Dropshipping is a business model in which ecommerce entrepreneurs sell products without having to carry any inventory. When a store owner receives an order from a customer, they simply contact the supplier, who will then ship the products directly to the customer’s door. Dropshipping apps like Oberlo let you add products from various suppliers into your shop to fuel your product offering.
Dropshipping is the perfect business model for new ecommerce entrepreneurs. It’s simple to set up and manage, and it doesn’t require a large up-front investment. You can also run your dropshipping business in your spare time – you don’t need to quit your job to start a successful store.
To start dropshipping, you need to find a niche or market that you can tap into. Once you’ve found your niche, you need to create a store and add products.
Then, you need to drive traffic to your store and make sales. Of course, this is a very simplified version of how dropshipping works – there’s a lot more detail involved in each step.
How Does Dropshipping Work on Shopify?
Now that we’ve answered the question “what is dropshipping?”, it’s time to take a look at how dropshipping works on Shopify. We’ll walk you through each step of setting up and running your Shopify dropshipping store.
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1. Find a Niche or Market
- Demand: Is there a group of people who are searching for products in your niche?
- Competition: Are there other businesses selling products similar to what you want to sell?
- Social media marketing
- Search engine optimization (SEO)
- Content marketing
The first step in starting any business – online or offline – is finding a niche or market that you can tap into. When finding a niche for your Shopify store, there are two main factors that you need to consider:
You can use Oberlo’s Market Research tool to assess the demand and competition for products in your chosen niche.
2. Create Your Shopify Store
Now that you know what market you want to enter, it’s time to set up your Shopify store. Creating your store is simple and only takes a few minutes with Shopify’s free 14-day trial.
3. Choose Products to Sell
Once you have your store set up, it’s time to choose which products you want to sell. With Oberlo, you can add products from various suppliers into your shop with just a few clicks.
4. Drive Traffic To Your Store
Now that your store is set up and stocked with products, it’s time to start driving traffic to it. There are many ways that you can do this, but some of the most effective methods include:
5. Make Sales and Fulfill Orders
Now that traffic is flowing into your store, it’s time to start making sales! When an order comes in, simply contact the supplier and they will ship the products directly to the customer.
While dropshipping is a great way to start an online store with little up-front investment, there are some potential downsides to consider. First, because you’re relying on a supplier to handle shipping, there’s always the potential for shipping delays. Secondly, you may have less control over product quality since you’re not inspecting the items before they’re shipped out. Finally, dropshipping generally has lower profit margins than other types of ecommerce businesses, so you’ll need to be strategic about your pricing and marketing in order to succeed.
