Dropshipping has always been an effective and easy way to earn passive income. Many successful bloggers use this method by simply using their blog as a platform to create affiliate products and earn recurring commissions. There are many people want to enter the world of dropshipping, but they don’t know where or how to begin. Many turn to selling on Shopify.
Selling on Shopify in 2022 is much different than it was ten years ago. The market has changed, and new competitors have popped up by the day, challenging a Shopify eCommerce business owner.
To succeed in this constantly evolving world, you need to be prepared with the latest tips and tricks of the trade. This post gives you everything you need to know about how to make money with Shopify and start a dropshipping business in five steps.
What Is Dropshipping?
Dropshipping is a method of selling physical and digital products without having to stock any inventory. Dropshipping was popularized by Shopify. It’s possible to purchase products in bulk from a supplier and make them available for purchase right away. There are two main types of dropshipping: the traditional way and the advanced way.
- The Traditional Way of Dropshipping — You rely on your suppliers to fulfill your orders, so you don’t have to worry about delivery or returns. However, this can get complicated if one of your suppliers doesn’t ship on time or doesn’t provide great service.
- The Advanced Way of Dropshipping — With the advanced dropshipping method, you can also sell your own products using a tool like Shopify.
So which one is right for you? It depends on your budget and what type of store you want to create. If you want to be an authority in the world of dropshipping, then the advanced method is best. But if you’re starting with a small budget or just want to test your idea, then the traditional option is much easier to implement.
Starting a Dropshipping Business on Shopify in 5 Steps
The best way to start making money with Shopify is to jump right into an existing niche. There are many ways to do this, but the simplest is probably through Alibaba. It’s a great place to find suppliers who want to make your dream a reality.
To choose a profitable niche, though, ask yourself what you will sell. Once you gave it some thought and narrowed down the selection, it’s time to think about design and branding. You will also need the support of an experienced Shopify dropshipping mentor who can assist with bringing your store up to date. There are five essential steps that help you start a dropshipping business in Shopify listed below.
Find a Profitable Dropshipping Niche
This is probably the most important step. You need to know what types of products you want to sell before you can find suppliers and start placing orders. Keep in mind that you don’t have to outsource everything if you’re planning on using a dropshipping tool like Shopify.
To begin your search, consider the following factors:
- The Type of Product or Service — Make sure it’s already online and at reasonable prices. There are many niches where people would be willing to pay more for high-quality, authentic products.
- The Numbers Involved — Think about the exact quantity of your products and services. This will help you compare prices from specific suppliers.
- The Brand — This should be a name that people recognize and trust, so think about big brands already selling similar products. Unless you intend to be one of the biggest players in the dropshipping world, make sure you avoid having your name associated with a diluted brand.
- Competition — Find out as much information as possible about the competition, especially if other retailers are selling similar products. This can also help you figure out what your margins will be and which suppliers have the best prices.
Define Your Target Audience
It’s not always easy to determine who you’re trying to reach with your store, as there is some overlap within different niches. Have a clear idea of who you want to target, and then make it easy for them to find your products.
The easiest way to do this is by working within an existing niche that people can find using search engines. Another aspect of defining your target audience is the right pricing strategy. If you are going after a competitive niche, keep your prices competitive or even undercut the competition by one or two dollars.
Look for Dropshipping Suppliers
The process of finding suppliers can seem daunting, but there are plenty of tools to help you along the way. There are other more effective methods that you should try out as soon as possible. Finding suppliers is the key to starting a dropshipping business on Shopify. One way to do this is through Alibaba. If you start a store on Shopify, choose one specializing in dropshipping services and products.
Build Your eCommerce Store
This step is all about choosing and configuring a theme. You can search for a free theme from Shopify or buy one once you’ve earned enough money from your dropshipping business. If you’re new to Shopify, choose a free theme and read through the documentation. It will take some time to set everything up, but it’s worth it because of the high-quality design and functionality you receive.
Market Your Dropshipping Store
There’s no point in creating a store that nobody can find. While getting traffic to your Shopify dropshipping store won’t be easy for everyone, there are a few tricks that you can use to make it easier.
Once you’ve set up your website, the most important thing is to start growing your social media presence. Link your social media accounts to your new Shopify dropshipping store. Then, let people know about it through Facebook ads and other social media marketing tools.
The Bottom Line
Dropshipping is easier than other business models, but it all starts with knowing your niche and who you’re trying to reach. It also involves a lot of research and trial-and-error before you find the perfect product that sells well for your desired price.
