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How Does Drop Shipping Work on Shopify?

Last updated on October 1, 2022 @ 7:44 pm

What is Dropshipping?

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.

How Does Dropshipping Work?

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.

PRO TIP: Please be aware that there are risks associated with drop shipping on Shopify. Drop shipping 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. While this can be a great way to get started in ecommerce with little up-front investment, there are some potential downsides to consider.

First, because you are not carrying any inventory yourself, you will be entirely reliant on your supplier to get orders to your customers in a timely manner. This can be a risk if your supplier is unreliable or if they experience any sort of delays in their own operations. Second, because you are not dealing with the products yourself, it can be difficult to provide good customer service if there are any problems with an order. If a customer receives a damaged or incorrect product, for example, it may be difficult to get a replacement from your supplier in a timely manner.

Overall, drop shipping can be a great way to get started in ecommerce with little up-front investment, but it is important to be aware of the potential risks involved.

Here’s a quick overview of how dropshipping works:

  1. Find a supplier: The first step is finding dropshipping suppliers who can provide you with products to sell. You can use directories like Oberlo Verified Suppliers or AliExpress to find suppliers.
  2. Add products to your store: Once you’ve found some good dropshipping suppliers, it’s time to add their products to your store. You can add products one at a time, or in bulk using a CSV file.

    This is where you’ll also set your own pricing for each product.

  3. Promote your store: Now that you have some products in your store, it’s time to start driving traffic to it. You can promote your store using social media, Google Ads, or other marketing channels.
  4. Process orders: When you receive an order from a customer, you simply contact your supplier and place the order with them. They will then ship the product directly to your customer.

Dropshipping is a great way to start an ecommerce business with little up-front investment. It’s also relatively simple to set up and manage. If you’re looking for a hands-off business model, dropshipping could be the perfect solution for you.

Morgan Bash

Morgan Bash

Technology enthusiast and Co-Founder of Women Coders SF.