Dropshipping: How It Works, Earning From It, And A Software That Can Help


Dropshipping is quickly becoming quite a trend nowadays, especially with the reality that this makes doing business with customers a whole lot easier. Dropshipping refers to the system of moving goods from the manufacturer directly to the retailer without going through the usual distribution channels. In other words, dropshipping makes things easier for the entrepreneur.

Today, many individuals want to venture into eCommerce businesses, or sell products to customers who purchase them online. However, when it comes to managing an eCommerce business, there is this problem of getting disorganized when it comes to possessing the products you sell. You do not want this to happen. And this is what dropshipping solves.

Dropshipping is a low-risk business model that lets entrepreneurs and everybody to sell products to the customers. This, without incurring huge running costs like a wholesaler would have. Because of these lower costs, it is easier to profit with dropshipping and a lot faster when compared with other business models.

First and foremost, more so if you have not tried this system yet, what is dropshipping?

A More In-Depth Look At Dropshipping: What It Is

Dropshipping, to understand it in-depth, pertains to a retail fulfillment method wherein, the store does not keep the product it sells in stock. Instead, when a store sells products using the dropshipping business model, it purchases the item from a third party and has the product shipped directly to the customer. As a result, sellers do not have to handle or manage the products directly, lessening their stress.

The biggest and the greatest difference between dropshipping and the retail model that you may been used to is that, the selling merchant does not stock or own inventory. Instead, sellers purchase inventory as needed from a third party to fulfill orders. This third party is usually a wholesaler or a manufacturer.

Now that you have learned what dropshipping is, you might ask how it works. Well, read on.

How Dropshipping Works

Dropshipping is a supply chain management method. What does it mean by supply chain? If you recently launched a retail business or an online store, a supply chain refers to a network of suppliers, materials, manufacturers, and retailers involved in creating and distributing products, from production to customer delivery.

Here are the parties involved in dropshipping.

1. Manufacturers

These are the people who create the products. They usually do not sell to the general public. However, they sell in bulk to wholesalers and retailers instead, which you will learn below.

2. Wholesalers

Wholesalers are the people who purchase products from the manufacturers. Then, they mark them up before selling them to the retailers. These wholesalers usually stock products from various manufacturers.

3. Retailers

On the other hand, these people are the ones who sell products directly to the public, at a markup.

Here is how dropshipping actually works.

The customer places their order with your business or you, the retailer. Then, you alert your dropshipping partner, either the manufacturer or the wholesaler, who takes charge of packaging and shipping the products to the customers.

Your dropshipping partner charges you, the retailer, for the service, and you charge the customer.

Generally speaking, the shorter the supply chain, the bigger your profits will be since there are fewer parties taking the cut. A short supply chain is one where you deal directly with the manufacturer.

Therefore, dropshipping is a popular way for a business to earn bigger profits. How does one actually make money through dropshipping? Read on.

Earning Money Through Dropshipping

Here are the proven and tested ways on how you can earn money with how dropshipping works.

1. Look For The Right Niche

To find a niche that will help you make money online with dropshipping, your search must be able to meet these criteria. First, your niche should be something you are passionate about. Second, your niche should be something that enough potential buyers are passionate about, or one they care about.

2. Establish A Strong Brand

In order for you to get the most out of dropshipping, your brand must be stronger than any of your individual products. Branding is among the key areas where you can add real value. And remember, adding value means making money.

Your duty as a dropshipper is to help sell these products by offering a better branding experience.

There are three important qualities your brand should have. They are: brand quality, brand consistency, and brand value.

Moreover, you should also be able to use brands you like for inspiration. What are the other ways to earn money from dropshipping?

3. Introduce Automation To Your Store

Many dropshipping entrepreneurs utilize various innovations to automate as many repetitive tasks as possible. This is bound to make your day-to-day business and management run more smoothly.

As a result, you will be able to spend more time on activities that actually add real value. These include finding great products, building your brand, and engaging with your customers.

You can use these automation tools for processing orders, customer support, and converting customers.

4. Appear In eCommerce Events

The fourth way into making more money with dropshipping is by attending eCommerce events, may they be in-person or virtual.

When you attend these events, you will be able to learn from other successful online stores. Furthermore, there will be no more guesswork. You will also be able to get inspired, and get direct access to wholesalers. But here is one thing, how do you fare when offering customer service?

5. Provide Superb Customer Support

To be successful and make money sustainably, you should be able to work on better customer support. There is this research by HubSpot, a developer and marketer of software products for inbound marketing, sales and customer service, that shows customers are more likely to talk about an eCommerce store if they had either a very good or very bad experience. What does this say?

This means you need customer support for your dropshipping business that should do these things. First, making sure there are no bad customer experiences that lead to customer complaints. Second, offering truly excellent customer service that customers will talk about.

Among the things you can take heed of in this regard include being on time when responding to customer inquiries, showcasing integrity and honesty, providing a concise and informative Frequently Asked Questions or FAQ section, and making customers feel like you know them.

These are only some of the ways you can make money with dropshipping, and there are more, such as utilizing a good software that will streamline the various processes in this system. Meet FindNiche.

Get To Know This Dropshipping Software Now: FindNiche

dropshipping software


FindNiche is touted as one of the best dropshipping platforms for people so they can easily find winning products, niches, and Shopify stores. You learned about finding your niche being one of the ways to increase your profits from dropshipping, and this software can help.

The database of FindNiche has over two million Aliexpress products with a massive 11,000 niches and more than 700,000 Shopify stores. It is specially designed for entrepreneurs running their dropshipping businesses.


FindNiche provides a wide range of features that include Aliexpress analytics, Shopify analysis, and Ad Spy.

The software provides more than 100 million Aliexpress products. Users can check the number of orders, the degree of competition, and the countries or regions where the products perform well.

As an Aliexpress niche finder, FindNiche provides eCommerce sellers with the Aliexpress bestsellers list where these sellers can discover winning products through product trends.

This platform is also a Shopify niche finder. With over 25 million Shopify products, FindNiche can help eCommerce sellers quickly complete dropshipping product research.

It also lets you research your competitors via their domain name or keywords. Plus, the software can also help users check the ads link, engagement, and Alexa ranking of Shopify stores. At the same time, you can easily find successful Shopify dropshipping stores in your niche or industry.

Moreover, the platform likewise provides Facebook, Instagram, and YouTube ad spy functions. It can help users quickly understand the advertising strategies of competitors. At the same time, you can implement dropshipping product research and look for winning products by checking ad comments and likes.

Lastly, FindNiche provides users with a list of 20 best products to sell on Shopify. You can find the most profitable dropshipping niches on a daily basis with their artificial intelligence- or AI-run algorithm.

Pricing (Official)

For the pricing, FindNiche has two options for you to choose from, monthly or yearly.

For the monthly option, there is the Basic at $9 per month, the Elite at $59 per month, the Premium at $99, and the VIP Enterprise at $199 to $499 per month. Both the Elite and the Premium options offer a three-day trial for only $1.

For the yearly option, you have the Elite at $35 per month or $420 billed annually, the Premium at $59 per month or $708 billed annually, and the VIP Enterprise at $199 to $499 per month.

Each pricing tier already includes the various features that FindNiche offers, though their availability may differ depending on the pricing you choose.

Pricing (Deal)

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Despite the simplicity that dropshipping provides, considering it is easier to handle products with this method, there are also challenges that lie with this system.

These challenges include reliance on third-party suppliers, high level of competition, and tight profit margins. It may also at times provide difficulties in customer support, finding your niche, planning for growth, creating your own dropshipping site, handling finances, and working with suppliers and fulfilling orders.

These are why there are software and platforms that can help you turn everything about dropshipping into a hassle-free process. With the right software and resources, you can be able to succeed in your every endeavor with dropshipping.

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