The Four Steps of a Dropshipping Side Hustle

When you think about how a product gets from a factory to your front door, you usually picture a chain: a manufacturer makes it, a wholesaler buys it in bulk, and a retailer sells it to you. A dropshipper doesn’t really have a spot in that traditional chain. Instead, dropshipping is a service model where you act as the bridge connecting the customer directly with the manufacturer or wholesaler. This approach to building an ecommerce side hustle lets you offer products at a much lower price by cutting out some of the usual middlemen.

Technically, you can connect customers with any link in that chain, but connecting them closer to the manufacturer is where the magic happens. The fewer steps between the product’s origin and the customer, the better your pricing can be. This gives you room to add a healthy margin, which is how you turn a profit. As you start your dropshipping side hustle, keeping this simple principle in mind will be your guide when searching for suppliers.

Running a dropshipping business really boils down to a four-step cycle. Let’s walk through it.

Step 1: Your Customer Places an Order

It all starts when a customer finds your website or app and buys something. Once they complete the purchase, you both should get an automated email confirming the order. Your store’s software handles the payment, depositing the money into your account. If the payment takes a few days to process, a confirmation email lets the customer know things are in motion.

A quick pro-tip: try to manage your orders from a laptop or desktop computer. Mobile apps often lack the full range of features you’ll find on a PC, and you don’t want to mess up an order because a specific function wasn't available. A laptop gives you the mobility you need without sacrificing the tools that keep your side hustle business running smoothly. Also, make sure your browser is always up-to-date, as platforms like Shopify depend on the latest extensions to work properly.

Step 2: You Forward the Order to Your Supplier

Next, you send the order details over to your supplier. Since you’ve already registered your payment information with them, they simply charge your card for the wholesale cost of the product, plus any shipping and handling fees. For anyone running a Shopify side hustle, suppliers on Oberlo Marketplace and AliExpress are popular starting points.

When you’re only getting a few orders a day, it’s easy enough to enter them manually on your supplier’s site. But what happens when your business grows and dozens of orders flood in? Manually processing each one becomes a nightmare. This is where you need to think about automation. Tools like Aftership can help streamline this process, saving you countless hours and making your operations much more efficient. This is one of the keys to building scalable side hustles.

Step 3: The Supplier Ships the Product

Once the order is confirmed and paid for, the supplier takes over. They are responsible for picking, packing, and shipping the product directly to your customer. When you sign up with a supplier, you’ll provide them with your logo and business details, which they’ll put on the packing slip. This makes it look like the package came directly from you.

You’ll receive a tracking number, which allows you to monitor the shipment’s progress. This is the part of the process where you have the least direct control, so it’s incredibly important to vet your suppliers thoroughly. Look for partners with a proven track record of quick, reliable fulfillment. Being able to offer same-day shipping because your supplier is on top of their game can be a huge competitive advantage for your ecommerce side hustle.

Step 4: You Notify the Customer and Collect Your Profit

Finally, you share the tracking number with your customer through your store’s built-in email system. Your profit is the difference between what the customer paid you and what the supplier charged you. If for some reason the supplier’s costs are higher than what the customer paid, you’ll take a loss on that order, so pricing correctly is critical.

And that’s the dropshipping process. You take an order, forward it, and confirm it was delivered. The biggest challenge is that your customer only knows you. If the supplier sends the wrong item, the customer will contact you for a fix. You are the face of the business. To succeed, you need to own every part of the customer experience, even the parts you don’t physically handle. Finding a great supplier who doesn't mess things up is the secret to turning your side hustle to small business success. When you find one, treat them like a partner and build a strong relationship. As your business grows, a supplier with reliable automation tools will be essential for creating one of those truly scalable side hustles.