Shopify Dropshipping 101

Welcome to Dropshipping 101! Are you thinking about starting your own dropshipping store? Heard how easy it was from others? People making a ton of money with dropshipping? Let’s dive into how you can start YOUR first store.

Before we get going I just want to share my story with Shopify. After watching ton’s of videos on Youtube about dropshipping and how to make money online, I finally decided to take action! I started signing up for ecom course learning about what dropshipping is, how to set up a store and how to advertise for it.

My first store was a “General Store” and that was my first mistake. It failed pretty bad, then I created an Outdoor Store. Finally after months of trial and error I was able to establish a brand. This is what I recommend for you, start your own brand and be proud of what you create instead of trying dropship cheap China products.

In this post we will cover:

-What is Dropshipping

-Pro’s and Con’s

-Shopify Walkthrough

-Suppliers and Oberlo

-Adding Products to your Store

So What Is Dropshipping?

dropshipping model

Dropshipping is a fulfillment model that allows you to buy products from the directly from the supplier. Once you receive an order on your store, you order from the supplier and they ship that product to YOUR customer!

That means that unlike the Amazon FBA ecommerce fullfillment model, you don’t buy bulk and send it to Amazon hoping your products gets sold. You have no inventory at all and don’t worry about shipping either. Oberlo is a must have app for these fulfillment order on your Shopify store.

So let’s see this dropshipping model in action, see pic above to get a better idea.

A customer comes to your online store and places an order for a product that costs them $200. You then fulfill the order with the Oberlo app and place an order with your suppliers for that product that costs you $150. You keep the $50 as profit and the supplier ships the product to the customer.

This process is why so many entrepreneurs love this model!

 

Pro's and Con's of Dropshipping

PROS

- Low start up costs.
- No Bulk orders or Inventory needed.
- Generally Lower Risk than other models, if product doesn't sell simply remove them from your store, you are not stuck with unwanted inventory.
- Work from anywhere in the world! All you need is your laptop and an internet connection!

CONS

- Lot's of people trying to create Shopify stores, choose your niche wisely.
-Buying single products instead of bulk is usually slightly more expensive. BUT once you have established your own brand buying bulk is recommended! But we'll get into that later.-
- Shipping times, make sure your supplier has good shipping times to avoid customer headaches in the future

Niche and Product Idea's

A niche is a “category” or specific area of marketing. If you are looking at any niche for ideas it is highly recommended that you choose something that interests you, activity or hobby. 

So, what do you do if you want to start dropshipping but have no idea what to sell?

The first thing you want to do to get the ball rolling is find what is already selling, pretty straight forward here. Increase your chance to success with hot products, start checking Amazon best sellers, Etsy, Ebay, Aliexpress (which we will be using to dripship orders from) or Pintrest, Instagram.

It’s best to start looking to categories you have knowledge and expertise in. This will help market the product and create spark for the idea process.

Example: You like drinking tea, so start off in the food categories or simply search “tea” and sort for best sellers. However, although it is sometimes easier to look for products that you are interested in you should also look for gaps in the market. Products that are selling great but there isn’t much competition, look for opportunity to fill the gap.

Best to find low competition niche, and something that solves a problem for somebody. Find a trigger point for customers and try to help them!

Trending, every so often there are new trends coming along, creating opportunity to sell. weather fidget spinners or hoverboards, new trends come and go. Try catching trends when they emerge, although difficult they could create awesome incomes.

FREE TOOLS: Google Keyword Planner and Google Trends, Youtube trending videos

Find at least 5 products you think have potential.

 

Walkthrough of Shopify

Now that you are aware of the dropshipping model and evaluated your ideas, it time to set up the foundation of you business and open your Shopify Store!

– Sign up for Shopify: Shopify.ca 14 Day Free Trial

– Choose and install an Theme

– Setup payments- to get paid of course

– Setup Shipping details

– Add customer domain

– Setup customer email

– Get Oberlo App

Below is a quick Video Tutorial from Causal Ecommerce on Youtube.

 

Suppliers and Oberlo

Oberlo: Oberlo allows you to easily import dropshipped products directly into your shopify store and ship them directly to your customers. Well the supplier is shipping the item but Oberlo will fulfill all the customer information for you.

With Oberlo you will have access to two different marketplaces! Oberlo Supply which is a marketplace of vetted suppliers that is constantly growing and expanding. And Aliexpress, they are an online retailer made up of mostly Chinese sellers, Think about Amazon or eBay but with most sellers being located in China are often are the manufacturer as well! Because the prices are low many sellers understand the’re being used as a dropshipping supplier and want to work with store owners. Sometimes relationships can be build if you find the right seller for your fit.

 

Oberlo Pros

-Low starting cost, cheap product prices and easy to find veteran sellers
-Ordering and fulfillement is semi-automatic, you just pay the costs of good and Oberlo does the rest
-Quick to start and test products, you only have to buy a products once a customer has bought and paid them from you.

Oberlo Cons

-Less Customization, white label products might be hard to find on Oberlo and Aliexpress
-Longer Shipping times, most sellers are from China, although there is an option to search for US sellers for quicker shipping
-Less product options, Oberlo Supply is smaller although Aliexpress has pretty much anything

Adding Products to Your Store

First, get the Chrome extension – Oberlo. This will make life so much easier for adding products and importing them to your store. Adding products is as simple as clicking “Add to Import List” with the Oberlo All on Aliexpress, click the blue icon that appears to the bottom right of the product pages.

After products are added to the importing list we can edit things like name, description, weight and other shipping details before publishing it on your store. In the import list we can see the products we can push to our store and begin selling right away.

Before you do that though make sure to add the product to a collection and add necessary tags to organize your products easier. Make sure you change the Title and description to make the item appeal to your audience and doesn’t have unnecessary words or text. 

Images, select or deselect the images you want to import as well into your store. You don’t need every image that the seller has, make sure to edit them if necessary. Now you can click “Push to Shop” and they will appear as published in your store.

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