What is dropshipping, and how can we make money with Shopify?
For those who have never heard of dropshipping, running an e-commerce business without having their own products can sound like a strange thing, but it is not. Dropshipping is a lucrative business model that allows you to run an online business without having any products of your own. Shopify Experts consider dropshipping to be an excellent pick for those who are enthusiastic about having an e-commerce store but do not have any products are ample resources to create new products.
So, what is dropshipping? Let’s find out.
What is dropshipping?
According to Shopify Experts, dropshipping is an e-commerce business model in which you can sell physical and digital products online without actually owning them, and without dealing with inventory, having a warehouse, and taking the burden of shipping and handling.
In dropshipping, you attract the customers and persuade them to make a purchase. Once they do so, your supplier gets the notification, and he takes care of all your product fulfillment requirements. Thus, there are zero upfront costs, and you can start a dropshipping business virtually free of cost keeping aside the hosting, domain, and web development costs.
How can you make money with Shopify dropshipping?
Dropshipping margins can range between 10-30 percent in general, but these numbers can vary depending upon the niche and products you sell. For instance, there are drop shipping entrepreneurs that are enjoying up to 50-60 percent margins by dropshipping items like stoves and grills.
As a golden rule, you can get high margins in niches that are not popular. For example, if you pick a popular niche like athleisure clothing or electronics, your margins will below. But, if you choose a unique niche like funeral urns, you can grab decent profits. Since you do not need to spend in inventory or shipping, you can invest all of your money in sales and marketing.
How to start a dropshipping business?
Here is a Shopify Expert‘s guide to starting a dropshipping business.
Start a dropshipping website
Start a dropshipping website on Shopify, the best platform for e-commerce and dropshipping. Shopify handles everything for you, ranging from hosting to security.
Here is where things get hard. The biggest advantage of dropshipping is that you have hundreds of thousands of products to choose from. However, the biggest drawback of this model is that you have to choose the right product from the horde. As a rule of thumb, pick a product that:
- Has an ambiguous inherent value
- Is from a niche that has multiple related products
- Are priced below $50
- Are timeless
After you know what products to sell, it’s time to find a good supplier. Oberlo and AliExpress are some of the trusted sites where you can find dropshipping suppliers. Make sure you work with trusted suppliers and not fake wholesalers. Do your research prior to picking your supplier because he will be in charge of the entire process once the order has been placed.
List your products
You are almost done; now, all you need to do is to list your products in your store. Shopify offers an Oberlo extension that enables you to add dropshipping products to your store in a few clicks. On the other hand, you can also use AliExpress and import the link of the product to your store.
Dropshipping is an excellent business model for new entrepreneurs that are new to e-commerce. It might take some time to get your store at full pace with traffic and sales coming in. According to Shopify Experts, the key to success with dropshipping is patience and continuous efforts.