you use cost-effective tools and platforms. While the initial investment can be low, it’s essential to allocate your budget wisely for setting up your online store, marketing, and possibly testing product samples. With careful planning and smart strategies, you can begin your dropshipping journey even on a tight budget.

How do I start dropshipping?

To start dropshipping, first, identify a niche and find a reliable supplier who can provide the products you want to sell. Next, set up your online store using an ecommerce platform, ensuring it looks professional and user-friendly. Once your store is live, promote it through various marketing strategies to attract customers and begin processing orders.

Can I make $10,000 per month dropshipping?

While it is possible to make $10,000 per month through dropshipping, achieving this level of income requires patience, effective marketing strategies, and consistent effort. Many beginners start by earning a few hundred dollars a month, but with the right approach, scaling your business to higher earnings is achievable over time.

What are dropshipping suppliers?

Dropshipping suppliers are companies that provide products for dropshippers to sell without holding inventory. They handle storage, packaging, and shipping directly to the customer, allowing the dropshipper to focus on marketing and customer service. Finding reliable suppliers is crucial for maintaining product quality and ensuring timely deliveries.

What is the dropshipping process?

The dropshipping process involves several key steps: first, the dropshipper selects a niche and finds a supplier. Next, they set up an online store and list the products for sale. When a customer places an order, the dropshipper forwards the order details to the supplier, who ships the product directly to the customer.

How can I build a dropshipping website?

Building a dropshipping website is simple with the right tools. Platforms like 10Web AI Website Builder allow you to create a professional-looking site quickly by simply describing your business. You can customize the design, manage orders, and integrate secure payment options, giving you a fully functional store ready to attract customers in just a few minutes.