If a business isn’t online these days, it might as well not exist. People are used to how easy it is to buy things online and are even willing to pay more for that convenience.
As a business owner, this opens up a lot of opportunities that are ready to be grabbed.
One business model that has come out of this new wave of online convenience is dropshipping. It makes it easy for your customers to buy your products and makes you a lot of money. But it can be hard work and take a lot of time.
Could this be done in a simpler way?
Say hello to dropshipping with Shopify. It is made to make it easier for you to run your dropshipping business. Do you want to know how? Get comfortable.
In this complete Shopify dropshipping guide, we give you all the answers and information you need to get your Shopify dropshipping business off to a great start.
Let’s dig in.
What Is Shopify Dropshipping?
To get a clear picture of what Shopify dropshipping is, let’s start by explaining what Shopify and dropshipping are.
Dropshipping is a way to run a business in which you act as a middleman between your clients and the people who make the products. When a customer orders something from you, you get it from a supplier and have it shipped to the customer.
You wouldn’t have to deal with or store any stock.
Shopify is a place where online stores can be stored. When you sign up for a Shopify account, you can set up an online store for your business where customers can look at the products you dropship and place orders.
Shopify also has a number of other e-commerce tools that you can use to manage your online business and get paid.
After all that, what is Shopify dropshipping?
Shopify dropshipping is nothing more than dropshipping while using Shopify to host your online store. You would still be a separate dropshipper, which is important to remember.
Shopify only gives you an easy-to-use, low-cost platform with the tools you need to run your online store.
Is Shopify Dropshipping Legal?
Yes, running a business with Shopify dropshipping is 100% legal. But, as with any business practice, you should follow compliance rules like:
All of the items you dropship have to be legal.
When you sign up for Shopify, you should use a real tax ID, Social Insurance Number (SIN), or Social Security Number (SSN).
All of the deals you make with your clients should be legal and free of fraud.
Is Shopify Dropshipping profitable?
So far, we’ve found that Shopify’s dropshipping business platform is easy to use and that dropshipping through Shopify is legal. All of that is nice and all, but it brings up a more important question: Does this dropshipping method make money?
Yes is the short answer, and here’s why. Dropshipping through Shopify is easy, and you can set up your online store by yourself. So, you wouldn’t have to pay web designers and other tech experts to set up your site.
Also, you don’t have to buy any inventory or pay for a warehouse to store goods if you use this method. You might not even have to leave your house to run things. You could do everything online.
For a business to be profitable, the costs of running it must be less than the money it brings in. In this case, you wouldn’t have to pay for much other than your Shopify subscription, advertising, and managing how orders are shipped.
You would also buy products at wholesale prices and sell them at a price you thought was fair. So, it’s safe to say that Shopify dropshipping can be very profitable if it’s set up well.
What Products Can I Sell When Dropshipping on Shopify?
One of the best things about Shopify is that you can dropship any kind of product. But keep in mind that you can only sell physical goods; you can’t offer services.
You also have to make sure that the products you sell are legal and that they are delivered as promised.
On the other hand, there are so many products out there that it can be hard to choose. You should try to find a niche to focus on. It will help you focus on a manageable number of products and make it easy to keep track of your dropshipping operations.
Customers may also find it easier to remember your store if they know they can get certain things there. It works out well for everyone.
So, the next question is: how do you find the right niche?
Find out about the products you want to sell and how much demand there is for them. The more people want something, the more likely it is that you will sell it. You should also do a lot of research to find out which brands customers like and how many of them they buy.
Think about using research tools like:
Ecomhunt is a website that has a long list of the best products that dropshippers can choose from. It has pictures, descriptions, and other information about the product, such as possible profit margins and how people interact with the product online.
Dropship Spy is a tool that will tell you a lot of insider information about a product, such as its price, how many people use it, and how profitable it is. It also gives you extra tools, like short dropshipping courses and the ability to star and sort products in the categories you want.
How do Create a Shopify Dropshipping Store Step by Step
Now that you know what dropshipping is and how it works, let’s talk about setting up your online store.
It takes a few steps to get everything up and running, but Shopify is great because it is easy to use. Most of the resources you need will be easy to find on the platform.
Now, shall we set up your online store?
Create Your Shopify Account
When you go to the Shopify website, you will have to set up your store first. It’s a normal way to sign up for a site, but you’ll need a business name ready.
When choosing a name for your business, keep in mind that it will become your brand. Think about what you want your brand to stand for and what your target audience will connect with.
Also, your store needs a domain, which is often the same as your business name. If the name of your business is “Essence and Style,” your domain is probably “essenceandstyle.com.”
So, before you choose a name for your business, check to see if it is also a domain name. Lucky for you, you can search for domain names for free on a number of websites, and Shopify has a business name generator.
Design Your Store
Shopify has a store called a “theme store” where you can choose from different designs for how your store will look. Your site’s navigation is also based on the theme. So, it’s best to choose a theme that looks good and is easy to use.
There are both free and paid themes to choose from. Work with the money you have.
There are also places like Burst where you can get free images to add to your online shop to make it feel more like you. There are also tools to help you make a logo if you don’t already have one. Overall, you should try to make your store look nice and be easy to use.
Optimize Your Online Store Settings
The most important settings you’ll need to tweak are:
Terms and Conditions of the Refund Policy
Options for Privacy and Payment
Again, Shopify’s brilliant design saves the day. For each of these settings, there are ready-made templates that you can use. All you have to do is pick one that works for you.
But make sure you read each choice carefully before you decide. If you don’t know much about technical terms, you should hire someone to help you because the terms you set are legal.
Add Products to Your Shopify Dropshipping Store
At this point, you will need to have found a niche of products that you want to dropship to customers. As you look at supplier sites, you will need a dropshipping app (more on this below) to help you import and list products on your site.
Once the products are listed, don’t forget to tag them. This makes it easier for customers to find specific products and others in the same category.
Which Dropshipping Apps Are Compatible With Shopify?
With dropshipping apps, you can import products as you look at different platforms for suppliers, like AliExpress. The following apps for dropshipping are made to work well with Shopify.
Oberlo is a drop shipping beginner’s dream.
Not only is it easy to use, but it also has a plan that is free forever. Under the terms of the plan, all new dropshippers who get less than 50 orders per month can use it for free. You can also bring in up to 500 items, and there is no minimum order size.
Consider upgrading to the Basic Plan if you want to be able to track shipments or import more products, among other things. The price is $29.90.
Spocket is a good choice if you want to dropship from a wide range of retailers in the UK, EU, or USA.
It is not focused on AliExpress like most dropshipping apps are. It will also give you access to companies that print mugs, T-shirts, and other custom items on demand.
During the 14-day free trial of Spocket, you can track shipments, order as many products as you want, and get real-time inventory information. It does, however, only let you bring in 25 products.
The Pro Plan, which gives you more access, costs $29 a month if you pay for it all at once, or $49 a month if you pay for it each month. It gives:
250 items are imported.
Access to high-quality Spocket items
Printify is a great choice if you only want to dropship print-on-demand items. The best thing about it is that it’s free and lets you shop at hundreds of stores. You can also bring in as many print-on-demand designs as you want.
How Much Money Do I Need to Start Shopify Dropshipping?
Dropshipping on Shopify doesn’t have any of the high costs that are usually associated with starting a business. So, it’s the kind of business model you can start with a small amount of money. How low-key is low-key? Your store will be up and running for about $500.
Some of the most important things in your budget could be:
Costs of advertising research tools and Shopify plans
Subscriptions to apps
At first, Shopify gives you a free trial, but it only has a few features and lasts for 14 days. Using the trial to learn how the platform works and then upgrading would be helpful.
The $29.99 Basic plan has more features and is perfect for dropshipping businesses that are just getting started. Most of your advertising costs will come from boosting your social media posts, which could cost you up to $200.
Research tools like Ecomhunt and Dropship Spy cost about $20, but they are worth the money because they give you useful information.
You may also have to pay more if you order samples of products from your dropshipping supplier to see how well they work. It’s not a required step, but it could help you find suppliers you can trust.
We’ll talk more about Shopify apps as we go through this guide. Still, if you want to add products from your suppliers’ sites to your Shopify product listing, you will need apps. Think about apps like Oberlo, which lets you import a lot of products at low prices.
How to Automate Your Shopify Dropshipping Store
Shopify has made a great effort to make its interface easy to use. It’s not the kind of platform that needs a lot of technical know-how; everything works easily and smoothly.
Still, you might need help keeping track of orders and doing other everyday eCommerce tasks. Automation could also make your work load lighter and even let you run your dropshipping business while you’re out and about.
Here are some important automation choices to think about.
Automated Shipment Tracking
Customers who have just placed an order are often eager to know when their goods will arrive. So, it is smart to let buyers know about shipping details as soon as their order is in the works.
But as your business grows, it may be hard to do this for each customer by hand. You might even forget about it sometimes.
If you could automatically share information about shipments, this problem would be solved and customer service at your store would be much better. This kind of automation could be done with the help of apps like Spark Shipping, AfterShip, or Shipway.
Some dropshipping apps also have a feature that lets customers know when their orders have been shipped. ps.
Automated Inventory Management
Your Shopify dropshipping store won’t have any inventory to deal with.
But it’s important to know if the products you’ve listed are in stock at your suppliers. This should also be clear in your store so that customers don’t try to place orders that you can’t fill.
You can choose options in the Oberlo dropshipping app that change the status of a product in real time.
For example, if a product is out of stock, your online store will show that there are no more available. Changes in prices will also be reflected. You can also choose to be notified of these kinds of changes so you can respond as you see fit.
In dropshipping, the most common ways to market are through emails and social media. Apps like Privy let you send emails to customers who have left their shopping carts or give coupons to people who are buying for the first time.
Installing Facebook Pixel could help you market on social media. It will help you figure out what your customers like and run ads that will catch their attention.
Automated Order Forwarding
As a drop shipper, it’s your job to connect the buyer and the seller. All orders are made on your site and need to be sent to your suppliers so they can be filled.
As your business grows, this can become a tedious and time-consuming task that could cause unnecessary delays.
Apps for the supply chain like Inventory Source are a handy way to automate this. Some suppliers also have their own apps, so make sure you ask them about this when you hire them.
How Can I Make My Shopify Dropshipping Business Successful?
Here’s the main point: it’s easy to start a Shopify business, but you probably won’t become rich overnight. As with any business, it may take a while for things to get going.
But if you keep putting in the right work, you have a lot of chances to make a lot of money.
Here are some tips that could help you find success with Shopify Dropshipping.
Research, Research, Research
Finding the right niche of products to sell is likely the most important part of being successful at dropshipping. Research is the only way to do this. “Go with your gut” are the last words of many dropshipping business owners who failed.
Data about what customers want and how much competition there is in your market would be a better guide.
As you do your research, look for products that will give you an edge over your competitors. For example, you can set yourself apart from most dropshippers by selling better name brands than AliExpress’s lower-quality options.
You could also offer both wholesale and retail options so that both individual buyers and resellers will be interested.
Choose Your Suppliers Carefully
When looking for dropshipping suppliers, be careful and do your research. Try ordering samples from them to get a feel for how they handle orders. Think about other important things as well, like:
Shipping solutions: Do customers who need them have more than one choice?
Is there good packaging that keeps things safe?
Is their chain of supply reliable and consistent?
Spread the Word
Getting your brand out there is great for sales. People are more likely to buy from your Shopify dropshipping store or the products you sell if they know about and interact with them.
In light of this, you should put money into social media marketing and try to connect with your followers in a natural way. When you get more followers, more people will visit your site, and soon your sales will go up.
Be Diligent About Customer Service
Don’t get so busy running the business that you forget to take care of your customers. Be diligent about:
figuring out what customers want and giving them what they need
Quick response times on emails and all correspondences
Taking care of complaints
Stay Consistent But Fresh
Say, for example, that you did well by selling well-known American skincare brands. It’s a good idea to keep dropshipping those products, especially if your customers have grown attached to them.
But if Korean beauty products start to become more popular, it would be smart to add them to your online store slowly. Most customers like dropshippers who keep up with the latest trends, which could also help them get new customers.
What Are Some of the Challenges Faced by Shopify Dropshipping Entrepreneurs?
The best thing about Shopify dropshipping is sometimes also the hardest thing about it. By letting suppliers handle fulfillment, you give them control over a client-facing part of the business. If they make mistakes, there’s not much you can do about it.
You may also face these problems with the Shopify dropshipping business model:
Shipments of goods that are late or wrong
Some of the products delivered to customers may not be as good as advertised.
Hard to check on suppliers
Slim profit margins
A Shopify dropshipping business is easy to start, and anyone in the world can do it. It does, however, take time and effort to turn into a profitable business.
Keep trying new things and looking for new niches until you find one or more that work.