Lower fees in 2026 = higher margins. See what you will saveLower fees in 2026 = higher margins. See what you will saveWhat is dropshipping
How to successfully start a dropshipping business in Poland?
Read our guide on dropshipping. You will learn how dropshipping works, who the main parties involved in the process are, and how to evaluate the potential pros and cons of using dropshipping as a fulfillment method for e-commerce businesses.
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Dropshipping: Introduction
The growth of the e-commerce sector has led to the rise of many businesses that support the online sales process. One such business solution is dropshipping. It is a model in which the fulfillment of orders, the process of warehousing, packaging, shipping and delivery of products to end customers, is outsourced to a third party, called a “dropshipper”.
When a customer places an order, the retailer orders the product directly from the supplier, who then dispatches the completed order to the end consumer. As a result, dropshipping allows retailers to list products without having to buy them upfront; consequently, they are not responsible for warehousing, inventory management, stocktakes, or ultimately, arranging the right delivery method for the customer.
This approach requires minimal investment and eliminates any warehousing or stock storage costs. It is an attractive form of starting a business with low start-up capital and low overhead costs. There is no need to invest in warehouse space or personnel to handle order fulfillment.
In addition, without having to import and store the products offered, sellers gain the opportunity to include a wider range of products in the assortment. This enables customers to shop comfortably with a selection of an attractive range of products that potentially may not be readily available locally.
Globally, many retailers have chosen to start a business or integrate dropshipping into their existing e-commerce ventures. Understanding how this model works will help you make an informed decision about whether it is the right solution for your needs.
When a customer places an order, the retailer orders the product directly from the supplier, who then dispatches the completed order to the end consumer. As a result, dropshipping allows retailers to list products without having to buy them upfront; consequently, they are not responsible for warehousing, inventory management, stocktakes, or ultimately, arranging the right delivery method for the customer.
This approach requires minimal investment and eliminates any warehousing or stock storage costs. It is an attractive form of starting a business with low start-up capital and low overhead costs. There is no need to invest in warehouse space or personnel to handle order fulfillment.
In addition, without having to import and store the products offered, sellers gain the opportunity to include a wider range of products in the assortment. This enables customers to shop comfortably with a selection of an attractive range of products that potentially may not be readily available locally.
Globally, many retailers have chosen to start a business or integrate dropshipping into their existing e-commerce ventures. Understanding how this model works will help you make an informed decision about whether it is the right solution for your needs.
What is dropshipping?
Dropshipping is one of the many solutions available for retailers that allows you to focus on selling products online — on your own e-commerce site or on an external website — while outsourcing the fulfillment process to a third party.
The seller passes customer orders and shipping information to the manufacturer or wholesaler, who then ships the products directly to the customer. The retailer essentially acts as an intermediary between the customer and the supplier.
Dropshipping has recently gained popularity as a solution used in e-commerce due to the ease of starting a business, the practical lack of entry barriers and the low cost of conducting such sales.
Dropshipping, however, is not without its drawbacks. Retailers whose orders are placed by end customers partially lose control over the execution of the order — the quality of the products and delivery, and the delivery time. It is more difficult to manage customer satisfaction and their tendency to repeat purchases by outsourcing an important part of the sales process to suppliers.
The seller passes customer orders and shipping information to the manufacturer or wholesaler, who then ships the products directly to the customer. The retailer essentially acts as an intermediary between the customer and the supplier.
Dropshipping has recently gained popularity as a solution used in e-commerce due to the ease of starting a business, the practical lack of entry barriers and the low cost of conducting such sales.
Dropshipping, however, is not without its drawbacks. Retailers whose orders are placed by end customers partially lose control over the execution of the order — the quality of the products and delivery, and the delivery time. It is more difficult to manage customer satisfaction and their tendency to repeat purchases by outsourcing an important part of the sales process to suppliers.
How Does Dropshipping Work?
Dropshipping sales rely on a detailed agreement between the retailer and the third party fulfilling the orders on their behalf. Dropshipping is nothing more than a business model that allows you to sell goods without having a warehouse or your own logistics facilities. In this model, the seller, the owner of the online store, offers products that are stored and shipped directly by their manufacturer or wholesaler. Thanks to this, the seller does not have to spend a lot of money on the purchase of goods, storage and payment of logistics costs.
How does dropshipping work? Here are five steps to help you understand this concept:
How does dropshipping work? Here are five steps to help you understand this concept:
- Selection of products: The seller chooses the products they want to offer in their online store. They can use the catalogs available on dropshipping services or reach out directly to the wholesalers and manufacturers.
- Creating an online store: The seller creates an online store that will offer the products of their choice. They can either use ready-made e-commerce platforms or hire professionals to build a bespoke website.
- Presentation of the offer: The seller adds the offered products to their online store, sets their prices and descriptions. They are also engaged in store promotion, customer acquisition and order flow management.
- Orders and payments: Customers place orders and make payments through the store's website. Payments go to the seller's account, who then transfers the orders to the wholesaler or manufacturer of the products ordered by the customer.
- Shipping and customer service: The wholesaler or manufacturer sends the ordered products directly to the end customer. The seller is responsible for contact and customer service, as well as solves possible problems and provides information about the status of the order.
The seller must carefully analyse the needs of customers, select products according to customer preferences, and create an effective marketing strategy. It is worth noting that it is usually the seller’s responsibility to inform the ordering party about the status of the order. It is possible to set up automated notifications informing the buyer about the completion of the next steps in the execution of his order – confirmation of receipt of the order, information about picking, preparation for shipment and delivery of the ordered products, even if these steps take place outside the actual control of the retailer.
Remember that this is just a description of a sample solution. Your cooperation with third parties in the sales process depends on the arrangements you agree on together and the contracts you sign.
Remember that this is just a description of a sample solution. Your cooperation with third parties in the sales process depends on the arrangements you agree on together and the contracts you sign.
Understanding the role of the seller, manufacturer and wholesaler.
The dropshipping model involves three main parties in order fulfillment: retailers, manufacturers, and wholesalers.
In the world of online retail, practically anyone can become a seller — from private individuals and small-to-medium enterprises right up to large corporations. All of these entities can sell online. However, when we talk about dropshipping as a seller we are referring to the site that sells the selected product to the end customer.
A seller, also called a retailer, offers and sells products on their own website or in an online store. They decide on their online shop's product range and the pricing of the items. They are also the one who receives payment from the end consumer and agrees to cover locally applicable taxes and fees. Even though the retailer does not physically store, pack, or ship the goods they sell, they remain legally responsible for them under this fulfillment model.
The manufacturer is the party that produces the goods and ensures their quality. It can be an individual or an enterprise. Manufacturers typically sell their products in bulk to wholesalers or retailers, rather than as individual items to end consumers. As a retailer, you have the option to buy directly from the manufacturer; bear in mind, however, that manufacturers are often reluctant to sell smaller batches of products. They prefer selling specific volumes, often setting a required minimum order quantity. Entrepreneurs taking their first steps in retail often find it difficult to order larger quantities of products, as this requires warehousing space and involves high startup costs.
Wholesaler is an intermediary between the seller and the manufacturer. Their task is to store and ship products to the customer.
Together, these players form a vital triangle in the dropshipping model, allowing the online retailer to offer products without any stocktake or warehousing costs.
Summing up:
In the world of online retail, practically anyone can become a seller — from private individuals and small-to-medium enterprises right up to large corporations. All of these entities can sell online. However, when we talk about dropshipping as a seller we are referring to the site that sells the selected product to the end customer.
A seller, also called a retailer, offers and sells products on their own website or in an online store. They decide on their online shop's product range and the pricing of the items. They are also the one who receives payment from the end consumer and agrees to cover locally applicable taxes and fees. Even though the retailer does not physically store, pack, or ship the goods they sell, they remain legally responsible for them under this fulfillment model.
The manufacturer is the party that produces the goods and ensures their quality. It can be an individual or an enterprise. Manufacturers typically sell their products in bulk to wholesalers or retailers, rather than as individual items to end consumers. As a retailer, you have the option to buy directly from the manufacturer; bear in mind, however, that manufacturers are often reluctant to sell smaller batches of products. They prefer selling specific volumes, often setting a required minimum order quantity. Entrepreneurs taking their first steps in retail often find it difficult to order larger quantities of products, as this requires warehousing space and involves high startup costs.
Wholesaler is an intermediary between the seller and the manufacturer. Their task is to store and ship products to the customer.
Together, these players form a vital triangle in the dropshipping model, allowing the online retailer to offer products without any stocktake or warehousing costs.
Summing up:
- A seller, called a retailer in the dropshipping model, offers and sells products on their own website or in an online store. Their main task is to build an attractive website, acquire and serve customers. The seller is responsible for ensuring that the products offered by them are of high quality and reliable. It must also ensure that the products are always available in the supplier's warehouse and delivered to the customer on time. The seller also bears the risk in the event of problems with delivery or products. The key to success is the close cooperation of the retailer, wholesaler and manufacturer.
- The manufacturer is the party responsible for creating the products offered later. Its role is to create high-quality goods. The manufacturer should be an expert in their field, taking responsibility for the production process, product quality, and compliance with current legal requirements. The indispensable role of manufacturers is the implementation of innovations and continuous improvement of the goods themselves and the diversity of the offer. Since the manufacturer will not have direct contact with the end consumer in a dropshipping model, close cooperation between the manufacturer and the retailer is absolutely vital. The seller will be able to provide the manufacturer with information about the level of customer satisfaction with the quality and functionality of the products. Constructive criticism and listening to customer needs will enable the manufacturer to better respond to market demand.
- The wholesaler is an intermediary between the seller and the manufacturer. Their task is to store and ship products to the customer. The warehouse is responsible for replenishing stocks and delivering orders to customers within the specified execution time. The wholesaler is also responsible for packing, preparing for shipping and dispatching parcels. The wholesaler is a key partner for both the retailer and the manufacturer, acting as an intermediary to ensure the dropshipping model runs smoothly. If the seller can offer to sell more pieces, the wholesaler often guarantees discounts on purchases.
How do I find the right dropshipping partner?
Finding the right partner in a dropshipping relationship is crucial to the success of the entire venture. The reliability of the sales stages will be branded by your store. Business partners must be trustworthy, proven and responsible.
When trying to find contractors, it is very important to determine the niche in which you want to conduct your business and to draw up a list of products that you want to include in the store's offer. This is the first step to finding the right business partners.
Then you can use online platforms to find suppliers — dropshippers who deliver products to sellers within the product niche you are interested in.
It is important to check the reputation of suppliers. You can check the reviews on their websites and on social media to see what other sellers are saying about them. Check feedback on the reliability of the provider and whether it provides good customer service. In addition, consider contacting suppliers directly and talking about their products, shipping and return policies, and terms of cooperation.
Following these steps will help you find a reliable and suitable dropshipping partner that suits your needs and business goals.
When trying to find contractors, it is very important to determine the niche in which you want to conduct your business and to draw up a list of products that you want to include in the store's offer. This is the first step to finding the right business partners.
Then you can use online platforms to find suppliers — dropshippers who deliver products to sellers within the product niche you are interested in.
It is important to check the reputation of suppliers. You can check the reviews on their websites and on social media to see what other sellers are saying about them. Check feedback on the reliability of the provider and whether it provides good customer service. In addition, consider contacting suppliers directly and talking about their products, shipping and return policies, and terms of cooperation.
Following these steps will help you find a reliable and suitable dropshipping partner that suits your needs and business goals.
Dropshipping products from different suppliers.
Using the services of multiple suppliers in the dropshipping model allows the seller to offer a wider range of products supplied by many different manufacturers without the risk of being left with an unsold item. A possible solution is to cooperate with one wholesale “dropshipper” who supplies from different manufacturers or use the services of many different sales implementers. It all depends on the agreement we have with our business partners. Regardless of the form, it is important to ensure that all suppliers are reliable and that the quality of the products and delivery times meet the expectations of customers.
Using the services of many different providers has several potential and competitive advantages:
Using the services of many different providers has several potential and competitive advantages:
- You can offer customers a wider range of products.
When choosing multiple suppliers for your business, you are not limited to the assortment of just one source. As a result, your customers will be able to choose from an extensive range of goods. - You can expand the reach of your business network and build more business relationships.
Using multiple suppliers to source products allows you to establish extensive business relationships. This can be a potentially big advantage when growing your business.
While considering these clear advantages and conveniences, it is vital to remember that—as with any business relationship—collaborating with multiple third parties can be demanding and time-consuming. Before you decide on this step, think carefully about all the pros and cons you foresee for your business.
Is dropshipping right for my business model?
Dropshipping is not a universal solution, in the end it is up to you to decide if its advantages will outweigh the possible inconveniences in the industry in which you operate. When making this decision, it is worth considering the following points.
- Brand Identity.
You should consider whether you want to sell products under your own brand. Creating and developing a brand can give you higher recognition among customers, while simultaneously building a deeper relationship with them based on brand trust and loyalty. Brand loyalty has a beneficial effect on reducing the price pressure on your products. By recognizing it and distinguishing it among other generic substitutes, customers are able to justify the price of products by modifying their internal search filter at the lowest price. However, in order for your brand to inspire trust and have a good reputation, you need to take special care of a positive shopping experience in your store. Good brand associations should accompany your customer from the moment they visit the online store to delivery to their door. By using a dropshipping model, we outsource part of the sales fulfillment process to partners, thereby losing control over product quality, packaging, shipping, and delivery to the customer. If quality suffers, customers will leave our brand and choose competitive products. There are other challenges as well: adapting products, packaging and delivery to the brand if it is ordered to a dropshipper. Our uniqueness in the eyes of the customer can be put to the test. - Quality control.
The quality of the products you offer translates into your company works. High quality confirmed by customers with positive reviews will support the effect of recognition. However, if the declared quality does not correspond to the real one, a high number of returns can be expected. You run the risk of discouraging negative customer reviews and their outflow. Think about how important it is for you to ensure consistently high quality products.
In the case of dropshipping, constant quality control is possible only on the basis of an agreement with reliable suppliers — dropshippers. That is why the process of selecting trusted business partners is so important. - Delivery of orders.
What delivery times will meet the expectations of your customers? When buying online we usually expect fast shipping, this is a very important part of the online shopping experience. Too long delivery times create a negative image of your website and your brand. When choosing a dropshipping provider, pay attention to the terms and time of delivery and the associated costs. Check to see if your supplier allows you to track orders. This is an additional benefit for your customers.
What are the pros and cons of dropshipping?
The benefits of using a dropshipping solution include low initial costs, no need to store and ship merchandise, and a wide range of products to choose from. Disadvantages include lower sales margins, limited control over product quality, and possible delays in deliveries or wholesale sales.
Advantages of dropshipping
- Low initial costs.
Dropshipping does not require you to create inventory, which means that you do not need to invest money in purchasing products or renting warehouse space. - You don't need physical storage space.
Because you don't have to store inventory yourself, you don't need physical storage space, so you don't incur additional rental, insurance, or maintenance costs. - Flexibility of your work.
With dropshipping, you can work from anywhere as long as you have an internet connection. This gives you the flexibility to work from home, coffee shops, coworking spaces, or wherever you want. - Offered selection of products.
You are not constrained by store clutter or stock keeping, you can easily offer new products without incurring financial risk. - Business Scaling.
Dropshipping allows you to grow quickly without worrying about expanding your physical infrastructure. You can easily test new products and scale your business as demand grows.
Disadvantages of dropshipping
- Limited quality control of products.
When you use dropshipping, you rely on the supplier to fulfill your order. This limits your control over the process. If the dropshipper's service falls below the declared quality, you risk dissatisfaction with customers. - A lot of entrepreneurs use a similar model.
Dropshipping is a popular solution. Finding a profitable niche and standing out can be difficult. - Problematic shipping of orders.
Using the services of many different dropshippers — product suppliers, the order will be shipped from multiple locations, which can create logistical problems such as delays, lost packages and customer complaints. - Lower margins.
Companies that carry out sales in the form of dropshipping tend to have lower margins than traditional companies. Having no control over the cost of order fulfillment, they have to rely on the prices offered by their suppliers and fight the competition with low product prices. - Unreliable suppliers.
Vendors depend on the reliability of their suppliers. If they fail, it will have consequences for your company's reputation.
A summary of the pros and cons for your business may indicate the unprofitability of the dropshipping model. However, keep in mind that this is not the only way to facilitate your sales activity on the Internet. An alternative would be affiliate marketing or the Fulfillment by Amazon (FBA) model.
Is dropshipping the right choice for you?
With a better understanding of how dropshipping and alternative fulfillment options work, carefully analyze and compare the sales parameters for these solutions. Consider the following aspects.
- Brand identity – when selling a product, everything that builds the brand identity, that is, the appearance, style and design of your products, can be decisive factors of choice for customers. Dropshipping gives only partial control over these parameters. If you can't find a dropshipper who can customize products the way you expect them to, you are potentially putting your company's reputation at risk.
- Control over the quality of products – due to the lack of real insight into the goods purchased and stored by your dropshipper partner, you have limited control over the quality of these products. If the quality of the products deviates from the declared one, you may lose your customers.
- Delivery time: Since the delivery and fulfillment process is the responsibility of your supplier partner, make sure they have a good track record of delivering on time. Taking advantage of Amazon Fulfillment (FBA) can speed up the delivery of purchased goods. Some products are even eligible for free, guaranteed two-day delivery as part of Amazon Prime, but this requires certain conditions to be met.
- Financing: If you are at the beginning of your career as an online marketer, you probably have less capital. Dropshipping and some other alternatives allow you to reduce the expense of acquiring, acquiring and storing products before selling them.
Conclusions.
Dropshipping is a retail method in which the store does not store the products sold in stock. Instead, at the time of receiving the order, the seller makes an automatic or non-automatic purchase from a third party – a dropshipper, who takes the relevant products from stock, packs them, prepares them for shipment and delivers them directly to the end customer. The role of the third party can be performed by the manufacturer itself, a wholesaler, or another retailer.
The main advantage of dropshipping is that it requires a small initial investment. The absence of the need to stock up shop, rent warehouse space, inventory, warehouse service, order picking and shipping service significantly reduces the amount of financial expenses necessary to start a business. Without having to sell overdue inventory, you gain more flexibility to tailor your offering to your current needs. You can easily change the range of the assortment and take care of its attractiveness by adding new products to the offer, for which the demand is not sure. Potential bestsellers will boost the popularity of your online store and make it stand out. However, you do not have to worry about unsold stocks of unpopular products. The risks associated with maintaining inventories are minimized.
Dropshipping, however, is not without its drawbacks. The imperfections of this model that you have to take into account are, first of all, the level of margin. They are usually quite low due to high competition and very limited impact on the management of procurement costs. Secondly, you have little control over the quality of the products, the shipping time and the packaging in which the end customer will receive their order. Potential disappointments and bad customer experiences from the shopping journey will fall on you and your business, not invisible to the customer of the dropshipper. Moreover, relying on third-party delivery of products can lead to product availability issues, and a lack of control over the supply chain can make it difficult to scale the business.
All in all, dropshipping can be a great option for entrepreneurs who want to start an online business with little initial investment. However, it is important to carefully weigh all the pros and cons of such a solution before making a decision.
The main advantage of dropshipping is that it requires a small initial investment. The absence of the need to stock up shop, rent warehouse space, inventory, warehouse service, order picking and shipping service significantly reduces the amount of financial expenses necessary to start a business. Without having to sell overdue inventory, you gain more flexibility to tailor your offering to your current needs. You can easily change the range of the assortment and take care of its attractiveness by adding new products to the offer, for which the demand is not sure. Potential bestsellers will boost the popularity of your online store and make it stand out. However, you do not have to worry about unsold stocks of unpopular products. The risks associated with maintaining inventories are minimized.
Dropshipping, however, is not without its drawbacks. The imperfections of this model that you have to take into account are, first of all, the level of margin. They are usually quite low due to high competition and very limited impact on the management of procurement costs. Secondly, you have little control over the quality of the products, the shipping time and the packaging in which the end customer will receive their order. Potential disappointments and bad customer experiences from the shopping journey will fall on you and your business, not invisible to the customer of the dropshipper. Moreover, relying on third-party delivery of products can lead to product availability issues, and a lack of control over the supply chain can make it difficult to scale the business.
All in all, dropshipping can be a great option for entrepreneurs who want to start an online business with little initial investment. However, it is important to carefully weigh all the pros and cons of such a solution before making a decision.
Frequently Asked Questions
Dropshipping — what is it?
Dropshipping is a business model in which a vendor outsources the storage, packaging, and shipping of products to customers. With dropshipping, the seller can run an online store without having to have a warehouse. This is a particularly popular method in e-commerce and Amazon dropshipping.
How to start dropshipping on Amazon?
To start dropshipping on Amazon, you need to create a merchant account and follow the dropshipping rules of this platform. It is crucial to work with a supplier that meets Amazon's requirements. You can also use the alternative, which is Fulfillment by Amazon (FBA).
Is dropshipping allowed on Amazon?
Yes, dropshipping is allowed as long as you follow Amazon's policies. Your products must be marked as being shipped by you, not by a dropshipping provider. Otherwise, your account may be suspended.
Does Amazon ship in a dropshipping model?
Amazon is not a dropshipping platform, but offers a Fulfillment by Amazon (FBA) service. With FBA, Amazon takes care of the storage, picking, packaging and shipping of your products. This is a great option for those looking for an alternative to classic dropshipping.
What is dropshipping in the context of manufacturers, wholesalers and retailers?
In the traditional model:
The manufacturer manufactures products. The wholesaler buys them in large quantities and resells them to retailers. The retailer sells them directly to consumers.
In dropshipping, the retailer works with the wholesaler or manufacturer so that they are the ones who carry out the shipment directly to the customers. The retailer deals only with marketing and customer service.
The manufacturer manufactures products. The wholesaler buys them in large quantities and resells them to retailers. The retailer sells them directly to consumers.
In dropshipping, the retailer works with the wholesaler or manufacturer so that they are the ones who carry out the shipment directly to the customers. The retailer deals only with marketing and customer service.
Can I dropship anywhere in the world?
Yes, many dropshipping companies allow international shipping. In the case of Amazon dropshipping, access to the global marketplace depends on the provider and the rules in each country. Before you start, check to see if your dropshipping partner offers such a solution.
Is dropshipping legal in Poland?
Yes, dropshipping is legal in Poland, provided that the business is conducted in accordance with the current regulations on e-commerce, taxes and consumer protection. The seller continues to be responsible for the quality of the products, customer service and the compliance of the offers with Amazon requirements.
When using this sales model, it is worth ensuring that you:
1. Work with proven suppliers
2. Ensure your product information and delivery time are accurate
3. Ensure clear Refunds and Customer Service Policies
4. Sell products that are compliant with the requirements of the European market
Sellers should also have a good understanding of how online selling on Amazon works in order to properly manage offers and meet the platform's requirements.
When using this sales model, it is worth ensuring that you:
1. Work with proven suppliers
2. Ensure your product information and delivery time are accurate
3. Ensure clear Refunds and Customer Service Policies
4. Sell products that are compliant with the requirements of the European market
Sellers should also have a good understanding of how online selling on Amazon works in order to properly manage offers and meet the platform's requirements.
Do I need to register a business to start dropshipping?
In Poland, you can conduct an unregistered activity if the monthly income does not exceed 50% of the minimum wage. As part of such an activity, you do not need to have a TIN, REGON number or keep full accounting. However, doing dropshipping on Amazon typically requires business registration due to the need to issue invoices and meet tax requirements.
What is the difference between Amazon dropshipping and other forms of e-commerce?
Amazon dropshipping allows you to use a global platform that provides a huge market and advanced sales management tools. Unlike traditional e-commerce, you don't need to manage inventory or warehouse. Amazon FBA further streamlines the fulfillment process, giving you an advantage over other dropshipping models.
Sanjana Shinde
Sanjana Shinde is a Marketing Manager at Amazon. She is passionate about helping sellers discover growth opportunities in e-commerce. She also loves to dance and travel.
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