WooCommerce Dropshipping Setup: Step-by-Step Guide for 2026
Quick answer: To dropship on WooCommerce, get WordPress hosting with SSL, install WooCommerce, keep the store in Coming soon mode while you build, switch permalinks away from Plain, then set up payments, shipping zones, taxes and products with SKUs. Last, connect your fulfillment partner. With PackQuay you don't install a dropshipping plugin: you create a Read/Write key under WooCommerce > Settings > Advanced > REST API, send it to your account manager on WhatsApp, and paid orders flow to our warehouse. When a parcel ships, the order turns Completed with its tracking number.
Plugin or API: two ways to dropship on WooCommerce
There are two common setups. Product-import plugins copy listings from a marketplace and forward each order to whoever sells it there. An API connection links your store straight to a fulfillment partner that buys, checks, stores and ships for you.
| Product-import plugin | Fulfillment partner via REST API | |
|---|---|---|
| Where products come from | Marketplace listings | Factories your partner sources from |
| Quality checks | Up to each seller | At the partner's warehouse before dispatch |
| Packaging | The seller's | Yours: branded mailers, boxes, inserts |
| Multi-item orders | Often one parcel per seller | One combined parcel |
| What you install | A plugin | Nothing; you create an API key |
| Removing access | Uninstall the plugin | Revoke the key in one click |
Plugins are fine for testing ideas. Once a product sells, the API route gives you factory prices, inspection and your own branding. The rest of this guide follows the API route.
Step 1: Hosting, domain and SSL
Pick a WordPress host that supports WooCommerce and includes an SSL certificate, so your store runs on HTTPS. Shoppers expect the padlock at checkout, and WooCommerce recommends HTTPS for API connections.
Step 2: Install WooCommerce and keep the store private
Install the free WooCommerce plugin from your WordPress dashboard and run its setup wizard. Then open WooCommerce > Settings > Site visibility and keep the store on Coming soon while you build. Admins and shop managers who are logged in can still see everything, so test in a private window to see what visitors see.
Step 3: Fix your permalinks
Go to Settings > Permalinks and choose any structure except Plain. The WooCommerce REST API needs "pretty" permalinks; on Plain, the connection to your fulfillment partner won't work.
Step 4: Set up payments
Under WooCommerce > Settings > Payments, enable a gateway such as WooPayments, Stripe or PayPal and run a test payment. Bank transfer and check payments leave orders On hold until you confirm the money arrived, which delays shipping, so card and wallet payments suit dropshipping best.
Step 5: Shipping zones and rates
In WooCommerce > Settings > Shipping, create one zone per main market. Base each rate on what the line really costs to that zone, or fold shipping into the product price and offer free shipping. Name the method with your promise, for example "Standard: ships in 24 hours, arrives in X–Y business days", filling in the range for your line. Our international shipping guide explains how to pick lines and set that range.
Step 6: Taxes and duties
Turn on tax calculation in WooCommerce > Settings > General if you need to collect sales tax or VAT, then add rates in the Tax tab. Separately, remember import duty: every parcel shipped from China to the US now owes duty, so price on landed cost and ship duties paid.
Step 7: Products and SKUs
Give every product and every variation its own SKU. The SKU is how your fulfillment partner matches a line in your order to a unit on its shelf. PackQuay can also push products we source for you into your store, with images and variations, ready to link for automatic fulfillment.
Step 8: Create the REST API key
- Go to WooCommerce > Settings > Advanced > REST API and click Add key (it may read Create an API key).
- Enter a description you'll recognize later, such as "PackQuay".
- Choose a user with the Administrator or Shop Manager role.
- Set Permissions to Read/Write. Read lets us import orders; Write lets us mark them Completed and save tracking.
- Click Generate API key.
- Copy the Consumer key and Consumer secret now. The secret is hidden once you leave the page; if you lose it, revoke the key and create a new one.
Step 9: Connect the key to PackQuay
Message your PackQuay account manager on WhatsApp with your store URL, the consumer key and the consumer secret. We connect the store on our side, then link each SKU with you to the product we buy or hold for you. Use a separate key for each service you connect, so you can revoke one without breaking the others.
Step 10: Test one real order, then go live
Order one low-cost product to your own address and watch it travel: Processing in WooCommerce, imported into our system, shipped, then Completed with a tracking number. When that works, switch Site visibility to Live.
How orders move once you're connected
| WooCommerce status | What it means | What happens |
|---|---|---|
| Pending payment | Order placed, not paid | Nothing ships |
| On hold | Waiting for you to confirm payment, e.g. a bank transfer | Confirm the payment and move it to Processing |
| Processing | Paid and waiting to ship | The queue your partner works from |
| Completed | Shipped | Tracking saved; WooCommerce emails the customer |
| Cancelled, Refunded, Failed | Stopped | Not shipped |
When a parcel leaves our warehouse, we set the order to Completed and save the carrier and tracking number in the order fields used by WooCommerce Shipment Tracking, AfterShip and TrackingMore, so a tracking tool you already use picks it up.
If the connection doesn't work
- 401 or 403 errors: the key is Read only, revoked or mistyped. Create a new Read/Write key.
- "Consumer key is missing": your server is dropping the authorization header. Ask your host to pass it through.
- No response at all: check that permalinks aren't set to Plain, and that a security plugin or firewall isn't blocking the /wp-json/ address.
- Some orders don't sync: look for orders still in Pending payment or On hold, SKUs not linked to a product.
Selling on Shopify as well? The same partner can serve both stores; see automatic fulfillment on Shopify for that side of the setup.
How PackQuay helps
Connecting WooCommerce to PackQuay is free, with no plugin, no subscription and no monthly fee. We source from factories, inspect 20% of every batch free, pack with your branding in our Xinxiang warehouse and ship stocked orders within 24 hours. One account can hold several WooCommerce and Shopify stores, and other platforms can upload orders by CSV or Excel. Details are on our WooCommerce fulfillment page and fees on the pricing page; to get started, message us on WhatsApp.
FAQ
Do I need a dropshipping plugin for WooCommerce?
Not if your fulfillment partner connects through the WooCommerce REST API. PackQuay only needs a Read/Write API key, which you can revoke whenever you like.
Where do I create a WooCommerce REST API key?
Go to WooCommerce > Settings > Advanced > REST API and click Add key. Pick an Administrator or Shop Manager user, set Read/Write, and copy the consumer secret straight away, because it is only shown once.
Why does my WooCommerce REST API connection fail?
The usual causes are a key with Read-only permission, permalinks set to Plain, or a server or security plugin that strips the authorization header or blocks /wp-json/. Fix the setting, generate a new key if needed and reconnect.
Which WooCommerce orders get shipped?
Paid orders in Processing status. Orders in Pending payment or On hold wait until payment is confirmed, and once a parcel ships PackQuay sets the order to Completed and saves the tracking number.
Can I connect WooCommerce and Shopify to the same account?
Yes. One PackQuay account can hold several WooCommerce and Shopify stores, and orders from other platforms can be uploaded by CSV or Excel.