Online Retailer’s Guide to Dropshipping on Shopify
Written and edited by: Jay
Hey there! I’m Jay Myers, the co-founder of both Bold Commerce and Bold Match, and I have spent something over a decade now helping Shopify Merchants successfully navigate the world of e-commerce. So. Whether you found your way to my little dive into dropshipping just browsing around this site, followed a link over from your LinkedIn feed, or because it looked interesting in your inbox, I am glad you did.
Now. Let’s get something straight right off. Dropshipping isn’t a get-rich-quick scheme, despite what every ecommerce “guru” on YouTube would have you believe. It’s a legitimate business model that, when executed properly, can be a component of a successful online retail strategy. I’ve seen dropshipping done well and I’ve seen it done poorly. The difference almost always comes down to merchants treating it like a real business, instead of a side hustle that runs itself.
So. I put together this guide to address the three scenarios where you’re most likely to need some sage advice … You’re a Shopify Retailer considering dropshipping for the first time. You’re a Merchant who’s currently dropshipping but struggling with the fundamentals. Or. You’re looking to upscale your existing dropshipping operation. But first, let me clear the air about what dropshipping actually is and isn’t…
This guide from Jay Myers host of the Shopify1Percent podcast, co-founder of Bold Match, provides a comprehensive look at dropshipping on Shopify in 2025. It’s designed for retailers considering dropshipping, merchants struggling with it, or looking to scale. It clarifies that dropshipping is just a legitimate fulfillment method where online retailers sell products without holding inventory, and 3rd-party suppliers ship directly to customers. And debunks the common myth that dropshipping is just a get-rich-quick scheme with a fully automated business model.
It’s Divided Into Three Parts:
- Should You Start Dropshipping? Discusses when dropshipping makes strategic sense (e.g., testing new products, expanding internationally, offering complementary products, or tackling niche markets). It outlines startup costs, emphasizing investments in Shopify subscriptions, apps, product research, samples and ongoing digital marketing expenses. It also highlights the hidden cost of insufficient operating capital due to delayed cash flow. He gives advice on choosing sustainable products and reliable suppliers, and setting up a professional Shopify store with clear policies and good customer support.
- Fixing Common Problems With Your Current Dropshipping Business. Addresses issues faced by dropshippers. Categorizing them into supplier issues, customer experience problems, and profitability challenges. It provides strategies for upgrading supplier relationships (auditing, diversifying, etc.), improving customer experience (proactive problem resolution, offering detailed product info), and optimizing for profitability (calculating true costs, pricing strategy, conversion rates). It also touches on focusing on best-performing products and suppliers.
- Scaling Up Your Existing Dropshipping Operation. This section focuses on building systems for sustainable growth, including inventory management, order processing automation, customer service workflows, and financial tracking. It delves into advanced supplier management (negotiating terms, exclusive arrangements, scorecards) and diversification strategies (geographic expansion, product line extensions, omnichannel presence, private label development). The guide also advises on when to seek expert help from a Shopify Agency and how successful dropshipping operations often evolve beyond pure dropshipping by building owned inventory and developing exclusive products.
Myers concludes by emphasizing the basic principles for any dropshipping retailer. Having a customer-first approach, continuous learning, financial discipline, and authentic marketing. It stresses that dropshipping can be a tool for building a profitable, and sustainable e-commerce businesses when it’s approached with realistic expectations, solid fundamentals, and a commitment to serving customers well.
Frequently Asked Questions (FAQ)
Is dropshipping actually dead like everyone on Reddit keeps saying?
Reddit’s been declaring dropshipping dead since 2015. Yet here we are, with successful merchants still using it as a legitimate fulfillment method. The real story? The easy money, zero-effort dropshipping model that YouTube gurus promised never actually existed. What’s dead is the fantasy that you can set up a store, run some Facebook ads, and watch money roll in while you sleep. Dropshipping in 2025 works exactly like it always has when done properly. It’s a fulfillment method, not a business model. Treat it like a real business with real customers who have real problems, and it works fine. Treat it like a passive income scheme, and you’ll join the chorus on Reddit declaring it dead.
How much money do I really need to start dropshipping?
Forget the “$100 to start” nonsense. You need actual operating capital. Your Shopify subscription runs $39-299 monthly depending on your needs. Premium themes and essential apps add another $100-200 monthly. Product research, samples, and testing will cost you several hundred upfront. But here’s what kills most dropshippers financially. Marketing. Successful stores report spending $2,000-5,000 monthly on paid advertising just to maintain visibility. Plus, you need cash reserves for the gap between when customers pay you and when you pay suppliers. Refunds and chargebacks can crush you if you’re running on fumes. Realistic minimum? About $3,000-5,000 to test properly, with another $5,000-10,000 in reserve for scaling if something works.
Why do most dropshippers fail within six months?
They fail because they think dropshipping is fundamentally different from running any other retail business. They skimp on customer service, choose suppliers based solely on price, and expect marketing to be set-and-forget. The pattern is predictable. Someone watches a few YouTube videos, finds a “winning product,” throws together a basic store, runs some ads, makes a few sales, then discovers that returns are eating their profits, customers are angry about shipping times, and their supplier just went dark. They blame dropshipping instead of their execution. Success requires the same fundamentals as any retail operation. Understanding customers, providing value, maintaining quality standards, and executing consistently. Most people aren’t willing to do that work.
Should I use AliExpress for suppliers?
Stay with me on this one. You see. AliExpress is where beginners start and where most should quickly move beyond. Yes, it’s easy to integrate and has endless products. But those 15-30 day shipping times from China? Your customers will hate you. Quality control is a dice roll. Communication with suppliers ranges from difficult to impossible. Use AliExpress to test ideas if you must, but transition to domestic suppliers or at minimum vetted overseas suppliers with proven track records. The slightly higher costs are worth it when you’re not drowning in refund requests and angry emails about products that look nothing like the photos.
What’s the difference between dropshipping and print-on-demand?
Well. Print-on-demand is technically a subset of dropshipping, but with a crucial difference. You’re creating custom products rather than reselling existing ones. This gives you actual differentiation beyond just being another store selling the same stuff from the same suppliers. POD typically has better margins once you factor in return rates. A customer who gets exactly what they designed is less likely to return it than someone who ordered a generic product that didn’t meet expectations. The downside? Higher per-unit costs and limited product range. Neither is inherently better. It depends on whether you want to compete on curation and marketing (traditional dropshipping) or design and customization (POD).
How do I handle customers angry about shipping times?
First, stop surprising them. If shipping takes two weeks, say it takes two weeks. Upfront. Multiple times. In your product descriptions, at checkout, in confirmation emails. Under-promise and over-deliver, not the reverse. Second, communicate proactively. Send updates when orders ship, when they clear customs, when they’re in local distribution. Customers can handle delays. They can’t handle silence. Third, have a real customer service system. Not a contact form that goes nowhere. Real people (even if it’s just you) responding within hours, not days. Most anger comes from feeling ignored, not from the actual shipping delay.
Can I dropship products from Amazon to my customers?
Technically possible? Yes. Good idea? Probably leaning toward absolutely not. You see. Amazon’s terms of service prohibit buying products as a gift and having them shipped to someone else for commercial purposes. They’re actively hunting for this behavior and will ban accounts. Beyond the TOS violation, you’re adding zero value. Why would customers pay you a markup to order something from Amazon when they could order it themselves? You’re not solving any problem or providing any service. You’re just inserting yourself as an unnecessary middleman. If you want to arbitrage, at least use wholesale suppliers who understand they’re part of a B2B relationship.