Dropshipping is a retail fulfillment method where an online store doesn’t keep the products it sells in stock. Instead, when an order comes in, the dropshipping partner fulfills it, making the process especially merchant-friendly. Read our guide to learn what dropshipping is, how it works, whether it’s worth it, and which are the top dropshipping apps.

What is Dropshipping?

Dropshipping is an ecommerce fulfillment method that allows you to sell products online without holding inventory or managing order fulfillment yourself. Unlike traditional retail, there’s no need to manage a warehouse, hire staff, or maintain physical stock. Instead, when a customer places an order, you forward the details to a supplier, who handles packaging and shipping directly to the customer, significantly reducing your overhead costs. Dropshipping is especially appealing because it enables merchants to build an online business without purchasing stock in advance (who really wants to pay for 100 pairs of boots upfront and store them in a warehouse?).

How does dropshipping work? Graphic.

In practice, most merchants build an online store on platforms like Shopify or WooCommerce, install a dropshipping app offering the products they want to sell, and add those products to their store. When an order comes in, the dropshipping app handles fulfillment, either through its own warehouses or by partnering with suppliers who ship the order directly to the customer.

For example, if you create a Shopify dropshipping store to sell bags and install the Hertwill dropshipping app, you can easily add bags from Hertwill to your store with just a few clicks. When an order comes in, Hertwill will automatically fulfill it by delivering the product directly to your customer, and you’ll be invoiced for the order.

Some of the bags available for dropshipping through Hertwill.

How Popular is Dropshipping?

Dropshipping is extremely popular and is growing faster than the overall ecommerce industry. According to recent reports, the global dropshipping market was valued at USD 225.99 billion in 2022 and is projected to grow by 23.6% annually until 2032, potentially reaching USD 2 trillion, according to Precedence Research. Its popularity continues to surge, with no signs of slowing down.

How Dropshipping Works?

Set up your online store:
Create an online store on a platform like Shopify or WooCommerce. No matter which platform you choose, make sure it’s a popular option.
Choose your products:
1. Install a dropshipping app, which usually aggregates different suppliers, or work directly with a dropshipping supplier.
2. Browse through the product catalog and select the items you want to sell in your store.
3. When choosing products, consider factors like product quality, image and description quality, shipping terms, and whether there will be demand for these products. Also, consider the reliability of the supplier—you don’t want to set up your store only to discover the supplier can’t deliver. If you’re looking for European brands and high-quality products from reliable suppliers, Hertwill offers a great selection.
Add products to your store:
After choosing your products, import them to your store with descriptions, prices, and images provided by the dropshipping app or supplier. Most dropshipping apps let you add new products to your store with just a few clicks.
Customer places an order:
When a customer visits your online store and places an order, they pay you for the product at the retail price you set.
Forward the order to the supplier:
Once the order is confirmed, the details are usually automatically forwarded to your dropshipping supplier via the app. They charge you the wholesale price for the product.
Supplier handles fulfillment:
The dropshipping supplier packages the product and ships it directly to your customer. You don’t have to worry about stocking, packing, or shipping.
You make a profit:
The difference between the retail price (what the customer paid you) and the wholesale price (what you paid the supplier) is your profit.
Returns and exchanges:
Some dropshipping apps, like Hertwill, also handle returns and exchanges, which is convenient since returns and exchanges are part of the business and, as a merchant, you don’t want to manage them yourself (e.g., having customers send returns directly to you).

Is Dropshipping Worth It?

Dropshipping can be worth it if you’re looking to start an online business with minimal upfront investment. Since you don’t need to hold inventory or handle shipping, it allows you to focus on marketing and growing your store. However, keep in mind that most dropshipping stores fail, and if you’re in it just to make a quick buck, this probably isn’t for you. Like any business, building a successful dropshipping store requires hard work, dedication, and a bit of luck. Dropshipping is highly competitive, and you’re up against many other online businesses.

But if you succeed, it can be rewarding, allowing you to quit your day job and enjoy a better lifestyle. If you’re thinking about the potential upside, people have built multimillion-dollar dropshipping businesses.

Final Thoughts

Dropshipping is a great option for entrepreneurs looking to start an online store with minimal investment. By using the right tools and suppliers—like Hertwill and other dropshipping apps—you can build a successful business without the hassle of inventory management or warehousing. While it’s true that many dropshipping stores fail, if you’re dedicated and willing to put in the work, there’s a good chance you’ll become one of the success stories. In the end, dropshipping can be a very rewarding venture.

What is dropshipping and is it worth it?