💼 How Shopify Dropshippers Get Paid: A Beginner’s Guide

If you’ve ever wondered how Shopify store owners make money selling products they don’t physically stock, you’re not alone. This business model—known as dropshipping—has become a popular way to launch an online store with minimal upfront investment. But how do these sellers actually get paid when the products come from someone else?

Let’s break it down.

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🛒 What Is Dropshipping?

Dropshipping is a retail fulfillment method where the store owner doesn’t keep products in stock. Instead, when a customer places an order, the seller purchases the item from a third-party supplier, who then ships it directly to the customer.

Popular dropshipping platforms include:

• AliExpress

• CJ Dropshipping

• Spocket

• Zendrop

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💳 How Sellers Get Paid

Here’s the typical payment flow for a Shopify dropshipping store:

1. Customer places an order on the Shopify store and pays the listed retail price.

2. Shopify processes the payment through a gateway like Shopify Payments, PayPal, or Stripe.

3. Store owner receives the funds (minus transaction fees) into their linked bank account.

4. Store owner pays the supplier the wholesale price of the product.

5. Supplier ships the product directly to the customer.

🧮 Profit Formula:

Profit = Retail Price – Supplier Cost – Shopify Fees

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📦 Example Scenario

Let’s say you sell a pair of sunglasses for $50:

• You receive $50 from the customer.

• You pay $20 to the supplier.

• Shopify takes ~$1.75 in fees.

• Your profit: ~$28.25

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🛠 Payment Gateways and Fees

Shopify offers several payment gateways:

• Shopify Payments: ~2.9% + 30¢ per transaction (U.S.)

• PayPal: Similar fees, but with different payout schedules

• Stripe: Popular for international sellers

If you don’t use Shopify Payments, Shopify may charge an additional transaction fee (0.5% to 2%).

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🚀 Tips for Success

• Price strategically: Factor in supplier costs, shipping, and fees.

• Automate fulfillment: Use apps like Oberlo, DSers, or AutoDS to streamline orders.

• Offer great customer service: Even if you don’t ship the product, you’re still responsible for the customer experience.

• Test products: Focus on items with high demand and low competition.

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🧠 Final Thoughts

Dropshipping on Shopify is a powerful way to start an e-commerce business without the hassle of inventory. As long as you understand the payment flow and manage your margins wisely, you can build a profitable store that runs almost on autopilot.