What is Dropshipping and how to Earn From it?

The last time you bought a phone case or a kitchen gadget from an Instagram ad, did you know that the seller likely never even touched that product?

It’s true. The seller could be a young entrepreneur sitting in a café in a completely different country, while the product was shipped directly to you from a factory in China or the US.

Can you also own a global online store selling thousands of products, without spending a single dollar on inventory, without renting a warehouse, and without packing a single shipping box? Yes… and welcome to the world of Dropshipping!

In this guide, we will explain what is Dropshipping, the true mechanics of Dropshipping, how it differs from Affiliate Marketing, and how you can overcome the biggest obstacles.

What is Dropshipping?

Dropshipping is an e-commerce model that allows you to sell products via your private store without the need to buy or store goods beforehand.

When a customer purchases from you, you buy the product from a “third-party supplier” who ships it directly to the customer’s address.

To understand it better, imagine you are a waiter in a luxury restaurant: You take the order from the customer and give it to the kitchen. The kitchen prepares the food and serves it.

You didn’t cook, and you didn’t buy the ingredients, but you collected the money for the service and the sale.

In Dropshipping:

1. You open an Online Store (The Frontend).
2. A customer enters and buys a product (e.g., a Smart Watch) for $50.
3. You immediately go to the Supplier’s site (The Kitchen) and buy the same watch for $10, asking them to ship it directly to the customer’s address.
4. Profit: The remaining $40 is your net profit (minus ad costs).

In this scenario, you never even touch the product!

Dropshipping vs Affiliate Marketing

In Affiliate Marketing, you are just a “promoter” sending customers to another site for a fixed commission, whereas in Dropshipping, you are the Merchant who owns the store, sets the price, and controls the entire profit margin.

Here are the fundamental differences in detail:

• In Affiliate Marketing: The customer buys from Amazon or Noon through you. You do not own the customer data, you are not responsible for shipping or returns, and your commission is fixed (5-10%).
  Check out our previous guide: What is Affiliate Marketing and How to Profit from It.
• In Dropshipping: The customer buys from your site, and you determine the price and profit (you might make 200%!). However, in return, you handle customer service and track shipping.

Which is better?

• If you hate customer service and want peace of mind, start with Affiliate.
• If you want to build a Brand and make massive profits, Dropshipping is King.

How to Create Your Dropshipping Store?

Tools today have made this somewhat of an easy game:

1. Choosing a Winning Product

Don’t sell “everything.” Choose a product that solves a problem (like a pet hair removal tool), triggers an emotion, or aligns with current Trends.

2. Building the Store (The Platform)

• Shopify: The best and easiest option globally. It gives you a ready-made store for a simple monthly subscription.
• WooCommerce: A free option, but it requires technical experience and private hosting.

3. Choosing the Supplier

The era of relying on AliExpress is over due to slow shipping. Today, we use faster suppliers like CJ Dropshipping or Zendrop, who connect their products to your store with a single click.

How to Get Buyers? (Traffic)

Opened your own private store? Great. Now it will be a ghost town if you don’t bring visitors!

• Free Marketing (Organic): Film videos of the product and post them on Reels and TikTok. If the video goes viral, you will get massive free sales.
  Use the tips in our article Profit from Facebook Videos to create content that spreads quickly).
• Paid Ads: This is the pro game. Facebook and TikTok ads are the fastest way to bring sales, but they require a budget.
• Description & Images: Don’t forget that you can use AI Tools to write an attractive product description that motivates the customer to buy immediately.

How to Build a Trusted Global Brand?

To ensure the success of your ad campaigns on TikTok and Facebook, specifically when targeting the US audience, and to provide professional customer service, your digital identity must appear as if you are a local store located in the US.

You now own the store, but you need marketing. Here you face two obstacles:

1. Ad Account Bans: Platforms like TikTok Ads are very sensitive to geographical location. Opening an ad account targeting the US from an Arab IP and a local phone number may lead to ad rejection or account restriction.
2. Customer Trust: Will an American customer buy from a store that communicates via WhatsApp with a strange foreign number? Likely not.

Smart Marketing Solutions: Use a Real US Phone Number via Non-Voip to enhance the marketing side of your store.

How does this number boost your sales?

• Activate TikTok Ads & Social Media: Use this number to create a TikTok and Instagram account and verify your Business Manager as a US brand. This facilitates the approval of your ads and allows you to target foreign countries (Tier 1 Countries).
• Professional Customer Service: Dedicate a US WhatsApp number to respond to customer inquiries. This raises the Trust Factor enormously and makes the customer feel they are dealing with a local store, increasing the conversion rate.
• Separate Work from Personal Life: Protect your personal number and do not use it for general store transactions.

FAQ

Do I need a large amount of capital to start dropshipping?

No, you can start with a small budget for test ads (e.g., $5–10 per day), but don’t expect strong results without spending on marketing.

Do I need an official company or commercial registration?

Initially, you can work as an individual, but as sales grow, it is preferable to register the business as a company for tax and legal reasons.

Can I start from an Arab country and target the US?

Yes, and this is the strongest scenario, especially if you link your store to a US digital identity (Non-VoIP number, US social accounts).

Is Dropshipping completely suitable for beginners?

Yes, if you learn the basics calmly and treat it as a real project, not a “quick experiment.” Failure often happens when it is treated as a passing hobby.

What is the difference between Dropshipping and Affiliate Marketing in terms of effort?

Affiliate is less complex because there is no customer service, while Dropshipping requires tracking shipping and support, but it gives you full control over the brand and profit.

In Conclusion

Are you ready for the big leagues? There is no place for luck in the world of E-Commerce! The only difference between a store selling thousands of dollars and a store that closes after a week is seriousness in foundation and smart marketing.

Don’t treat your store as a side experiment; treat it as a global company from day one, and the world (banks and customers alike) will treat you the same.