5minstore

Dropshipping: how it works and how to start

With dropshipping you sell products you don’t stock. When a customer orders, you buy from a supplier who ships straight to the customer. It saves upfront capital but shifts the work to product choice, marketing and customer service.

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Trending now, with good margins

Profit per sale after VAT, cost and fees

Seven designs, one fits you

Short answer

Dropshipping means you sell products in your own store without buying or storing them first. Only after a customer orders and pays do you order from the supplier, who ships straight to the customer. Your profit is the retail price minus product cost, shipping, payment fees and advertising.

How a dropshipping order works

  1. 1

    A customer orders in your store

    They pay your retail price, say €29.90.

  2. 2

    You order from the supplier

    You only pay cost and shipping, say €9. 5minstore automates this.

  3. 3

    The supplier ships

    Directly to your customer in neutral packaging, with tracking in your store.

  4. 4

    You keep the difference

    Minus payment fees, ad spend and any returns.

Pros and cons

  • Pro: no inventory and no upfront stock, so you can test many products.
  • Pro: run it from anywhere, even as a side project.
  • Con: lower margins than buying in bulk.
  • Con: longer delivery from Asian suppliers, while EU and US buyers often expect 2–5 days.
  • Con: you are liable to your customers for quality and compliance, even when the supplier is at fault.

Worked example: what’s left per sale?

Sample values, not a promise. Assumes €8 cost incl. shipping and €8 ad spend per sale.

Retail price incl. 19% VAT€26.90
net of VAT€22.61
− Cost incl. shipping€8.00
− Payment fee€1.08
= Profit before ads€13.52
− Ad cost per sale€8.00
= Profit per sale€5.52

Ad cost per sale decides profit or loss almost every time. Test new products with a small budget before scaling.

FAQ

How much money do I need to start dropshipping?

Store, domain and setup often cost under €100. Testing products with ads is the bigger cost; many plan €200–500 for tests.

Is dropshipping still profitable?

It can be, but not by default. Product choice, delivery time and ad costs decide it. Working with realistic numbers matters more than any trend.

Which products work for dropshipping?

Light, sturdy products with a clear use and a €20–80 retail price. Our trend list shows current products with margins.

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Updated: 26 October 2026. General information, not legal or tax advice.