What Is Dropshipping and How Does It Work: In the age of online shopping, dropshipping has emerged as a popular, low-risk way to start an eCommerce business. If you’re curious about what dropshipping is, how it works, and how you can get started with itโthis article will guide you through everything you need to know in 2025.
๐ What Is Dropshipping?
Dropshipping is a retail fulfillment method where the seller doesnโt keep any products in stock. Instead, when a customer places an order, the store purchases the item from a third-party supplierโwho then ships the product directly to the customer.
In simple terms:
๐ฆ You sell โ ๐งโ๐ป Supplier ships โ ๐จโ๐ฉโ๐งโ๐ฆ Customer receives
You never touch the product yourself.
๐ How Does Dropshipping Work?
The dropshipping process typically follows these steps:
1. You Set Up an Online Store
You create an eCommerce store (most commonly using platforms like Shopify) showcasing products you want to sell. But you donโt buy any inventory upfront.
2. Customer Places an Order
A customer visits your website and places an order for a product listed on your site.
3. You Forward the Order to the Supplier
Once you receive payment, you forward the order and shipping details to your supplier or dropshipping partner.
4. Supplier Ships the Product
The supplier packages and ships the product directly to the customer under your storeโs branding.
5. You Keep the Profit
You make money by charging a higher price than what you pay the supplier. The difference is your profit.
๐ก Example of Dropshipping in Action
Letโs say you list a T-shirt on your Shopify store for โน1,200.
Your supplier sells the same T-shirt to you for โน700 and handles shipping.
When a customer places an order:
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You collect โน1,200
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You pay โน700 to the supplier
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You earn โน500 in profit
๐ Pros and Cons of Dropshipping
โ Pros:
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Low Startup Costs โ No need to invest in inventory upfront.
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Easy to Start โ No warehousing, packaging, or shipping.
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Scalable โ Easy to test and add new products.
โ Cons:
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Lower Margins โ Profits per product are usually smaller.
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Less Control โ Quality, shipping, and inventory are in the supplierโs hands.
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High Competition โ Many stores sell similar products.
๐๏ธ Best Platform to Start Dropshipping: Shopify
Shopify is the #1 platform for dropshipping businesses because of its:

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Easy-to-use interface
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Powerful integrations (like Oberlo, DSers, AliExpress, etc.)
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Mobile-friendly designs
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Secure payment gateways
And when it comes to setting up a professional Shopify dropshipping store, you need expert help.
๐ Get Started with the Best: Digiwish โ Best Shopify Development Company in India
If you’re serious about starting your dropshipping business, Digiwish is your go-to partner.
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Shopify Store Setup
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Custom Theme Development
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Mobile Optimization
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Dropshipping App Integration
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Conversion-Focused Design
Digiwish has helped hundreds of entrepreneurs launch profitable dropshipping stores across India and beyond.
๐ Whether you’re starting small or scaling big, Digiwish ensures your Shopify store is built for success.
๐ฏ Final Thoughts
Dropshipping is a great entry point into the eCommerce world with minimal upfront investment. While it comes with its challenges, with the right tools, platform, and expert support from companies like Digiwish, you can build a scalable and profitable online business.
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