How Shopify Dropshipping Works

From the creator

Dropshippers are the ultimate middlemen. The trendy e-commerce model is what's behind the ads for products all over Facebook, Instagram, TikTok and YouTube. While some sellers make millions dropshipping from overseas without ever touching the merchandise, others use it as a get-rich-quick scheme that's hurting legitimate businesses and unassuming customers. The model relies on targeted ads designed to stop consumers from scrolling long enough to make an impulse purchase, usually from a Shopify store set up solely for that product. The dropshipper doesn’t place an order until the customer does, and rarely touches the merchandise. It’s often shipped directly from China to the customer, which can cause delivery times of more than 90 days. Nick Peroni started dropshipping in 2016 and now does it full time from his home in the Philippines. “I was an Army veteran living in Philadelphia and trying to figure out what I wanted to do with my life and testing around just different kinds of business model ideas,” Peroni said. Last year, Peroni said he tried selling 10 to 20 products before finding some big hits. His sales of a garden trimming attachment topped $1.9 million in six months in 2020, and in October he sold $150,000 worth of fleece-lined leggings in three weeks. Peroni uses agents in China to vet products and sourcing companies to keep shipping times down. But dropshipping can also be a minefield for consumers. “A lot of people just get into the business model and they’r

Published 2021-02-09 · Watch on YouTube ↗
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