I don’t remember what I felt dropshipping meant the first time I heard the word. But I remember clearly that nothing sort of an online business crossed my mind. LOL

Fast-forward to few years later, dropshipping has become so popular that every Tom, Dick and Harry knows what it means. Not just that, many people have gotten involved in this online business and have raked a lot of money from it.

From interactions with some of my friends, I got to realise some people still do not know about this business and I became surprised that my first assumption was totally wrong.

Well, most of them agreed to have heard about it but do not know how it works, all they could tell was that dropshipping is simply an online business.

In a conversation between Clement, my good friend and I, I told him how a particular Nigerian Big boy was making millions monthly selling goods in his room without physical store and goods of his own.

The look on his face was that of surprise and disbelief. I then concluded that my buddy had no knowledge about dropshipping

It’s for this purpose that I have decided to put up this detailed post about dropshipping and how to make huge money on this online business.

Are you ready to grab this life changing knowledge?

Stick with me


According to Wikipedia, “Dropshipping is a supply chain managementmethod in which the retailer does not keep goods in stock but instead transfers the customer orders and shipment details to either the manufacturer, another retailer, or a wholesaler, who then ships the goods directly to the customer”.

In a simply form, Dropshipping is a particular retailing method where the retailer or dropshippers doesn’t keep the products he or she sells in stock, instead he buys from a third party (when a customer orders for his listed products) who can either be a manufacturer, a wholesaler or another retailer and has it it shipped to the customer.

So most often than not, the dropshipper or retailer doesnt physically handle or see the products he sells

You can liken drop shipping to a standard retail method of business with the major difference being that unlike traditional retail model, the dropshipper doesn’t stock inventry

He simply displays the products and their details in his online store, buys and ships directly to a customer who makes an order.

What does the above say to you?

You can comfortably run this business in the comfort of your home. Also, you can carry your store with you everywhere you go and make your sales provided you have got internet connection


The diagram below shows how drop shipping works in a more simpler term

  • Your customer buys a product from you at a price you have set for that product
  • You then forward the order to your supplier (who is usually a wholesaler or a manufacturer selling at a cheaper rate)
  • Your supplier then ships the product(s) to your customer directly without getting it to


1. A Niche

Niche is a common parlance in the world of internet or digital marketing. I can almost bet a fortune that you know what it means. Nonetheless, for the sole benefit of doubt, a niche is simply a particular segment of the market. It could also be seen as an area of specialisation in the general market.

For example Health, Fashion, Electronics, etc are all different niches in the market. There are also sub niches. For example, Men’s health, pregnancy health, men’s wears, baby wears etc

Wondering why all the explanations. Yes, because this is the first and one of the most important requirement when enterning any business.

Some niches are know to perform better than others in terms of demand and profitability. For this case, a proper research on niches is a very important requirement for your dropshiping business

Because of the many number of people involved in dropshipping business, it’s getting harder by the day to find a niche that’s not oversaturated.

I will also like you to know that despite the high involvement, there are still plenty niches yet untapped.

Thorough look into the market should help you find a niche moderately competitive where you will scale through easily

Your chosen niche is a major determinant to the success or failure of your drop shipping business

2. A Product to Sell

Now that you have got a wonderful niche for yourself, it is time to decide on the product to list in your online store and sell.

No matter how much you try, you may not be able to sell all the products in your chosen niche especially when you are getting started.

It is therefore important to bear in mind that another line of research you must carry out properly is on the product that is very high in demand. This requires you to do a market investigation on your niche to before getting started

Selling a few products that are high in demand is an indirect but great way of narrowing down of your niche.

So decide on a product, one or few which people are begging to buy and sell

3. A Supplier of that Product

One of the most difficult stage of dropshipping is finding a supplier and one that is reliable

Every serious dropshipper is always on the lookout for a highly reliable supplier. You know why this they do?


Because your suppliers can either mar or make your business. They keep your product in stock, uphold the quality of your products and see to fast and smooth shipping of stock to your esteemed customers.

So if anything goes wrong with your suppliers. It is as good as your business has gone wrong

A recommended dropshipper should have a great drop shipping experience and a supportive staff.

They should provide fast shipping, quality products and should not charge huge order fees

Where to find Suppliers

You can find great and reliable supplier by searching online or using SalwHoo, a wholesale director

Popular e-commerce such as or even is a great place to find products and have them supplied for you.

4. A Platform to Sell On

So you’ve decided on a product and you’ve lined up a supplier – now you need a place to start selling and making money.

Choosing the right selling platform or online marketplace is also another important step in your drop shipping business

You can either decide to list your products on an already established platform with her ready customers . Example of such well establisbled online marketplace like Amazon, eBay, Etsy, Shopify, Jumia. The major advantage of this method is that such platforms attract huge amount of traffic(your potential customers) and are highly trusted

Or start your own online store by launching a wordpress website with the necessary plugins and tweak, of course with a theme that portrays it’s purpose. The pros of this is complete control over the site while the long time taken to build trust and credibility is it’s major downside


1.Low investment:

One of the biggest and most common Pros of dropshipping is that it has a low capital entry (This is not to say you can’t start it huge) but then, you do not have to break a bank to start dropshipping.

If you have understood properly the concept of dropshipping, you will realise that you just need to spend a little cash to launch your own online store or list your products in popular e-commerce stores

So Dropshipping is very cheap to start, this is why many people are dropshipping

2. Easy to start:

It is easier to start that most traditional retail business. You can do everything in without leaving your room with just your laptop. From finding a trusted and supplier, launching your online store, listing your products in your store and promoting can all be achieved sitting behind your computer at home. No physical store or inventory to deal with


3. Location flexibility

It’s an online business. You have got your store online and have your goods there. You are not restricted to any location. You can run your business anywhere provided you have got internet connection. No worries of spending money on physical stores or customers complaining of your store being locked when they needed to buy from you

Unlike traditional retail model, your customers anywhere can reach you and order your product

4. Easy to scale

Since the work of stocking inventory and shipping ordered products to customers is done by the suppliers. It is very easy to scale up and expand.

Since there is no upfront inventory to pay for. It even becomes a lot easier expanding given your orders are increasing


  • Lower Profit.

There is a huge competition going on in drop shipping business because of low start up capital. This has resulted to a low profit margin as every dropshipper tries to win a customer over with a reduced price on listed products

  • Shipping and returns:

Every serious dropshipper usually have more than one supplier .While this is great, it can pose great difficulty and complications to your shipping costs.

It can get confusing and frustrating when you have no control over the speed of your shipped product

If you’re using more than one supplier, as many dropshippers do, this can complicate your shipping costs as they can vary from supplier to supplier. You also lose control over shipping quality and speed.

  • Lack of visibility:

Though your supplier bear the whole burden of logistics, whenever anything goes wrong about the order and the customer is dissatisfied. You will take on the blame

Most times, you cannot escape this as you usually have no direct contact with the product.null


Dropshipping business is a smart way many smart people are using to make lots of money. As long as the internet remains. Money making opportunities abound. So Aside Affiliate marketing and other forms of making money online. Dropshipping is another lucrative one.

Recall however that the success of any business depends on the individual behind the wheels of the business. So if you play by the rules of the game in this business, drop shipping is sure to give you a financial fortune and most of, a great balance of life.

Your Turn

If you have nursed the dream of owing your own business or even looking to start up an online business. Get started now. Share this great info to your friends and family now

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This Post Has 7 Comments

  1. Thanks
    This post really opened my eyes

  2. hi, can you mentor me.

    1. Very occupied bro. Thanks for understanding bro

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Onah Edwin

Onah Edwin is a passionate blogger, writer and a certified digital marketer who helps businesses grow online. I also share blogging tips and effective ways to make money online
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