ultimate guide to dropshipping

What Is Dropshipping and How Does It Work?

Dropshipping is a method of retailing that enables store owners to sell goods without having to keep those goods in stock. With dropshipping, a store can offer a wider range of products to consumers, without having to pay for the inventory storage and management.

In dropshipping, the individual or company that owns a store does not purchase the product from the manufacturer. but instead, purchases it from a seller, who is going to be the one who delivers the ordered goods to the customer.

Dropshipping is a supply chain management technique in which the retailer “YOU” does not keep goods in stock but instead transfers the customer’s purchase order information to either the manufacturer, another retailer, or a wholesaler, who then ships the goods directly to the customer. It is often confused with affiliate marketing, in which the retailer  receives a commission for sales that were referred by a third party. But in physical affiliate marketing, the retailer has physical possession of the product.

The major disadvantage of dropshipping is the missing inventory control. You don’t hold and keep the items, so you can’t be sure that the customer is not returning the item and asking for a refund.

Shopify Dropshipping

The Shopify platform is known for its ease of use. It is an in demand platform to help launch an e-commerce store. Shopify is a software that helps you to launch your own e-commerce store. It offers you the ability to sell your products through their hosted pages.

Shopify is one of the best e-commerce platforms out there. It offers e-commerce hosting, niche themes, and app store. Shopify has made affiliate marketing very easy. It is a perfect platform for generating traffic and making sales.

Shopify dropshipping is a great way of starting your own ecommerce store without having to worry about maintaining stock.

When you dropship, you don’t keep the products you are selling in stock. Instead, you link to an existing product on an online store (this could be an Aliexpress store, Amazon store, an eBay store, or simply an online store that you set up using Shopify) and then sell that product through your own online store. Once you have sold a product at your Shopify store, you contact the supplier to ship the product directly to your customer.

How Does It Work

Dropshipping is the process of selling and delivering goods for a retail business without the need for storage. In other words, a dropshipper doesn’t actually store or have any ownership of the product. So, how does a dropshipper deliver the goods when he doesn’t have the product?

Simple, he has a relationship with a company that manufactures or procures the product. That business is called the supplier. A dropshipper only orders the goods and is then responsible for delivering the goods at the customer’s request.

dropshipping model

Dropshipping is one of the easiest ways to make money online with little or no startup costs. Where dropshipping will be beneficial to your business is allowing you to scale your business without having to invest in inventory or having to hold inventory in a physical location.

When it comes to dropshipping, it’s important to understand your margins. You will want to focus on your profit margins, which means that you want to know what the profit margin is on the item that you are selling. When you know what your profit margin is, you will be able to calculate what your cost price is. Your cost price is the price that you will pay to the supplier in order to buy their product.

Once you know what your profit margin is and what your cost price is, you will know how much money you will be making on every sale that you make. With this information, you will know what you can afford to pay for your dropship items.

You wanna learn or start your dropshipping career, Feel free to contact us!


Extremefy is a well known shopify service provider: who serve to brands, startups and halts launches in their Shopify store development, branding, marketing and management so that they see success. More helps entrepreneurs with their stuff like marketing channels, SEO, research and keywords so they can profit.

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