Drop Shipping: A Profitable Side Hustle

Drop Shipping: A Profitable Side Hustle

drop shipping

The rise of the internet and eCommerce has opened up a world of opportunities for entrepreneurs across the globe. One such opportunity that has emerged as a popular side hustle is drop shipping. But what exactly is drop shipping, and how can it become a successful side hustle? Let’s explore this exciting business model, complete with real-world examples.

Key Takeaways:

  • Understanding Drop Shipping: is a retail fulfillment model where the seller doesn’t keep products in stock. Instead, they purchase products from a third party and have it shipped directly to the customer. This model eliminates the need for storage or physical inventory.
  • Drop Shipping as a Side Hustle: With minimal startup costs and no need for physical inventory, drop shipping offers a low barrier to entry, making it an attractive side hustle for those interested in entrepreneurship.
  • Real-World Examples: Irwin Dominguez and Eric Bandholz illustrate the potential of drop shipping when combined with effective marketing strategies and niche targeting. Companies like Wayfair have also leveraged this business model on a larger scale.
  • Challenges and Solutions: Despite its potential, the hustle comes with challenges such as slim margins, supplier errors, and intense competition. These can be overcome with careful planning, niche market targeting, strong supplier relationships, and effective online marketing.
  • The Future of Drop Shipping: As eCommerce continues to grow, so does the potential for drop shipping. Platforms like Shopify and Oberlo facilitate this business model. However, future success in the industry will require alignment with consumer values like sustainability and ethical sourcing.

Understanding Drop Shipping

Drop shipping is a retail fulfillment method where a store doesn’t keep the products it sells in stock. Instead, when a store sells a product, it purchases the item from a third party—usually a wholesaler or manufacturer—and ships it directly to the customer. This model means that the seller doesn’t have to handle the product directly, thus reducing the need for a physical location, storage, or the risks associated with holding inventory.

Drop Shipping as a Side Hustle

One of the primary reasons why drop shipping has gained traction as a side hustle is its low barrier to entry. With minimal startup costs, anyone with an internet connection can start a drop shipping business. It’s especially appealing to those who want to test the waters of entrepreneurship without committing massive amounts of capital or time.

Real-World Examples

  1. Irwin Dominguez: After just eight months in the drop shipping business, San Diego resident Irwin Dominguez turned his side hustle into a thriving enterprise, making over a million dollars in sales. He started with a simple online store and utilized social media advertising to drive traffic and sales. His journey illustrates the potential of drop shipping when paired with the right marketing strategies.
  2. BeardBrand: Eric Bandholz started BeardBrand as a blog about beard lifestyle. When the blog gained traction, Bandholz decided to start selling beard grooming products through drop shipping. By capitalizing on a niche market and building a strong brand, BeardBrand has become a multi-million dollar business.
  3. Wayfair: Wayfair is one of the largest online-only retailers in the U.S., specializing in home goods like furniture and decorative items. What most people don’t know is that Wayfair operates on a drop shipping model, which allows them to offer a vast range of products without holding all the inventory themselves.
  4. MVMT Watches: MVMT Watches, founded by Jake Kassan and Kramer LaPlante, started as a small dropshipping business that aimed to disrupt the overpriced and outdated models of the watch industry. They used Instagram influencers and social media marketing to gain traction. In less than five years, they grew their brand to a value of over $100 million and were subsequently acquired by Movado Group.
  5. BlueCrate: Founded by entrepreneurs Sam and Gael Breton, BlueCrate is a unique dropshipping store that sells quirky and unusual products. The store leverages the power of viral social media content to drive traffic and sales. Their marketing techniques, combined with a unique product selection, have made BlueCrate a successful dropshipping business.
  6. Inspire Uplift: Inspire Uplift is a successful dropshipping business that sells products across multiple categories, from home goods to electronics. They capitalize on trends and focus on products that offer solutions to everyday problems. Their success lies in the fact that they concentrate on products that ‘inspire, uplift, and make your life better.’
  7. Luxy Hair: Luxy Hair is a successful dropshipping business specializing in real, high-quality hair extensions. Mimi and Alex Ikonn, the co-founders, leveraged the power of YouTube influencers to drive sales and establish their brand. The business model allowed them to provide a diverse range of products without the need to physically store inventory.
  8. The Happiness Planner: The Happiness Planner is a great example of how dropshipping can work in the stationery industry. The business was founded by Mo Seetubtim, who decided to create a planner that focuses more on positivity, gratitude, and personal growth rather than just productivity. Her successful marketing and ability to connect with her audience helped grow The Happiness Planner into a widely recognized brand.

The Potential and the Pitfalls

Despite its potential, drop shipping isn’t without its challenges. These include slim margins, supplier errors, inventory issues, and intense competition. However, these obstacles can be overcome with careful planning, research, and a commitment to customer service.

It’s important to focus on a niche market, just like BeardBrand did, and build a brand that resonates with your target audience. It’s also crucial to establish a strong relationship with reliable suppliers and maintain a robust online presence through SEO and social media marketing.

The Future of Drop Shipping

As eCommerce continues to grow, the future looks bright for drop shipping. Tools and platforms that make it easier to connect sellers, suppliers, and customers are becoming more prevalent. For example, Shopify and Oberlo have become go-to platforms for drop shippers, offering a range of services, including website building, product sourcing, and sales tracking.

However, the future of drop shipping will also demand greater responsibility from drop shippers. Consumers are increasingly concerned about issues like sustainability and ethical sourcing. Consequently, successful drop shippers will need to ensure their business practices align with these values.


Drop shipping has emerged as a promising side hustle for budding entrepreneurs. It offers an accessible path to business ownership without the need for significant capital investment. While there are challenges and risks involved, the success of real-world entrepreneurs like Irwin Dominguez and Eric Bandholz shows that with the right approach, drop shipping can indeed be a lucrative side hustle.

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