Dropshipping 2020: A Definitive Guide


This article will answer all the questions you might have regarding dropshipping and give you a detailed guide on how to start it in 2020.

What is Dropshipping?

Dropshipping is a business model where you sell physical products to the consumer, except the products aren’t yours. You give the order to a supplier who fulfills the order and you only act as an intermediary. The infographic below might help you in understanding a little more.

Can Dropshipping Make You Money In 2020?

Short answer “Yes”

Dropshipping can make you a lot of money in 2020 if you play it smart and do your research. But don’t think that you can just create a store, add some products and the sales will come rolling down. It just doesn’t work like that in any business or in this case Dropshipping. So to answer the question Is Dropshipping Dead? no, it’s not but there has been a significant increase in competition.

How much can you make dropshipping?

There’s really no limit to it, but it depends on a no pain no gain principle. All you have to do is find a winning campaign and then just simply scale it. Dropshippers who are able to find a winning campaign and successfully scale it, make 5k per month on average, but really successful drop shippers make well over 5 figures.

What is the average drop shipping profit margin?

Dropshipping profits depend considerably on the niche, country, product, and traffic source. I’d suggest you choose a low ticket product which costs between $1-$20 and then usually you are able to cut out a larger profit margin, for example, a product which costs between $1-$20 can then be priced between $30-$50. On the other hand, if you choose a product which costs about $100, firstly fewer people are likely to buy a product with that cost but even if they decide they are going to buy it, they are more likely to research about it and so they might find out about another supplier who is selling at a lower cost.

What You Need to Start a Dropshipping Business

Other than a positive attitude, a good work ethic, and genuine motivation to commit to your new business venture, there are only a few essentials required to start a dropshipping business.

They are:

  • A product to sell
  • A supplier of that product
  • A platform to sell on

How to Start a Dropshipping Business in 2020


The following steps will help you choose a niche for your dropshipping business.

  1. Identify your interests and passions. This may be something you’ve already done.
  2. Identify problems you can solve.
  3. Research your competition.
  4. Determine the profitability of your niche.
  5. Test your idea.

You are only going to successfully promote a product if you have enough information about it and you are passionate about it, else you are going to get bored and are more likely to fail in promoting a product because if you don’t have information, how are you going to convince people to buy it.

Secondly, choose a product and a niche which solves a problem, it can be anything like weight loss, etc. If its emotion-driven you are more likely to make a sale.

Researching about your chosen niche and its profitability is also quite important. You have to look at some common factors like competition and profit margin.

These are the three evergreen Niches: Health, Wealth and Romance. Products in health may include slimming belts and in romance, jewelry really works well.


For many drop shippers finding a reliable supplier is almost always the hardest part. You rely on suppliers for the product stock, it’s quality and then delivery time, etc. The key points to look in a dropship supplier are as follows, he should actually provide support for drop shippers, secondly, he should have good customer reviews as well as support. Some bonus points would be that he can provide fast shipping as well as quality products.

Where to find reliable dropshipping suppliers

There are essentially two ways to find reliable suppliers

First is more conventionally used and it requires you to look up wholesale suppliers on AliExpress usually if you hit em up in DMs, they are willing to provide support for dropshipping.

You can also use a wholesale directory, this can save you a lot of time and help you avoid eCommerce fraud. SaleHoo has more than 8000 suppliers that have been vetted and verified. You can contact them in just a couple of clicks and have confidence in their ability to provide good service.


There are many different platforms that you can utilize to sell your products. You don’t even need a website, you can sell on Social Networks like Facebook and Instagram.

When starting out I’d recommend you choose already established platforms such as Amazon and eBay, the reason is that it doesn’t require any initial capital and many people trust these platforms so you can make a lot of money.

But I’d recommend once you get some cash rolling in, consider creating your own dropshipping store. You have much more flexibility in your own store and you don’t have to pay extra fees. In addition to that, you can take advantage of branding which will help you sell your products at a much higher price.


After you have created your store and added products, it’s time to drive traffic. There are many ways to drive traffic but if you don’t know what you’re getting into you can lose a lot of money.

You can get fast results using paid traffic methods such as Google Ads, Facebook Ads, etc.

Free traffic methods include creating your own content and hoping someone buys your product after interacting with your content.


You can still make money with Dropshipping in 2020, granted you do it the right way.

  • Choose a niche in which you are interested in and is profitable.
  • Find a supplier on AliExpress or Salehoo Wholesale Directory.
  • Find a platform to sell on.
  • Drive Traffic.