Dropshipping 101 – is a sustainable business model that can simplify the retail process.
However, if you’re new to the concept, it can feel a little overwhelming. There’s a lot involved in the operation, from figuring out the best way to drop ship to the best apps for dropshipping.
Thinking about creating a dropshipping business? Look no further than Shopify for your ecommerce store, the platform that makes it straightforward.
Are you thinking about creating a dropshipping business? Look no further than Shopify for your eCommerce store, the platform that makes it straightforward.
Whether you’ve never heard of dropshipping before or you need to learn how to dropship on Shopify, we’ve put together this tell-all dropshipping guide.
Simply put, dropshipping is a retail business where the seller doesn’t store their inventory or ship items directly. Instead, they pass on the sales orders to the supplier who fulfils them.
To break it down further, the process is as follows:
If you’re an eCommerce business that doesn’t have the resources to manage manufacturing, supply chains and/or fulfilment, choosing Shopify dropshipping may be a good option for you because:
Well, there are a few steps required. Here’s a little Shopify dropshipping tutorial:
Do you need a business license to dropship on Shopify? Technically, the answer is no. Although, it’s strongly recommended to check with your local legislation office.
Even though learning how to set up dropshipping on Shopify seems like a lot when you’re in the beginning stages, take it one step at a time. Focusing on doing each step properly before you proceed to the next will all be worth it, we promise.
Are you brand new to Shopify? Check out our article on setting up your online store using Shopify.
Before you begin the setup of a dropshipping store, it’s essential to learn dropshipping terminology.
Supply chain: refers to the path a product takes from conception to manufacturing and then into the customer’s mailbox. To sell online using the dropshipping method, you need to understand the three key players of the supply chain.
A manufacturer, wholesaler or retailer can act as a drop shipper! In other words, the company will ship products on your behalf.
Keep in mind that just because one of these parties claims to be a drop shipper, this doesn’t necessarily mean that you’ll be able to get wholesale pricing.
Also, the drop-shipper is invisible to the end customer. Its only responsibility is to stock and ship dropshipping products. Marketing, customer service, website development and everything else is all up to the retailer.
When it comes to finding dropshipping suppliers for Shopify, there are two ways you can do this. The first way is to do some research using supplier databases. The second is to download a Shopify dropship app that will link your store to hundreds of suppliers.
These seven Shopify dropshipping suppliers have the reputation of being the best:
Or you can do your own Google search simply by typing in “wholesale suppliers for product X.” However, consider this: you’ll have to search extensively to find the highest-quality drop shippers.
Alternatively, you can attend a trade show. If you have the time and money, a trade show is a great way to connect with all the top manufacturers and wholesalers in a particular niche.
Have you located the products you want to dropship? Another option is to contact the manufacturer and ask for a list of its wholesale distributors. You can then talk to the wholesalers about setting up a dropshipping account.
How to start dropshipping on Shopify as a beginner? The short answer is – find the right products.
If you manage to source trending products ahead of your competitors, you can take advantage of low costings and establish your brand as a leader in that field.
Some valuable resources include:
Click here to find out the top 10 trending products to sell on your Shopify store.
Review potential competitors in detail regarding what products they sell, how they source them and how they market them.
This can be as painless as a quick Google search for a product. Th search should highlight a range of rival websites with information that can help you to decide which products to list in your store.
Use social shopping sites to determine which products are getting the most traction when it comes to liking, commenting and sharing. These are eCommerce-enabled websites that allow users to engage and shop products directly, such as:
Have a poke around and see how sellers and buyers are using these platforms. Make a list of the products that are receiving the best reviews. You may be able to tap into a niche market.
Speaking of social networking, channels such as Facebook and Twitter can help you understand people’s needs and problems in different areas of the world. You can then use this market research to source practical product solutions.
Given that Amazon had over 300 million active users and made $280+ billion in sales in 2019, setting up a business where you can dropship from Amazon to Shopify is nothing short of tempting.
The good news is that Shopify and Amazon have a partnership where you can use the Amazon sales channel through your Shopify store. To do this, you have three options:
Shopify can also automatically update the Amazon listing to align with your product’s inventory in the Shopify admin.
If you’re just starting out with the Shopify Amazon app, you can import products directly from a third-party plugin and then show these listings on Amazon. Some of the best Shopify dropshipping apps can be easily found on the Shopify app store. Just serch for ‘dropshipping’.
Some of you may wonder if there’s a Shopify Amazon Affiliate app that you can use to earn commission on the products you list via your store. Well, the secret’s out — you can use the Buy Now button with your affiliate link on Shopify product pages.
Before you go ahead and put this knowledge of how to create a dropshipping store into practice, consider these cons of dropshipping:
That said, there are also many pros of dropshipping:
Here are 5 of the best dropshipping apps for Shopify if you’re starting fresh.
A Shopify-owned dropshipping app, the Oberlo marketplace sources high-demand, low-competition products from AliExpress that can be imported directly to your store.
Shopify App Store Link
Instead of going through Oberlo, you can add products from AliExpress to your store in just a couple of clicks. This app also comes with an auto-updating system for your pricing and stock levels.
Shopify App Store Link
This app specializes in name brands, but they also offer independent brands, trendy and affordable products and low-cost goods. Its centralized supplier and product management systems allow you to stay on top of the orders from one place — and it’s completely free!
Shopify App Store Link
This app allows you to purchase from countries worldwide at discounted prices, meaning you can sell at 30% to 60% margins. You can personalize your invoices with your logo and branding, and you gain real-time updates of stock levels for free.
Shopify App Store Link
If you’re selling original designs and artwork to be printed on merchandise such as clothing, mugs and posters, this is the app for you. You can create mockups effortlessly, have access to designers and photographers and experience white-label service.
Shopify App Store Link
In terms of setting up shipping on Shopify for dropshipping, visit your Shopify settings in the Shipping area where shipping methods are listed.
Even though you wouldn’t ship the product yourself as a dropshipping business, you’d still be charged shipping fees from your suppliers. To remedy this, you could offer free or low-rate shipping and have the shipping costs come out of your profits, charge the exact cost of shipping to the customer or offer free or low-rate shipping and increase the cost of your products.
Hopefully, our ultimate guide to dropshipping on Shopify has taught you that this can be a successful business model for retailers who don’t want the costs and hassle of storing their own product inventory.
Even so, hard work is still required not just to make your business grow but to maintain that growth in the years to come.
You need to decide whether you’re up for the challenge.
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