Dropshipping is a sales model in which the merchant acts as an intermediary between the customer and the supplier. Unlike a traditional online store, the merchant does not store products or handle their delivery. Instead, customer orders are forwarded to the supplier, who ships the products directly to the customers. This eliminates the need for significant investment in inventory and logistics.
Example:
- A customer orders a product from your store for €200.
- You purchase the product from the supplier at a wholesale price of €150.
- The €50 difference is your profit.
This means you never physically own the product, reducing storage, packaging, and shipping costs.
The dropshipping process is easy to understand:
- A customer finds a product in your online store and places an order.
- You forward the order to the supplier or wholesaler.
- The supplier ships the product directly to the customer.
Although it sounds simple, success in dropshipping requires effective marketing and the ability to make your products stand out in a competitive market. The key is knowing how to attract customers and present your products in an appealing way.
There are several key differences between dropshipping and a traditional online store. In the image below, we’ve highlighted the most important ones.
Starting a dropshipping business can be divided into a few key steps:
1. Independent Setup
If you want full control over your business:
- Research the market and find trending products.
- Choose a supplier that offers quality products and reliable shipping.
- Build your online store using platforms like Shopify or WooCommerce.
- Set up a marketing strategy, including ads on social media and Google.
2. Using Dropshipping Platforms
If you want to speed up the process, you can join specialized dropshipping platforms:
- Oberlo – Connects you with suppliers and allows automatic product uploads to your store.
- Shopify – A popular e-commerce platform with numerous dropshipping integrations.
- Salehoo – Provides a database of verified suppliers and beginner-friendly guides.
Dropshipping can be very profitable, but it is not a simple “get-rich-quick” method. Competition is high, and success depends on your knowledge of:
- Advertising – running ads on the right platforms with proper audience targeting.
- Sales funnel – understanding how to attract visitors and convert them into customers.
- Product descriptions and copywriting – high-quality copy can significantly boost sales.
The example above shows that a €50 profit per sale may seem attractive, but you need to sell a large volume of products to cover advertising costs, store maintenance, and operational work.
Dropshipping is an excellent business model for those who want to start with minimal investment and focus on marketing, but it requires careful planning and a strategic approach. Before you start:
- Research the market and identify trending products.
- Choose reliable suppliers to ensure quality and timely delivery.
- Create an attractive online store that appeals to customers.
- Develop a strong marketing strategy to stand out in a competitive market.
If you’re ready to invest time and effort into research and advertising, dropshipping can become a profitable business model. Start today and build your online store step by step. For additional support, our partner companies 3PL.hr and Warehouse.hr, which specialize in dropshipping, are available, or you can contact us directly.
