What is dropshipping? Behind the scenes of sales without inventory: advantages, disadvantages, and common mistakes

More and more people are looking for ways to earn online without the need to invest in a warehouse, rent a space, or order goods upfront. And that’s when dropshipping comes onto the scene—a model that theoretically allows selling without having your own inventory. But before you dive into the e-commerce frenzy, it’s worth understanding what dropshipping involves in practice and whether it’s as simple as some guides promise. This post shows the topic behind the scenes—without sugarcoating but with a hefty dose of specifics.

What is dropshipping?

Dropshipping is one of the simpler online sales models to implement, allowing you to run a store without physical contact with the merchandise and without the need to stock products. The customer buys a product in your store, and the order goes directly to the wholesaler or supplier who handles the shipping. You earn from the difference between the wholesale price and the price you set in the store. That’s what makes direct sales from the wholesaler so tempting—you can theoretically sell hundreds of products without having them in stock or even in hand. What does dropshipping involve in practice? Handling the entire backend: marketing, customer contact, complaints, and image. It’s not “selling other people’s stuff” but building your brand on someone else’s products. And although it might seem straightforward, it’s your approach that determines whether dropshipping will be a mere temporary test or a real source of income.

Advantages without lies – when does dropshipping really pay off?

The truth is: the dropshipping model can be really profitable, but not always. Those who benefit the most are those who have mastered their niche and know how to sell. The main advantages? 

• First and foremost, low entry costs – you don’t have to buy goods in advance, so you’re not risking money from the start. 
• The second thing is flexibility – you can run a store from anywhere and test different products almost immediately. 
• In addition, there’s speed of operation – you can launch an offer one day and sell something the next. 

So if you’re considering how to start dropshipping with minimal risk, a well-chosen assortment and efficient promotion can really bring profits. But only if you do it mindfully – not on the basis of “anything goes, as long as it’s quick”.

Where’s the catch? Drawbacks of dropshipping you need to know before you dive in

Dropshipping is not a free ride. And although the internet is full of stories about earning money without getting out of bed, the reality is different. 

• The biggest challenge is the lack of control over the goods and logistics. You have no influence over when the warehouse sends the package, whether the product matches its description, or what the packaging will look like. And if something goes wrong – it’s you who handles complaints, not the warehouse. 
• There are also availability issues – the product you are selling might suddenly disappear from the offer. 
• Additionally, market saturation, especially in popular categories, is another issue. 

If you are interested in selling in the dropshipping model, don’t treat it like a golden ticket. It’s a job like any other – involving risks, mistakes, and moments when you simply have to reconsider everything from scratch.

Before you start a dropshipping store – how to choose a niche and not drown in a sea of competition?

A good idea for a product is half the battle. However, most beginners do this wrong – they choose what is popular instead of what truly has potential in a specific target group. If you want to start smart, look for a niche that isn’t saturated yet and that has loyal followers. It could be sports accessories, handicrafts, a niche gadget – something that can be well described, attractively shown, and promoted on social media. Dropshipping sales allow for quick product testing – so don’t be afraid to experiment, but do it strategically. Check out what works, but add something of your own – language, approach, idea. Because the product itself is not enough. The way you present it matters too.

The store is ready, what’s next? Key marketing mistakes beginners in dropshipping make

Surprisingly often, the hardest step isn’t setting up the store, but… finding customers. Because the store won’t promote itself. And most dropshipping mistakes start at the marketing stage. The most common one? Lack of consistency and plan. Or posting ads “blindly“, without a thought-out target audience. Or completely ignoring content and social media activities. Yet, that’s where trust is built. If you want to develop direct sales from the warehouse, you need to understand that your main task is not just to take orders, but to build your brand and communication. It’s not about being everywhere – it’s about being where your customers are. And speaking to them in a language that convinces them.

RefSpace – dropshipping without a store, without formalities, and without stress

If you want to test the dropshipping model but aren’t keen on setting up your own store from scratch, handling integrations and returns – RefSpace might be the ideal solution to start (and not only for that). It’s a free platform where you create your own Space – a combination of a profile and a ready-made online store. You choose products from suppliers (e.g., cosmetics, books, accessories), add your description, photos, videos, and start promoting.

Shipping, payments, and returns are handled by suppliers, and you earn a commission – just like in dropshipping, but without contact with the warehouse and without the risk of anything falling apart technically. You have everything in one panel and don’t need a business license to start.

This is how, for example, Space Leszkomoto TV works, where the creator promotes products that fit his content – and viewers can purchase them immediately by clicking the button below the video on YouTube.

RefSpace is a dropshipping method that doesn’t require logistics or large investments – and at the same time gives you the space to build your brand without having to manage everything on your own.

Dropshipping vs RefSpace – who is it for and why?

✅ Function / Feature	📦 Dropshipping (traditional)	🚀 RefSpace
Own online store	✅ Yes (own page, payment system, hosting)	✅ Yes (ready, free Space)
Order and shipping handling	❌ By the store owner	✅ By the suppliers
Risk of shortages, delays, complaints	✅ Yes, you are responsible for everything	❌ No – complaints are handled by the supplier
Start-up cost	💸 Average (platform, integrations, graphics, copy)	🆓 None – everything available for free
Business license required	✅ Usually yes	❌ No – you can operate as an individual
Ability to sell without own products	✅ Yes	✅ Yes (ready products from other brands)
Adding video and storytelling	🟡 Depends on the platform	✅ Yes – video + “buy now” button
Integration with YouTube / social media	❌ Not standard	✅ Products visible under videos
Panel with full sales tracking	🟡 Depends on the e-commerce system	✅ Built into RefSpace
Building a personal brand	✅ Possible, but requires more work	✅ Naturally connected with your content