When Matt Riley turned 24, his life was similar to his peers. He'd recently graduated college, and not knowing what to do next, he found an office gig that was by all accounts a good job.
His work as a customer service agent was interesting enough, the people were friendly, and the company was doing well. But Matt felt out of place. And as he stared down the prospect of a long career toiling beneath fluorescent office lights, he began to feel trapped.
"It was a good job, but I felt so tied down that I didn't really want to be there anymore. I just wanted to work for myself," he says.
He'd graduated with a degree in business entrepreneurship, and always wanted to start his own thing, but assumed he would begin maybe ten years down the road. But now, a year after finishing school, he was becoming restless.
It was on YouTube that Matt first discovered Shopify and dropshipping, and learned about businesses that were built using the dropshipping business model. The model, which allows entrepreneurs to start an ecommerce business without the need to purchase any inventory, was instantly appealing.
"It seemed like a really easy way to get started," he says.
Inspired by the possibilities, things started to move quickly. Within a week of first learning about dropshipping, he had launched his first ecommerce store.
Taking His First Steps Into Ecommerce
Matt’s store sold clothes and toys for babies, which he thought would attract plenty of customers.
After all, new moms were part of the generation that had grown up with the internet, so he thought that they’d be comfortable shopping online. Plus, because they were a little older, they likely had money to spend. These target market assumptions didn’t immediately pay off.
"To be honest it was hard at first. I wasn't profitable for the first four months, and I was struggling,” says Matt. “Every day I would come home from my full-time job where I was working 40 hours a week and just work all night and try to make it profitable."
As a first time entrepreneur, he felt overwhelmed, and as a solo entrepreneur, he suddenly found himself wearing several new hats. He was juggling the responsibilities of a product manager, designer, customer service agent, and digital marketer all at once.
He continued to open new stores in different product niches, trying to find the right fit.
"The first one that was really, really profitable was a fashion store," he says. "It kind of just took off. I had products that were selling, and I had Facebook ads that were working well. It was amazing."
Since then he has expanded his businesses, setting up stores that sell kitchen products, pet products, religious products, video game accessories, and three general stores that sell a variety of products. Over the years, he’s seen stores close and others flourish, all the while pushing ahead and eventually generating up to six-figures of revenue in a single month.
Taking The Leap into Full-Time Business
Around a year after he first began dropshipping, Matt found himself at a crossroads. He noticed that he had started to make more money with the stores than he was making in his customer service job.
He knew the moment had come, and he had to quit.
"One of my bosses said he kind of saw it coming. He was kind of surprised that I was there and not doing bigger and better things," he says.
Now he spends his days working on his different businesses full-time. He's scaled them to impressive heights, demonstrating that dedication and persistence can transform a side hustle into a thriving enterprise.
However the journey to this point hasn't been all positive. There have been slip-ups and setbacks, and many late nights spent staring bleary-eyed at a computer screen full of sales data.
Now after several years of dropshipping full-time, Matt looks back at the journey and shares three essential lessons he learned along the way.
It’s Harder Than It Looks, But That's What Makes It Exciting
Really good things take a lot of work, but the journey of undertaking that work and eventually coming out on top is the exciting bit. Matt knows this all too well. In the beginning, when he was facing unknowns, and his stores were losing money, the struggles felt almost insurmountable.
"The biggest challenge was getting through that initial learning curve," he says. "But you've just got to keep going until you really hit that winner, and hit that profitability."
In the beginning, between his full-time job and his online stores, he was pouring over sixty hours a week into work.
"It was very stressful, and I didn't have any free time. But I knew it was worth it," he says. "I felt like I wasn't going to get anywhere with a full-time job, and that there was no way I was going to be able to work for myself that way. It felt like this was the only option."
When things do start to pick up with your business, it can be tempting to quit your job so you can throw yourself at the business full-time. Matt suggests that it’s worth holding on a little longer.
"Anyone out there who is trying to get into dropshipping, don't quit your jobs immediately," he says. "You want to have a fallback. You want to have that steady flow of income to pump money into your ads until you're profitable. And when you feel like you're ready and you've replaced your income on a consistent basis, go ahead and make the decision to quit or not."
Building a viable dropshipping venture typically requires somewhere between six months to a full year before you see meaningful returns. This timeline allows you to develop your skills, understand your market, and establish reliable revenue streams. Patience during this initial phase separates those who succeed from those who abandon their efforts prematurely.
See That Box? You Need to Think Outside of It
In the world of entrepreneurship and ecommerce, there isn't a one-size-fits-all formula for success, and the best entrepreneurs realize this. They'll remain open-minded and flexible, and adapt their strategy based on different products or target markets.
Instead of restricting himself to one narrow product niche, Matt runs multiple stores simultaneously so that he can find a place for a wide variety of products. Narrowly-focused niche stores and general stores that stock a wide range of products both have unique advantages and disadvantages, and Matt plays each to their strengths.
"The benefits of a general store is that you're not limited to a certain group of products," Matt explains. "With my fashion store, I can only advertise fashion items. But with the general store, let's say something pops up and I don't know what category it fits in, I can just put it there."
For your customers, the experience of shopping in each type of store is different too.
"The benefits of having a niche store is that your conversation rate will increase,” says Matt. “Because when customers are going to the niche store, they feel like they are at home, or have a deeper connection with the brand."
When it comes to picking products to sell, Matt thinks about marketing first, not second. He chooses products based on if he thinks they will sell well on Facebook ads or Google shopping ads, the two marketing channels he mastered.
"If I'm looking for a full force in Google shopping ads, then I'm looking for products based on the search volume," he says. "For Facebook, it has to be a little bit different. It has to be unique, and it has to have viral potential through video marketing."
By thinking about how he's going to sell the products before what he is going to sell, he's setting himself up for success from the beginning.
Focusing on a specialized market segment often yields better results than trying to appeal to everyone. Whether you concentrate on particular product categories or target specific customer groups, narrowing your focus helps you communicate more effectively and stand out from competitors.
Successful dropshippers understand that trying to be everything to everyone usually means being nothing to anyone.
You’re Not a Psychic, but You Do Have Data
There is no way to predict the future, and what happens with your business will often surprise you.
"I've had products that I thought were going to do really well and they were a flop," Matt says. "Then I've had others that I had no idea were going to do so well. I just put them on the store and advertised them to get it over with and get it done with."
And because the future is so wildly unpredictable, it pays to test everything.
"Focus on A/B testing, for sure," Matt says. "Test a lot. Test a lot of different products. Test a lot of different ads. A lot of different ad types. A lot of different targeting. You'll eventually find one that is profitable."
Then after every test, follow what the data tells you. You'll need to look for what's working that you can replicate, and what's worth giving up. Your intuition has a nasty habit of tripping you up, but the data never lies.
With a dropshipping business, you won't need to purchase bulk stock of the inventory before you can test it. That means you'll be able to test many different products quickly and cheaply without the fear of ending up with a warehouse of products that nobody wants to buy. If something doesn’t sell, then move on to the next product.In the end, it often comes down to a numbers game.
"Some people might get it on the first try, but most of the people won't. You kind of have to throw 10, 20, 30 darts at the target until you hit the center,” says Matt. “Some things are just not going to work. But once you hit the center, once you are profitable, you can scale that up. You'll get that one, really good high-selling product, and that will cover for all of your losses."
Essential Elements for Dropshipping Success
Beyond Matt's journey, there are several fundamental principles that separate thriving dropshipping ventures from those that struggle. Understanding these core concepts can help you avoid common pitfalls and accelerate your path to profitability.
Bring Something Unique to the Table
Your ability to provide genuine value determines whether customers choose you over countless competitors. This goes beyond simply listing products for sale. Think about how you can educate your audience, solve their problems, or offer insights they can't find elsewhere. When you compete solely on price, you're fighting a losing battle. Instead, position yourself as a trusted resource in your chosen market.
Master the Art of Attracting Visitors
Many new store owners spend months perfecting their website design while neglecting the critical task of driving traffic. After launching, dedicate at least three-quarters of your time to marketing activities, search optimization, and promotional efforts during your first several months. Learning these skills yourself, especially when starting out, saves money and builds valuable expertise you'll use throughout your business journey.
Deliver Exceptional Customer Experiences
In today's connected world, your reputation spreads quickly through social channels and review platforms. Treat every customer interaction as an opportunity to build trust and loyalty. Sometimes this means absorbing costs when fulfillment issues arise rather than passing problems onto buyers. Happy customers become repeat buyers and refer others, creating a sustainable growth engine for your business.
Avoid Analysis Paralysis
Don't let minor decisions consume excessive time and energy. Your company name, logo design, or choice between similar service providers won't make or break your venture. The factors that truly matterâvalue creation, marketing effectiveness, customer care, and persistent effortâdeserve your focus. Make informed choices quickly, then move forward.
Dropshipping Tips FAQ
What is Dropshipping?
Dropshipping is a business model where you create an online store and sell products, but don’t have to manage stocking and shipping items. Customers purchase products from your ecommerce storefront, and a supplier will ship those items directly to the customer.
How Do Dropshippers Make Money?
Dropshipping businesses earn cash from the profit margin between how much they pay suppliers and what they charge customers. This margin can range from 10% to 15%, but this is highly dependent on the products and the level of market competition. However, it’s important to note that dropshipping businesses shouldn’t expect to turn a profit immediately. It can take months or years to get past that break even point and start earning enough to make dropshipping a viable, full-time career.
How Big Is the Dropshipping Market?
In 2025, the dropshipping market is expected to nearly double, potentially reaching $476.1 billion by 2026. Ecommerce entrepreneurs entering the dropshipping world can expect healthy market growth for the next several years at least.
What Are the Benefits of Dropshipping?
Dropshipping takes a lot of grit and determination, but there are many advantages to the model. Startup costs remain low, and it’s not very hard to set up your first online store. As you don’t have to manage inventory and shipping, you can offer a huge array of products to your customers, and can run the business from virtually anywhere, making it a low risk experiment for making cash on the side or moving toward ecommerce full-time.
How Much Does It Cost to Start Dropshipping?
Getting into dropshipping generally costs less than other ecommerce methods since you don't need to stock up on products right away. Here are a few expenses to keep in mind:
- Website domain: The price can vary depending on where you get it, ranging from $5 to $25 or more per year.
- Monthly hosting: Depending on the service provider, costs can start at around $5 a month and go up to $80 or more.
- Advertising budget: You set your budget—daily, weekly, or monthly. Costs depend on the competition for your chosen keywords, with more competitive terms costing more per click.
- Product samples: These are often cheaper than the regular price but can vary widely. A sample t-shirt, for example, will be less than an electronic gadget.
- Software tools: Using tools for product research or keyword analysis can give you a leg up. Prices for these range from $10 to $200 or more each month.