How to Start a Dropshipping Business on Shopify Today?

With the advent of the world, new avenues are popping up with the huge potential to earn a wholesome and stable income. New opportunities are coming up to setback the traditional means of earning and expand the horizons of business globally.

One such avenue is dropshipping. Dropshipping has gained popularity since the 2010s, with Shopify coming into the market. Shopify allowed the sellers to easily dropship the products from Oberlo, which allowed sellers to access products through Ali Express. The pandemic highly affected businesses, and dropshipping popped out as a profitable business model and gained huge momentum. 

Heading 2: What is Dropshipping?

Dropshipping is a business arrangement where the retailer doesn’t purchase the product from the other seller but only acts as an intermediary between the third-party seller and the customer. He doesn’t stock the items and sells them only when the third-party seller has the item available. The dropshipper takes the order from the customer and forwards it to the supplier, who then sends it to the customer on behalf of the dropshipper. The task of a dropshipper is to market and sell the product while the supplier handles the inventory and delivery of goods. 

Heading 2: Benefits of Dropshipping

Dropshipping has gained huge momentum due to its ease and convenience of operations. Apart from convenience, it also offers the following advantages to the dropshipper:

1. Low startup cost as no cost is to be involved in stocking up the items and establishing a physical store.
2. There is no risk of leftover stock as a dropshipper purchases only when a customer places an order.
3. Offers great scalability and flexibility due to only a virtual presence
4. The advantage of offering a wide range of products without worrying about financial risks
5. Time-saving as the supply and delivery are handled by the supplier.

Now that you understand the immense benefits of dropshipping for newcomers, let's delve into examining the other vital aspects of dropshipping. If you're looking to explore another profitable online venture, check out our guide on how to start a cloud kitchen business and expand your entrepreneurial horizons.

Heading 2: How do I establish a dropshipping store on Shopify? 

Signup on Shopify

Go to the Shopify app for the website and register yourself for a free 14-day trial by filling in all the necessary details.

Create your store

Once your account is created, start setting up your dropshipping store. Follow the following steps to set up the store:

• Choose a paid or free customizable theme for your store outlook.
• Add logos, contact details, banners, and colors to match your aesthetic.
• Add essential pages like “About Us," “Privacy Policy," etc. 

Install a Dropshipping App

Shopify offers a great variety of apps that make dropshipping easier. Install one of the apps mentioned below to ease your dropshipping journey:

• Oberlo: Aliexpress dropshipping
• Spocket: US/EU suppliers
• Dsers: Aliexpress dropshipping
• Modalyst: Products from independent brands

Integrate one of these software with your Shopify store.

Research on products to sell

Once your store and software partner are all set, decide on what type of product you aim to sell and the niche in which you want to start dealing. Use your dropshipping app to search and drop products related to your niche. 

Decide the pricing and profit margins

Set your prices based on your desired profit margin. Make sure to not hype the margin much if you aim to sell better. The ideal markup is 30%–50%.

Set up payments

Shopify allows various payment gateways like PayPal, Stripe, or Shopify payments. Integrate with these payment gateways to enable credit card, debit card, and net banking in your store.

Go live

Once the whole store is set up, launch your store and go live. 

Market your store

Setting up and launching a store would not suffice if the public is unaware of your presence. Engage in various modes of marketing to market your store and attract customers to your dropshipping store. Boost your dropshipping business by exploring effective word of mouth marketing strategies to increase customer engagement and drive sales.

Heading 2: Marketing tips for your dropshipping store

1. Optimize your SEO by refining searchable keywords and posting blogs.
2. Engage in social media marketing.
3. Indulge in influencer marketing due to its growing importance.
4. Enable the use of WhatsApp and email marketing to interact with potential customers.

Heading 2: Conclusion

In a nutshell, setting up a dropshipping store on Shopify involves store setup, product sourcing, and marketing. Apps like Oberlo or Spocket can automate product import and order fulfillment, allowing you to focus on branding, pricing, and customer service. Shopify requires minimal upfront investment and provides tools to efficiently manage and scale your business. Success depends on product selection, marketing, and customer experience.

Heading 2: FAQs

What is dropshipping?

Dropshipping involves selling products directly to customers without the need to maintain inventory. When a customer makes a purchase, the seller buys the item from a supplier, who then ships it directly to the customer.

Is dropshipping legal?

Yes, dropshipping is a legal business model. Although you must comply with the local and legal regulations and policies of your business. 

How much investment is required to start a dropshipping store?

The cost varies based on your requirements. However, some of the basic costs included are as follows:

• Shopify Plan: The basic plan starts at $39/month.
• Domain name: $10-$15/year
• Dropshipping apps: Many apps are available for free. However, some require buying plans, which cost about $20-$30.
• Marketing costs: Depends on your marketing budget. Ideally ranges from $200-$500

How do I handle shipping times?

Shipping duration varies based on the location of your supplier as well as the buyer. Mention the ideal delivery time for various locations by holding a discussion with your supplier and analyzing his policies. 

What is the profitability of a dropshipping store?

Profit margins in Shopify dropshipping range from 10% to 50%. Profit margin is based on your niche, competition, and customer satisfaction.