If your business desires to venture into e-commerce without having to pump out large sums of money to manage the manufacturing process and supply chains, then drop shipping on Shopify could be your solution. Dropshipping will end all up-front inventory expenses and shipping logistics, making it incredibly easy for any business to step into e-commerce. For many entrepreneurs, selling products through dropshipping is much easier due to the simplicity of this business model.
This article will give you a better understanding of how dropshipping works and how you can make money. It also explores how your business can set up shipping on Shopify.
What is dropshipping?
Dropshipping is a retail fulfillment method that allows shop owners to sell directly to consumers without keeping any inventory. What the dropshipping shops do is, whenever an individual makes an online order, they purchase the product from a third party and see to it that it has been shipped directly to the customer. The third party could be a manufacturer, wholesaler, retailer, or individual who sells products from his backyard.
It’s a very flexible way to conduct an online business and can make life so much easier for new entrepreneurs. With the right tips, you can set up your dropshipping store and step into the e-commerce arena because it’s an easy-to-do business model. And what’s more, you might not have to quit your day job if you’re starting because the dropshipping process can easily be done in your spare time.
The dropshipping business model
Now that you understand the term, let’s look at the dropshipping business model. One good thing about this model is you can easily expand your business globally whilst sitting in the comfort of your home. After all, all you’ve got to do is click!
Here is a step-by-step guide on how dropshipping works:
Step 1: Your customer makes an order from your online shop
Step 2: Your shop automatically sends the request to your dropshipping supplier
Step 3: Your dropshipping supplier views your request and prepares the order
Step 4: Your dropshipping supplier ships the order to your consumer’s address
You don’t have to handle the product yourself. You save yourself all the headaches that come with storage, sorting, and sending products to the customer.
Advantages of dropshipping
Dropshipping is a great method to conduct an online business because it’s very flexible and easily accessible. Here are some of the advantages:
It’s easy to get started.
Doing an online business where you don’t have to physically handle the product, manage the warehouse, and sort the customer’s order yourself is a great advantage. There is no tracking of stock managing stock level needed. So many things to worry less about!
You don’t need much capital.
You can start an online shop without having to invest a lot of money into it. No product purchase is necessary until your customer has paid you for the sale. This makes it quite easy to start an e-commerce business with very little money because there are no upfront expenses compared to the traditional retail shop.
You can sell a wide range of products.
You can easily provide your customer’s with a wide variety of products. With no upfront costs, nothing can limit you on what you can offer to your customers. You can easily determine what works best for you when you sell a wide range of products.
It’s time-saving
Sorting out products and preparing them for delivery can be time-consuming. However, with dropshipping, you know all these are handled by your supplier, so you don’t have to worry about storage, handling, labeling, or shipment of goods. This gives you more time to focus on expanding your business and increasing traffic.
Preparing for a dropshipping business
You need to consider a few points before embarking on the dropshipping journey. Here are some of the considerations you need to make to run a successful online store:
Your target market
Figure out the products you would like to sell and who your targeted customers are. You can look for products on demand or turn your passion into a business. Whatever you decide on, make sure it brings you the money home.
Pain points and challenges
Consider the pain points you have or those around you. This might help you determine the products that can solve the challenges people regularly face.
What is Shopify dropshipping?
Firstly, let’s gain a little more understanding of what Shopify is. Shopify is the most popular e-commerce platform for entrepreneurs. It’s your one-stop shop to run your online business successfully. Here, you get all your marketing done, get a payment processor and a shipping company at the same time.
More precisely, dropshipping with Shopify allows you to host an online shop that enables you to create a website, sell your products and post blog articles. All Shopify plans have a free POS Lite plan that you can use to sell your products on your own. All you need to do is register a store in your admin and order the accompanying hardware.
Shopify has over 100 payment methods, including Shopify Payments, that save you a great deal in transaction fees.
You can find the best shipping partner that meets your business goals without hassles. You can even arrange for product pickups with DHL or UPS or any other delivery partner you prefer.
Dropshipping on Shopify is quite interesting. Wherever you are, you can launch your online dream business with Shopify and start selling to your customers. You will definitely love your experience with Shopify!
Understanding the drop shipping process on Shopify
To manage a successful business, you must constantly market your products, engage with customers, sell them, and make money out of them. Shopify will do all of this on its super all-in-one platform. When you sign up for a Shopify dropshipping plan, you’ll receive the Shopify core product, which contains templates for your online store, integrated payment processing, SEO, and marketing tools. You can customize your online shop’s capabilities with Shopify’s development tools, and APIs made accessible to you. You will need to pay the Shopify fees every month, and you’re right, they are fairly priced.
How to start a dropshipping business on Shopify
Ready to start your journey and see how fast can you profit from dropshipping? Here are the steps you need to follow so you can open a dropshipping shop with Shopify:
1. Name your store
Keep it simple and catchy. You can opt to use Orbello’s business name generator. You’ll be given a number of options, and you can choose one that best describes your company. Check for its availability; if someone else is not using it, you’re ready to go!
- Create an account
Go to the Shopify website and click “Get Started.” Shopify will request your email address, the creation of an account password, your store name, and more details. After this, your Shopify account will be ready for use.
- Optimize settings
Click on settings on your Shopify dashboard. To receive payments, you’ll enter your business address and banking information, such as a PayPal or checking account.
To add payment information, select the “Payments” tab on the left and add your payment information.
The next step is to create your store policies. Click on the “Checkout” tab and scroll down to the bottom to find a standardized privacy policy, refund policy, and the terms and conditions for your online shop. Click on “Generate,” and it’s all set up.
Next, set up your store’s shipping rates. Click on the “Shipping” tab and set it according to your preferences.
- Launch your store
To launch your dropshipping store, click on the “Sales Channels” option on your Shopify settings. The next step is to select the “add an online store” option.
- Design your store
Time to create the look and feel of your online store! A beautifully presented store can attract customers and help boost your sales. Shopify has a built-in theme store that offers free and premium options. If you’re a start-up, you might want to choose the best theme that describes your business from the free options.
The next important step will be to choose a logo. This will help customers easily identify your brand. You can have graphic designers create a logo for you or have online logo makers generate it within a few minutes.
Once you have these in place, your store will become visually appealing.
- Add products
You can use an app like Oberlo to get inventory for your store. It has a wide range of goods to choose from. These products are obtained from both the Oberlo marketplace and AliExpress. You can select the images and write your own item description. After installing Oberlo with Shopify, add a category to your Shopify store and name it based on the type of products you’ll be selling. For instance, if you’re into perfumes, name it “Perfumes.” Click the import button on the products you’re into, and they’ll be automatically imported into your Shopify dropshipping store.
- Market your store
Launching marketing campaigns will help drive traffic toward your shop and increase sales. Do thorough research and determine which social media platform is best to market your products.
Shopify taxes dropshipping
You’re required by the law to pay taxes to the government. You can easily set up Shopify to handle your sales tax calculations. Note that Shopify regularly updates its default sales tax rates and, should you choose them, confirm if they are correct and updated. You should constantly check with your local tax authority to ensure you charge your customers the sales tax rates correctly and to ensure you file and send the taxes well. Shopify has a lot of reports that can help you file and remit your taxes correctly.
How to make money dropshipping on Shopify
You’re probably asking yourself, what’s a good profit margin in dropshipping? The dropshipping profit margin varies, probably due to the different niches businesses are in. However, to make a profit with your dropshipping business, it’s a good idea to find out how much it costs to get a customer to buy your product and set the price of your products based on that. Find out how much it costs to host an online store, your domain name, and your advertising. With these in mind, you can determine your products’ prices and make money from them.
Finding the right supplier and products can also help you make money. You wouldn’t want your customers to return goods because of poor quality. This can be detrimental to your reputation and dropshipping profit formula.
Shopify dropshipping suppliers
If you’re wondering how to set up shipping on Shopify for dropshipping, you’re at the right place. There are quite a number of dropshipping suppliers on the market. To get the best supplier, ask yourself a few questions- Is this supplier suited for a start-up or established business? Where is the supplier located? How much time does he need to sort and send a product after a customer has placed an order?
We’ve listed for you 6 of the best dropshipping suppliers-
- Oberlo
- CJdropshipping
- Supplymedirect
- CROV
- Modalyst
- DropnShop
How to fulfill orders on Shopify dropshipping
Use Oberlo! It helps you to easily import products from suppliers straight into your Shopify store and ship directly to your customer in just a few clicks.
This is what you can do with the app:
- Import products directly from suppliers
- Fulfill orders automatically
- Inventory and price auto-updates
- Pricing Automation
- Product customization
So if you have questions about how to fulfill orders on Shopify dropshipping, your answer is Oberlo.
Final word
Dropshipping on Shopify can take your e-commerce business to the next level and boost sales without investing much in upfront costs. With the right suppliers and products, you can expand your business easily on the platform.
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