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Lately, e-commerce has changed the way of doing business by providing endless opportunities for entrepreneurs. One of the ways to make money through e-commerce is by having a Shopify dropshipping store that allows you to engage in your favorite trade with minimal capital and personnel input. Additionally, you spend less time on the business, so you have more time to master the trade and grow your dropshipping business.
How much money can you make dropshipping on Shopify? This is a frequently asked question by most entrepreneurs yet to learn the trade. Besides giving tips on how to start your dropshipping Shopify store, this article will also give you an idea of expected returns depending on various factors.
Dropshipping is a business model that allows you to sell items without physically having them. Typically, when a client orders an item, you contact your supplier, who ships it directly to the client. One advantage of dropshipping is that you don’t need any initial investment to get started with Shopify. Also, you don’t have to waste time waiting for the business to begin generating income, nor do you need employees. Dropshipping is also low-risk since manufacturing, warehousing, and shipping are handled by third-party dropshippers.
On the other hand, Shopify is a platform where you can own an online store as a source of primary or passive income. Once you have a Shopify e-commerce store, upload images of the products you are selling, create an appealing interface, and wait for orders to start coming in. To make it even easier, Shopify offers inventory management, facilitates payments, and enables online ordering on your behalf.
While opening a Shopify store doesn’t require prior experience, you need basic knowledge of how to do it. Various online courses might also help you learn the trade. Similarly, you can follow the following easy steps to start your Shopify dropshipping business:
Choose a Niche
Before opening a Shopify dropshipping store, you need to identify your target audience. Narrowing down to a specific niche enables you to choose products that look into your audience’s preferences and interests more comprehensively. With the existing competition, you must pick products that stand out, thus increasing your store’s traffic that converts to sales.
Tools like Facebook, Google Trends, Audience Insights, and Google Keyword Planner help create a good niche.
While choosing a niche, come up with your store’s name and logo. Your store’s name will act as your URL during the free trial phase.
Register Your Shopify Store
Once you decide what to sell, you can open a Shopify dropshipping store. In order to sign up for Shopify, all you need is an email address; the process is quick and simple. Besides, Shopify offers a 14-day free trial, after which you pay a subscription fee monthly.
To set up your account, go to Shopify’s homepage and click “start a free trial.” You will then be directed to another screen where you will put in your email address and create a password. Then fill in your Shopify store’s name on the next empty field. Finally, a short form will appear, where you will fill in your personal information and answer some simple questions.
Setup Your Shopify Dropshipping Store
So, you have a new Shopify account. It is now time to create a domain name for your store. Keeping in mind that you need to stand out to make it in the dropshipping business, you must come up with a unique domain name that matches your niche.
To create the perfect name for your dropshipping store, choose a short and simple name that you can’t misspell or forget. Additionally, the name should resonate with your brand and be different. Also, ensure that the name is different and that no other store uses it.
After creating an account and naming your store, you can now start importing products from your preferred dropshipping app to your store.
Look for Suppliers
After your store is up and running, look for dropshipping suppliers you can partner with; or take advantage of Shopify’s dropshipping apps to get an automated supplier. With Shopify dropshipping, your third-party supplier receives your order’s information and ships it to your client. Sometimes, the supplier can send a tracking number that helps your client monitor the shipping process. Some of Shopify’s dropshipping apps include Spocket, Modalyst, and Dsers.
Alternatively, you can work with print-on-demand apps like Gelato, Printify, Printful, and EPROLO. The good thing about print-on-demand is that you can customize existing products to your client’s preferences. For example, you can add custom designs to t-shirts, bags, pens, and notebooks, making them look different from what is available in the market.
Market Your Shopify Store
The more people know about your business, the more sales you are likely to make. Since most of the work is handled by a third-party supplier and some is automated, you can direct your free time to advertise the Shopify dropshipping store. In the process, you can look for ways to differentiate your products, attracting potential buyers.
Using social media paid ad campaigns is one way to get the word out about your Shopify store. Furthermore, paid ads have flexible payment limits, enabling you to choose an ad within your budget. Therefore, you can start on low-budget ads and upgrade as your business grows. To identify the customers that fit your niche, look at the accounts they follow, how they present themselves and the interests they portray. Alternatively, you can advertise your Shopify dropshipping store for free.
The other way to market your Shopify store is by improving your site’s content through Search Engine Optimization. This increases your business’ traffic, resulting in more sales. Alternatively, you can market your Shopify store through email marketing. Have potential customers subscribe to your newsletters, where they will receive emails about your business. Ensure that the emails are well structured and contain useful and interesting content talking about your Shopify store. You can also let your customers know of new products or current sales and answer some frequently asked questions.
Like any other business, you can make profits and losses while dropshipping on Shopify. However, since Shopify dropshipping is a low-risk business, you can hardly make losses unless you fail to include all expenses, including shipping expenses, while calculating your profit margin.
So, how much money can you make dropshipping on Shopify? It depends on the products you are selling and your profit margin. Ideally, you can make $100 to $100,000 per month. Enhancing your present Shopify business or opening new stores in different niches is one way to raise your earnings. Keep in mind that it will start out slowly and gradually improve. Therefore, exercise patience and let your business grow to a point where you can enjoy a substantial profit margin.
Is Shopify dropshipping profitable?
Because Shopify dropshipping is a low-risk venture, you are guaranteed to make profits. Moreover, your client will only get the goods after confirming payment, and you don’t have to worry about stocking.
Is inventory compulsory when dropshipping on Shopify?
When dropshipping on Shopify, third-party companies handle most of the operations; therefore, you won’t need an inventory. Besides, you don’t store the products yourself; shipment is made after the client pays for them.
Where can I get dropshipping suppliers?
You can get dropshipping suppliers from trusted networks like AliExpress or contact suppliers that provide products within your niche. Similarly, you can get dropshipping apps from the Shopify App Store.
Everyone, from seasoned entrepreneurs to newcomers, can benefit from using Shopify for drop shipping. After the trial period ends, you’ll have to pay a small fee to keep your Shopify dropshipping store running, but that fee is dwarfed by the benefits you’ll reap from using the platform. Shopify offers an excellent platform where anyone can successfully run an e-commerce business.Learn more about Shopify stores to ensure you do things right and maximize your profits.