How Much Money Can You Make Through Dropshipping on Shopify?

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Setting Expectations for How Much You Can Make Dropshipping

It is important to remember that it is never really “easy” or a straight path forward, no matter how strong a business model is. You need to set fair standards, act consistently, and adjust to any curveballs that are tossed your way. If you do these three things as a dropshipping agency, you’re more likely to make good profits.

But with high dropshipping ticket, it’s not unfair to claim that if you put in the job and happen to get a little lucky with the correct winning commodity along the way, you will earn anywhere from $200-$3000 in the first month or two of having your shop.

One significant factor depends on the amount of money you make: how many right vendors you can obtain and build partnerships with. Other significant variables are involved, but this is the factor that makes it all possible.

Realistically, what it takes for one supplier’s goods to take off, and you can start profiting from 5 figures a month. The ceiling is pretty great for a successful dropshipping business. Then there’s even a center ground. It won’t be a big win for any supplier, but you can still get many smaller vendors that add up.

Your sales would have a clear relationship with the vendors that you secure. The more efforts you make to secure vendors, the more you’ll be successful. It is entirely up to you if this takes place over one month, a period of 6 months, or a year-long period.

The quicker you pass, the better it is to find the champions and scale them up.

Expenses Breakdown

Perhaps the most generous bonus of a high dropshipping ticket is that the expense of startup and operating costs are meager. Google ads are going to be the most significant expense for your company. Yet, there’s a very slight risk that they won’t be profitable until completed correctly.

This is basically because you’ve got too much room for mistakes. Having a deal for a profit of $500 will remove certain flaws from your ad campaigns that you can fix and become much more successful in the future. But here’s a rundown on what you can expect from the expenses.

  • Currently, we suggest a luxury theme that costs $167 at one time. Using a premium theme is not mandatory, but it makes the configuration a little simpler, and I like to have professional support. I don’t have the patience for technological things to get bogged down. But, whether you use it or not, it will not make or break your business.
  • After you have a 14-day free trial, signing up for Shopify costs $29 per month. You should hustle during your 14-day free trial and get all set up correctly if you’re strapped for cash.
  • After a free trial or free minutes you can use, we want to get a 1-800 number to keep it professional, and these costs about $29 per month. You may use Google voice as a cheap option, though. Or use your mobile phone number or get a very economical talk-only phone contract if you’re feeling brave.
  • At $20-$30 a day, you can launch Google advertising and scale it profitably. Google is generous enough to give you a free $100 coupon after you pay $50. You will do this to get the organization out of the gate profitably.

Scaling Into a Full-Time Business and Beyond

Assuming you’re able to stick to it and bring the job in, making $1000-$5000 profit a month should be reasonably comfortable. But then you need to begin worrying about turning it into a full-time operation.

This is where you will have to start learning specific business skills that are universally relevant, such as outsourcing and designing processes. These are necessary steps to succeed as an owner of a dropshipping company.

If you want to begin to scale genuinely, you would like to outsource two critical sets of activities: product page creation/uploads and customer support.

Product Uploads

When you have someone who can upload goods for you, it reduces a great deal of acquiring suppliers’ pressure. If it is the first group of vendors, it’s not a problem.

First of all, we would suggest doing it all yourself only to understand and build a method.

Uploading goods, though, can become very dull, and it can become a full-time job before you know it.

This is particularly the case if you are scaling and supplying at an accelerated pace as we do at the moment.

Customer Service

It’s only regular that you will get more inquiries from consumers about their orders or put an order when you start making more sales.

When you start first, this doesn’t take a massive amount of time, but it begins to add up as you scale.

We suggest recruiting individuals from the Philippines to manage most customer service jobs at about $3 an hour. This entails everything from managing live conversations, phone calls, emails, or even closing phone transactions.

It’s crucial to remember that you’re not going to open the first shop and that you have to think about outsourcing all this instantly.

As a single person, you can get off the ground and make a basic income, but if you want to scale, you’re going to need support along the way.

Focusing on Business Development

Until you have the tedious tasks of running your dropshipping company in the hands of your workers, it will encourage you to concentrate on the things that offer your business the most growth.

  • Acquiring new manufacturers with good quality
  • Advertisements on concentrating and understanding at an intense level
  • Moving buyer-intent traffic with SEO to your web

Example of Taking Dropshipping to the Highest Level

Many people do not recognize that dropshipping can be the beginning of a billion-dollar corporation. Are we at a stage like this? No, of course not—and I’m not sure I will ever like to be, either.

But I can still point to a case study from one big business that started with dropshipping and today still has profound roots in it.

The business is, and seeing their past is as straightforward as looking at their Wikipedia page that talks about their tale of two guys Niraj Shah and Steve Conine, getting started on’s humble domain.

If you look at this page using the Wayback machine, it is evident that this is a dropshipping site.

I get this because I took a look at the policy of shipment and return. It notes that:

To the address you are sent, send your return using your chosen shipping form. Note: it could be our offices or a delivery center.

In my humble view, this suggests that it is most likely to be sent back to the supplier or brand from which it was initially dropshipped.

We also know that, when we deal with vendors that also work with Wayfair, Wayfair does a lot of dropshipping.

There’s no reason you can’t scale a job from a home dropshipping business to a large company by designing systems, investing in teams, and doing all the stuff that high-level corporations do.

Is Dropshipping Worth It?

In my view, high dropshipping tickets are the number one way to get started in an online business merely because it enables you to earn income in a fast and efficient manner.

Like other market models like FBA, it is also not Quite as capital intensive. And not by a longshot.

However, the downside to dropshipping is that it’s not as easy to exponentially scale it the same way you would an FBA company.

What do I say by that?

The procedures have a lot of nuances when you start to scale a big-ticket dropshipping business. You can work with several vendors with various contact points.

The good news is that outsourcing can relieve many problems. Still, it’s also that scaling can begin to introduce more layers of complexities to contend with, especially as you get past the $10,000 monthly profit level.

The path to scale is straightforward for an FBA company:

  • Work out a way to locate and send winning items to the Amazon warehouse.
  • Build trustworthy listings, get ratings, rank for the correct keywords, and the autopilot will sell your things.
  • Once you’ve found winners and Amazon’s robots do the remainder of the job, you put the same orders over and over again to your supplier.

Sidenote: Just because I said those two bullet points are clear does not mean that in any way, they are straightforward. It takes a lot of time, analysis, testing, and money to get correct to make a good FBA company. Along the way, you can even LOSE a lot of money. It’s just that it will scale up quickly until you got it right.

Instead of determining how you’re going to do Dropshipping vs. FBA, consider how you should use one to compound the other and how both work into a long-term business plan.

What Companies Do Dropshipping?

For any cause, many individuals make the mistake of beginning their dropshipping path by looking to locate vendors in “directories” or other membership sites. There is simply no justification for this to be done. There are endless dropshipping enterprises that you can only reach out to and enter their distributor network.

You may also have to lie around your house or apartment some of their items.

Just consider whether shipping multiple times is prosperous; if it is not, so as part of the current distributor or distributor network, there is a fair possibility that a business would do dropshipping. For them, it makes practical sense to do so.

Is Dropshipping Illegal in Any Way?

As mentioned earlier, dropshipping is merely a technique of fulfillment in itself. Nothing in it is unconstitutional. The only reason people ask, “Is Dropshipping Legal” is because of the industry’s shady activities encouraged by gurus. This is, sadly, a phenomenon that does exist.

Selling copyrighted photos or attempting to trick future clients into believing that you’re not delivering directly from China are examples of these acts.

This is the sort of stuff from which you want to keep safe. Work on establishing genuine partnerships with your country’s real companies/brands.

Do this, and there’s nothing you need to think about.

Do You Need a Business License for Dropshipping?

The response is that you need a business license to do high-ticket drop shipping the way we suggest. If you’re a company, vendors may want to talk to you, so going out and registering one is a little move you need to take before dealing with you.

If this seems daunting, think of the following…

  • It’s pretty easy to do and set up.
  • It would help if you began constructing your shop while someone else is setting it up (like a CPA)
  • It’s an entrance hurdle that prevents certain persons from getting started, which is positive because it means less competition.
  • You need to do it the right way because everybody else wants to do them if you’re thinking about starting a real company. Simultaneously, online marketing lets people feel that there is a way to “hack” something or get around the essential but tedious barriers.

How Do I Get Paid From Dropshipping?

Many individuals also get frustrated when they get charged when dropshipping is finished. I typically get asked if you need large quantities of cash, a credit card, etc., to get started.

You have the choice of several payment gateways with Shopify, but the key ones are Shopify Checkout (which is Stripe), PayPal, or Amazon Pay. In combination with a separate service named Klarna, we primarily use the first two to allow customers to fund their purchases.

But anyway, their money gets deposited straight through your payment portal as soon as the customer checks out of your website. Every two business days or so, Shopify Payments pays out, and PayPal still usually pays out pretty fast.

The problem with PayPal is that if it’s a new account, they will occasionally place a portion of your cash on reserves because you’re just starting. I’ve even read of Shopify doing this, but I don’t think it’s ever happened to us.

But either way, you get the client’s cash within 2-3 business days most of the time.

The overwhelming majority of vendors would take credit cards, but you will have to make a direct bank transfer with some.

And what you can glean from all this is that you get paid very quickly relative to most other business models. No need to wait 60 days for payments from an affiliate commission, or even 90 days for specific ad networks!

So How Much Money Can You Make Dropshipping?

I hope you’ll find that there’s no clear solution, given all we’ve discussed. But if I had to make an informed guess, here’s how I would break down how much a particular person could make (in profit) dropshipping at a high ticket if they were to put in the effort…

If you’re able to spend time building up an excellent website, securing a few decent providers, and mastering Google ads, this level is not that difficult to achieve. $1000 per month if they put in the effort, I think most people will accomplish this.

$5,000 a month-if you are diligent and work diligently to acquire new vendors and try them out, you will potentially hit this amount as a single individual in 6 months to a year. If you have a decent supplier early on, this will also happen even sooner.

To achieve this stage, you will need to learn the expertise to build and outsourcing programs. $10,000 a month. Getting 2-3 virtual assistants at this stage would be beneficial. It is still quite feasible, but not as simple as the other two steps.

At this point, you need suitable structures in place to maintain all the everyday stuff for separate systems to keep progress running at a constant pace—$ 30,000 per month. It would help if you concentrated more on implementation activities rather than day-to-day tasks.

At this point, the organization has to be a well-oiled machine. $100,000 per month and beyond. You’ll most likely need someone to oversee those workers along with simulated employees, and you’ll also want individuals working on development in comparison to the day-to-day.

There’s one more thing to remember, however: selling the shop.

There is an option if it’s daunting for you to go past the $10,000 per month mark: selling your dropshipping firm.

The production and flipping of dropshipping stores is a perfect way to increase your sales dramatically. On Empire Flippers, you can sell stores for 20-30x their monthly earnings, so it can be a very profitable way to concentrate on building and flipping even mildly profitable dropshipper stores. And a profitable alternative model that focuses only on growth.

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