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Growing Your Ecommerce Business By Dropshipping On Shopify

While dropshipping on Shopify has become increasingly popular in recent years, it's essential to understand the basics of how this business model works before getting started.

With so much competition in the eCommerce space, it's more important than ever to differentiate your business and offer unique products and services to your customers if you want to succeed.

This article will cover the basics of dropshipping on Shopify, including what it is, how it works, and the most important factors to consider when starting a dropshipping business.

Let's get right into it.

Why You Should Dropship On Shopify

Dropshipping is the perfect business model for entrepreneurs looking to set up their own business with little up-front investment, and Shopify is the most straightforward platform you can use to create and run your store.

When you dropship on Shopify, you'll never need to worry about excess inventory, as you will only be ordering products when an order comes in. This system is unlike a typical eCommerce business, which involves manufacturing or purchasing products from a wholesaler in bulk.

Why You Should Dropship On Shopify

Image Credit: http://shopify.com.sg

That said, if you're looking to start a new eCommerce business, or if you're interested in dropshipping, here are some of the reasons why Shopify is the best platform for you:

  • Shopify is the most straightforward platform to use when starting an online store. Its user-friendly interface makes it easy to create your store, add products, and manage your inventory.
  • Shopify allows you to drop ship products from a wide range of suppliers, making it easier for you to find products that your customers will love.
  • Shopify offers built-in payment processing features so that you can accept payments from your customers directly through your store. This eliminates the need to set up a separate payment gateway or merchant account.
  • Shopify comes with many built-in features, including SEO tools, marketing tools, and shipping features, so you don't need to purchase additional software or services to run your store.

If you're looking for the leading eCommerce platform that makes it easy to start and run your own online store, then Shopify is one of the best options in the market for you.

Now that we've covered why having a Shopify account is great when dropshipping, let's take a closer look at how this online business model works and how you can start selling on Shopify.

Keep in mind that the following tips are in no particular order.

Consider Your Dropshipping Niche

Running an eCommerce store can be a great way to make money, but you need to find a profitable niche with growth potential.

When it comes to dropshipping, a few niches are more popular than others; Here are some of the most popular ones:

  • Clothing and accessories
  • Electronics
  • Beauty products
  • Home decor
  • Kids products
  • Pet products

There are many other niches you can explore, but these are some of the biggest ones. When choosing a niche, it's essential to consider the following factors:

  • The size of the niche market
  • The profitability of the niche
  • The potential for future growth in the niche
  • Your interests and passions

When choosing a niche, it's essential to find a market you're interested in and passionate about. This will help you stay motivated throughout the ups and downs of starting and running your own business.

Finding The Right Products To Dropship

When starting a dropshipping business, one of the most important actions to take revolves around finding the right products to sell. You want to make sure that you're choosing products that people will want to buy and that you can find a supplier for.

When looking for products, it's a good idea to think about what kind of items are popular (and considered high-value) in your industry. For example, if you have a fashion blog, you might consider selling the latest clothing or accessories. If you have a cooking blog, you might want to sell kitchen supplies or cookbooks that make the preparation of all-time favorite recipes quick and easy.

You can also find product inspiration by doing a Google search for "popular items on Shopify [industry] [year]." This will give you a list of popular products on Shopify in your industry at the time of searching, which can help you come up with ideas for your store.

Knowing how to find products to sell on Shopify is a great skill to have and will lead to long-term success for your business.

Finding And Using The Right Manufacturers

A Shopify dropshipping business is only as successful as the suppliers you work with. As a dropshipper, you'll need to find suppliers who can not only provide you with high-quality products but also offer competitive prices.

It can be challenging to find reliable suppliers when you're first starting out, so here are some tips to help you find the best manufacturers:

  • Use online marketplaces: Online marketplaces like AliExpress and Oberlo are a great way to find reliable suppliers. These platforms allow you to search for verified suppliers and products, so you can be sure that you're working with reputable suppliers.
  • Contact manufacturers directly: If you want to work with specific manufacturers, you can contact them directly to discuss opportunities for dropshipping. Many manufacturers are happy to partner with online retailers and will be willing to dropship their products for you.
  • Use social media: Social media is another excellent way to find suppliers. Platforms like Instagram and Facebook are a great way to find reputable suppliers and connect with other entrepreneurs looking for reliable suppliers.

When it comes to finding the right supplier, it's essential to do your research and ensure that you're working with a reputable company. The last thing you want is to find yourself in a situation where you can't get the products you need to run your business - especially after customers have placed their orders.

Choosing Your Shipping Strategies

When it comes to having a successful Shopify store, shipping plays a crucial role.

As a dropshipper, you'll need to find the right shipping solutions that fit your business and your customers.

Here are some of the most popular shipping options for dropshipping stores:

Free Shipping

Offering free shipping is a great way to entice customers to buy more products from your store. When you offer free shipping, not only are you building trust with your customers, but you're also encouraging them to buy more products.

There are a few ways that you can offer free shipping on your Shopify store

  • Set a free shipping threshold: You can set a minimum order amount that qualifies for free shipping. 
  • Offer free shipping on all orders: You can offer free shipping on all orders, regardless of the order amount. This is a great way to attract new customers and increase sales; however, you must know your numbers.

Single Flat Shipping Rate

Another popular shipping option for dropshipping stores is to set a single flat shipping rate. This means that all of your products will be shipped at the same price, regardless of the order amount or the destination.

There are a few benefits of using a flat shipping rate:

  • It's easy for your customers to understand: When you use a flat shipping rate, your customers know exactly how much they'll be paying for shipping. This makes it easy for them to compare prices between your store and other retailers.
  • It can increase order value: By offering a flat shipping rate, you're encouraging your customers to buy more products from your store. This can lead to an increase in sales and increased profits for your business.

While there are benefits to having a flat shipping rate, there are a few things to consider when setting one.

  • Ensure the rate is competitive: It's essential to ensure that your shipping rate is competitive with other retailers. If your shipping rate is too high, your customers will be more likely to buy from your competitors.
  • Take into account the cost of shipping: From a business point of view, you need to consider the cost of shipping when setting your rate. If the cost of shipping is higher than the profit you make from selling a product, you'll lose money on each sale.
  • Make sure the rate makes logical sense with all the products you sell: You need to ensure that your flat shipping rate is financially viable with all your products. If certain products have a higher shipping cost that you must pay for, a flat shipping rate might complicate things.

Tiered Flat Rates

Another option for shipping is to use tiered flat rates. This means that you'll charge different shipping rates for various products, based on the product's weight or size.

Here are a few things to keep in mind when setting up tiered flat rates:

  • Make sure that the prices are fair and reasonable: you don't want to lose money on shipping, but you also don't want to make it too difficult for customers to purchase products because of shipping rates that are way too expensive.
  • Track everything: Keep track of the weight and size of your products so that you can update shipping as needed while staying profitable.
  • Be transparent: Be sure to clearly state the shipping rates on your product pages so that customers know what to expect.

Per-Item Shipping Rates

Shopify can set per-item shipping rates, making it perfect for setting up a dropshipping business. You can charge different rates for different items, which allows you to cover the cost of shipping while still making a profit on each sale. This is a great way to ensure that you're always making a profit on your products, no matter the shipping costs.

This will complicate things for you as you are setting up your store but can lead to larger margins down the line.

A great thing about Shopify is that various shipping calculators (such as the Shipping Rates Calculator Plus) can help you figure out how much it will cost to ship each item. This makes it easy to set accurate shipping rates and ensure that you're not losing money on any sales.

Building Up A Shopify Store For Free

When it comes to starting a Shopify store, there are a few things to keep in mind:

Shopify is the perfect platform for anyone who wants to start their own dropshipping business. It's easy to use, has many features, and is ideal for anyone who wants to create a custom storefront.

In addition, the pricing plans and features of Shopify are very competitive, making it an excellent option for anyone who is looking to start a business on a budget.

If you're looking for a platform that makes it easy to manage your inventory and set up shipping rates, then Shopify is the right choice for you.

Building Up A Shopify Store For Free

Image Credit: Shopify.com

Starting a store is as simple as creating an account, and you can be up and running in no time.

There's also a 14-day free trial that allows you to explore the features of Shopify without making any commitments or paying any fees. 

This means that you can spend two whole weeks learning the ropes and deciding if this platform is the right one for your dropshipping needs.

Consider Which Shopify Dropshipping Apps You'll Use

Once your store is up and running (or during the two-week trial mentioned earlier), you'll need to consider which apps you'll use to help run your business.

There are many different Shopify dropshipping apps available, and it can be challenging to decide which ones to use.

The best way to decide which apps are right for you is to experiment with a few different ones and see which work best for your specific needs.

There are a few different options for finding an app to help you sell products, each with its use cases. These include apps that:

  • List your products for sale on other websites.
  • Help you manage your inventory.
  • Ship your products automatically.
  • Process payments to help with custom payment solutions.

The list of Shopify apps that can help you run your store is endless, and experimentation is critical.

A successful Shopify dropshipping business will have the perfect balance of apps to help manage the business while still providing manual guidance as needed.

Attracting Customers To Your Shopify Dropshipping store

A key point of having a successful Shopify store is that you need to attract the right customers to it.

There are a few different ways to do this:

  • You can use social media to promote your products.
  • You can create a blog to provide helpful content related to your industry.
  • You can participate in online forums and discussion groups, providing helpful answers to the most frequently asked questions.

The best way to attract customers to your Shopify store is to use a combination of all of these methods, increasing your store's authority in the industry over the long term.

On the other hand, there is also paid adoption, which costs you money but increases how fast you gain traction. For example, if you decide to run Facebook Ads for Shopify, you can target potential customers interested in the products you offer.

The critical thing to remember is that you need to promote your store and products constantly - otherwise, you'll find it challenging to make sales.

Also, being dialed into your target audience will help you tremendously when marketing your products.

In this case, you'll be able to use well-known pain products to sell the right solutions through your products.

Going The Extra Mile

I previously mentioned that a dropshipping business model is great for anyone looking to start a business on a budget.

This is because a dropshipping business doesn't require you to invest in any inventory, and you can run your business from anywhere in the world.

However, you'll still need to put in a ton of effort if you want your business to succeed.

For starters, you'll need to choose a good store design, have top-notch products, create quality content to attract people, and actively market your products.

Even more importantly, you'll need to ensure that you're always offering excellent customer service so that your customers are happy with their purchase and want to return for more.

Going the extra mile to increase your Shopify sales and your customer's lifetime value can be done as follows.

Use A Shopify Theme That Is Designed For Dropshipping

A suitable Shopify theme can make a big difference in the success of your business.

Use A Shopify Theme That Is Designed For Dropshipping

Image Credit: http://shopthemedetector.com

A few Shopify themes are explicitly designed for dropshipping businesses, and these themes will make it easier for you to manage your inventory and sell products.

You can find these themes by searching for "dropshipping" in the Shopify theme store.

Create A Strong Branding Strategy

A strong branding strategy is essential for any business, and it's necessary for a dropshipping business as well.

When you create a brand, you develop an identity for your business that potential customers will remember.

You can create a brand strategy by coming up with a logo, color scheme, and tagline for your business.

You can also create a mission statement to help define your brand.

More importantly, you live your brand by ensuring that you also put your customers first.

Don't Forget About The Importance Of Your Store Name

While you can change your store name as needed in the future, most successful dropshipping businesses build brands around their store name.

Dropshipping suppliers who just "wake up one day" and change their store name can find that they lose organic traffic and goodwill from past customers.

Your store name is an integral part of building your brand, so make sure you choose a great one that you intend to keep.

Offering Discounts / Better Offers

Being full of functionality, Shopify allows you to offer discounts to your customers on the products you are selling.

This can be a great way to increase sales if the discounts you are offering are reasonable and well-timed.

You can offer discounts (or create better offers) in a few different ways:

  • By setting a sale price for a product.
  • By giving a percentage discount off of the regular price of a product.
  • By providing a free item or service when someone makes a purchase.
  • By bundling several products together and offering them at a discounted price.

The best way to find what works best for your store is to experiment with different discount methods and see which ones produce the best results.

Responding To Reviews

One key aspect of using Shopify as one of your primary sales channels is responding to reviews.

This is a critical way to improve your customer's experience, and it can also help you build a better reputation for your business.

If you receive a positive review, make sure to thank the customer for their kind words and let them know that you appreciate their business.

If you receive a negative review, always take the time to respond politely and professionally.

Thank the reviewer for their feedback, and if possible, try to offer a solution or resolution.

Look At Your Analytics

Shopify offers a wide range of analytical data that you can use to improve your dropshipping business.

This data includes information about traffic, sales, and conversion rates.

By studying this data, you can make changes to your store that will help you increase sales and grow your business.

Look At Your Analytics

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You can find this data by logging into your Shopify admin panel and clicking on the "Analytics" tab.

Make Full Use Of Your Online Store Builder

A Shopify dropshipping website builder is a great way to create a professional-looking online store without coding experience.

Shopify also offers a wide range of professionally designed templates that you can use for your website - some of which are free.

In addition, fully customizing your website can be a great way to make your business stand out from the competition.

Creating Product Collections

A dropshipping Shopify store allows you to create product collections to help organize your products.

This can be a great way to help customers find the products they are looking for, and it can also make your store easier to navigate.

Conclusion

Whether you want to run one or multiple successful dropshipping businesses, Shopify is probably one of the best eCommerce platforms for your needs.

Once you log in to your Shopify dashboard, you will see all the different options available to you, making it easy to get started.

These options include setting up your eCommerce store, designing your site, adding products, and more.

In addition, help is never in limited supply. Ensure you take advantage of the wealth of information and resources that Shopify has to offer when setting up and running your own dropshipping store on Shopify.

About the author 

Mike Vestil

Mike Vestil is an author, investor, and speaker known for building a business from zero to $1.5 million in 12 months while traveling the world.

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