How Much Money Can You Make Dropshipping

How Much Money Can You Make Dropshipping

Dropshipping is a great way to make some money on the side. If you’re interested in dropshipping, you also must be wondering exactly how much you can make. If you want your side hustle to be flexible, you should definitely explore your options with dropshipping.

What is Dropshipping?

Dropshipping is one of the methods entrepreneurs can use to run an online shop. They make the sales, but don’t have to buy any inventory in advance, which makes it a lot easier for those who just got into online businesses because there’s more simple. You also don’t have to manage your storage as dropshipping doesn’t include the process of shipping. Rather, the merchandise is shipped directly to the consumer by the inventory source.

How do You Make Money Via Dropshipping?

You make money by taking advantage of the variation between the price of the product you bought to resell from your dropshipping suppliers and the ultimate price of the product customers will buy it for.

For example, a dropshipping entrepreneur buys a product worth $25. Let’s say the shipping and order processing fees are also covered by this price. Then they set its price at $80 for the end-user. This means the entrepreneur ends up with a profit of $55. Simple, isn’t it?

What’s the Average Profit You Can Make?

Well, there are a lot of aspects to consider. For example, the price of the product you’re selling and the expenses you have to pay. Advertising is also an important aspect of the expenses you have to consider. Let’s say you pay your advertisements per click. If you have a $1 cost per click, and you sell 100 items in one day, that’s $100 you have to pay solely for marketing. The price you pay per click can be around $2, as well. So have that in mind.

You also have to consider the fact that not every click on your advertisements converts prospects into customers. In fact, the margin is not that high. And in the end, that’s a lot of money to pay for marketing that does not yield as much conversions.

Scale is also one of the aspects that changes a lot. If you deal with dropshipping on a small scale, chances are you’re not going to have a lot of problems since it’s a straightforward business. On the other hand, if you up your scale by a lot, you’ll have a lot more things to worry about such as returns, lost shipments, and so on.

You can always hire people to help you out. However, that just puts more of a dent in your budget as well as the issue of having to manage them somehow.

Furthermore, you can choose the option to go for high-ticket dropshipping. That’s when you sell the more expensive products for a low-price margin. It’s a higher risk to take on, but if it works, it can get you more profit.


So, there is profit to be made with dropshipping but you have to be smart about it. Think about a lot of elements before you even get into it. Figure out a good strategy and see if it’ll pay off.

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