How to Make Money Dropshipping on Shopify

While entrepreneurship is on the trending list and just as most of the people want to have their own startup, amidst this pandemic, major businesses have failed due to the post effects of Covid-19 yet this has not affected one sector of online business i.e Dropshipping. 

Guess why this form of business is hyped amongst the youth and the one’s willing to take minimum risk? Here’s why…

What is Dropshipping

Dropshipping is one of the most convenient forms of business. Dropshipping is booming  in this era as this eradicates 3 major factors for a successful scalable business i.e Inventory, Initial investment/payment for outstanding products and Packaging process.

Dropshipping is a new form of B2C business. This is a non conventional form of online retailing business where the dropshipper acts as a mediator between the customer and the wholesaler/ manufacturer/ supplier. Both the parties have their own share of advantages and disadvantages.

Dropshippers don’t have to invest huge loads of money for inventory or packaging as it’s taken care by the wholesaler/manufacturer/supplier. Meanwhile the wholesaler/manufacturer/supplier is free from the task of focusing on creation and expansion of its customer base which is a driving factor for any sale. 

Here arises the question as to how does the dropshipper do this? 

How does Dropshipping work

This e-commerce retail is set up on a virtual platform where the dropshipper (mediator) connects with the manufacturer/supplier for selling his products to customers who connect directly with the dropshipper. From the customer’s point of view, the dropshipper is the seller. The dropshipper’s primary focus is on the aspect of fetching customers online. Once the dropshipper gets a potential buyer he then updates the manufacturer regarding the Order details and updates the customer regarding it’s Estimated Delivery Date.

How to make money Dropshipping


How to make money Dropshipping? Generally, the dropshipper has to create his website and sell the products online with the relevant description of the product, accurate images, exact dimensions and all other details which the manufacturer has provided regarding the same.

The dropshipper has to find various ways to advertise and market the products online as online can have a huge outreach. With huge outreach comes variation in the target market. Diversified customer base is found online hence depending upon the product the dropshipper has to promote the same. The product could be of a niche market or mass market.

The dropshipper has his own share of profit with respect to the product being sold. Coming to the most vulnerable question regarding the returns, Well, the returns can be managed either by the dropshipper or the retailer/manufacturer/ supplier depending  upon what terms they have negotiated and contracted upon. The most common platform for dropshipping is “Shopify”

How to make money Dropshipping on Shopify

One of the most convenient and popular ways to start dropshipping is by dropshipping through “Shopify”.  

Shopify is a platform where entrepreneurs can make a scalable e-commerce solution for their business/startup to sell their goods and services online.

The virtual store, including payment gateway is created in no time with just a few clicks and filling up respective details. Since this is a virtual store on an online platform, this provides space for a flexible mode of working culture.

To welcome new entrepreneurs, Shopify helps you get started with a 14 day free trial.

Apart from this, Shopify tries to create an ecosystem amongst it’s users by providing them an opportunity to earn more by their in-house program called Shopify Affiliate.

Once you sign up for this program you get an affiliate link through which one can earn upto $2000 per new merchant / online store and various businesses referred to Shopify. For enterprise referral one can get 100% in bounty.

As an add on to the existing online storefront, one can sell products on the Shopify App Store using their Shopify API, Integrated by SDK 3.0 where the user can earn upto 80% for each product sold on Shopify App Store.

One can hence be a Shopify App partner by selling:
1- Theme on the Shopify Theme Store
2- Product App on the Shopify App Store

One can earn money through Shopify by
1- Shopify Referral
2- Setting up an e-commerce store
3- Dropshipping


How to start

Shopify enhances the user experience by providing business assistance, varied transaction fees and integrating other perks which are then segregated into various plans for helping one setting up their business successfully. The plans are as follows.

  • Shopify Lite
  • Basic Shopify
  • Standard Shopify
  • Advanced Shopify

Wrapping up 

Now that we know that dropshipping can be great but everything comes with its own expense. The major expenses are as follows:


Listing and/or sales fees if you use an e-commerce website builder such as Shopify

Expenses for Web hosting if you own a personal website

Retailer/ Manufacturer/ Supplier fees

Marketing and Advertising expenses, (social media marketing/ Advertising)

Business license and/or permit fees

Meanwhile, if these expenses are managed appropriately with respect to the profit margins then we are good to go. There is no stepping back! 

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