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Dropshipping: what it is and how to start with AutoDS

Beginner-friendly guide to the dropshipping model, suppliers, and selling channels with AutoDS

Introduction

Dropshipping is a business model where you sell products online without holding inventory. Instead, when a customer buys from your store, you purchase the product directly from a third-party supplier, who ships it to the customer.

This guide explains how dropshipping works, the role AutoDS plays in automating the process, how to choose the right supplier, the costs to expect, and which selling channels you can use.

Benefits

Dropshipping has become one of the most popular online business models because it is:

  • Low risk – You don’t need to invest in stock before making sales.

  • Easy to start – Anyone with a laptop and internet connection can begin.

  • Flexible – You can test different products and niches without major commitments.

  • Scalable – Add more products and expand into new markets as you grow.

  • Time-saving with automation – Tools like AutoDS handle product imports, pricing, order placement, and tracking updates for you.


Quick Jump

  1. What is Dropshipping on AutoDS?

  2. Choosing the right supplier

  3. Cost to start

  4. Supported selling channels

  5. Mentorship Program

 

What is Dropshipping on AutoDS?

Dropshipping is a retail fulfillment method where you sell products without keeping them in stock.

How Dropshipping Works with AutoDS (Example with Shopify):

  1. You upload a product to AutoDS from a supported supplier, and it appears in your Shopify store.
  2. A customer places an order on your Shopify store.
  3. You receive the payment directly in your Shopify account.
  4. You purchase the product from a supplier (e.g., AliExpress, Amazon).
    You can order manually or use AutoDS automation (Auto-Order or FBA).
  5.  The supplier ships the product directly to your customer. No need to handle inventory or shipping.
  6.  Once shipped, a tracking number is provided. If you’re using automation, AutoDS updates tracking info in your store automatically.

Dropshipping Business Model

 

 

 

Choosing the right supplier

Before importing products into your store, it’s essential to choose the right supplier and configure your supplier settings in AutoDS.

Aspect Details
Automation compatibility

Not all suppliers support automation features. If you want to use tools like Auto Order or Fulfilled by AutoDS (FBA), you’ll need to select suppliers that are compatible with those services.
If you choose a supplier that isn’t supported, you will need to place orders manually.

👉 Learn More: 

AutoDS order automation options: FBA and Auto-Order (semi and full automation)

How to handle your orders manually
Configuration setup

Each supplier has its own shipping methods, return policies, and pricing structures.
By configuring your supplier settings in AutoDS — such as pricing, shipping, and order rules — before uploading products, you make sure that every new product you import will follow your preset rules.

Important: These settings only apply to new uploads. That’s why it’s best to configure everything first to avoid confusion later.

👉 Learn More: Supplier Settings - Full Overview
Shipping policy planning If you’re selling worldwide, remember that shipping times and costs vary from country to country. Shipping fees are not added automatically, so you’ll need to create custom shipping policies for different regions.

We recommend starting with local or regional shipping. International shipping can be complex for beginners because of different delivery times, costs, and return processes.

 

💡Tip:

Decide early how you want to handle orders — automatically or manually. This will help you set up your business smoothly from the start.

👉 Learn More: How To Handle Orders? - Full Guide

 

 

Cost to start

Dropshipping has a much lower startup cost compared to traditional retail, but there are still expenses to consider:

  • Selling channel fees – Platforms like eBay charge seller fees, and Shopify requires a subscription.

  • AutoDS subscription – Needed to access automation, product imports, and tracking.

  • Auto-Order credits – If you choose to automate orders, you’ll need credits to process them.

  • Marketing – Essential if you’re selling on channels like Shopify or TikTok, where you must drive your own traffic.

Note for Shopify users: You’ll need to use free marketing techniques like Search Engine Optimization (SEO) or paid advertising. Compared with other channels, Shopify requires an initial marketing investment of both time and money.

 

 

Supported selling channels

There are many platforms where you can run your dropshipping business. Each one has its own rules, advantages, and challenges.

  • Marketplaces (eBay, Amazon, Facebook Marketplace, TikTok Shop) already have built-in traffic. They are easier for beginners but come with stricter rules.

  • E-commerce platforms (Shopify) give you full freedom over branding and design but require you to generate traffic through marketing.

In this section, we’ll focus on the most popular channels for beginners.

👉 Learn More:

 

 

Mentorship Program

Starting an online business can feel confusing if you do it alone. That’s why AutoDS created the Mentorship Program to guide beginners step by step.

With this program, you will:

  • Learn how to properly set up your store.

  • Understand how to choose the best suppliers and products.

  • Get personalized advice on how to use AutoDS to grow your business.

  • Avoid the most common mistakes new sellers make.

👉 Learn More: AutoDS Mentorship Program