How Much Money Do Dropshippers Make? A Complete Breakdown


There’s a lot of buzz going around about dropshipping lately. There’s a good reason for that, as it’s a fantastic way to start making money online with little to no risk. If you weren’t aware, dropshipping refers to selling products online without managing inventory. Instead, you hire a third party to handle your inventory and shipping. 

The big question that most new to the game have is how much money do dropshippers make?

On average, dropshippers can make up to 30% on each sale. That comes out to roughly $5,000 of profit per month. A successful dropshipper can make as much as $100,000 in their very first year. 

Of course, there are other expenses involved, which is where the rest of the money goes. If you’re interested in dropshipping and want to learn how to start making money, you’re in the right place. Read on to learn all about how dropshippers are able to turn a profit. 

Why is Dropshipping Profitable?

As of 2021, dropshipping is still a very profitable business model. There are many reasons for this, and the current trends show that the industry will continue to grow. Here are a few reasons why dropshipping is such a lucrative business model:

  • Mobile e-commerce purchases. Nearly half of all e-commerce purchases come through mobile devices. So if you have a dropshipping site that’s mobile-friendly and has quick shipping, you’ll find great success. 
  • Expanding warehouse space. There’s been a large expansion in inventory warehouse space in the US and Europe. That’s great news for dropshippers, as it makes their operations more secure. It also helps to make their shipping times quicker. That’ll help your dropshipping business compete with giant operations such as Amazon. 
  • Developing regions are gaining more internet access. When you dropship, geography is not a limitation. You have the luxury of selling to any market that you feel like. The good news is that many developing nations are now online and buying products. That greatly increases your number of potential customers. It’s a good idea to do some market research internationally to find new markets. 

What Expenses are Involved in Dropshipping?

First, you’ll need to set up an e-commerce store through Shopify. To get the most out of the platform, we recommend going with the 14-day free trial. From there, the Shopify Standard Plan at $29 per month will more than suffice. 

Shopify is an elite e-commerce platform that’s very user-friendly. You shouldn’t have any trouble getting an attractive Shopify store up and running in a few hours.

If you lack any technical experience at all, you can turn to services like Fiverr. There, you can hire a design expert to create an attractive Shopify storefront for you. That can be a good idea even if you know how to design a webpage. By using Fiverr or the Shopify Expert Marketplace, you can find expert designers to help you market your products. 

The average cost for hiring a design expert to create your storefront is around $500. 

That can be well worth it if you get an appealing storefront that attracts new customers. It’s crucial to consider hiring someone to help you not only design your store but also to market your products. To hire a top freelancer visit Fiverr at this link.

Marketing Your Products

Marketing is a vital part of any dropshipping operation. Luckily, you’ll have plenty of time to focus on marketing since you won’t have to manage any inventory. There are plenty of ways to market your products online without spending too much money. 

For our example, we’ll set a marketing budget limit of $100. Bear in mind; this is just to get started advertising. If you find success with these tactics, you can spend more to attract even more customers. Yet, it’s a good idea to start small so you can find out what works without putting too much money at risk. 

Here are some candid marketing techniques you can employ for your dropshipping business:

  • Go to Reddit, Facebook Groups, and forum posts related to your products. A totally free way to market your products is to hit up some user forums. Let’s say that you’re selling workout equipment through your dropshipping operation. That’s when you go to a Reddit workout page where users are discussing equipment that they like. You post that you’ve tried this great new product and that it’s worked wonders for you, and you paste a link to your Shopify store. You can rinse and repeat this technique on as many forums as you like. 
  • Facebook Ads. Facebook remains one of the most effective places to advertise products. A Facebook ad is relatively inexpensive as well. A general ad will cost you between $0.50 and $2.00 per click. The business these ads can generate for you will more than pay for their cost. 
  • Integrating SEO to your storefront. SEO, or search engine optimization, is one of the most effective digital marketing techniques. It involves manipulating search engine algorithms in order to rank your page higher. You can use targeted keywords and backlinks to improve your SEO rankings. You can also hire SEO experts to help you integrate the best tactics into your store. 

Using Spocket for Shopify 

Let’s learn about the best way to add dropshipping to your online store. You see, when you create a Shopify store, you won’t have the capability to start dropshipping yet. 

That’s where Spocket comes into play. It’s the best dropshipping app on the Shopify App Store. It allows you to dropship heavily discounted products to add to your profits. You can also choose from a gigantic selection of suppliers around the globe. 

Essential features of Spocket include:

  • Real-time inventory updates
  • Automated order processing
  • Discounted products
  • 24/7 premium chat support
  • Lightning-fast shipping
  • Tons of suppliers 

Spocket is also very affordable. The Starter plan is only $24 a month, and it comes with all the features you see above. To get started dropshipping with Spocket visit this link here.

How Much Money Do Dropshippers Make? ( quick video )

Try Shopify for free.

If you are interested in Shopify and want to try it out, Shopify is offering a 14-day free trial here. The free trial is great because you get to see how Shopify works before committing to one of their monthly programs. If you decide to start the free trial, you can pick up right where you left off when you switch to the monthly plan. If you’re looking to grow or start your online business, this is an excellent opportunity to try Shopify.

Final Takeaways

By now, you should know the answer to, “How much do dropshippers make?” 

You can earn up to $5,000 per month through dropshipping. By using Shopify’s Basic Plan at $29/mo, Spocket at $24/mo, and an ad budget of $100, you can achieve some impressive results. We hope that you can use this guide to start earning money each month through dropshipping. To see our guide on dropshipping check out this article here.

If you want to see a list of our top recommended Shopify apps visit this link here.

Davon Wilson

I'm a certified Shopify expert, you can usually find me on my computer coding, or thinking about business ideas. I'm an avid Ravens fan and an overall nice guy.

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