For budding entrepreneurs, Shopify dropshipping store is a launchpad for success in the e-commerce industry. The rationale is clear: the formidable task of managing inventory, both in terms of time and financial investment, can be overwhelming. With the dropshipping business model, the necessity of holding any of the products you offer is eliminated. This grants you the freedom to channel your valuable time and resources towards the expansion of your Shopify store and the augmentation of sales.
Dropshipping emerges as a highly adaptable approach to business operations, and its compatibility extends across the majority of the leading e-commerce platforms, with Shopify being the foremost among them. Guided by our commitment to simplifying the hustles of e-commerce entrepreneurs, we have curated this definitive Shopify dropshipping guide. It serves as an invaluable resource for those aspiring to commence a thriving Shopify dropshipping enterprise, functioning as a comprehensive "dropshipping for dummies" manual for the initial stages.
When you are prepared to embark on your dropshipping journey, adhere to our systematic guide for discovering compelling products for online sales and constructing a Shopify store. The process is remarkably straightforward, and within a concise timeframe of less than 50 minutes, you will have a fully operational Shopify dropshipping store ready to generate sales!
What Is Dropshipping?
Dropshipping is a business concept that allows online retailers to sell goods without having to have inventory on hand. The supplier is contacted directly by the business owner once a customer places an order, and the supplier arranges for the items to be shipped straight to the customer's door. Dropshipping applications, like Dsers and CJ Dropshipping, make it easier to add items from other suppliers to your store, expanding your selection.
Dropshipping emerges as the most advantageous business approach for novice e-commerce ventures. It eliminates the need for a substantial initial investment, and its setup and management are straightforward. Moreover, its flexibility allows you to seamlessly handle your dropshipping business alongside other commitments—you aren't compelled to resign from your current job to establish a lucrative store. Additionally, there exist numerous dropshipping strategies that you can employ to enhance visitor traffic to your business.
What Is Shopify?
Shopify stands as the premier e-commerce platform, empowering entrepreneurs to establish their own online stores effortlessly. Its user-friendly interface ensures that even those without technical expertise can construct their stores. Ideal for those venturing into dropshipping, Shopify provides access to a plethora of dropshipping and marketing tools integrated into its platform.
How Does Dropshipping Work on Shopify?
In essence, Shopify serves as the cornerstone of your e-commerce venture. It offers entrepreneurs the framework to initiate and design their stores, with a backend that facilitates business operations without incurring hosting fees. By paying Shopify's affordable monthly fees, your e-commerce store runs seamlessly, allowing you to rely on Shopify to maintain your store while you concentrate on driving sales and expanding your business. This holds true for Shopify dropshipping stores as well—they adhere to the same principles as regular Shopify stores, requiring the installation of the DSers app for product sourcing.
Shopify & Dropshipping - Made For Each Other!
Dropshipping proves to be the optimal business model for entrepreneurs aiming to establish their e-commerce stores with minimal upfront investment, and Shopify stands out as the most straightforward platform for creating and managing your store.
When dropshipping on Shopify, concerns about excess inventory are eliminated, as you only order the necessary quantity of products to meet customer demand. This differs from traditional e-commerce businesses, which involve either manufacturing products or bulk purchasing from wholesalers.
If you choose to integrate a Shopify Dropshipping app such as the ones we’ve shared further on in the article, inventory management becomes a breeze with just a few clicks, adding to the simplicity of Shopify dropshipping.
Due to its simplistic nature, the Shopify dropshipping model is prevalent across many industries such as tech gadgets, kid's stores, and women's fashion, to name a few.
Shopify offers a range of benefits tailored to various business needs. The platform's beginner-friendly nature allows easy store setup and management without advanced technical skills, thanks to its cloud-based architecture that handles updates and technical aspects seamlessly. With an extensive selection of apps, including over 150 designed for dropshipping, Shopify provides unique functionalities and efficient store management. It excels in shipping options, offering flexibility and partnering with leading shipping companies like DHL and UPS.
In the realm of payment gateways, Shopify stands out with over 100 options, including third-party providers like Skrill and Amazon Pay, as well as its proprietary Shopify Payments, available without extra fees in specific countries and automatically adjusting prices based on the user's country. Opting for Shopify reduces the risk factor, enabling small businesses to experiment with new product launches without upfront costs. Moreover, Shopify proves to be SEO-friendly, enhancing search engine visibility through features like meta-tags, titles, alt text, and keywords, and integrates seamlessly with Facebook for broader reach, making it an appealing and comprehensive solution for dropshipping businesses.
Is Shopify Dropshipping Worth It?
Certainly, Shopify dropshipping can yield massive profits for merchants. This would explain why nearly a third (27%) of retailers are now using the dropshipping model. In fact, by 2025, the expected value of the dropshipping industry will be $558 billion worldwide. To top that, dropshippers maintain an industry average profit margin between 15% and 20%, which is huge!
By partnering with the right suppliers, you can generate consistent profits without incurring the substantial costs typically associated with wholesale operations.
How Much Can You Earn As A Dropshipper?
Based on the level of experience, dropshipping income can be classified into three categories. Now, let's get acquainted with these three types of dropshippers, shall we?
Novice A: The Novice with a Fresh Store
Ah, the newcomers. These are individuals venturing into dropshipping, likely with a new store and limited experience in the model. Typically, they earn around $1000 per month or may not generate any income at all.
Novice B: The Novice with a Winning Product
Novice B is the type of dropshipper who discovers a successful product, hitting the jackpot. However, there's a catch—they struggle to fully grasp the nuances of marketing. Dropshipping requires knowledge and experience for substantial sales.
Intermediate: The Intermediate Dropshipper Not Yet Scaling
This dropshipper employs various marketing strategies, invests time in testing their items, and starts building their brand. Although they haven't fully scaled ads, their potential earnings range from $1000 to $5000.
Advanced: The Advanced Dropshippers with Automated Operations
Advanced dropshippers possess a comprehensive understanding of the business concept. They recognize the importance of offering in-demand products and excel in utilizing multiple platforms for marketing. These experts adeptly navigate scaling and halting ads, with potential earnings reaching up to $10,000 per month.
Here's a breakdown of the average income for each category:
Type of Dropshipper vs Average Monthly Income
- Novice A ➜ $0-$1000
- Novice B ➜ $500-$2500
- Intermediate ➜ $1000-$5000
- Advanced ➜ $50,000-$100,000
Is Shopify Dropshipping Legal?
In most cases, dropshipping through a Shopify store is entirely legal. However, caution is advised when selecting suppliers, as some may engage in the illegal use of other companies' intellectual property. As long as your chosen suppliers adhere to ethical business practices, legal issues should not arise while conducting dropshipping on Shopify.
Where To Find Shopify Dropshipping Business For Sale?
For those who prefer not to start a dropshipping business from the ground up, purchasing an existing one is an option. Platforms like Flippa serve as marketplaces where entrepreneurs can list their e-commerce businesses for sale, providing interested buyers with opportunities to acquire established dropshipping ventures.
How to Start Shopify Dropshipping?
Name Your Store
When initiating your Shopify dropshipping store, one of the most crucial steps is choosing a name. Consider the following tips when brainstorming a name for your online store:
- Keep It Simple
- Get Creative
- Make It Sticky
Finalize a Potentially Profitable Niche
Determining the ideal dropship products for your Shopify store is a fundamental step, and while the necessity is evident, identifying customer preferences may not always be straightforward. Commence your Shopify dropshipping venture by defining a niche, representing a distinct segment within a broader market with shared preferences or interests—examples include avid gamers, pet enthusiasts, or fitness devotees.
To choose a lucrative niche, compile a list of your personal interests, such as calligraphy or custom apparel. Subsequently, conduct thorough market research to gauge consumer interest in related products. Platforms like Social Media, Google Search, Google Keyword Planner, and Google Trends prove invaluable in identifying profitable dropship niches and trending products within each niche.
Upon selecting a niche, study competitors within that space. Since you share a target audience with these competitors, assessing the types of products and designs they offer is crucial for setting your product line apart. We have shared 5 potentially profitable Shopify dropshipping product categories, both lucrative and in high demand, for your consideration:
- Electronics and Tech Gadgets
- Fashion and Apparel
- Home and Kitchen
- Beauty and Personal Care
- Sports and Fitness
You must also undertake the following to more successfully optimize your niche selection.
1. Evaluate Profit Margins: Balance competitive prices with sustainable profit margins. Opt for products that maintain healthy profits while staying competitive.
2. Research Seasonal Trends: Be aware of seasonal demand fluctuations. Plan your product lineup accordingly and consider offering complementary items for year-round stability.
3. Stay Updated on Market Shifts: Regularly revisit your product lineup, and adjust based on audience demands for a successful dropshipping store.
This strategic approach ensures that your Shopify dropshipping store offers products tailored to a specific audience, increasing the likelihood of attracting and retaining customers within your chosen niche.
Choose Your Shopify Plan
Having identified your niche and envisioned your product line, the next step is to finalize the setup of your dropshipping store by creating a Shopify account. If you prefer to dip your toes in before fully committing, Shopify offers a 14-day free trial. However, given its status as a premier e-commerce platform, you're likely to be won over by Shopify's user-friendly experience during this trial period, making the decision to start dropshipping a seamless one.
Now, the only task remaining is to choose a pricing plan. For Shopify dropshipping, selecting one of the three plans that align with your current requirements and budget is crucial. The Basic plan, the most economical option, includes simple reports and accommodates two staff accounts. On the other end, the Advanced account, the priciest but most comprehensive choice, offers a custom report builder and supports up to 15 staff accounts, making it ideal for more established businesses.
Optimize Your Shopify Store’s Settings
Configuring your payment settings is the first and foremost step in the Shopify dropshipping process, as it determines how you receive customer payments, establishes shipping rates, and sets store policies. Here's a guide on setting up your payment method:
1. Navigate to the Shopify Settings page.
2. Under General Settings, select the Payment tab.
It's important to note that some banks may not allow international transactions by default, potentially causing payment issues. To prevent such issues, consider integrating your PayPal account.
Design Your Shopify Store Front
Whether you already have a business logo or brand guide, and choose fonts/colors, or you need to create them, Shopify's dropshipping app provides tools for logo creation. Follow these steps:
1. Visit www.shopify.com/tools/logo-maker.
2. Choose your business niche and preferred logo visual.
3. Explore multiple logo options generated for you.
Once you've created your logo, customize your store theme and design to align with the logo's colors. This ensures a cohesive brand image across all social platforms where you expand your Shopify e-commerce presence. Below is an the dropshipping store we set up for our client, RNZ Wireless.
Explore various free and paid theme templates available in the Shopify theme store, or through third-party platforms such as Envato and Themeforest, to find the one that best suits your business needs.
Master The Art of Upselling & Cross-Selling
Customizing your Shopify checkout page is one of the core aspects you should focus on. The checkout is the final step where customers will either purchase or abandon the cart, and therefore extra effort must be put into making the checkout page as engaging and as easy to use as possible yet keeping it concise.
However, that's not all. In order to boost your sales, you must also learn the art of upselling and cross-selling on your checkout page, as well as continuously testing and optimizing your average order value strategy. HypeUp is a Shopify app you can use to kill two birds with one stone. Using the app, you can upsell and cross-sell products on your post-purchase page and continuously test and optimize to further enhance your average order value.
HypeUp is a Shopify app that focuses on post-purchase upsells and cross-sells. It's designed to increase your average order value by offering customers relevant products after they've made a purchase. The app allows you to display notifications in the form of text, images, and banners. That’s not all! You can also create scenarios to display tailored product recommendations that align with your customer's preferences.
- Create tailored post-checkout product recommendations to upsell and cross-sell.
- Use dynamic & static sources to boost sales and average order value.
- Elevate visuals with Display Notifications - banners, images & announcements.
- Access real-time analytics by tracking impressions, upsells, and conversions.
- Basic for $16.99 per month.
- Advanced for $24.99 per month.
- Plus for $34.99 per month.
Select a Dropshipping Supplier
With numerous dropshipping suppliers available, thorough research is crucial to choose a reputable one. The listed dropshipping suppliers below are shortlisted by SANOMADS Shopify Partner based on various criteria. Consider which one aligns with your business needs.
Partner with Reliable Suppliers - Vet suppliers for product quality, shipping times, and customer service. Reliable suppliers ensure timely and satisfactory order fulfillment.
These are the top 3 dropshipping apps you can try in 2024:
DSers, a proficient order management platform, stands out as a reputable AliExpress dropshipping partner on Shopify. Catering to millions, DSers simplifies the dropshipping process with its user-friendly and effective methods.
- Supplier Optimizer
- Bulk Order
- Bundle Products
- Stock Management
- Multiple Stores Management
- Auto Update Order Status
- Automatic Pricing
- Variants Mapping
- Products Division
- Buy One Get One Offers
- Import List (for managing AliExpress products)
- Easy adaptation
- Tracking and syncing shipping
- Responsive support team
- Live online and video training options
- Multiple Shopify stores in one account
- No adverse impact on page speed
- Improvement needed in product mapping
- Training options could be expanded
- Free trial and a free forever version
- Monthly plans: Advanced ($19.9), Pro ($49.9), Enterprise ($499)
Shopify Ratings: 5.0
2. CJ Dropshipping
CJ Dropshipping, serving professional dropshipping, focuses on order, supplier, and sourcing management. Features include global warehouses, quality inspection, free product sourcing, cash on delivery, automatic order fulfillment, and POD service.
- Global warehouses
- Quality inspection for packages
- Free product sourcing
- Cash on delivery
- Automatic order fulfillment
- POD service
- Suitable for use
- Great customer service
- Fair shipping time
- Reasonable cost
- Prompt sourcing option
- Fast problem-solving
- Multiple support providers
- Bulk dropshipping orders
- Shipping could be accelerated for some customers
- Incorrect charging can worsen the user experience
- Stock status must be monitored for a positive customer experience
Free app; pay during the product purchase process
Shopify Ratings: 4.7
Trendsi, a fashion app combining technology and fashion, offers an easy dropshipping process. Features include finding products, fast shipping, custom packaging, and inventory sync.
- Finding products
- Fast shipping and return
- Custom packaging
- Inventory sync
- No upfront inventory costs
- User-friendly app
- Helpful support team
- Well-designed website
- Reasonable pricing
- Extensive product range
- Mobility support
- High-quality products
- Occasional delays in shipping
- Importing time is considered slow
Free app; pay only when buying a product sample
Shopify Ratings: 4.9
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Add Products To Your Store
Once you've finalized the design of your Shopify dropshipping store, the next step is to add products and kickstart your revenue generation. For this example, we're discussing installing the DSers app, a top-notch tool for entrepreneurs seeking to import dropshipped products to their stores on Shopify. DSers seamlessly integrates with AliExpress, allowing you to effortlessly import and offer products right from the beginning.
Time to create Collections in your store. Create collections for every product category that you intend to sell; for example, "T-shirts" for a t-shirt collection. If you need product ideas, explore the vast of unique dropshipping products, and for guidance on selecting products to sell, check out our comprehensive guide.
Once DSers is set up, use the app to browse AliExpress products you're interested in selling. Click the Import button on selected products, and they will be seamlessly imported into your Shopify dropshipping store.
Launch Your Shopify Dropshipping Store
You’ve now added all the necessary information you’ll need to launch your Shopify dropshipping store. To launch your store, simply go to the Sales Channels tab on your Shopify admin dashboard. From there, select the “Add an online store” option. Once you’ve finished this step, you’ll have an online store that’s up and running!
Does Shopify dropshipping remain a viable option in 2024? While dropshipping offers certain benefits, it also brings about various challenges, such as navigating complex shipping issues when dealing with multiple suppliers, each with their own shipping rates for customer orders. The positive aspect is that, with thoughtful consideration and strategic planning, many of these challenges can be overcome, paving the way for the development of a successful Shopify dropshipping business.
If you’re looking to start off your Shopify dropshipping business, we can get you upto speed on your journey! Reach out to our team of Shopify Experts below!