Ultimate Tips on How to Do Dropshipping on Shopify

How to do dropshipping on Shopify? If you’re an entrepreneur who wants to enter the ecommerce space but doesn’t have the resources to manage manufacturing, supply chains, and fulfilment, then dropshipping could be a great option for you.

As a drop shipper, you’re free from inventory management headaches. When your store sells an item, the order is sent to a third party, who then ships it directly to the shopper. You don’t have to touch the product and you only pay for what you sell.

You may be interested in: What is Dropshipping: its Benefits and Disadvantages

Does Shopify Allow Dropshipping?

Yes, of course. Shopify dropshipping app lets you sell products by using a supplier that holds the inventory and ships the product for you. You pay the dropshipping wholesalers price to the supplier, while controlling the price that your customers see in your Shopify store.

When a customer places an order in your store, you purchase the products from the supplier and select how to ship the product directly to your customer. You don’t need to hold any inventory or ship items yourself.

Products are the most important part of your dropshipping business, the products that you choose to sell will shape how you run your online store, how you market your store and who you market it to.

How Does the Dropshipping Business Model Work?

Dropshipping is an order fulfillment method that lets store owners sell directly to consumers without stocking any inventory. 

When a customer purchases a product from a dropshipping store, a third-party supplier ships it directly to them. The customer pays the retail price you set, you pay the supplier’s dropshipping wholesale price, and the rest is profit. You never have to handle products or invest in inventory. 

Two common ways to find a supplier for your dropshipping store are:

• Through a supplier database, like Dropship Direct, Alibaba or AliExpress dropshipping.
• Using an integrated supplier directory in your store’s backend, like Oberlo. 

The easiest dropshipping process for Shopify stores is through Oberlo. You can source millions of products from the Oberlo marketplace through AliExpress or Amazon dropshipping and import them directly to your store with the click of a button.

Related: 5 AliExpress Dropshipping Tips That Help Beginners

When a customer buys something in your store, Oberlo fulfills the order automatically. All you have to do is double check that the order details are correct and click the Order button. The product then ships from the AliExpress dropshipping supplier to the customer, no matter where they are in the world. 

How Profitable Is Shopify Dropshipping?

Yes, the dropshipping model is still profitable in 2021. It’s a low-risk business venture because you are not responsible for shipping or manufacturing. Dropshipping is also scalable with average profit margins between 15% and 20%.

Dropshipping isn’t dead. In fact, the opposite is true. The 44% rise in ecommerce sales in 2020 indicates we’re entering a golden age for ecommerce entrepreneurs.

But using the dropshipping model isn’t easy. Most people think you just add products to your online store and customers come to buy.

Dropshipping without a plan can make you feel invisible. You feel like you’re shouting into an empty room where nobody is listening. Every dropshipper, big or small, knows this feeling. It’s a part of the process that most entrepreneurs want to escape as fast as possible.

Is Shopify Free for Dropshipping?

How to start dropshipping for free? Firstly, when creating your online store this way, you will make use of Shopify.

This online store building platform costs $29 a month. It also includes a free 14-day trial. We can say that it is totally worth your investment.

You can start with a very small budget, experiment with a few products and then increase your budget as you gain revenues. This is something quite possible. However in today’s fierce dropshipping environment, it’d be impossible to start dropshipping with no money.

How to Start a Dropshipping Business

The first step to building a dropshipping business is figuring out what you’re selling and who your target customers are. In other words, you need to find your niche.

There’s no shortage of advice on how to do this. Some people recommend turning to your passion and interests to figure out the right product to sell, while others say it’s best to look specifically for profitable and trendy niches to ensure that you actually make money.

Here the steps how to start a dropshipping business:

Do Keyword Research

Do something similar when you’re determining your niche. Kick things off by identifying possible markets (ideally using your own expertise and interests) then brainstorm keywords for those markets. Take the most popular keywords, and dig deeper to get more insights into their performance overtime.

Determine Product Trends

Keep this step in mind when you’re looking for dropshipping business ideas. Enter your keywords into Google trends to determine whether a product is trending up or down. If it’s the latter, then you may want to go back to the drawing board. If it’s the former though, then you can move onto the next step, which is to determine profitability.

Figure out If Your Niche Is Profitable

Between the cost of doing business, shipping fees, marketing, not to mention the cut of your dropshipping suppliers, running a profitable dropshipping business requires wide and healthy margins. This means you want to look for low cost products that you can sell at a premium.

Where to Find a Dropshipping Business for Sale

If you don’t want to create a dropshipping Philippines business from scratch, you can find a dropshipping business for sale on Exchange, Shopify’s marketplace for buying and selling online stores from ready-to-go stores to dropshipping ecommerce businesses to established empires. 

With over 10,000 online stores for sale, you can find a dropshipping business that matches your interests and budget and start running it right away. 

Through Exchange, you can see information about a potential dropshipping business for sale, including traffic and revenue data, in the listing. The data comes directly from Shopify and cannot be edited, so you know exactly what to expect once you buy your dropshipping store.

Start Your Dropshipping Store Today

Whether you’re a new entrepreneur or an ecommerce vet, a dropshipping business is a great low-risk, low-cost way to start selling online. With the rise in third-party apps and marketing automation tools, it’s no longer a struggle to run your business online. 

Hopefully this dropshipping guide inspires you to create a pathway to success and financial freedom, so you can live the life you’ve always dreamed of, like so many other ecommerce entrepreneurs. If you are looking at other money making avenues, check out how to make money online guide to get started.

Conclusion

Starting a dropshipping websites business with Shopify is surprisingly easy, and requires very little upfront investment. Take a day or two to find a product and then create a site using Shopify’s easy-to-use platform. From there, experiment with different marketing methods and see which tactics successfully drive traffic and sales.

When all these steps are implemented correctly, you’ll be able to run a profitable dropshipping business in a matter of weeks or months.

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