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by Mike Vestil 

How To Dropship On Shopify: The Complete Guide To Shopify Dropshipping

Dropshipping is a business model in which eCommerce entrepreneurs sell products without carrying any inventory. When a store owner receives an order from a customer, they contact the supplier, who will then ship the products directly to the customer's door. Dropshipping is a great way to start an online business with little upfront investment.

In this article, I'll explain all you need to know about dropshipping on Shopify, including how to find dropship suppliers and set up your Shopify store for success.

Let's dive right in.

What Is Shopify Dropshipping?

Shopify dropshipping is a business model in which eCommerce entrepreneurs sell products through the Shopify platform. While various other models use this platform to conduct their business, the dropshipping model is unique because it doesn't require entrepreneurs to hold any stock.

By having reliable suppliers that can ship products directly to customers on your behalf, you can focus on other essential aspects of running a successful online business, like marketing and customer service.

What's more, Shopify provides entrepreneurs with a user-friendly platform that makes creating and running an online store easy. As opposed to learning how to create a dropshipping website, Shopify takes care of the website-building process for you.

These factors make Shopify dropshipping an excellent option for those looking to start their own eCommerce business.

How To Set Up Dropshipping On Shopify

Here's all you need to know about dropship on Shopify step by step. While these instructions are relatively straightforward, there might be slight variations based on the products or services you want to sell and the supplier you choose to partner with. That said, most instructions will apply no matter what type of products you're looking to sell.

Sign Up For A Shopify Account

Learning how to start dropshipping begins with signing up for a Shopify account. Shopify offers three plans: Basic Shopify, Shopify, and Advanced Shopify. The plan you choose will depend on the size and needs of your business; the Basic Shopify plan should be sufficient if you're starting with dropshipping.

You can always upgrade your plan later on as your business grows. To sign up for a Shopify account, go to the Shopify website and follow the prompts on the page.

Select A Dropshipping App

Several dropshipping apps for Shopify allow you to conduct dropshipping on Shopify. Some of the most popular include Oberlo, Dropified, and AliExpress Dropshipping.

Each app has unique features and benefits, so choosing one that best suits your needs is essential. For example, Oberlo is an excellent option for those looking to dropship products from AliExpress. At the same time, Dropified is a good choice for those who want more control over their supplier relationships.

Once you've selected an app, you'll need to install it on your Shopify store. Most apps offer a free trial period, so take advantage of this before committing to a paid plan.

Find Products To Sell

One of the most critical aspects of dropshipping is finding products that will sell well. There are several ways to find popular products, including using Google Trends and the Amazon Bestsellers list for specific categories related to your business.

You can also use social media platforms like Pinterest and Instagram to see what products are trending. Once you've found a few potential products, you must do further research to ensure they'll be profitable.

To do this, consider the product's price, shipping costs you'll have to incur, and potential taxes or import duties potential customers will have to pay. You should also check out the competition to see how other businesses sell similar products.

Add Products To Your Store

Once you've selected the products you want to sell, it's time to add them to your store. Most dropshipping apps will allow you to import products directly from your supplier's website.

As such, when using Shopify, you can add these products to your store and set your price. It's important to remember to mark up the cost of your products so that you're making a profit.

Be sure to consider shipping costs and any other fees when setting your prices. You can also use Shopify's built-in pricing rules to adjust your prices based on certain conditions, like the product being out of stock or the customer being located in a different country than you typically ship to.

Set Up Shipping Rates

When it comes to shipping, there are a few different options available for Shopify dropshippers. You can either offer free shipping, flat rate shipping, or variable rate shipping.

Free shipping is an excellent option if you're looking to build trust with your customers. However, it's essential to ensure that your prices are high enough to cover the shipping cost.

Flat-rate shipping is an excellent option to keep things simple for your customers. You can set a standard shipping fee that will be applied to all orders, no matter where they're shipped.

Variable rate shipping is a more complex option, but it can be beneficial if you're shipping products of different sizes and weights. This option allows you to set different rates for various products and destinations.

Create Automated Messages

One of the benefits of using Shopify is that you can create automated messages to send to your customers. These messages can be used to thank customers for their orders, update them on the status of their shipments, or provide them with tracking information.

You can also use automated messages to upsell customers on other products in your store. Automated messages are also a helpful way to boost sales and encourage customer loyalty.

Promote Your Store

Now that your store is set up and you've added products, it's time to start promoting your business. Various ways to promote your store include:

  • Using social media.
  • Focusing on search engine optimization.
  • Paying to advertise on the right website for your target market.

Experimenting with different marketing strategies to find what works best for your business is essential. It would help if you also consider offering discounts and running promotions to encourage customers to shop at your store or even rewarding them when they bring in other customers as affiliates.

Analyze Your Results

After running your store for a while, it's essential to take some time to analyze your results. This will help you see what's working well and what needs improvement.

You can use Shopify's built-in analytics tools to track your sales, traffic, and conversion rate. You can also use Google Analytics to get more detailed information about your customers and their behavior.

Once you understand and can interpret your data well, you can start making changes to improve your business.

Continue Growing Your Business

There are always new things you can do to grow your business. As you continue dropshipping on Shopify, you can add more products, experiment with different marketing strategies, and work on improving your store.

Never stop learning and growing as an entrepreneur; always be on the lookout for new ways to improve your business.

Shopify Dropship Suppliers

Finding the right supplier is essential to your success as a Shopify drop shipper. It would help if you kept a few things in mind when choosing a supplier, including the pricing, product quality, customer service, etc.

When it comes to finding suitable suppliers to work with, you can find these by searching online, attending trade shows, or working with a dropshipping company. Once you've found a supplier, you're interested in building a working relationship with, request samples of their products so you can test the quality.

You should also query the supplier about their minimum order requirements, shipping times, and return policy. Finding a supplier you can trust and build a good relationship with is essential.

Here are some specific questions you should ask when considering a supplier:

  • What is the minimum order quantity?
  • What are the shipping costs and times?
  • What is the return policy?
  • How often does the supplier restock their inventory?
  • Do they offer discounts for bulk orders?
  • Can I request samples of their products?

Once you've chosen a supplier, you'll need to set up an account with them. This process will vary depending on the supplier, but you'll typically need to provide basic information about your business, such as your business name and contact information.

Do You Need A Business License To Dropship On Shopify?

No, you don't need a business license to dropship on Shopify. However, you may need a business license if you're selling products that require one, such as alcohol or food.

You should check with your local government to see if you need a business license for your specific business. It's also a good idea to consult an accountant or lawyer to ensure you comply with all the necessary laws and regulations

How Much Money Can You Make Dropshipping On Shopify?

When it comes to earning money online, there's no limit to how much money you can make dropshipping on Shopify. Your earnings will depend on several factors, such as the price of your products, the quality of the items you offer, and your marketing efforts.

Setting realistic expectations for your income is essential if you're just starting. Building a successful business takes time and effort, so don't expect to make millions of dollars overnight.

With that said, many dropshippers are able to make a full-time income from their business after a few months. Dropshipping can be a great way to earn a living if you're willing to work.

How To Start Shopify Dropshipping With No Money

There are a few ways you can start Shopify dropshipping with no money.

One option is to find a dropshipping company that offers a free trial period. This will allow you to test the platform and see if it fits your business well and if it does, start pre-selling items immediately. This will enable you to have money coming in to fund the setup of your business.

Another option is to use Shopify's 14-day free trial to its fullest. This will give you enough time to set up your store and understand how everything works. Note that your store has to be part of a paid membership to be able to go live, so use the 14-day trial to have everything ready to go when it's time to launch. While this is not technically a free way of doing things, it is as close to that as possible while still using a paid solution to your advantage.

The Best Products To Dropship On Shopify

While the best products to dropship on this platform will vary depending on your niche and target market, there are some general tips you can follow to help you choose the right products for your store.

Here are a few things to keep in mind:

  • Your products should be high quality and competitively priced.
  • You should understand your target market well and know what solutions they're looking for.
  • Your product selection should be diverse enough to appeal to a wide range of customers.
  • You should regularly test new products to see what's popular with your customers.

That said, these are some of the best-selling products on the platform include:

  • Phone cases: many decide to use a phone case to protect their mobile device, giving you the option of many different designs and materials.
  • Sunglasses: sunglasses are both a fashion accessory and a practical necessity. They're also relatively inexpensive, which makes them a great dropshipping product when it comes to shipping.
  • Watches: watches make a great gift or personal purchase. There's a wide range of styles and price points to choose from, so you can find the perfect match for your target market.
  • Jewelry: jewelry is always popular, especially among women. Finding quality pieces that will appeal to your target market is essential.
  • Home decor: home decor items are always in demand, as people constantly look for ways to spruce up their living space.
  • Wall art: wall art is a popular choice alongside home decor, as it can be used to add a personal touch to any space.

Other Models That Work With Dropshipping With Shopify

Reverse dropshipping is a variation of the dropshipping model that allows you to sell products from suppliers typically found in the US to well-off customers located overseas.

One of the significant advantages of reverse dropshipping is that it allows you to tap into a more global market compared to the traditional dropshipping's target audience. Another advantage of reverse dropshipping is that it will enable you to sell high-end products that may be out of reach for most dropshippers using the traditional method. For example, you could sell luxury watches or designer handbags through your store, allowing you to command more money per purchase.

Finally, reverse dropshipping allows you to build higher-quality relationships with suppliers that may not be available to traditional dropshippers. This can give you an edge over your competition and enable you to get better terms and conditions from your suppliers.

How To Dropship On Shopify - FAQ

Is Shopify Dropshipping Still Profitable Today?

Yes, Shopify dropshipping is still profitable. The main reason is that Shopify provides entrepreneurs with a turn-key eCommerce platform that makes it easy to start and scale a business online. Dropshipping is also a low-risk business model, perfect for those looking to start their online store.

How Can You Automate Shopify Dropshipping?

There are a few different ways to automate your Shopify dropshipping business, but the most popular method is using an app like Oberlo.

Oberlo is a Shopify app that allows you to find products to sell in your store and automatically place orders with suppliers when customers purchase items from your store. This means you can focus on other aspects of your business while Oberlo takes care of this specific operation.

Another way to automate your Shopify dropshipping business is to use a fulfillment service like Shipstation or Fulfillment by Amazon (FBA). These services will pick, pack, and ship orders for you, saving you time and hassle.

Dropshipping on Amazon is also popular with those looking to use Amazon as their selling platform of choice. This allows you to list products in their marketplace, and then they will take care of fulfillment for you through FBA.

That said, there is a more manual level of involvement with these two companies, as you'll have to send your inventory to their warehouses in the first place. But once the process is down, it can be a great way to automate your Shopify business.

Conclusion

Dropshipping is a great business model for those looking to learn how to make money without a job through an online store. And while there is some work involved in setting up and running a dropshipping business, it can be a very profitable and rewarding endeavor.

With various options to automate your Shopify dropshipping business, it's also more accessible than ever to start and scale your business. 

If you'd like more ideas on living a financially successful life, check out The Lazy Man's Guide To Living The Good Life, a resource that provides tips and advice on how to make money without a job. It covers various topics, including dropshipping, making money online, and living the good life.

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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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