Shopify dropshipping explained

In this post, we’re going to talk about Shopify dropshipping, what it is, and how you can get started with it. I’ll also give you four actionable steps to start your own business today! So stick around until the end of the post, because I’ll give you a few personal suggestions and things to keep in mind as you’re getting started with your Shopify dropshipping business.

So let’s say you’ve been thinking about opening up your own online business, but you don’t know where to start. You don’t know what you should do. You don’t have any money to invest in products. And looking around, you don’t have any room for inventory.

Well, that’s what dropshipping is all about. You see, with dropshipping, you can sell stuff online without the products ever being in your hands. All you need is a computer, an online store, and a basic understanding of how to market and sell online.

Getting started with Shopify dropshipping

Here’s how it works. First, you find what you want to sell from a supplier and then list that product on your website at a price you set. Next, when someone places an order on that product, your customer pays you the retail price you’ve set and you make a profit. Then you’ll place the order with your supplier at wholesale price and have it shipped directly to your customer.

So let’s say you found this watch on a supplier’s website for ten dollars. You would then list it on your own website for twenty dollars. And when the order comes through your website, you would then place your order with your supplier, using your customer’s information, keeping the ten dollars profit, and have that product shipped directly to your customer. That’s it.

Now I know what you’re thinking. Why wouldn’t somebody just order the watch directly from the supplier’s website? Well, there’s a couple of reasons. First of all, the Internet is HUGE, and customers may not know about the supplier selling the product. Second, when people buy things, they’re not just buying into products. They’re buying into the marketing, positioning, brand, and lifestyle that comes with the product.

This is what Shopify dropshipping is all about. You can focus on marketing your products and providing real value to the right people because you’re not warehousing any inventory or dealing with most of the other challenges that come with running an e-commerce business.

Finding Suppliers For your Dropshipping Store

It is super important to find credible suppliers with good quality products and making sure you have visibility into your customer’s fulfillment process. You can find suppliers on your own. However, You can end up spending a lot of time researching and negotiating with suppliers to guarantee your customer satisfaction. That can be quite tedious!

Another option is to use a tool like Spocket, which gives you access to a lot of products to sell and has dozens of features to make your life easier, like monitoring inventory levels, automatically calculating profit margins, fulfilling and tracking orders, monitoring shipping status, measuring delivery performance and a whole lot more over those suppliers.

Another cool part of Spocket is that helps you partner with vetted, trustworthy suppliers of great quality products, faster shipping times, and awesome customer service with thousands of different products to choose from.

Want to get started? All you have to do is start a Shopify dropshipping store, install the Spocket app and find products to sell online.

Do I Need An Established Business To Start Dropshipping?

First off, it’s fast and easy to get started and you can dropship with incredibly low investment costs. You also don’t need to have an established business entity when you get started, even though it’s probably smart to have one once you start to grow. You don’t even have to worry about managing inventory, packing, or tracking, which means you can focus almost exclusively on marketing, promotion, and merchandising.

With Spocket You have access to so many quality products with a few clicks. The suppliers are constantly researching to determine what’s trendy and what will sell. You set the retail price, so you control the profit margins. Shopify dropshipping is also easy to scale because you can hire virtual assistants as your order volume increases.

What Challenges Do I Face With Dropshipping?

Of course, there are some challenges associated with Shopify dropshipping. Because it’s really easy to get started, there’s a lot higher potential for competition within larger niches. That’s why you’ll find a lot of advice out there that recommends you start off with finding a smaller niche audience like cat lovers or gamers so you can operate with less competition.

Next, there are supplier errors. Though uncommon, it is inevitable that a supplier will mistakenly ship the wrong product to your customer. If this happens, don’t take it personally and handle the return like a pro. Either order a brand new product from the supplier or offer a complete refund.

Also, since many dropshipping suppliers are based in China, shipping times are generally longer turning some customers off. Choosing products with Epacket makes it easier, though, delivering some orders in as little as two weeks. With Spocket you can even choose dropshipping suppliers from the United States with really fast domestic shipping.

Generally speaking, if you make your shipping times clear throughout the buying process, many visitors appreciate the clarity, especially if you’re selling an item in a niche where delivery times are a little less crucial.

How To Get Started?

So you might be wondering, how do I get started? Well, step one, is to start a Shopify dropshipping store. You can build one with a 14-day free trial here. Step two, add Spocket to your store and find products from the app that you’d like to sell. Add them to your store with a few clicks and enable a payment gateway so you can start accepting money. Shopify payments is a great default option.

If you’re in one of the supported countries, you may want to enable a few other gateways like PayPal, Apple Pay, Amazon payments, or any of the hundred-plus payment gateways that Shopify has integrated with.

Once you have all that, you’ll need to create a plan for sending traffic to your store. I won’t go into great detail about that here, but you can find some great resources about building traffic on our blog.

The most important thing to do is to produce high-quality content for your store. From Eye-Catching photography to engaging product photos, to great post for your blog. Your audience loves to know more about your products and how they can be used, so telling the story behind them can be a great way to sell more.

Additional Things To Keep In Mind

Now that we’ve covered all the things you need to get started, here are some additional things to keep in mind:

Dropshipping is pretty easy to learn, but there is still a learning curve and you will experience challenges along the way. However, mistakes can become learning opportunities. If you can develop resilience along the way, there are plenty of people out there finding a lot of success dropshipping products.

While there is a significant advantage in terms of capital investment over traditional e-commerce, running a Shopify dropshipping business isn’t free. You’ll likely have to spend money to drive traffic, market your products and handle returns.

There is no overnight success and this is not a get rich quick scheme. dropshipping still requires you to work consistently for your store. True, you will need to dedicate less time compared to a traditional e-commerce business, but it’s not going to succeed without your hard work. You will always need to invest time in improving your business.

Avoid Copyright Infringement

Another important aspect that many people don’t seem to care much about is copyright infringement. Sourcing products that copy trademarks is illegal around the world and can cause you some serious trouble. My advice is to choose products from trusted suppliers who make it a priority to avoid copyright infringements. That way, you can rest assured that you won’t infringe on any copyright laws and avoid getting sued.

Final Thoughts

If you’re completely new to Shopify dropshipping, start small with a single product or a small handful of complimentary items from a single supplier, you can always add more inventory as you become comfortable. It’s better to start small and build than it is to start big and become overwhelmed.

My final tip for once you get the hang of dropshipping is to diversify. Many dropshippers don’t rely on a single store for their entire income stream but operate a series of stores targeting various niches to build multiple sources of income.

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