Shopify Dropshipping: How to Dropship on Shopify [2024]

Unsold products, upfront costs for inventory management, and complex logistics are the biggest challenges for startups and online businesses looking to scale. But with Shopify dropshipping these worries are reduced and you can scale without any financial risk.

This is a step-by-step guide for new merchants who want to start and run their own Shopify dropshipping stores without inventory costs.

What is Dropshipping?

Dropshipping is a business model that lets you sell products without holding inventory, making it a low-risk, cost-effective choice for eCommerce entrepreneurs. When a customer places an order, you forward the details and payment to your dropshipping supplier, who then ships the product directly to the customer.

With the Shopify dropshipping model, you can focus on marketing and sales while your supplier handles inventory and logistics. To maximize profits, it’s essential to partner with a reliable supplier.

The minimal upfront costs of a dropshipping store allow you to expand your product range and reach a wider audience in your niche. Utilizing the best Shopify dropshipping apps can help you streamline your resources, especially in marketing and sales.

Although your dropshipping supplier manages shipping, you must still set clear customer expectations to maintain brand trust and loyalty. Be transparent about potential import fees, taxes, and customs duties, especially for international shipments.

Benefits of Starting a Dropshipping Business

Starting a dropshipping business offers several benefits, including:

• Low overhead costs: You don’t need to invest in inventory or storage space.
• Flexibility and scalability: Sell a wide range of products without holding inventory.
• Reduced risk: You don’t have to worry about inventory becoming obsolete or damaged.
• Increased product offerings: Offer a wide range of products to your customers without having to hold any inventory.
• Improved cash flow: Receive payments from customers immediately, improving your cash flow.

Is Shopify Dropshipping Profitable?

Yes, a Shopify dropshipping store can be very profitable—even lucrative. With the right strategies and multiple suppliers, you can make consistent profits without the hassle of manufacturing or shipping costs. The global dropshipping market is expected to reach $550 billion by 2025 so there is a lot of growth potential.

On average, a Shopify dropshipping store makes around $1,000 per month. However, the overall success of your store depends on many factors.

The main factors that affect your profitability are your supplier’s product prices and quality. Since you don’t manufacture, store, or ship, you have limited control over the prices suppliers set.

Use Shopify’s analytics to increase your profits. By looking at product performance data, you can allocate resources to your brand and online marketing efforts. This data-driven approach will lead to more sales and success for your dropshipping business.

How Much Can You Make as a Dropshipper?

As an online dropshipping store owner using Shopify, you can make $1,000 to $10,000 a month. But many factors come into play here, niche, product pricing, and supplier relationships.

Many eCommerce store owners choose popular products, which can lead to high competition and low profit margins. To increase your earnings, consider products with lower shipping costs and reliable fast delivery options. If you plan to offer free shipping, look for lightweight products or factor the shipping costs into the product price.

Platform costs: Shopify charges $3 to $25 for branding themes, plugins, and metrics tools. Factor these in and you can get a better idea of your profit margins for your Shopify dropship store.

7 Steps to Start a Shopify Dropshipping Business

Anyone can dropship on Shopify but success requires confidence and guidance. We’ll cover everything from top dropshipping ideas and branding to marketing and suppliers to help you build your own Shopify dropshipping store.

Follow these simple steps to make money with your Shopify dropshipping business.

#1 Shopify Dropshipping: Pick a Niche or Product Line

There are thousands of dropship products to choose from. As you start dropshipping on Shopify, keep an open mind and think outside the box.

Your value proposition—how you present and sell your product—is key to converting visitors into buyers. Be creative and find unique ideas that resonate with your customers and build trust with them.

Here’s how to find great Shopify product ideas:

• Observe Your Community: Products used by people around you.
• Understand the product: Choose something you know well and can market easily.
• Research successful stores: Learn from top Shopify dropshipping stores to inspire your product.
• Read customer reviews: Check Shopify, AliExpress, and Alibaba for top-selling products.
• Conduct surveys: If you have a customer base, ask them what they want.
• Monitor Google Trends: Research trending products that are imported into your country.
• Attend trade shows: Online events where suppliers showcase trending products.
• Corporate gifts: Repeat products with high purchase potential.
• Government buying patterns: Steady demand for products through government procurement data.
• Lifestyle trends: Magazines and blogs to find in-demand products.

Once you have a product idea analyze existing online stores that sell similar products. Use Shopify’s competitive analysis tools to see pricing, niches and customer reviews.

The ideal dropshipping product sells easily and makes consistent profits. It should offer a solution to your customer’s needs.

Here are the key qualities to look for in winning product ideas:

• Addresses Customer Pain Points: Products that meet customer demands get positive reactions and more sales.
• High Demand, Low Competition: Use Google Trends and social media insights to find products with steady demand.
• Strong Visuals: Choose products that are visually appealing and perform well in ads = more Shopify dropshipping success.

#2 Shopify Dropshipping: Setting Up Your Shopify Store

With the changing shopping habits, having a reliable eCommerce platform like Shopify for your dropshipping store is a must. Setting up your Shopify store as a beginner can seem overwhelming but with eCommerce tools and expert advice, it’s a breeze.

Here’s how to set up your Shopify store:

1. Sign Up for Shopify

• Go to the Shopify website and click on the [Start Free Trial] button.
• Choose to sign up by email or use your Google or Apple account if you prefer.
• Create a strong password, then click [Create Shopify Account].
• Follow the setup prompts and answer the questions honestly to tailor your store to your needs.
• Skip this step if you want to try out the platform first.

2. Choose a Shopify Store Theme

• Brand Reflect: Choose a Shopify theme that matches your brand identity and industry.
• Mobile Friendly: 7.6% of eCommerce sales happen on mobile, so a mobile theme is a must to compete.

3. Configure Settings

• Set up payment options, store policies and shipping rates. Be mindful of Shopify’s payment policies to avoid headaches.
• Your shipping rates are key to customer retention. Use a Shopify dropshipping tool to calculate rates based on package size, destination, and weight.

4. Use Dropshipman for Automation

• Automate your setup with Dropshipman to save time and reduce manual work. This tool does everything from account setup to finding suppliers and importing products.
• See how Dropshipman helps you find and vet suppliers from day one.

#3 Shopify Dropshipping: Finding and Working with Suppliers

In the Shopify dropshipping business model, suppliers are key. Your relationship with them can make or break you.

There are many factors to consider when finding suppliers but automation apps like Dropshipman can make it easier. These tools do over 75% of the work, including checking product quality, delivery times, and responsiveness.

Automation software gives you seamless coordination, increased efficiency, and better customer satisfaction. Here are some options to help you find your supplier:

Dropshipman Marketplace

With straightforward and easy-to-use features, Dropshipman hosts a catalog of a million plus trendy products. Once connected to your Shopify account, the dropshipping automation tool links you with multiple reliable suppliers, from Aliexpress to Walmart, eBay, etc.

The tool also integrates with a list of sourcing options, like CJ dropshipping Shopify, saving you from the stress of working with slow and unreliable suppliers. Their sourcing agents work closely with their customer support to ensure your product sourcing is seamless and efficient.

AliExpress

Aliexpress offers worldwide dropshipping options at competitive wholesale prices. To get the best listings for your Shopify store, identify the best reliable suppliers on the e-commerce platform and choose your products from their vast collection.

Here’s how you find dropshipping suppliers on the platform:

• Scroll through their product catalog and select what you want to sell.
• Confirm it matches your target audience and evaluate the seller’s reliability based on their followers (at least 1000+) and 95%+ positive feedback.
• With the contact button, start a chat with the supplier through a platform you are comfortable with. WhatsApp and WeChat are the most recommended for smooth communications.
• Negotiate for what you want, factoring in shipping terms such as the costs, timeframes, methods, and return policies, among others.

3PL (Third-Party Logistics)

Using third-party logistics for your Shopify dropshipping store may bring about the need for inventory management, which might introduce upfront costs. This could seem challenging for anyone who settled for a dropshipping store to avoid holding inventory.

Here’s how 3PLs work:

Business owners buy their bulk stock beforehand and move it to 3PL companies for warehousing. When customers buy a product, the order is placed with the 3PL, which swings into action, packages it, and delivers it to the buyer.

Note that working with a 3PL company is different from a dropshipping business model. 3PLs require you to invest in the inventory before listing it for sale. So, the 3PLs are like your ground crew that receives orders, packs them, and ships them.

#4 Shopify Dropshipping: Importing Products to Your Store

Now that you’re ready to list your products, manually importing them or taking individual photos can feel overwhelming. Automated product importers like Dropshipman make this process quick and easy.

Using Dropshipman for Product Importing

• Fast Importing: Whether you want to import multiple products or just one, Dropshipman simplifies the task.
• Single Product Import: Select the desired product and click the [Import Product] button.
• Multiple Product Import: For importing multiple products, select each item and click [Import Product]. To speed up the process, consider importing in batches of up to 10 products.

With Dropshipman, you can have your products listed in under a minute, allowing you to focus on marketing and sales.

#5 Shopify Dropshipping: Optimize The Product Page

After importing all product images and descriptions, the goal is to convert first-time visitors to buyers by demonstrating your brand’s credibility.

Here’s how:

Check for repeated descriptions that might need editing to create engaging and attractive titles. Depending on the product niche, you can feature common keywords used by customers seeking the relevant product line.

Highlight the unique selling points. Write a clear and detailed description that meets the customer’s eye for easy readability. Consider using bullet points for each point to stand out clearly.

Check for typos to ensure grammatically correct sentences. Customers don’t have the time to struggle to comprehend the meaning of a mixed-up description when they swipe to the next available Shopify dropshipping store.

Other store optimization features borrowed from powerful SEO optimizers include:

• Creating various categories for your product listings
• Low stock notifications to encourage customers to make quick purchases
• Showcasing, listing, and describing related products for additional purchases
• Considering brief Shopify dropshipping faq sections for commonly asked questions

#6 Shopify Dropshipping: Marketing Your Dropshipping Store

It takes a bit of effort to market your dropshipping store so that you can sell online effectively. There are multiple Shopify dropshipping apps built with AI-powered marketing to grow your store’s profits. You can settle for free or paid marketing.

With free marketing, you won’t pay for promotional services or ads. Social media marketing, keyword optimization, and email marketing would work best if you are low on finances. Alternatively, you may take advantage of paid advertisements on Instagram, Facebook, or Google ads. The goal is to drive traffic to your online store in any way possible.

Additional Free Marketing Ideas

If paid advertisement campaigns are completely out of budget for your Shopify dropshipping, here are some ways you can improve your digital marketing for free:

• YouTube Channel: Create educational vlogs and product reviews to attract potential customers.
• Online Expertise: Share your knowledge on Quora or Reddit and link back to your Shopify store.
• Networking: Attend local meetups or conferences to promote your dropshipping products to potential customers.
• Email Marketing: Take advantage of email marketing by encouraging your store’s visitors to subscribe to your email list. Always ensure you create value-driven emails. This way, you’ll be sure to retain your present customers while attracting new ones.

#7 Scaling Your Shopify Dropshipping Store

To scale your Shopify dropshipping store, focus on user experience and SEO. Here’s how to do it long-term:

Ensure customization of the Shopify homepage to ensure that every aspect customers interact with gives a positive user experience.

First, expand your product range. Diversifying your products will get you more customers and more profit. Using the best dropshipping apps will also reduce the risk of supplier delays and product shortages.

Next, optimize your products. As a dropshipping business owner, success is all about choosing products that are in demand and have steady profit margins. To stand out from the competition, think about custom branding and labeling, which will give your customers a more personal experience.

Also, automating your processes is key. Using top dropshipping automation tools will save you time and reduce manual work, which will reduce the chance of errors. This will make your Shopify store more efficient and sustainable for a dropshipping business.

Lastly, upgrading your customer service is important. Scaling your business is not just about getting new customers; it’s also about retaining and managing your existing ones. To do this, make sure your store is fully automated and add live chat, email support, and a clear return policy to your store. By focusing on these areas, you can set your Shopify dropshipping store up for long-term growth.

Top 3 Successful Shopify Dropshipping Stores

Every successful Shopify dropshipping business carries a behind-the-scenes story of strategic product selection, enhanced marketing efforts, and exceptional user experience that contributes to its remarkable success.

Here is our top list that stood out for excellent performance in the marketplace:

Fashion Nova

Fashion Nova, a California-based Shopify dropshipping store, tops our list for its consistent product quality, inclusive sizes, and affordable prices without compromising on stylish designs.

While there’s more to its winning strategy, Fashion Nova enjoys huge popularity by working with multiple celebrities and influencers. This drives massive traffic to the ecommerce store as their customers seek a taste of the different celebrity-inspired designs.

Key Takeaways from Fashion Nova

• Influencer marketing
• Quick shipping
• Extensive clothing collection with trendy models

Gymshark

The UK’s Gymshark is a good example of focusing your dropship products around your area of interest. The co-founder, Ben Francis, is said to have an obsession with fitness at the start of the online store. So, with a sewing machine, he slowly created his fitness designs and innovatively worked on his ideas for the great company serving fitness enthusiasts today.

They used influencer marketing by sending free products to over 125 fitness influencers and bodybuilders, which helped increase their visibility. Social media was also key to their growth, with over 7 million followers on Instagram and 2 million on Facebook.

Key Takeaways from Gymshark

• Influencer marketing
• Social media integration
• Premium brand identity
• Readiness to scale
• Niche focus

Haus

Haus features on our list for its 80+ home furniture product listings from different brands. Its niche expansion allows for enhanced product availability and fast order fulfillment rates compared to most Shopify stores.

The Shopify dropshipping store benefits from improved product quality control, which translates to better customer experience. By working with renowned designers not just in Europe but also globally, Haus has positioned itself perfectly to scale flexibly without over-relying on a single supplier.

Key Takeaways from Haus

• Niche focuses on stylish and appealing home furniture
• Professional website store with clean and visually attractive high-quality images
• Leveraging social media to drive traffic
• A customer-centric approach that builds customer loyalty

Three Tips for Successful Shopify Dropshipping Business

Product selection, marketing, and customer experience are key factors that determine the success of any Shopify app store. So, you need a strategic approach to each of these for the success of your dropshipping business.

Here are practical tips and dropshipping operations that have worked for us:

Monitor Market Trends

To attract and maintain a specific target audience, continually research the latest product trends and monitor competitor performance. Using dropshipping tools can streamline this process, helping you stay competitive and ensuring long-term success for your Shopify store.

Stay in tune with customer preferences and be flexible when testing new products based on industry trends. Fresh products = customer confidence = you’re on top of market changes and their evolving needs.

Research, Vet, and Diversify Your Suppliers

Automation tools like Dropshipman take the hurdle of researching and vetting suppliers from you. In the wake of social media manipulation, order samples of your supplier’s products to check on quality and verify their shipping times.

Diversifying your Shopify suppliers ensures potential customers receive their products on time, even if one supplier faces stock shortage issues.

Focus on Customer Retention

Partnering with the best dropshipping suppliers for Shopify ensures your business is safe and sustainable and can consistently keep customers happy.  From streamlining order fulfillment to monitoring supplier performance, ensure the delivery process kicks off as soon as the customer clicks the buy button.

Integrating automated customer service features like chatbots, email support, and FAQ sections comes in handy. To maintain your customer’s trust and loyalty, you should respond quickly to any concerns and ensure they are resolved immediately.

Being able to manage the customers’ shipping expectations is also an added advantage, especially when there are shipping delays. In the case of international shipping, be transparent about shipping times while providing real-time tracking information to keep the customers informed.

Implementing these features not only makes your online businesses an all-time stop shop but also ensures long-term success.

Shopify Dropshipping: Bottom Line

Shopify dropshipping offers a flexible way to build your online business. By implementing effective strategies and focusing on product quality and customer service, you can create a thriving and profitable store. Ultimately, success in dropshipping comes from building a brand that resonates with your customers and keeps them returning for more.