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Is dropshipping a good way to learn how business works?

by Will Smith
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Last modified on March 15th, 2024 at 7:37 pm

If you are an aspiring business owner struggling to get started, then there is a good chance that you have come across the term “dropshipping”. But the moment you started research about it, you must have got bombarded with a mammoth of content, mostly comprising of “gurus’ sharing tips on how to make dropshipping work as a get-rich-quick scheme. Now, if you are confused weather this is your cup of tea or not, then stop worrying, because you are at the right place. In this article, we wil try and analyse the similarities between dropshipping and other forms of business models and what learnings from dropshipping can be directly applied to your other ventures. But first lets understand what dropshipping is, just so that we are on the same page.

What is Dropshipping?

Dropshipping is simply a business model in which a there are 3 parties involved : the dropshipper, the supplier and the customer. Imagine you have a physical store selling any physical product. The product that you are into comes with a lot of varieties, so you need to keep a few pieces of each variety and due to space limitations you are able to maintain bulk quantity of a few bestsellers. For the rest, if you ever get a customer who demands a product which you do not have in stock, you simply ask them to wait for a few minutes, ring up your supplier who then sends you the required quantity of the product and you fulfiill your customer’s request.

The above is an example of a dropshipping transaction in which the retailer purchased the product fro mthe supplier only when he already had a customer in hand.

Translate it to online, and you get a dropshipper, say Person X, who sets up a website or buys prebuilt shopify stores offering some or the other products. He finds a reliable supplier for the product. When he gets an order on his website, Person X then places an order with his supplier asking them to directly ship it to the customer’s address. The difference between the price is what the dropshipper gets to keep.

Advantages of Dropshipping

The dropshipping model comes with several advantages, which is why it has gained popularity:

Low Risk

The primary advantage of dropshipping is its low-risk model. Since retailers don’t hold any inventory, there’s no need for a considerable upfront investment. This means that you won’t have unsold stock if your business fails.

Low Overhead Costs

Dropshipping has little overhead expenses, making it a cost-effective option. Without worrying about renting a warehouse or paying utilities, you can save a significant amount of money.

Easy to Get Started

One of the best things about dropshipping is its ease of operation. You can start a dropshipping business from the comfort of your own home without any prior business experience.

Wide Selection of Products

Another advantage of dropshipping is the wide selection of products available. Since you collaborate with other suppliers, you have access to a vast array of goods that you can offer to your customers.

Learning Business through Dropshipping

There are 2 ways to look at dropshipping : 1 is how every other 20 something is looking at it, as a get-rich-quick scheme who ofte fails to sustain it. The second and the better way is to look it only as a temporary fulfillment arrangement till the time your are testing stuff and trying to decide weather you need to go all in on a product and scale it through the roof. If you choose the second one, there are hardly any differences left between dropshipping and any other business model. It can still give you a good exposure of most essential skills required to run any business like : 

Product Research

One of the most critical aspects of a successful dropshipping business is finding the right products to sell. This requires extensive market research to determine the profitability of different niches and products.


To attract customers to your dropshipping store, you need to develop a strong marketing strategy. This includes SEO optimization, social media marketing, paid advertising, and email marketing.

Customer Service

Providing excellent customer service is critical to the success of any business. As a dropshipper, you must be responsive to customer inquiries, handle returns and refunds, and address any issues promptly.

Financial Management

Managing your finances is crucial to the success of any business. As a dropshipper, you need to track your revenue, expenses, and profits. This requires you to keep accurate financial records and develop a budget for your business.


Dropshipping can be an effective approach to learning about business operations, particularly if you have no prior experience. However, it is crucial to be aware of the advantages and disadvantages before starting a dropshipping business. With its low-risk, low-overhead, and easy-to-start model, dropshipping can be a viable option for those interested in the industry.

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