What is Dropshipping? How to make money online with dropshipping?

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Making money online and finding a source of passive income from MMO is one of the goals that many people aim for. In the process of searching for an effective and long-lasting way to make money online, you must have heard about dropshipping.

What is Dropshipping? What are the advantages and disadvantages of this type? What is the potential as well as how to make money with dropshipping? To understand why this is the hottest method of making money online today. Lets find the answer with Chiasenow right in the article below

What is Dropshipping? How to make money online with dropshipping?

1. What is Dropshipping?

Dropshipping is selling without shipping. It is a retail method where the store does not need to keep the goods in stock. Instead, you pass customer orders and shipment details to another manufacturer or supplier.

These people will then deliver the goods directly to the customer. With this business method, retailers do not need to have inventory and goods in stock and do not need to worry about shipping.

You can understand in simple terms that you buy a product at a low price place and sell it somewhere with a higher price and make a profit from that difference. The profit you earn is the difference between the price of the supplier and the price you sell to the customer minus shipping costs. The difference is more or less depending on the type of product and how you choose the supplier.

2. Who is Dropshipping suitable for?

Any job that wants to be successful requires an investment of both factors: effort and money. Depending on your financial capacity as well as the time that you are willing to spend, you can consider dropshipping as part-time or dedicate it full-time.

In addition to those who consider dropshipping as their main profession and are determined to work full-time, there are also many people who want to find a side job to earn extra income. And here are 3 groups of subjects that are very suitable for this job:

  • Office people: If you are an office person, you have free time 2-3 hours a day. Looking for another source of income besides salary. Then make money online by dropshipping method is very suitable for you.
  • Students: It can be said that students are a very suitable object for dropshipping. Because this is an object with a lot of free time, but not too much capital for business.
  • Online business people: When you are just starting to sell online, knowledge and experience is the factor you are missing a lot. Knowledge of market analysis, product finding, sourcing, shipping, marketing knowledge. Dropshipping will equip you with those basics so you can confidently enter more difficult markets.

3. How to start a business with Dropshipping?

How to Start Making Money Online with Dropshipping Model
How to Start Making Money Online with Dropshipping Model

Step 1: Choose a product, a supplier with a suitable price, negotiate a price and form of delivery with the supplier. This is an extremely important step, you must choose a reputable supplier with quality goods and stable prices. Choosing the right supplier will determine how much profit you can make and success with dropshipping.

Step 2: Select a sales channel. You can post the products on the store on e-commerce sites like amazon, ebay, or on your own website through shopify…)

Step 3: Customers will go to your store to buy goods and pay you via Paypal, Payoneer or a Paygate accepted by your place of sale
Step 4: Buy goods and send them to customers. You use the money customers pay you, through the supplier to buy goods and ask the supplier to ship the product to your customer.

Step 5: The supplier packs and sends the goods. At this step you can manually track your order information and take care of your customers.

Step 6: Summarize the data, calculate the profit of each product and have more appropriate adjustment plans.

4. What are the pros and cons of Dropshipping?


  • Not spending a lot of capital: the biggest advantage of this online business is that you dont have to spend money on warehousing and transportation. If in the traditional business model, when you start a business, you will spend a large amount of money on storage costs.
  • Location flexibility: For a dropshipping business person, location is not an issue, you just need a computer connected to the Internet to be able to work. As long as you can communicate with your customers and suppliers easily.
  • Easy to start, fast turnaround time, Flexible, Suitable for business beginners, students, newbies.
  • No worries about goods being in stock, no case of importing a bunch of goods that cant be sold, no need to find a store to rent.
  • Commissions are received immediately after completing each order. No need to wait for a 3rd party review.


  • Low profit: this is the disadvantage of this form, because of the low initial investment cost, this is the form chosen by many people to participate, thus pushing up the competition.
  • It is difficult to control the quality of goods sent to customers.

Factors to help optimize profits when doing Dropshipping business

The dropshipping model generates profits mainly based on the difference between the cost and the selling price of the product. The price in the dropshipping model is slightly different from other sales models.

This price includes:

  • Prices are imported directly from suppliers on wholesale e-commerce floors such as Aliexpress, 1688, etc.
  • Cross-border shipping costs.
  • Dropshipping order processing costs.
  • The cost of maintaining a store on the e-commerce floor allows for dropshipping.
  • Advertising and other expenses.

The larger the difference between these two factors, the higher the profit of the seller. This means that you have to optimize all the above costs to reduce the minimum cost to have a good profit.

Conclusion: Make Money Online with Dropshipping

It can be said that dropshipping is a very popular model in Europe, America and China markets. The advantage of foreign dropshippers is that they can take advantage of a diverse and cheap source of goods from China, the most popular being the wholesale floor Aliexpress.

In addition, there is an extremely developed logistics infrastructure with low-cost cross-border transportation service packages. However, in Vietnam, if you want to develop the Dropshipping model, there are still many obstacles, especially because of the undeveloped logistics infrastructure, leading to high shipping costs.

So the majority of people who do Dropshipping are still mainly working for overseas markets. In Vietnam currently, if you are trying to take on the MMO path, you can choose to do Affiliate Marketing first, with this form you will not have to spend warehouse costs, capital to buy goods, shipping costs but only You need to focus on marketing and promoting your product.

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