shopify dropshipping business plan

Learn How to Make Money with Shopify Dropshipping

Lucinda Honeycutt

November 17, 2023

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Shopify is one of the most popular ecommerce platforms and dropshipping is a common business model.

It’s easy for people who want to start an ecommerce business to get into Shopify dropshipping because there’s no need to produce products, carry an inventory, or handle fulfillment, making it a low-cost way to sell products.

But why should you (or shouldn’t you) use Shopify for your dropshipping business? We’ll look at what dropshipping is, what Shopify offers, and how to decide whether Shopify dropshipping is right for you.

Dropshipping Explained

The dropshipping business model enables you to build a brand and earn revenue without ever needing to manufacture, store, or ship anything to your customers. You connect with suppliers who will send the products directly to your end customer, and the customer never knows it came from somewhere else. Thanks to automation, a customer can place an order and it gets sent directly to the vendor for fulfillment.

You earn a profit because you charge your customers more than what you pay the vendor. Because you don’t have the cost of manufacturing, warehousing, and fulfillment, you don’t have a lot of start-up capital.

However, because you don’t have control over those factors of your business, you also don’t have a lot of room in your profit margins. Without sales volume, you may struggle. The most successful dropshipping businesses are built on a solid brand.

What is Shopify Dropshipping?

Shopify is a hosted ecommerce platform that makes it easy for anyone to build an online store. It requires no knowledge of coding or technology to build a fully functional store, regardless of which business model you choose. It can even be used in brick-and-mortar stores with point-of-sale support. When you sign up for an account, you can try Shopify free for 14 days, no credit card required, so you can test it out for yourself before you commit to it.

Popular Shopify Dropshipping stores include:

• Meowingtons
• Notebook Therapy

How To Dropship On Shopify

Shopify is a leading ecommerce platform for online business owners. Shopify is one of the best platforms to use when you start a dropshipping business. Why? It’s user friendly and supports the largest variety of dropship supplier integrations. That makes it easy to get the products you’re looking for from top-quality dropship suppliers. But that’s the easy part. Whether you start a dropshipping business on Shopify or another platform, you’ve got a lot of work to do.

Choose Your Niche

To be successful with any ecommerce business, you must conduct market research to choose your niche . You need to treat this business the same way you would treat opening a retail store. Look into product and market trends and competitors. Make your choices based on data – not your gut. You want something that can be profitable.

To be profitable, you need products that have 40% to 70% margins, though the higher, the better. After you deduct things like the cost of doing business, marketing, and shipping fees, if you work with products that have less of a margin than that, you risk not turning a profit. And who wants to be in the business of losing money?

It may seem smart to go with a broad range of products because a broad range gives you access to a wider customer base. But a wide customer base opens you up to more competition. That’s why many dropshipping businesses focus on niche products, like:

• Phone cases
• Camping gear
• Pet products
• Gaming accessories

Don’t like the idea of jumping into these markets? Not sure where to start? That’s okay! We’ve got plenty of resources available to help you with all aspects of the process. Check out:

• 21 Product Research Tips to Uncover Legit Ecommerce Market Opportunities
• 15+ Niche Commerce Business Ideas Proven to Work
• 125+ Print on Demand Products to Drop Ship

Use this material as a starting point to help guide you. Resist the temptation to pick a niche or find products to sell from the list above and run with it. Do your homework first!

Once you know what niche you want to go into, research the competition. Create a spreadsheet where you can organize all your findings.

Step One: Basic Google Search

Start with a quick Google search to see the top players in the market. Look at things beyond the products they offer, paying special attention to the way they promote their products, their social media channels and following, etc.

Step Two: Determine Online Presence and Strategy

Next, do a deep dive into their online presence. With tools like Alexa and Similar Web, you can see information about their website, including how many visitors their site gets, their top traffic sources, and who their competition is.

Step Three: Social Media Research

Search social media in your niche to get information on how top brands market themselves. Visit platforms like Instagram, Facebook, and Twitter and pay attention to their brand messaging, how the feed is designed, and the kind of engagement they get. Do most of the engagement come from posts that follow a theme?

Visit the Facebook Ads library and do some searches for those brands. What kinds of things are they advertising? Note how those ads communicate with potential customers and how they’re designed.

Step Four: Email Marketing Research

And finally, subscribe to your competition’s email marketing newsletters. This gives you an inside look at how they’re doing things, while also keeping you up-to-date on what they’re doing.

Step Five: Gathering Additional Intel

The more you know about your competition, the better . Beyond their website URL, it’s important to note the reputation they have (review sites can help with this), product descriptions, pricing, etc. If you notice that one of the top competitors uses generic descriptions from the manufacturer, you can use this to your advantage. By writing quality descriptions that are different, but useful, you can stand out.

Tracking everything in your spreadsheet will make it easier when you decide on the tactics you’ll use to market the business. When it’s time to build out your email list, you’ll have a quick reference to what the competition’s doing and how they’re doing it.

Find A Dropship Supplier

At this point, you’re ready to find a dropshipping supplier or two to work with. There are plenty of places to source products, but the key is to make sure you work with a supply that doesn’t just provide high-quality dropshipping products – but one that ships orders in a timely manner. Shipping times are getting longer all around, regardless of what shipping company handles the packages.

To make it easier for you, we’ve put together a list of the Best Dropshipping Companies for Every Niche .

As you look through companies to work with, consider:

Many suppliers are located outside of the United States. While that often means you can get product to sell for a cheaper price, it also means longer wait times for the product to arrive at your customer’s delivery address.

When you work with overseas suppliers, there’s also the added element of a language barrier that could add to the confusion in the event of issues with product orders.

Product Quality

With dropshipping products, quality makes a huge difference . That’s why it’s important to order samples before you start a dropshipping business. If you charge premium prices for a poor-quality product, you’ll set your brand up for a poor reputation.

Pricing is crucial. If your profit margins aren’t high enough, you won’t earn a profit. But you don’t want to pay more than you need to, either. That said, you’ll pay more for the same product from a U.S. provider than you would from an overseas vendor, simply because the cost of doing business is higher.

The key is to find a balance – if you pay more for a product, make sure it’s an even value exchange. Not only should it be something you can command a higher price point for, but it should come from a supplier that has an excellent reputation for taking care of their customers.

Supplier Reputation

Look at user reviews of suppliers. When you meet with suppliers, ask for references from their current and past customers . Contact the references and see what they have to say about their experiences. Another dropshipping business can help you decide whether to work with a particular company.

Things to watch for as you vet potential partners:

• Ongoing or monthly fees: This may show you’re not dealing with a single company, but a directory, which means you may not have consistency.
• Minimum order sizes: If the company has a minimum order size, it will not work for you if you have to pay for everything upfront, since this is best suited for a wholesale business model. However, for dropshipping products, if there’s a 200 minimum order size, the supplier should be flexible enough to charge the fee and fulfill orders as they come in. If they’re not willing to do this, avoid them.

Note: Preorder fees are a normal part of a dropshipping business, so don’t let those scare you away. Those fees may increase based on the size and complexity of an order. If there’s ever a bulk order, you may see them decrease. Avoid working with vendors who charge higher than average preorder fees.

Returns Policies and Processes

Dropshipping is based on structuring your business around a third party. Your end customers never know that someone else is involved in your ecommerce business. That’s why you must be clear on the supplier’s return policies and processes. Knowing what those are will help you shape your own ecommerce store policies. Online stores that don’t offer some kind of return/replacement policy may run into trouble with conversion rates since clear return/replacement policies are a customer trust signal.

Ultimately, you’ll want to conduct research on dropshipping suppliers much the same way you did with your competitive research. The more information you have available, the more educated your decisions can be.

Set Up Your Ecommerce Shopify Store

After you’ve chosen the products to sell online , and you’ve found the dropshipping suppliers you’ll source your products from, it’s time to build your Shopify store, which is the easiest part.

We’re not going to cover setting up your Shopify website in a lot of detail here, because we’ve already done it. If you need a full step-by-step guide, check out: How to Set Up a Shopify Store for Success .

After you sign up for your Shopify free trial, you’ll have a store that’s ready to customize, which can be done fairly easily.

• Connect (or transfer ) your custom domain, if you already have one.
• Choose your Shopify theme
• Add your site content
• Add products – descriptions, images, pricing, etc. This can easily be done with a dropshipping app from the Shopify App Store. (More on that in a minute.)
• Set up all your marketing emails
• Set up your payment gateways so customers can pay you.
• Add your credit card information to accept payments. You won’t be charged until the end of your free trial. If you cancel before then, you won’t be charged at all.

After your store is set up, you’re ready to start dropshipping. Want to be sure you don’t miss anything? Our 15-point Shopify Launch Checklist gives you everything you need to be sure your online store gets off to a good start.

The groundwork you lay now is critical. The good news is after you get the system set up and things are moving, maintaining it won’t be a full-time job. Your investment will pay off as a result of how scalable and efficient the system is. Remember, you’re building an online business – an asset you can sell in the future.

Connect Your Shopify Dropshipping App

In the Shopify App Store, you’ll find a variety of dropshipping apps to work with. The one that makes the most sense for you depends on a variety of factors, such as products offered, price, etc. That’s why we’re offering a few options to help you get started. These, of course, aren’t the only dropshipping apps that work with Shopify, so don’t be afraid to explore other solutions.

Shopify owns the dropshipping app Oberlo , so you can count on it to work with your Shopify dropshipping store. It’s a huge directory with millions of products to choose from, so dropshippers can start to sell products the same day, and there’s a free plan available.

No matter what niche market you build your dropshipping store around, you can find products to sell through Oberlo. Each product comes with information about how well it performs, so you can continue to make data-driven decisions about your dropshipping business. Product options include:

• Clothing and accessories
• Jewelry and perfume
• Phone cases and accessories
• Electronics
• And more…

Once you’ve found high-quality dropship products to sell online , you can add them to your store with one click. You can make edits to the product descriptions as you see fit.

Update May 2022: Oberlo has announced they’re shutting down. You can use Spocket with AliScraper instead.

AliExpress is a popular Chinese marketplace that makes it easy to find dropshipping products for your store. The thing to remember is that it is a B2C marketplace like Amazon or eBay. Not all AliExpress shops offer dropshipping services, you won’t find them on Alibaba , either.

AliExpress gives you access to millions of products. If you want to make sure you have fast shipping for your dropshipping store, search for products that ship from the United States. It may cost you a bit more money, but you won’t be stuck waiting on items to arrive from China.

With the AliExpress app in the Shopify App store, you can easily copy the products from AliExpress, set your pricing, and start earning money.

Modalyst is a supplier network of U.S.-based dropshipping suppliers. If you want to make sure you can offer quick shipping times, then you’ll definitely want to check them out. Modalyst offers a free plan but charges a 5% transaction fee on your sales.

One thing that sets Modalyst apart from other dropshipping apps is that you can find a variety of independent brands to source products from. Many of these brands also use Shopify, but they meet a strict set of requirements before becoming a dropshipping partner.

Spocket is a great dropshipping app for people looking for partners in the United States or Europe. Like Oberlo, there’s a free plan available. There’s an extensive catalog of product options to choose from, including:

• Clothing and jewelry
• Bath and body products
• Sports and outdoor items

Spocket offers wholesale pricing , which gives dropshipping businesses a 30-60% discount compared to retail. This gives you a bit of flexibility with marketing and promotions, while still keeping your profit margins high. Spocket offers customers fast shipping times and branded invoicing, too.

Printful is a print-on-demand provider that works as a dropshipper. If you want to create a store full of products you’ve designed, but don’t want to carry inventory, then Printful is a good solution. It’s also a great choice if you want to create branded clothing products for your dropshipping store. Many of the products they offer also allow you to pay a bit extra to customize the labeling, so your end customer has no idea the product ever came from Printful.

Printify is another print-on-demand provider that operates with a dropshipping business model. They have a product offering similar to Printful but work with a network of printers all over the world to produce products.

Printify is free to use so you only pay for the products your customers order. Once your business grows, you can upgrade to a $29/month plan that gives you a 20% discount on all items, to improve your profit margins. It integrates with Shopify in just a few clicks. All you have to do is add the Printify app from the Shopify App Store and enter your Printify account information.

Using Printify, you can offer a variety of products with your own designs, such as:

• Clothing – t-shirts, hoodies, swimwear, hats, etc.
• Coffee mugs
• Beach Towels

If you’re not an artist or graphic designer, you can outsource the design creation to someone who is, profiting again and again for years to come.

Marketing Your Shopify Store

Want to improve your marketing strategy? Shopify has a lot of tools to help you build a profitable dropshipping business , but it can’t take care of everything for you. For the greatest chance of success with your Shopify store, keep these things in mind.

Customer Service

Remember, your end customers won’t know anything about the dropshipping suppliers taking care of order fulfillment for you. Because of this, you’ll be in charge of all things customer service-related. And no matter how great your suppliers are, you’ll eventually run into a mistake or two. The best thing you can do is own the mistake. Never blame the third party, and work with the customer to make things right – whether that means offering refunds or replacements.

That said, you don’t have to let the mistakes eat into your profit margin. When you work with reputable suppliers, they will pay to correct their mistakes. That usually means paying for return shipment and replacement, but they won’t cover any upgrades or freebies you’ve offered to customers to smooth things over with them.

Things are a bit different when a supplier continues to make mistakes. If you can’t get the supplier to address the issues, your brand reputation will suffer.

Working with Multiple Suppliers

When you start your dropshipping business, you’re not locked into working with only one supplier. You’re free to source products from as many suppliers as you feel you can manage. Many online stores work with more than one vendor to ensure they don’t run into stock issues and to keep their product offerings varied.

Your vendor relationships are crucial to keeping your dropshipping business running smoothly. If you opt to use multiple suppliers, this can be beneficial as you scale your business.

Working with multiple suppliers also gives you the chance to properly assess product quality. You can order samples from multiple companies, then determine which one you think will work best for your customers. It makes it easier to compare suppliers and better understand your customer experience.

Order Products from Your Competition

If you know your competitors are using the same supplier you’re thinking about using – you can easily see how the supplier packages products and how well they do with services like custom labeling. All you have to do is place an order for a product you’ll be selling.

If you know your competition uses a different supplier than the one you’re considering, it’s still worth ordering from them. You can see what level of service your business will need to provide to meet or beat the competition.

Avoid Focusing Solely on Trending Products

Trending products in your ecommerce store isn’t necessarily a bad thing. However, if you build your entire ecommerce business completely around trending products, you will see a decrease in sales when the trend falls off. Then, you’ll have to find products to replace the trends.

As trends change, you may even need to completely rebrand your store – which can be harmful since most of your success with a dropshipping business comes from the brand you build.

Instead, focus on finding a few trending products within your niche that are in demand. That way, you can capitalize on trends without being completely dependent on them for revenue.

Is dropshipping illegal on Shopify?

Shopify dropshipping is not illegal. The business model itself is perfectly legal, and one of the ways Shopify sets itself apart from other ecommerce platforms is by making it easy to dropship.

Compared to other ecommerce site builders, Shopify integrates with more dropshipping apps.

How much does it cost to start Shopify dropshipping?

The great thing about starting a dropshipping store is that you do not need a lot of money. You only need capital to invest in your branding and building out your website. You can start Shopify dropshipping with a no credit card required free trial.

Shopify recommends you have a cash reserve of around $1,000 to launch your business and get it operational. This will cover the cost of establishing a legitimate business structure, your Shopify account (or another web host, should you decide not to use Shopify), and drop ship supplier investments, such as paying for plugins and memberships to dropship supplier directories.

Can you make money with Shopify dropshipping?

Yes, it’s possible to make money with Shopify dropshipping. As with any dropshipping business, however, you must make sure that you have products that:

• Are in-demand  – you can’t sell something people aren’t looking for or don’t need.
• Have a decent profit margin  – your online business will never turn a profit if you’re only making a few pennies from every sale.
• Are decent quality –  If you try to build a brand by selling products that break within a day or two of arriving to the customer, your dropshipping store will never survive over the long term.

Boost Your Dropshipping Business with Shopify

If you want to start dropshipping, then a Shopify store is a great way to break into the market . The Shopify platform is easy to use, affordably priced and integrates with a variety of popular dropshipping apps.

Once you know the niche you’ll enter and the products you want to offer, Shopify makes it easy to sell products. Once you add a dropshipping app to your Shopify Store, add products to start selling right away.

If you’re considering the dropshipping business model for your ecommerce store, will you use Shopify? Have you used Shopify for a dropshipping store before? We’d love to hear your experiences.

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The Ultimate Shopify Dropshipping Guide (2024)

For many entrepreneurs, launching a Shopify dropshipping store is an awesome way to break into the ecommerce industry. Here’s why: spending time and money on managing your inventory is overwhelming, but with the dropshipping business model, you’ll never need to carry any of the products you sell. You’ll be free to focus your valuable time and resources on growing your online store and making more sales.

Dropshipping is a flexible way to run your business, and it’s supported by the majority of the largest ecommerce platforms—including the biggest of them all, Shopify . Because we believe in making life easier for ecommerce entrepreneurs, we’ve created this ultimate Shopify dropshipping guide to help you start your own successful Shopify dropshipping business. Use it as your “dropshipping for dummies” guide to getting started. 

And once you’re ready to start dropshipping , follow our step-by-step guide to finding great products to sell online and building a Shopify store. It’s super easy to follow, and in less than 50 minutes, you’ll have a Shopify dropshipping store ready to make sales!

Start selling online now with Shopify

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 DSers 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 upfront 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 . Plus, there are several dropshipping tips you can apply to drive traffic to your store.

→ Click Here to Launch Your Online Business with Shopify

What is shopify.

Shopify is the leading ecommerce platform that enables entrepreneurs to start their own online stores. Shopify is simple to use, so you’ll be able to build your own store even if you don’t have any technical experience. It’s also perfect for entrepreneurs who want to launch their own dropshipping business. Shopify will give you access to the wealth of dropshipping and marketing tools available on its platform. 

How does Shopify work? 

Essentially, Shopify works as the foundation for your ecommerce business. It’s an ecommerce platform that provides entrepreneurs with the skeleton they need to start and design their store, and its back end lets you run your business without any hosting fees. You’ll need to pay Shopify’s fairly priced monthly fees, and then your ecommerce store will run without any hitches, letting you rely on Shopify to keep your store up and running while you focus on making sales and scaling your business. All of this is true for Shopify dropshipping stores, too—they’ll follow the same rules as your average Shopify store, you’ll just need to install the DSers app to source products.

Why consider dropshipping on Shopify?

Dropshipping is the perfect business model for entrepreneurs looking to set up their own business with little upfront investment, and Shopify is the simplest platform you can use to create and run your store.

When you dropship on Shopify, you’ll never need to worry about excess inventory, as you’ll only ever order the necessary amount of products to meet the demand from your customers. This system is unlike a typical ecommerce business, which involves either manufacturing products or purchasing products from a wholesaler in bulk.

If you’re planning to use Shopify with DSers, you’ll be able to control your inventory with just a few clicks—another reason why Shopify dropshipping is so simple. 

Is Shopify dropshipping really profitable?

Yes, Shopify dropshipping can be profitable for merchants because you are not responsible for manufacturing or shipping. You can make good, consistent profit with the right suppliers and avoid incurring huge costs as a wholesaler typically would. 

How much can you make as a dropshipper?

Most dropshippers earn between $1,000 and $10,000 per month on average, but you’ll probably make less when you’re just starting out in the ecommerce field. If your idea of running a sustainable dropshipping business is to make at least $1,000 per month, you’ll need to set the right profit margins and establish a strong brand.

Is Shopify dropshipping legal?

Yes, it's perfectly legal to dropship through a Shopify store. However, you’ll need to be careful when choosing your suppliers, because some illegally use other companies' intellectual property. As long as your suppliers practice good business etiquette, you shouldn't have any legal problems while dropshipping on Shopify.

Where to find a Shopify dropshipping business for sale

If you don’t want to create a dropshipping business from scratch, you can buy an existing dropshipping business from a buy and sell website like Flippa . Flippa is essentially a marketplace where entrepreneurs offer their ecommerce businesses for sale to interested buyers.

7 Steps to Start Dropshipping on Shopify

In this section of our Shopify dropshipping guide, we’ll walk you through all the steps you’ll need to take to create your own ecommerce store. We’ll show you our best tips for each stage you go through, and at the end you’ll have a fully functional Shopify dropshipping store that can start making money today. Here are the steps you need to take to open a dropshipping store with Shopify.

1. Choose a store name

This is the first step you’ll take toward opening your Shopify dropshipping store. Follow these tips for coming up with a name for your online store :

• Keep it simple
• Be creative
• Make it memorable

Shopify makes it easy to brainstorm creative name ideas for your dropshipping store. All you have to do is use Shopify's online business name generator , enter any word you would like your business name to include, and click on “Generate names.”

You’ll be presented with a list of business names from which you can pick your favorite to be your Shopify dropshipping store name. Not only will it save you a lot of time, but it’s also completely free to use.

Once you’ve come up with some ideas for the name of your Shopify dropshipping store, you’ll need to check what’s available. If you’ve come up with a name like “American Clothing Store,” it’s likely already in use. You can check this by using Google search and seeing if there’s already a .com domain attached to the name.

2. Create a Shopify account

Creating an account for your Shopify dropshipping store is a simple and quick process. To start, you’ll need to visit Shopify’s homepage and click “Start free trial.” 

Enter your email address in the empty field on the next screen. You’ll be asked to create a password for your account and to enter the name you’ve decided on for your Shopify dropshipping store. 

Next you’ll need to fill out a couple of questions about your experience with ecommerce, along with a few personal details.

Once you’ve completed this, your Shopify account will be up and running. Then you’ll need to configure the settings to launch your Shopify dropshipping account.

3. Optimize your settings 

In this section of our Shopify dropshipping guide, we’re going to go through the settings of your newly created Shopify account. This step is essential for setting you up to receive money from your customers, creating your store policies, and establishing your shipping rates.

Payment information

The first thing you’ll need to do is set up payments for your Shopify dropshipping store. This is a vital step, as you won’t be able to receive money from customers if you don’t add a payment option.

To add payment information, you’ll need to access Shopify’s Settings page. Simply select the Payments tab on the left and add your payment information.

We’d recommend that you add a PayPal account here. If you don’t have an account, you can sign up for one in just a few minutes—it’s a simple process, even if you’re not technically proficient. (You can also check out our article on PayPal and other payment gateways.)

Store policies

When you’re launching your own Shopify dropshipping store, you’ll need to make sure you have created the necessary store policies. Shopify has a bunch of helpful tools that automatically generate a standardized privacy policy , refund policy , and terms and conditions for your store.

You can access these tools from Shopify’s settings. Click on the Checkout tab and scroll down to the bottom to find the relevant fields.

Click on the Generate button, and you’re good to go.

Shipping rates

It’s critical that your Shopify dropshipping store has clear shipping rates. We recommend that you always offer free shipping , as this is the easiest option. If you offer different shipping rates for various regions, it can become confusing, so simply incorporate your shipping fees into the price of your products and make shipping free. 

For example, if you’re planning to sell a t-shirt for $20, raise the price to $25 and offer free shipping. Using “FREE SHIPPING!” as part of your Shopify dropshipping store’s marketing will help you sell your products.

You can set free shipping on your store by accessing the Shipping tab in your Shopify settings.

Delete all domestic shipping zones and add “Free International Shipping” into the Rest of World section. Then select Rate: Free Shipping Rate, and you’re set.

4. Launch your Shopify dropshipping store

You’ve now added all the necessary information you’ll need to launch your Shopify dropshipping store.

To launch your store, simply go to the Sales Channels tab on your Shopify admin dashboard. From there, select the “Add an online store” option.

Once you’ve finished this step, you’ll have an online store that’s up and running!

5. Work on your store’s design

In this section of our Shopify dropshipping guide, we’ll go over the importance of design for your ecommerce store and highlight some key points for you to consider. The design of your Shopify dropshipping store will hold great importance, as it will be how you’re presenting your store and your brand. 

Having an aesthetically pleasing ecommerce store is just as important as a brick-and-mortar store having an enticing shop window. It’s a user’s first impression of your business, and first impressions count. Don’t forget to look at these easy ecommerce store design tricks that will help your sales skyrocket. 

When it comes to designing a Shopify dropshipping store, there are two main aspects you’ll need to consider: your theme and your logo.

Picking a theme on Shopify

Shopify has a theme store where you can source a wide variety of themes. You will find both free options and premium options there. Take a look around and decide on the best theme for your store based on your financial resources—if you’re starting your store with a tight budget, we’d advise choosing a free theme.

We understand that it can be tricky to decide which theme you should choose. To make it easier for you, we’ve written a post to help you decide which option is best for your Shopify dropshipping store. It covers topics such as what you should consider before selecting a theme, details about free Shopify themes , how to customize Shopify themes, and much more.

Creating a logo for your store

The logo for your Shopify dropshipping store will help customers remember your brand. Take some time to consider how you want your logo to look and how it will fit in with the rest of your store’s design.

Creating a logo might sound like a tough and time-consuming task. But with Shopify's free online logo maker , you’ll be able to generate your preferred logo in less than a few minutes. All you have to do is experiment with fonts, colors, icons, and positioning for you to develop the perfect logo for your brand.

If you’re interested in creating your own logo, you can use graphic design software, like Photoshop or Canva. You can also outsource high-quality graphic designs from freelance platforms , like Upwork or Fiverr, at an affordable price point.

Once you’ve got your theme and logo figured out, your store will start getting into shape. If you’re looking for further inspiration, you can check out the amazing designs of these ecommerce websites that we’ve prepared for you.

6. Dropship on Shopify with DSers

Once you’ve sorted out the design of your Shopify dropshipping store, you’ll need to start adding products so you can begin generating revenue. 

To add products that you can dropship, you’ll need to install the DSers app, which is one of the best Shopify tools for ecommerce entrepreneurs who want to import dropshipped products to their store. AliExpress and DSers are seamlessly integrated, so you’ll be able to start importing and offering products from Day 1.

When you’ve installed DSers with Shopify, you’ll need to add a category to your Shopify store. Name this category after the type of products you’ll be selling. If you’re thinking about starting an online t-shirt business , simply name this category “T-shirts.”

If you’re looking for product ideas, check out our list of unique dropshipping products . And, if you’re interested in understanding how to choose products to sell , be sure to check that out too.

With the DSers installation complete, you can use the app to search for AliExpress products that you’re interested in selling. Click the Import button on any products you’d like to sell and they’ll be imported directly into your Shopify dropshipping store.

7. Make your first sale

Now it’s time to start making sales and earning money with your Shopify dropshipping store. It’s unlikely you’ll generate a huge volume of traffic by simply launching your store, so we recommend that you use marketing campaigns to draw potential customers.

Take a look through the various available marketing channels , and do some research to find out which one will work best to drive traffic to your Shopify dropshipping store. If you think you’ll excel with Facebook advertising , then test out some campaigns. If you want to try your hand at TikTok or Instagram , go for it. The most important thing is to keep testing. You’ll soon find out which marketing strategies work best for your ecommerce business.

Over To You

You’re now the owner of your own Shopify dropshipping store. Congratulations!

We’ve covered a lot in this Shopify dropshipping guide, but you’ll learn even more while you’re actually getting your hands dirty running your own business. There’s no limit to the amount of money you can make with your online store, so it’s time to start making sales and generating revenue. With the availability of Shopify and third-party tools, it’s no longer a struggle to dropship products online.

Shopify dropshipping FAQ

How do i start a shopify dropshipping business.

• Choose a store name.
• Create a Shopify account.
• Optimize settings.
• Build your online store. 
• Work on your store’s design.
• Install a dropshipping app.
• Make your first sale.

What are the benefits of dropshipping on Shopify?

• Less upfront investment required
• Easy to start
• Customizable store
• Wide selection of dropshipping tools
• Various payment options

Is Shopify dropshipping worth it in 2024?

Dropshipping has some definite advantages, but it introduces a number of complexities you’ll need to resolve. For instance, shipping is complicated when you’re working with multiple suppliers, because each will charge their own rate for sending the item to the customer.

The good news is that with some careful consideration and planning, most of these roadblocks can be eliminated and you can progress toward building a thriving Shopify dropshipping business. 

Want to Learn More?

• How I launched my eCommerce store in less than 30 minutes (with products)
• How To Select Dropshipping Suppliers
• What Should You Sell Online?
• 10 Online Stores to Use as Inspiration for Your First Store

If you have any other questions let us know in the comments section – we’re happy to help you out in your ecommerce journey.

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Are you teeming with a groundbreaking dropshipping business idea but uncertain how to kickstart your venture? Fear not! Crafting a meticulous dropshipping business plan is your compass.

My comprehensive guide covers the pivotal steps and 13 indispensable tips to ensure your dropshipping success.

From defining your business model to pinpointing suppliers, marketing strategies, and financial projections, we leave no stone unturned. Discover the roadmap to setting clear goals, attracting investors, and navigating legalities.

With insights from top dropshipping store owners, learn why a business plan is your playbook, guiding every strategic move.

So, if you want to learn how to create a short business plan for dropshipping, keep reading!

Table of Contents

What Is a Dropshipping Business Plan?

A dropshipping business plan is a comprehensive document that outlines the essential elements of starting and operating a dropshipping business. So, whether is the dropshipping business model , or any other ecommerce model , creating a business plan is crucial.

Hence, a dropshipping business plan covers key elements, starting with an executive summary detailing the business overview, mission, and objectives.

It defines the dropshipping model, target market, and niche. Also, the plan includes a thorough market analysis, articulation of products, identification of suppliers, and a robust sales and marketing strategy.

Not only that, but operational aspects, financial projections, legal compliance, risk assessment, technology specifications , and exit strategies are integral components as well.

A simple dropshipping business plan should give you a good idea of your goal . Additionally, it should guide you through each stage of starting and running your online venture.

👉 Check out the Top 25 Ecommerce KPIs to Track For Your Dropshipping Store.

Moreover, the goal is the roadmap of your business and the guide for setting all your activities so you can achieve them.

So, since you can set it clear in your business plan for dropshipping, you can always go back to the first page and remember where you want to see your dropshipping business in a certain period of time. And there you go, back on track!

So, why exactly is the business plan for dropshipping crucial?

👉 Check out the Top 11 Richest Dropshipping Store Owners In The World.

Why Is Business Plan Important When Starting A Dropshipping Business?

✅ get clear on your goals.

Ever tried reaching a destination without a map? A business plan is your map. It helps you figure out where you’re going and why.

✅Think Strategically

Picture it as your playbook. A business plan lets you strategize – who your competitors are, who you’re targeting, and how you’ll stand out.

✅ Use Your Resources Wisely

Money matters! A business plan helps you budget smartly and understand what you need to make your business rock.

✅ Spot Risks Before They Spot You

Ever heard the saying, “Forewarned is forearmed”? Your business plan helps you spot risks ahead of time and come up with plans to tackle them.

✅ Attracting Investors or Financing

Need cash? Investors and lenders want to see you’ve thought things through. A solid business plan makes them say, “This person knows what they’re doing!”

✅ Business Plan is Your Communication Tool

Explaining your business to others? A business plan is like your cheat sheet. It helps you express your genius idea in a way everyone gets.

✅ Measure Your Progress

It’s like a report card for your business. Are you winning or losing? Your business plan helps you keep score and tweak your game if needed.

✅ Your Daily Operational Guide

Ever felt lost during the daily grind? Your business plan is like a compass, guiding your day-to-day decisions.

✅ Stay on the Right Side of the Law

Legal stuff can be a headache. A business plan helps you make sure you’re following the rules, and avoiding any nasty surprises.

✅ Planning as a crucial part of your dropshipping business plan

Planning for the long haul? A business plan can help with passing the baton, ensuring a smooth transition in leadership or ownership.

You cannot underestimate the importance of proper planning because it is core to how your business takes shape.

It is crucial to a successful launch and making better decisions in the future. And it is actually the foundation of success. Here I share the best predictions: What is the future of dropshipping ?

Think of it as a road map; you can travel without one, but it can only increase your chances of getting lost along the way.

Now you are probably aware of the importance of proper planning. But if you have never created an e-commerce business plan, and you do not even know where to start, you do not have to look for dropshipping business plan examples elsewhere.

However, before creating your e-commerce business plan, you need to gather certain information. Then, you can get everything down on paper.

👉 Learn about Dropshipping: Is It A Real Business or a Get-Rich-Quick Scheme?

How to Create a Dropshipping Business Plan?

I will guide you through several essential steps for developing a business plan for dropshipping. However, there are various free dropshipping business plan templates to use as well.

Step 1: Choose a Product To Dropship

First thing first, you need to make a decision about what you want to sell. Thus, this step mainly contains brainstorming about the products that are mostly selling on the market, or maybe products that you have the most knowledge of.

Surely, I know that the beginning is always the hardest, and making a decision about the one that sells most and the one that I desire is hard too.

However, I recommend you make a mix between the two. Thus, as a dropshipper, you can choose a one-product store or a niche store . And believe me, both work perfectly fine!

For example, you can go to Google Trends , type each product keyword, and see the results from customer searches.

👉 Learn The Ultimate Guide: How to Use Google Trends for Dropshipping .

This tells you a lot since you can see what customers mostly demand. Using this tactic you can also check which products to include in your niche store. So, let’s try it out.👇

Here’s our guide on how to dropship phone cases successfully.

Next, you can check trending or winning products on some popular and trustworthy websites, like Dropshipping.com , or AutoDS . Hence, this way you can also check what customers mostly buy.👇

Finally, we recommend you always check product profitability . Thus, check product supplier prices, and market prices, and this way you can see the profit margins.

Luckily, today you have various dropshipping platforms that have already done that for you, so the only thing you should do is do a little research.

For example , I visit the Dropshipping.com product directory , then I type in the specific product keyword, and I get all the results I need. Take a look.👇

Also, you can sort the products by shipping costs or product prices, but that’s up to you.

Step 2: Do An In-depth Market Research

However, looking for products over the internet getting ideas, and checking the results on Google Trends is not enough. Therefore, next, conducting market research is essential for your business plan for dropshipping. Thus, you need to make an in-depth industry analysis.

First, you can start by checking the industry market share, or the industry leaders. But, more importantly, you better start by checking whether the products you selected are desirable.

Thankfully, you have various amazing product research tools that can help you find your winning products.

Thus, I use the AutoDS product research tool personally, and it’s great for quickly finding, checking, and bringing in products.

With it, I can easily look up popular products and get info like product details, suppliers, profitability, prices, shipping, ratings, and reviews.

👉 Check out Sell The Trend Review: Find Winning Dropshipping Products .

Step 3: Competitor Analysis

Correspondingly, do not underestimate your competitors! Instead, get to know them as if they are your best friends. You know the rule – keep your friends close, but enemies closer.

If you want to always be a step ahead of them, you should check their dropshipping store in-depth. Of course, you will compare the pricing of their products, the marketing tactics they use, or the dropshipping suppliers they interact with .

Moreover, you can even check what dropshipping tools and apps they use to manage their business.

But, my advice on this one is to analyze every aspect of their store , not just the logistics. But also, check:

• How do they give customer support?
• How do they offer additional value for customers, do they have information blog posts, or something else?
• The website navigation, call-to-action buttons they use, the website design, and the information they serve.
• How simple is their buying process, what payment options do they offer, etc?

For instance, I use AdSpy to check out my competitor’s work. It is a tool that focuses on checking out what your competitors are doing with their ads.

It helps you understand their advertising methods and figure out how to make your own ads work better.

The tool gives you details about your competitors’ ad designs, who they’re aiming at, and how well their ads are doing. This way, you can get a good overall picture of what’s working for them in advertising.

Step 4: Find Dropshipping Suppliers or Manufacturers

Well, it is step 4, but maybe the most important one of the dropshipping business plan as well. I assume that you already know how dropshipping business model works.

👉 Read about Everything You Need To Know: Dropshipping Business Model Explained .

The dropshipping suppliers are the only ones who see and check the products before they are delivered to your customers. Therefore, it is essential to choose the one you trust the most!

Thus, you can find dropshipping suppliers on your own. Just open the Google search engine( or whoever you use), and google it.

But you will never be certain if they are reliable. For that purpose, I recommend you rely on trustworthy dropshipping agents.

For example, I regularly find helpful information on Dropshipping.com’s supplier directory . It’s a free resource with over 2000 trustworthy suppliers.

This directory assists me in refining my search based on my specific dropshipping niche, supplier location, shipping costs, and other preferences.

I also gain access to important details such as each supplier’s pricing, order processing time, minimum order quantity (MOQ), warehouse location, and product range.

Also, you can learn about the 13 Best Directories To Find Wholesale Dropshipping Suppliers.

💡 Tip : Check out the Top 100 Ecommerce Suppliers For Sourcing Dropshipping Products .

Step 5: Build A Marketing Strategy For Your Product

What will set you apart from your rivals is a well-planned marketing strategy. Since a competitor’s plan could not work for you, copying is not the solution in this situation.

In addition, you already have a business plan for dropshipping, so you are aware of where your business is heading.

In spite of this, the following step is to provide a slight boost.  And this is where marketing takes place.

Making a client acquisition plan that takes into consideration your marketing budget is the most efficient method to do this.

👉 Follow the 7 Tips For Creating a Bulletproof Dropshipping Marketing Strategy in 2024 .

Therefore, in our opinion to advertise your company, you should use both a short-term and long-term strategy.

Short-term marketing includes :

• Pay-per-click ads on search engines, such as Google ads.
• Social media ads on TikTok , Facebook , Instagram , or Pinterest
• Digital marketing adverts, such as banner placements
• Influencer marketing
• Video marketing can effectively highlight your products, showcasing their features, functionality, benefits, and usage instructions.

On the other hand, long-term marketing includes :

• Search Engine Optimization , so you can rank higher in Google SERPs.
• Consistent Email Marketing strategy so you can stay in touch with your consumers, encourage repeat purchases, and increase brand recognition.
• Content Marketing , like writing blog posts,

Also, there are various marketing apps nowadays that can help you promote your dropshipping business, thus we recommend you to check out the 16 Best Marketing Apps on Shopify.

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What Do You Need to Cover In Your Short Dropshipping Business Plan?

If you do not have previous experience in writing something like that, you have come to the right place. Just read on!

Here are the key elements of a simple business plan for dropshipping:

1. Executive summary

Although your executive summary needs to appear first in your plan, you should write it last. As its name suggests, it is a summary and is supposed to highlight what you intend to discuss in the rest of your plan .

In addition, it is a brief outline of your business purpose and goals . Therefore, in this section, you need to highlight the key points you have uncovered while writing your dropshipping business plan.

Briefly write what your business is and why it will be prosperous.

In other words, summarize basic information about your business concept, mission, goals, target market, product, marketing strategy, and current/projected financial state.

In fact, if you need help, here’s my example:

Business Name: XYZ Tech Solutions Location: Silicon City, CA ➡ Mission Statement: XYZ Tech Solutions is committed to providing innovative and reliable technology solutions that empower businesses to thrive in the digital age. ➡ Business Concept: We specialize in developing cutting-edge software applications for small and medium-sized enterprises, with a focus on enhancing efficiency and scalability. ➡ Market Analysis: Our target market includes businesses in the technology, healthcare, and finance sectors. With a comprehensive understanding of market trends, we aim to capture a significant share in the rapidly growing software solutions industry. ➡ Unique Selling Proposition (USP): Our modular and customizable software solutions, coupled with a user-friendly interface, set us apart. We offer unparalleled customer support and continuous updates to ensure our clients stay ahead in the dynamic tech landscape. ➡ Business Model: XYZ Tech Solutions generates revenue through a subscription-based model, offering tiered packages with varying levels of features and support. This approach ensures a steady and scalable income stream. ➡ Financial Summary: Projected annual revenue for the first three years is $2 million, with a net profit margin of 20%. We are seeking $500,000 in funding to accelerate product development and expand our sales and marketing efforts. ➡ Team Overview: Founded by industry veterans with a combined experience of over 30 years, our team comprises seasoned software developers, marketing experts, and customer support professionals dedicated to the success of XYZ Tech Solutions. ➡ Milestones and Achievements: In the past year, we successfully launched our flagship product, securing contracts with five prominent clients. We are on track to double our client base in the coming year. ➡ Future Plans: XYZ Tech Solutions aims to become a market leader in the software solutions industry, expanding our product line and entering new markets. We anticipate achieving a 30% market share within the next five years.

2. Company Description

Company description is the second key element of your e-commerce business plan. Here, you should provide detailed information about your business.

In simpler terms, this section of your dropshipping business plan should include information about:

• Your business structure. Seek legal advice and decide which legal form of ownership is best for your business. You can choose from a sole proprietorship, a limited liability company, and a partnership.
• Your business model. As you are planning on starting a dropshipping business, your business model is dropshipping, of course.
• Your industry. Determine what industry you are about to sell your products in.
• Your short- and long-term business goals. Set clear, short- and long-term goals. This can help you stay focused and stop your online venture from becoming stagnant.

Also, here’s an example. 👇

Certainly! The company description in a business plan provides a detailed overview of your company, its history, mission, vision, values, and the products or services it offers. Here’s a fictional example: Company Description Company Name: XYZ Tech Solutions, Inc. Founded: January 2018 Location: Silicon City, CA Mission Statement: At XYZ Tech Solutions, our mission is to revolutionize the way businesses operate by delivering innovative and reliable technology solutions. We are committed to empowering organizations with cutting-edge software that enhances efficiency, fosters growth, and drives success in the digital era. Vision: To be a globally recognized leader in providing modular and customizable software solutions that cater to the evolving needs of businesses across various industries. We aspire to create a positive impact on our clients, employees, and the communities we serve. Values: Innovation: We embrace creativity and continuously strive to push the boundaries of what technology can achieve. Integrity: We operate with transparency, honesty, and a commitment to ethical business practices. Customer-Centricity: Our clients’ success is our top priority, and we are dedicated to delivering exceptional value through our products and services. Collaboration: We foster a culture of teamwork, recognizing that collaboration and diverse perspectives drive innovation. Business Overview: XYZ Tech Solutions specializes in developing and delivering state-of-the-art software applications for small and medium-sized enterprises (SMEs). Our comprehensive suite of products includes cloud-based project management tools, customer relationship management (CRM) systems, and business analytics solutions. History: Founded in January 2019 by a team of industry veterans with a shared vision for technological advancement, XYZ Tech Solutions has steadily grown into a dynamic player in the software solutions market. Our founders, each with over a decade of experience, identified a gap in the market for user-friendly and scalable software tailored to the unique needs of SMEs. Products and Services: Project Xcelerate: A cloud-based project management tool designed to streamline collaboration, improve communication, and enhance project efficiency. ClientConnect CRM: An intuitive customer relationship management system that empowers businesses to build and maintain strong client relationships. DataInsight Analytics Suite: Comprehensive business analytics tools that provide actionable insights, enabling data-driven decision-making. Market Presence: XYZ Tech Solutions has successfully established a strong presence in the technology, healthcare, and finance sectors. With a growing client base and positive feedback from industry leaders, we are poised for expansion into new markets and industries. In summary, XYZ Tech Solutions is a forward-thinking technology company dedicated to driving the success of businesses through innovative software solutions. Our commitment to excellence, customer-centric approach, and passion for technological advancement set us apart in the competitive landscape.

3. Market Analysis and Customer Segmentation

The market analysis section of your plan is very important because it needs to provide a detailed overview of your industry and market. This means you must do comprehensive market research before writing this section.

In this part of your simple dropshipping business plan, you should address everything from estimated market size to your target market.

That is to say, you should provide detailed statistics and define things like:

• Your industry. Now that you know what industry you are about to sell your products in, learn more about the market size, trends, growth rate, and outlook.
• Your target market. Clearly define your target audience. To put it simply, find out how many people need your products. Also, learn more about their age, gender, location, lifestyle preferences, purchase potential, etc. Just be as specific as possible about who you are trying to reach.
• Your competitors. Do a detailed analysis of your industry while addressing the strengths and weaknesses of your competitors.

This is the part of your dropshipping business plan where you should figure out whether your business idea is viable.

However, as I mentioned above, various dropshipping tools can help you automate the entire process. Thus, you can use product research tools to find your winning products, and see what your customers mostly want, or competitor spy tools to check on your competitors.

Plus, here’s my approach.

Also, if you are a creative fella, I have an idea for you. Hence, when I segment my target audience, I make different Ideal buying persona profiles.

Thus, you can simply use ready-made templates from Canva , and add their personal information, professional career, hobbies, reasons why they would buy your products, and more. Accordingly, I even write down their income or buying power .

Thus, I make multiple customer profiles, and that is how I make my market segments.

4. Management and Organization

This section of your plan should cover two main aspects of your startup:

• The organization. Define the way your business is structured and the people involved.
• The management. Provide details about team members, if any.

You should incorporate this section into your dropshipping business plan if you intend to set up a multi-member limited liability company or a partnership. Also, you can draw an organogram , or organizational structure to clear it all up. Thus, on Canva you can find premade templates and use them for your organogram.

But if you are planning on running your business alone, you can simply skip it.

However, here’s an example of how you can describe your organizational structure:

Executive Summary: XYZ Tech Solutions boasts a seasoned and dynamic management team with a collective experience of over 5 years in the technology sector. Our team is dedicated to driving the company’s vision of providing innovative software solutions to businesses across industries. Organizational Structure: Here you can place your organogram. Profiles of Key Management Team Members: John Doe – CEO and Co-founder Education: MSc in Computer Science, Stanford University Experience: 15 years in software development, previously a senior executive at Tech Innovators Inc. Jane Smith – CTO and Co-founder Education: PhD in Computer Engineering, MIT Experience: 12 years in software architecture, led development teams at Innovation Solutions Co. Management Team Roles and Responsibilities: John Doe oversees the overall strategy and vision of the company, while Jane Smith is responsible for the technical direction and development of our software solutions. Advisory Board: XYZ Tech Solutions is currently in the process of establishing an advisory board to provide strategic guidance. Potential members include industry experts and successful entrepreneurs. Key Personnel and Positions: Sarah Johnson – Head of Marketing Mark Thompson – Head of Sales David Rodriguez – Head of Customer Support Succession Plan: The management team is committed to developing internal talent and has identified potential successors for key roles through mentorship and training programs. Compensation and Ownership Structure: Executives receive a combination of salary and performance-based bonuses. The ownership structure is distributed among the founders and key executives based on their contributions to the company. Human Resources Plan: We will prioritize recruiting top-tier talent in software development, marketing, and customer support. Regular training programs and employee development initiatives will be implemented to foster a high-performance culture. Future Growth Plans: As XYZ Tech Solutions expands its product offerings and enters new markets, the management team will scale accordingly. Plans include hiring additional executives and specialists to support the company’s growth trajectory.

5. Product Details

As you can assume, you need to clearly describe the products you will sell through your online store in this part of your dropshipping business plan.

Furthermore, describe how your products will differ from those of your competition. Plus, you may also want to include the prices of your products here.

In short, you should highlight the features and benefits of your products. Keep in mind that there is a difference between the features and benefits of a product.

The features are the aspects of your products, whereas the benefits are the effects your products will have on your customers.

Just try not to get too bogged down in unnecessary information and description here. So, it is advisable to use a numbered or bulleted list to easily and fast highlight important information.

Thus, here’s an example: 👇

Product/Service Description: XYZ Health Tracker is a cutting-edge mobile application designed to empower individuals to take control of their health and wellness. The app seamlessly integrates with wearable devices to provide real-time insights into physical activity, sleep patterns, and overall health metrics. Key Features and Benefits: ➡ Personalized Health Dashboard: Users can view a comprehensive dashboard that aggregates data from various health metrics, offering a holistic view of their well-being. ➡ Activity Tracking: The app records and analyzes physical activity, providing customized recommendations to help users meet their fitness goals. ➡ Sleep Analysis: Advanced sleep tracking algorithms offer insights into sleep quality and patterns, allowing users to make informed decisions for improved rest. ➡ Nutritional Guidance: An integrated nutrition feature provides personalized dietary recommendations based on individual health goals and preferences. Cost Structure: Development costs include software development, API integration, and ongoing maintenance. Operational costs cover server hosting, customer support, and marketing efforts. Pricing Strategy: XYZ Health Tracker adopts a freemium model, offering basic features for free and a premium subscription for advanced analytics and personalized health plans. Pricing tiers are competitive and cater to a broad user base. Distribution Channels: The app is available for download on major app stores (Apple App Store and Google Play). We are exploring partnerships with health and fitness retailers for in-store promotions and distribution.

6. Sales and Marketing

In the world of dropshipping, there is no shortage of competition. And without a good marketing strategy, people simply cannot learn about your store.

Thus, a carefully planned marketing strategy included in your overall dropshipping business plan is indisputably crucial to ensuring the success of your dropshipping business.

So, in your sales and marketing plan, you should address the following topics:

• Your products. Again, focus on your products.
• Your pricing strategy. Define your pricing strategy – set competitive prices but still leave room for a reasonable profit.
• Your sales plan. Identify sales approaches that are suited to your target audience.
• Your marketing and advertising plan. Describe how you will attract and retain customers; e.g., through social media, e-mail, content marketing, Google ads, etc.
• Specify the marketing channels you will use (e.g., online, offline, social media, email marketing).
• Create a timeline for the execution of your marketing strategies.

The simplest way to develop your marketing plan is to define the marketing efforts of your business for a period of one year.

Set your marketing strategy, advertising, and promotional activities planned for that period.

7. Logistics and Operations plan

This part of your e-commerce business plan should outline the way you are going to turn your business idea into reality. Here, you need to explain in detail the steps you will take to complete your business mission. Focus on things like:

• Wholesale suppliers . Figure out how you will source your products and make sure you partner with a reliable, certified supplier.
• E-commerce platform . Include the e-commerce platform you will use to enable the commercial process of selling over the internet; e.g., Shopify, WooCommerce, BigCommerce, etc.
• Your dropshipping store . Highlight where you will sell your products.
• Shipping and fulfillment . Mention that your dropshipping supplier will be responsible for that.

8. Financial Analysis

This section of your dropshipping business plan needs to contain information about the expenditures for your business . That is why you should calculate and evaluate the startup costs for your online business.

You are about to start a dropshipping business , right? Therefore, estimate the costs of website development, e-commerce platforms, dropshipping automation apps, marketing, advertising, e tc. Also, do not forget to include financial projections for the first year.

And remember that accurate financial forecasts can help you make your online venture a success.

👉 Learn How To Add Afterpay To Shopify: My 4-Step Guide + Examples .

Frequently Asked Questions About Dropshipping Business Plan

1. do you need a business plan for dropshipping.

Yes, having a dropshipping business plan is essential for your business, since it acts as a well-planned roadmap of all the resources, budget, or marketing tactics.

Thus, you need the dropshipping business plan to clarify your plans for growth, understand your financial needs, and attract funding from investors.

2. How Much Do Dropshippers Make On Average?

The usual profit margin for dropshippers is 15% to 20%. However, The most successful dropshippers have reported margins of around 300%.

3. Is Dropshipping Still Profitable?

Yes, dropshipping is still a profitable business model. Check out why is still profitable here .

4. What is dropshipping?

Dropshipping is a retail fulfillment method where a store doesn’t keep the products it sells in stock. Instead, when you sell a product, you purchase the item from a third party and have it shipped directly to the customer.

👉 Learn about How Does Dropshipping Work – Everything You Need To Know.

5. Why should I consider starting a dropshipping business?

Dropshipping offers lower startup costs, reduced inventory risk, and the ability to focus on marketing and customer service. It’s also a flexible business model that can be managed from anywhere.

6. What are the key components of a dropshipping business plan?

A comprehensive dropshipping business plan should include sections on market research, product selection, supplier evaluation, marketing strategy, financial projections, and operational plan.

7. How do I choose the right products for my dropshipping store?

Conduct market research to identify trending products, analyze competition, and understand your target audience. Choose products that have a demand and fit within a specific niche.

8. How do I find reliable dropshipping suppliers?

Look for suppliers with a good reputation, clear communication, and a reliable track record for timely deliveries. Consider using reputable dropshipping platforms and directories to find trustworthy suppliers.

9. What are the potential challenges in dropshipping?

Common challenges include product quality issues, shipping delays, inventory management, and intense competition. It’s essential to have contingency plans for these challenges.

10. How can I market my dropshipping business?

Utilize digital marketing strategies such as social media advertising, search engine optimization (SEO), influencer marketing, and email campaigns. Building a strong online presence is crucial for attracting customers.

11. How can I ensure customer satisfaction in a dropshipping business?

Choose reliable suppliers, provide accurate product descriptions, set realistic delivery expectations, and offer excellent customer support. Transparency and clear communication are key to building trust.

12. What legal considerations should I be aware of in dropshipping?

Familiarize yourself with e-commerce and dropshipping regulations in your target market. Ensure compliance with consumer protection laws, and have clear terms and conditions, privacy policies, and refund policies on your website.

👉 Learn Do I Need an LLC For Dropshipping? The Sellers Guide.

13. How can I track and analyze the performance of my dropshipping business?

Use analytics tools to monitor website traffic, track sales, and assess the effectiveness of your marketing efforts. For example, Ahrefts is a valuable tool that can help you monitor your dropshipping website.

Regularly review key performance indicators (KPIs) to make informed business decisions.

Remember that the success of your dropshipping business de

Grow With a Short Dropshipping Business Plan

In conclusion, mastering the art of dropshipping requires more than just a groundbreaking idea; it demands a meticulously crafted business plan.

My guide for creating a dropshipping business plan has equipped you with the essential tools to navigate this dynamic landscape successfully.

From goal clarity and strategic thinking to smart budgeting and risk mitigation, your comprehensive plan is the key to sustainable success.

Remember, a business plan isn’t just a document; it’s your daily operational guide, your communication tool, and your progress report card.

As you embark on this exciting journey, let your business plan be the unwavering foundation that propels you towards your dropshipping dreams. Happy dropshipping! 🌟

About the Author

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Shopify Dropshipping In 2024: A Guide On How To Efficiently Dropship On Shopify

Shopify is one of the world’s most popular, user-friendly e-commerce platforms. Dropshipping is an accessible way for budding entrepreneurs to start their own online stores.

Together, they’re a match made in heaven — or, at least, that’s the theory .

In this in-depth guide, we’ll explain how dropshipping works on Shopify, how to build and promote your own Shopify dropshipping store, and succeed as a Shopify dropshipper.

Let’s start with the basics…

What Is Dropshipping?

Dropshipping is a form of retail fulfillment whereby the store owner — or “dropshipper” — sells products without actually having to manage the stock themselves. Instead, when a customer places an order, the shipping process is handled by a third-party supplier.

Image source

As a dropshipper, your job is to build a brand, promote your store, and curate products your audience will love.

You set the retail price of those products, but your supplier controls how much you pay for them. Each time you generate a sale, the supplier takes their share (this is, effectively, the wholesale price of the product).

Your profit margin, therefore, is the retail price minus the wholesale price and any other overheads, such as the cost of running and marketing your e-commerce store.

Learn more in our guide: What Is Dropshipping and How Does It Work?

How Does Dropshipping Work for Shopify?

We’ve discussed the general principles of dropshipping; now let’s look at how it works on Shopify in particular, from the moment a customer buys something to the point when it turns up:

1. Customer Places an Order on a Shopify Store

The customer stumbles upon a Shopify dropshipping store, finds a product they love — a T-shirt, a corner table, a poster — and pays for it through the store’s checkout process.

2. Store Owner Contacts Their Supplier

At this point, things differ from the “traditional” e-commerce process, because the store owner reaches out to their supplier to notify them of the transaction (which typically happens through automation). This is an essential step as the supplier is the one who handles all the picking, packing, and shipping.

3. Supplier Bills the Store Owner

Having been told about the order, the supplier bills the store owner for the purchased product(s). They typically charge the total wholesale price plus an additional dropshipping fee.

4. Supplier Handles Fulfillment

Finally, the supplier boxes up and ships the product straight to the customer. The store owner is responsible for the sale, but they never so much as touch the product through the whole sales and fulfillment process!

How To Start A Shopify Dropshipping Store: Step-By-Step

Like the sound of becoming a Shopify dropshipper? Here’s how to build and promote your store…

Find a Niche

Think about your favorite brands and e-commerce stores. I bet they sell something specific that aligns with your interests, rather than stocking every product type under the sun.

Simply put, it’s far easier to grow a dropshipping business by targeting a niche — or, even better, a niche within a niche — than it is to thrive as a generalist dropshipper. Sure, you’re targeting a smaller audience than the entire population , but the competition will be lower, making it easier to generate traffic and sales.

The best way to choose a niche is to start with a broad concept — ideally one that aligns with your own interests and knowledge. Then narrow it down, as follows:

Once you’ve identified a bunch of potential niche ideas, do your due diligence. Check out the competition on Google to see who else is selling or promoting the same types of products…

…and see which content creators are discussing your niche on platforms like TikTok and YouTube:

That’ll give you a better idea of how easy (or hard) it’ll be to gain traction in this area.

If all your competitors are household-name brands and massive social accounts, you might have to niche down further. Either that, or accept it’ll take a lot of time and effort to start generating results.

Name Your Shopify Store

Once you’ve landed on a niche, it’s time for one of the most fun steps: picking the name of your store.

Don’t worry if you’re not really the creative type because there are plenty of helpful tools out there to make the brainstorming process easier. Shopify has its own business name generator …

…or you can ask an AI assistant like ChatGPT or Claude to come up with some names for you:

(Don’t forget to Google the results to make sure you’re not copying an existing business.)

Start Your Shopify Free Trial

Having laid the groundwork by picking a niche and a name for your Shopify store, the next step is to join Shopify. Click here to sign up for your FREE 3-day Shopify trial .

Sure, three days isn’t long, but it should be enough time to build a basic dropshipping store.

Shopify will ask you a few simple questions about your business type, including whether you’re a newbie or already have an online store, and how you plan to sell to customers. It also wants to know about the types of products you plan to offer at first — tell them you’ll be selling dropshipping products:

Then choose your business location, create a Shopify account, and you’re ready to start building your store.

Connect Your Domain

Your domain name is the address of your website. A good domain name is short, speaks to your niche and brand, and is easy to remember. Getting it right helps you bring more shoppers to your store and boost your search rankings.

Here’s how to connect your desired domain to your new Shopify store:

• Log in to your Shopify admin and click Add a custom domain within the Setup guide menu:

• Click Buy new domain :

• Type your desired domain name into the search box and choose your preferred option by clicking the Buy domain or Buy buttons ( note the registration price varies depending on the top-level domain you choose ):

• Add your contact information and a valid payment method to complete the purchase

You’re now the proud owner of a shiny, new domain name!

Design a Shopify Dropshipping Store Logo

If you don’t have any graphic design skills, creating a logo from scratch can seem intimidating.

But it needn’t, because Shopify has a free logo maker tool that designs logos in seconds based on a few simple prompts. Just choose your niche…

…then pick your preferred visual style, enter your brand name and slogan (if relevant), and tell Shopify where you’ll be using your logo.

Shopify will use your answers to instantly generate a bunch of potential logo designs:

Scroll through until you find one you like, then click to play around with the colors, fonts, and frames.

Happy? Click Next and download your custom assets, including versions tailored for different use cases:

Alternatively, if all the options look terrible, do it yourself using a free graphic design tool like Canva , or hire a professional to do it for you through freelance platforms like Fiverr and Upwork .

Choose a Shopify Store Theme

Arguably Shopify’s greatest strength as an e-commerce platform is its library of themes, which allow you to customize your store to align with your brand, niche, and audience. The Shopify Theme Store features 161+ professionally designed themes, 12 of which are totally free to use.

Browse themes by logging into your Shopify admin and clicking Customize your online store > Customize theme within the Setup guide menu:

Here, you can browse Shopify’s most popular themes, or click Visit Theme Store to check out the full range.

Once you’ve found a good fit, click Add to implement it on your store.

Want to change the theme of an existing store? Check out our guide: How to change Shopify themes without breaking your store .

Choose a Dropshipping Supplier

Without a dropshipping supplier, you’ve got no products to sell. So it’s time to search for a reliable partner (or partners ) to join you on your dropshipping journey.

Track down potential suppliers by:

• Searching dropshipping directories like Worldwide Brands and SaleHoo
• Browsing dropshipping marketplaces like Alibaba , AliExpress , and CJdropshipping
• Searching for manufacturers in your niche and reaching out to them directly
• Buying products from other dropshippers in your niche, then using the return address to identify the supplier
• Attending trade shows (this method also allows you to view products in person, which isn’t always possible for dropshippers)

Before you choose a dropshipping supplier, remember the vital role they play in your success.

If they’re uncommunicative, unreliable, or sell low-quality products, it’ll reflect poorly on your store. So be sure to check out their online reviews, read what other dropshippers say about them on forums, and find out about their shipping policies before settling on a supplier.

Import Products To Your Shopify Dropshipping Store

Having found a supplier selling high-quality dropshipping products, your next task is to import those products to your store.

It’s possible to do this in just a couple clicks using automated dropshipping tools ( more on them later ). But in the early days of your store, you can probably cope with doing it manually by following these steps:

• Log in to your Shopify dashboard
• If you’ve got a CSV full of product names, prices, descriptions, and images, click Import products and follow the instructions to upload them all in seconds
• If not, you’ll need to click Add your products and enter the information one by one:

• Write your product title and description:

• In the Media section, upload product imagery from your device or copy-paste the image URLs:

• In the Pricing section, set your product price (and compare at price , if relevant) and add your cost per unit so Shopify can automatically calculate your profit and margin:

• In the Inventory section, enter the number of units your supplier has in stock. Automation tools can keep this information up to date for you, but if you’re doing it manually, your supplier will be able to tell you the amount. Alternatively, if your supplier makes items on demand, you can uncheck Track quantity .

• While you’re in the Inventory section, create a SKU or barcode to help with inventory management.
• Under Shipping , enter the weight of your product and whether you want to add customs information for international shipping:

• If relevant, use the Variants section to add size, color, material, or style variants of your product (including unique prices, inventory levels, and SKUs).
• If relevant, add any size, color, material, or style variants in the Variants section. Remember to add pricing details, inventory levels, and unique SKUs for each variant, too.

• Satisfied all your information is accurate? Hit Save to add the product (and any variants, if relevant) to your Shopify dropshipping store.

Optimize the Product Page

It’s not enough to simply list a bunch of products on your store and hope customers will buy them; you need to close the deal . That means optimizing your product pages.

For starters, Shopify lets you view the search engine listing for each product within the Add product screen. Here’s how it looks for the product we added in the previous section:

Optimize it by adding keywords to the title (i.e. the blue bit) and the description. And make the description actionable by adding a CTA to boost your click-through rate.

Next, it’s time to level up our product description. Chances are you’ll be given a standard description from your supplier, but there’s almost certainly room for improvement.

Read through the feature list provided by the supplier, then break them down into bullet points that explain the benefits of buying this product. For instance:

• Feature : Adjustable lumbar support and contoured design
• Benefit : Promotes proper spinal alignment, which is essential for maintaining a healthy back

Now, let’s dig into a real-world example of a well-optimized product page, courtesy of office and gaming chair brand Hinomi :

• List promotional information, like free shipping and discounted pricing, in a prominent position.
• Add shipping information so customers know when they can expect their product to arrive.
• Show a review score and link to real-world reviews (dropshipping marketplaces like AliExpress allow you to import reviews from the platform to your own store).
• Include multiple product images to show different angles and people using the product.
• Share the product’s key selling points in bullet point form.
• Add a chat feature to your store to help customers choose the right product. There are 200+ live chat apps in the Shopify App Store .

Sure, optimizing every product page on your dropshipping store is pretty labor intensive. But it’s one of the most effective ways to boost your Shopify conversion rate , so it’s worth the effort.

Customize Your Shopify Store Homepage

While we’re discussing the process of customizing your Shopify dropshipping store, let’s look at another vital part of your site: the homepage.

Chances are, a significant proportion of visitors will land on your homepage. Once arrived, it’s your job to win them over with your aesthetics, explain who you are and what you sell, and guide them toward relevant products.

To update your homepage, log in to your Shopify admin and navigate to Online Store > Themes , then click Customize :

That’ll bring you to the theme customizer screen…

…where you can:

• Add an announcement bar to the top of the page to welcome customers to your store, like to your best products, or promote eye-catching offers
• Update the style and contents of your header menu, including adding your brand logo
• Upload a hero image banner
• Change your heading copy and CTA buttons
• Choose which products to feature
• Add an email capture form

Remember, the goal of your homepage is to steer visitors deeper into your site — that’s where the money is ! So don’t overwhelm them with copy.

Increase sales by up to 175% with product badges

• Use product labels to help products sell faster.
• Highlight best sellers, new arrivals, almost gone, and more.

Choose Your Shopify Store Currency

Follow these steps to choose the currency of your Shopify dropshipping store:

• Log in to your Shopify admin.
• Click on Settings at the bottom of the left-hand menu:

• Scroll down to the Store currency section and choose your desired:

Configure Your Shopify Checkout Settings

Next, let’s tweak your store checkout to ensure you’re capturing all the necessary customer information (while also making it quick and easy for shoppers to buy). Here’s how:

• Navigate to Checkout in the left-hand menu:

• In the Customer contact method section, choose which method(s) customers can use to check out — phone number or email, or just email:

• Also in this section, choose whether or not the customer needs to log in before starting the checkout process:

• Next, scroll down to the Customer information section and tell Shopify which customer details you want to capture during checkout (full name or just last name? Shipping address phone number? Address second line? The choice is yours!).

• Under Marketing options , choose whether to ask customers if they want to sign up for your email and/or SMS marketing lists:

• In Shopify address collection , speed up the user journey by ticking the options to use the shipping address as the billing address by default and use address autocompletion:

• Finally, under Order processing , select whether to add an order confirmation step, choose what to do after the order has been paid, and decide if you want orders to be automatically archived after payment and fulfillment:

That’s it — your checkout is now ready to start processing customer orders!

Generate Shopify Store Policies

From returns and refunds to privacy and terms of service, your Shopify store needs various dull-but-important policy pages that, essentially, show customers you’re legit .

Mercifully, you don’t need to create all of these pages from scratch, because Shopify offers a bunch of pre-written templates. Access them by logging into your Shopify admin, navigating to Settings , and clicking Policies in the left-hand menu:

Once there, you’ll see all the available policy types, which can be automatically added to the footer of your checkout and your store navigation. In full, those policy types are:

• Written return and refund policy
• Privacy policy
• Terms of service
• Shipping policy
• Contact information

To automatically generate your copy, just click Create from template beneath the relevant policy page…

…then edit the text as necessary.

Bear in mind Shopify’s templated pages don’t constitute legal advice , so if you’re unsure about anything, be sure to run it past a professional.

Edit Your Shopify Store Navigation Menu

The easier it is for shoppers to move around your store, the more likely they are to find what they’re searching for — which means more sales. And the best way to streamline the user journey is to build an intuitive Shopify store navigation menu.

Most Shopify stores have two such menus: a main store navigation menu at the top of the page…

…and a secondary menu in the footer:

Your goal is to segment all of your dropshipping products into logical categories and, if necessary, subcategories. For example:

• Leather racing seats for gaming

Once you’ve cut and sliced your inventory, add your new categories to your main store navigation by following these steps:

• Log in to your Shopify admin and navigate to Online Store > Navigation in the left-hand menu:

• Click Main menu :

• Select Add menu item :

• Name your new menu item and link to the relevant URL on your site:

• Click Add and Save menu to add the new item.

Repeat this process for all the other category and subcategory pages you need to add — then do it again for your footer menu. You’ll also need to do this in future if you add new categories to your store.

Configure Payment Providers

Last but not least, you need to give customers a way to pay for your dropshipping products, which means configuring the payment system:

• As long as you’re based in a country where Shopify Payments is available , your best option is to click Activate Shopify Payments :

• If you haven’t already, you’ll need to provide a bunch of information about your business — your name, address, contact details, etc. Follow the prompts to set up Shopify Payments.

Alternatively, if Shopify Payments isn’t an option in your location, you’ll need to choose from the list of third-party providers and request to add their payment method to your store.

Congratulations, your store is all set up to start selling products and receiving payments!

However, you’re unlikely to generate many sales if no one but your mom knows your store exists. So it’s time to think about your marketing plan…

Promote Your Shopify Dropshipping Store

There are lots of ways to promote a Shopify store . Here are some strategies to consider:

Search engine optimization (SEO) takes a long time to yield results, with Ahrefs analysis revealing that only 5.7% of all web pages rank in the top 10 search results for at least one keyword within one year of creation .

But it’s worth the effort because organic search is the highest-converting traffic channel for e-commerce stores.

While SEO is basically never finished , most Shopify stores will yield the best results by prioritizing these areas:

• Optimizing key pages (e.g. homepage, collection pages, product pages) to target relevant keywords
• Using Google’s PageSpeed Insights tool to identify ways to speed up your website’s page load speed
• Building backlinks from authoritative websites to your store

Content Marketing

Content marketing isn’t a traffic source in its own right. Rather, the content you produce can bring in visitors from multiple channels, including organic search, paid search, social media, and email.

It’ll also help with your link-building efforts: the more high-quality, original content you create, the more other websites will link to you.

“Content” refers to everything from social posts to webinars to e-books. But the most valuable content formats for Shopify dropshippers include:

• Blog posts that speak to a common customer pain point, collate your best products, or explain how to get the most value from your products
• Customer testimonials that highlight your products’ biggest features and benefits
• Social media images and videos that showcase your brand personality and products

Online Advertising

Whereas SEO is a “free” source of traffic, online advertising involves paying to bring visitors to your site. It comes in two main varieties: paid search ads, as denoted by Google’s Sponsored tag…

…and social media ads:

Both can be extremely effective at generating traffic to your site without waiting for your key pages to start ranking on Google.

However, costs can rack up fast. For instance, the average cost per click for Google Ads stands at $4.22. Margins are tight in many dropshipping niches, so you’ll need to keep a close eye on your spending to ensure your campaigns are sustainable.

Email Marketing

Email marketing is highly cost-effective, delivering an average return of $36 for every $1 spent .

Email is also the best converting channel in Shopify stores, with an average conversion rate of 4.29% .

But, like SEO, email is a slow burn. Unless you already have a marketing list with thousands of names on it, you’ll need to build one from scratch — and that takes time.

Your best bet is to add email capture popups and forms to high-traffic pages on your site:

Make sure you give customers a compelling reason to hand over their email address, such as free shipping or a discount on their next purchase.

Social Media Marketing

Given their huge, captive audiences, social media platforms are excellent places to promote your brand and products.

Unless you have lots of time on your hands or a huge marketing budget, you’ll need to focus on just one or two platforms. To help you choose the right ones for your brand, niche, and audience, we’ve analyzed the most popular social platforms for e-commerce stores:

Learn more in our guide to Ecommerce Marketing Strategies for Success .

Best Practices for Shopify Dropshippers

By this point, you know how to build and market your Shopify dropshipping store. Now, let’s take a look at some best practices to help you manage it effectively…

Leverage Your Supplier Relationships

Simply put, the success of your dropshipping store is largely down to the relationship between you and your suppliers. Don’t be afraid to lean on them for support, whether you’re tracking down the status of an order or requesting imagery for a new product.

Focus On Customer Support

Once you’ve built your e-commerce store, you’ve got two main areas to focus on: marketing and customer support.

While it’s tempting to focus solely on growing your customer base, don’t shirk the customer service element. After all, 52% of Americans are happy to pay more if they know they’ll receive great customer service.

Respond promptly to customer queries, chase up late orders with suppliers, and consider implementing resources like an FAQ section and an AI-powered chatbot to maintain basic service levels even when you aren’t available.

Search For Dropshipping Automation Tools

From importing products to sending customer information to your suppliers, dropshipping is full of tedious, time-consuming, but essential tasks. Fortunately, the Shopify App Store contains plenty of automation tools that can do all the boring stuff for you.

Popular dropshipping apps include:

Sure, all of those tools cost money — and dropshipping margins are pretty tight to begin with.

But while you might be able to cope without them in the early days of your store, once the orders start pouring in, you’ll definitely want to set up some automations to ease your workload.

Is Shopify Good for Dropshipping?

With its relatively low-cost plans, user-friendly interface, and vast library of apps, Shopify is a popular choice for dropshipping. So it’s no surprise that 12.82% of Shopify stores sell at least one dropshipping product.

Let’s take a look at what brings all those dropshippers to the e-commerce platform…

What Are the Benefits of Dropshipping on Shopify?

• Low startup costs : You can get started by signing up for Shopify Basic, priced from $29 per month.
• Low risk : Because you don’t have to buy your store inventory, starting a Shopify dropshipping store isn’t going to bankrupt you, even if you don’t generate many (or any) sales.
• Minimal overheads : Your supplier pays for inventory storage and fulfillment, so you just need to cover the costs of maintaining your Shopify store.
• Access a wide product range : You can sell pretty much any dropshipping product, provided it doesn’t breach Shopify’s terms of service.
• Easy to scale : Expanding into new markets or launching new product ranges doesn’t require any additional investment or planning — it’s all down to your suppliers.

How Profitable Is Shopify Dropshipping?

There’s no definitive answer to this question, but we’ve rounded up a few authoritative sources to give you some idea about the earning potential of dropshipping on Shopify:

• BlueCart says the average dropshipper sees margins of 20% – 30% from each sale
• Gelato claims most Shopify dropshippers earn between $1,000 and $5,000 per month on average
• ConvertOut says Shopify dropshipping stores can expect margins of 10% – 20%

Ultimately, your profitability will depend on your niche, customer acquisition costs, and how much you pay your suppliers for products. If you generate a high volume of sales, you may be able to negotiate cheaper wholesale prices, increasing your profits.

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• Highlight products with badges
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Shopify Dropshipping FAQ

Is shopify dropshipping worth it today.

Yes! Dropshipping is worth it today if you’re looking for a low-risk, low-cost way to start an e-commerce business. Search activity around the term “ dropshipping ” has doubled over the past five years, so there’s no shortage of interest. If you choose the right niche, work with quality suppliers, and nail your marketing, dropshipping can be highly profitable (and enjoyable).

Is Shopify Basic Enough for Dropshipping?

Yes! You can build and manage a dropshipping store with a Shopify Basic subscription, priced from $29 per month. However, if you want to add more staff accounts, unlock more advanced reporting, and enjoy lower credit card rates, it might be worth upgrading to a Shopify Plan (from $79 per month) down the line.

Can You Dropship Anything on Shopify?

You can dropship pretty much anything on Shopify, but bear in mind the platform prohibits products and services in certain categories, including:

• Alcoholic beverages
• Products containing components from endangered species (e.g. mother of pearl buttons)
• CBD products
• Cosmetics and beauty items containing hazardous materials
• Drugs and drug paraphernalia
• Explosives and weapons

Click here for a full list .

What Do You Need To Start Dropshipping on Shopify?

To start dropshipping on Shopify, you need:

• A Shopify Basic subscription (or a higher-tier subscription)
• A dropshipping supplier
• An e-commerce store

And that’s it! However, as your store grows, you might consider investing in other areas, such as dropshipping automation tools to streamline the fulfillment process and a chatbot service to handle customer support.

How Much Money Do I Need To Start Dropshipping on Shopify?

Starting out as a Shopify dropshipper requires relatively little money: you just need to cover the cost of buying a domain domain and building an e-commerce store. Expect to pay around $15 per year for a domain name, while a Shopify Basic subscription costs $348 annually (or you can pay monthly for $39 per month).

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How To Dropship On Shopify: The Complete Guide To Shopify Dropshipping

by Mike Vestil  

Dropshipping is a business model in which eCommerce entrepreneurs sell products without carrying any inventory. When a store owner receives an order from a customer, they contact the supplier, who will then ship the products directly to the customer's door. Dropshipping is a great way to start an online business with little upfront investment.

In this article, I'll explain all you need to know about dropshipping on Shopify, including how to find dropship suppliers and set up your Shopify store for success.

Let's dive right in.

What Is Shopify Dropshipping?

Shopify dropshipping is a business model in which eCommerce entrepreneurs sell products through the Shopify platform. While various other models use this platform to conduct their business, the dropshipping model is unique because it doesn't require entrepreneurs to hold any stock.

By having reliable suppliers that can ship products directly to customers on your behalf, you can focus on other essential aspects of running a successful online business, like marketing and customer service.

What's more, Shopify provides entrepreneurs with a user-friendly platform that makes creating and running an online store easy. As opposed to learning how to create a dropshipping website , Shopify takes care of the website-building process for you.

These factors make Shopify dropshipping an excellent option for those looking to start their own eCommerce business.

How To Set Up Dropshipping On Shopify

Here's all you need to know about dropship on Shopify step by step. While these instructions are relatively straightforward, there might be slight variations based on the products or services you want to sell and the supplier you choose to partner with. That said, most instructions will apply no matter what type of products you're looking to sell.

Sign Up For A Shopify Account

Learning how to start dropshipping begins with signing up for a Shopify account. Shopify offers three plans: Basic Shopify, Shopify, and Advanced Shopify. The plan you choose will depend on the size and needs of your business; the Basic Shopify plan should be sufficient if you're starting with dropshipping.

Select A Dropshipping App

Several dropshipping apps for Shopify allow you to conduct dropshipping on Shopify. Some of the most popular include Oberlo , Dropified , and AliExpress Dropshipping .

Each app has unique features and benefits, so choosing one that best suits your needs is essential. For example, Oberlo is an excellent option for those looking to dropship products from AliExpress. At the same time, Dropified is a good choice for those who want more control over their supplier relationships.

Once you've selected an app, you'll need to install it on your Shopify store. Most apps offer a free trial period, so take advantage of this before committing to a paid plan.

Find Products To Sell

One of the most critical aspects of dropshipping is finding products that will sell well. There are several ways to find popular products, including using Google Trends and the Amazon Bestsellers list for specific categories related to your business.

You can also use social media platforms like Pinterest and Instagram to see what products are trending. Once you've found a few potential products, you must do further research to ensure they'll be profitable.

To do this, consider the product's price, shipping costs you'll have to incur, and potential taxes or import duties potential customers will have to pay. You should also check out the competition to see how other businesses sell similar products.

Add Products To Your Store

Once you've selected the products you want to sell, it's time to add them to your store. Most dropshipping apps will allow you to import products directly from your supplier's website.

As such, when using Shopify, you can add these products to your store and set your price. It's important to remember to mark up the cost of your products so that you're making a profit.

Be sure to consider shipping costs and any other fees when setting your prices. You can also use Shopify's built-in pricing rules to adjust your prices based on certain conditions, like the product being out of stock or the customer being located in a different country than you typically ship to.

Set Up Shipping Rates

When it comes to shipping, there are a few different options available for Shopify dropshippers. You can either offer free shipping, flat rate shipping, or variable rate shipping.

Free shipping is an excellent option if you're looking to build trust with your customers. However, it's essential to ensure that your prices are high enough to cover the shipping cost.

Flat-rate shipping is an excellent option to keep things simple for your customers. You can set a standard shipping fee that will be applied to all orders, no matter where they're shipped.

Variable rate shipping is a more complex option, but it can be beneficial if you're shipping products of different sizes and weights. This option allows you to set different rates for various products and destinations.

Create Automated Messages

One of the benefits of using Shopify is that you can create automated messages to send to your customers. These messages can be used to thank customers for their orders, update them on the status of their shipments, or provide them with tracking information.

You can also use automated messages to upsell customers on other products in your store. Automated messages are also a helpful way to boost sales and encourage customer loyalty.

Promote Your Store

Now that your store is set up and you've added products, it's time to start promoting your business. Various ways to promote your store include:

• Using social media.
• Focusing on search engine optimization.
• Paying to advertise on the right website for your target market.

Experimenting with different marketing strategies to find what works best for your business is essential. It would help if you also consider offering discounts and running promotions to encourage customers to shop at your store or even rewarding them when they bring in other customers as affiliates.

Analyze Your Results

After running your store for a while, it's essential to take some time to analyze your results. This will help you see what's working well and what needs improvement.

You can use Shopify's built-in analytics tools to track your sales, traffic, and conversion rate. You can also use Google Analytics to get more detailed information about your customers and their behavior.

Once you understand and can interpret your data well, you can start making changes to improve your business.

Continue Growing Your Business

There are always new things you can do to grow your business. As you continue dropshipping on Shopify, you can add more products, experiment with different marketing strategies, and work on improving your store.

Never stop learning and growing as an entrepreneur; always be on the lookout for new ways to improve your business.

Shopify Dropship Suppliers

Finding the right supplier is essential to your success as a Shopify drop shipper. It would help if you kept a few things in mind when choosing a supplier, including the pricing, product quality, customer service, etc.

When it comes to finding suitable suppliers to work with, you can find these by searching online, attending trade shows, or working with a dropshipping company. Once you've found a supplier, you're interested in building a working relationship with, request samples of their products so you can test the quality.

You should also query the supplier about their minimum order requirements, shipping times, and return policy. Finding a supplier you can trust and build a good relationship with is essential.

Here are some specific questions you should ask when considering a supplier:

• What is the minimum order quantity?
• What are the shipping costs and times?
• What is the return policy?
• How often does the supplier restock their inventory?
• Do they offer discounts for bulk orders?
• Can I request samples of their products?

Once you've chosen a supplier, you'll need to set up an account with them. This process will vary depending on the supplier, but you'll typically need to provide basic information about your business, such as your business name and contact information.

Do You Need A Business License To Dropship On Shopify?

No, you don't need a business license to dropship on Shopify. However, you may need a business license if you're selling products that require one, such as alcohol or food.

You should check with your local government to see if you need a business license for your specific business. It's also a good idea to consult an accountant or lawyer to ensure you comply with all the necessary laws and regulations

How Much Money Can You Make Dropshipping On Shopify?

When it comes to earning money online , there's no limit to how much money you can make dropshipping on Shopify. Your earnings will depend on several factors, such as the price of your products, the quality of the items you offer, and your marketing efforts.

Setting realistic expectations for your income is essential if you're just starting. Building a successful business takes time and effort, so don't expect to make millions of dollars overnight.

With that said, many dropshippers are able to make a full-time income from their business after a few months. Dropshipping can be a great way to earn a living if you're willing to work.

How To Start Shopify Dropshipping With No Money

There are a few ways you can start Shopify dropshipping with no money.

One option is to find a dropshipping company that offers a free trial period. This will allow you to test the platform and see if it fits your business well and if it does, start pre-selling items immediately. This will enable you to have money coming in to fund the setup of your business.

Another option is to use Shopify's 14-day free trial to its fullest. This will give you enough time to set up your store and understand how everything works. Note that your store has to be part of a paid membership to be able to go live, so use the 14-day trial to have everything ready to go when it's time to launch. While this is not technically a free way of doing things, it is as close to that as possible while still using a paid solution to your advantage.

The Best Products To Dropship On Shopify

While the best products to dropship on this platform will vary depending on your niche and target market, there are some general tips you can follow to help you choose the right products for your store.

Here are a few things to keep in mind:

• Your products should be high quality and competitively priced.
• You should understand your target market well and know what solutions they're looking for.
• Your product selection should be diverse enough to appeal to a wide range of customers.
• You should regularly test new products to see what's popular with your customers.

That said, these are some of the best-selling products on the platform include:

• Phone cases: many decide to use a phone case to protect their mobile device, giving you the option of many different designs and materials.
• Sunglasses: sunglasses are both a fashion accessory and a practical necessity. They're also relatively inexpensive, which makes them a great dropshipping product when it comes to shipping.
• Watches: watches make a great gift or personal purchase. There's a wide range of styles and price points to choose from, so you can find the perfect match for your target market.
• Jewelry: jewelry is always popular, especially among women. Finding quality pieces that will appeal to your target market is essential.
• Home decor: home decor items are always in demand, as people constantly look for ways to spruce up their living space.
• Wall art: wall art is a popular choice alongside home decor, as it can be used to add a personal touch to any space.

Other Models That Work With Dropshipping With Shopify

Reverse dropshipping is a variation of the dropshipping model that allows you to sell products from suppliers typically found in the US to well-off customers located overseas.

One of the significant advantages of reverse dropshipping is that it allows you to tap into a more global market compared to the traditional dropshipping's target audience. Another advantage of reverse dropshipping is that it will enable you to sell high-end products that may be out of reach for most dropshippers using the traditional method. For example, you could sell luxury watches or designer handbags through your store, allowing you to command more money per purchase.

Finally, reverse dropshipping allows you to build higher-quality relationships with suppliers that may not be available to traditional dropshippers. This can give you an edge over your competition and enable you to get better terms and conditions from your suppliers.

How To Dropship On Shopify - FAQ

Is shopify dropshipping still profitable today.

Yes, Shopify dropshipping is still profitable. The main reason is that Shopify provides entrepreneurs with a turn-key eCommerce platform that makes it easy to start and scale a business online. Dropshipping is also a low-risk business model, perfect for those looking to start their online store.

How Can You Automate Shopify Dropshipping?

There are a few different ways to automate your Shopify dropshipping business, but the most popular method is using an app like Oberlo.

Oberlo is a Shopify app that allows you to find products to sell in your store and automatically place orders with suppliers when customers purchase items from your store. This means you can focus on other aspects of your business while Oberlo takes care of this specific operation.

Another way to automate your Shopify dropshipping business is to use a fulfillment service like Shipstation or Fulfillment by Amazon (FBA) . These services will pick, pack, and ship orders for you, saving you time and hassle.

Dropshipping on Amazon is also popular with those looking to use Amazon as their selling platform of choice. This allows you to list products in their marketplace, and then they will take care of fulfillment for you through FBA.

That said, there is a more manual level of involvement with these two companies, as you'll have to send your inventory to their warehouses in the first place. But once the process is down, it can be a great way to automate your Shopify business.

Dropshipping is a great business model for those looking to learn how to make money without a job through an online store. And while there is some work involved in setting up and running a dropshipping business, it can be a very profitable and rewarding endeavor.

With various options to automate your Shopify dropshipping business, it's also more accessible than ever to start and scale your business. 

If you'd like more ideas on living a financially successful life, check out The Lazy Man's Guide To Living The Good Life , a resource that provides tips and advice on how to make money without a job. It covers various topics, including dropshipping, making money online, and living the good life.

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About the author 

Mike Vestil

Mike Vestil is an author, investor, and speaker known for building a business from zero to $1.5 million in 12 months while traveling the world.

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