Understanding Dropshipping with Payhip (Beginner’s Guide)

But it also takes careful setup and a smart plan to make it work.

If you’re wondering whether you can use Payhip for dropshipping, the short answer is yes — but with a few workarounds. Payhip doesn’t have traditional built-in dropshipping features like Shopify apps, but it still offers a very simple, flexible way to run a lightweight dropshipping store — especially if you’re just getting started.

In this guide, I’ll walk you through everything you need to know about understanding dropshipping with Payhip, setting it up properly, and avoiding common mistakes that cost beginners time and money.

What Is Dropshipping?

Before we dive into Payhip specifically, let’s quickly cover the basics.

Dropshipping is a retail model where:

• You list products for sale on your online store.

• When someone places an order, you forward that order to your supplier.

• The supplier ships the product directly to the customer.

You never touch the inventory or handle shipping yourself. You earn the difference between what the customer pays you and what you pay the supplier. It’s simple in theory, but success depends on choosing good suppliers, offering in-demand products, and setting up your store properly.

Can You Dropship with Payhip?

Yes, you can run a dropshipping-style store using Payhip, but it’s a manual process compared to platforms that offer full dropshipping automation.

Here’s how it works on Payhip:

• You set up your product listings just like any physical product.

• When someone orders, you manually forward the order details to your supplier.

• The supplier fulfills and ships the order directly to the customer.

There are no direct integrations with dropshipping or print-on-demand apps like Oberlo or Spocket, but for small shops or beginners, manually forwarding orders is a perfectly manageable workflow.

In fact, many new sellers first learn how to sell physical products on Payhip this way, using it as a low-risk platform to test ideas and launch quickly.

How to Set Up a Dropshipping Store on Payhip?

Here’s a simple step-by-step plan:

Step 1: Choose a Reliable Supplier

You can’t dropship successfully without a supplier you trust. Some options include:

• Printful (for print-on-demand items like shirts, mugs, and tote bags)

• AliExpress (good for a wide range of low-cost products)

• Local or specialized suppliers in your niche

Make sure the supplier offers reasonable shipping times, clear return policies, and good product quality. If you’re looking to explore niche-specific items or standout products, here’s a great resource on choosing the best products to sell online that boost your margins and brand.

Step 2: Create Product Listings on Payhip

In Payhip, you add a product and choose “physical product” during setup. Upload your product images, write a clear description, and set your retail price (including your profit margin and estimated shipping costs).

If you’re exploring the print-on-demand route, check out this beginner’s guide to offering custom and print-on-demand products, which is another great way to dropship without holding inventory.

Step 3: Manage Fulfillment Manually

When an order comes in:

• You receive a notification from Payhip.

• You forward the order details to your supplier manually.

• You mark the order as fulfilled once the supplier ships it.

Using a supplier with order automation or bulk processing features can help speed up this workflow.

Step 4: Communicate Clearly with Customers

Because Payhip is not directly linked to your supplier, set clear customer expectations on your product pages. Mention estimated shipping times and any potential delays — especially if items are shipped from overseas.

It’s also smart to explore setting up shipping and delivery options for e-commerce, so you’re clear on how to communicate delivery timeframes, tracking, and returns.

Advantages of Dropshipping with Payhip

• No Monthly Fees: Payhip only charges transaction fees unless you upgrade to a paid plan, so startup costs are minimal.

• Simple Store Setup: No need for third-party plugins or complicated integrations.

• Flexibility: You can mix dropshipped physical products with digital downloads, subscriptions, or memberships.

• Control Over Branding: You control your product pages, pricing, and customer experience.

To take your brand further, make sure to follow these best practices for setting up a branded online store, it’s key for building customer trust when using a manual fulfillment method like dropshipping.

Things to Watch Out For

While Payhip’s manual setup is beginner-friendly, it comes with a few challenges:

• Manual Workload: Every order must be processed and forwarded by hand unless you automate outside Payhip.

• Shipping Delays: Overseas suppliers can mean longer delivery times. Be transparent.

• Product Quality: Always test your products. Never assume your supplier’s listings are 100% accurate.

Tips for Success with Dropshipping on Payhip

• Start small with 5–10 curated products.

• Use detailed product descriptions with clear expectations.

• Focus on a niche audience rather than a general store model.

• Stay on top of order tracking and proactively update your customers.

• Bundle or upsell to raise order values without adding fulfillment complexity.

Conclusion

Dropshipping with Payhip is a simple and affordable way to launch an online store without holding inventory. While it doesn’t offer built-in automation, it’s perfect for beginners who want to test product ideas, build a brand, and learn the basics of ecommerce.

Start small, choose your suppliers carefully, and focus on great customer communication. If you’re looking to avoid high overhead and inventory headaches, Payhip is a smart place to start.