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What is Shopify Dropshipping? Comprehensive Guide 2024

Shopify is an eCommerce platform like WooCommerce, Bigcommerce, Opencart, Magento, etc. However, Shopify provides many outstanding advantages and advanced applications to support Dropshipping compared to other competitors. As a result, Shopify Dropshipping is favorably used by many people. In this blog, we are pleased to discuss how to dropship on Shopify.

What is Shopify Dropshipping?

what is shopify

Shopify Dropshipping is a business model where the operator does not keep the goods in stock. When receiving orders from customers, you will go through the supplier (third-party) to make a request for an order and ship it directly to the customer.

Shopify dropshipping profits may not be high, but this business model requires little upfront capital. The only thing that sellers need to focus on is different Dropship strategies such as product marketing, order tracking, and customer care, and they can do these jobs completely online through trendy tools like buying ads on Facebook.

In the recent market search, the dropshipping market reached $276.71 billion in 2023 and is expected to a 23.20% CAGR from 2024 to 2032

Why should you choose Shopify  for dropshipping?

Regarding the history of Shopify, in 2004, Tobias Lütke and Scott Lake wanted to find a platform to build a ski equipment business website, but they couldn’t find a suitable platform at an affordable price. They decided to develop a solution called Shopify, which became a global billion-dollar business.

At present, Shopify is an eCommerce platform that uses cloud storage technology to optimize online business and transactions. This platform helps you build a comprehensive sales website that integrates and synchronizes all online business support features such as payment, shipping, warehousing, social networking, offline point of sale connection, etc.

In the Shopify financial results in 2023 for the full year, we can find amazing numbers such as:

  • Total revenue in the full-year was $7.1 billion, with a growth rate of up to 26% over the same period last year.
  • User subscription revenue was 1.8 billion, with a 23% year-over-year growth, mainly due to more merchants joining the platform.
  • Shopify’s payments surged in 2023, processing $137.0 billion (58% of GMV) compared to $106.1 billion (54% of GMV) in 2022.

Although there are many similar platforms today, like Bigcommerce or WooCommerce on Google Trends. The following chart illustrates the search interests worldwide among four eCommerce platforms.

beehexa search interest between ecommerce platform worldwide

Shopify Dropshipping is still the leading comprehensive solution to the Dropshipping model, which is considered safe and less risky for those who want to start doing business. It is a business model that allows all subjects to try without incurring a lot of initial investment costs.

How much Shopify dropshipping cost?

Below is a breakdown of the initial cost of starting dropshipping. This cost is not completely accurate, depending on the choice and needs of each business.

Factors of spendCost
The fundamentals:- A Shopify subscription: $29/month- An Oberlo subscription: $29.9/month- Domain name: $15$73.9
Marketing$100
Order and Traffic$100
Additional functionality$15
Total$288.9

Free SEO Optimization and Marketing Tools

Designing a web store is the first thing you would do in several steps and to make it life easier, you can find some of the best roundups of Shopify themes on Who Design Today. However, getting an SEO score with Shopify Dropshipping or effective Dropshipping business operations requires more marketing activities.

Many Shopify apps support online marketing features. Regardless of your needs, the Shopify store can offer functionalities such as Facebook ads, Google, email marketing, social networking links, etc. 

Recently, Shopify has partnered with Google to make it easier for your products to be displayed on this search engine. Search engine optimization (SEO) will help your sales page easily to the top of Google search, from which you will have many converting customers. Not everyone understands and optimizes their sales page according to SEO standards. 

How to Start Shopify dropshipping?

You already know the potential of the Shopify dropshipping industry and information about Shopify. How to set up Dropshipping on Shopify? The Shopify Dropshipping guide that we indicate below will provide all the information you need.

Step 1: Creating a Shopify Account

First, you need to set up an account with Shopify. Creating an account is very simple; you just need to visit Shopify’s website and fill out the available form (including store name, business address, email, and other basic information) to create the booth.

Once done, you get 14 days of free use, and you can access your online store dashboard to set up and manage your business.

Step 2: Optimizing the Settings for Your Shopify Account

Next, let’s start selecting and adding your Shopify dropshipping products for sale. 

You need to edit the title and add the product description as well as the corresponding photos. Optimizing your products’ information increases the chances for customers to reach your site through relevant searches.

In addition, another step you need to keep in mind to make your best Shopify DropShipping products is adding tags to the product. For example, if you are selling baby clothes, you can tag baby dresses, baby pants, etc. This will make it easier for you to categorize and control your items. To add product tags, you can manually add them to each product, or you can bulk add tags to items in your product list. 

Step 3: Launching Your Shopify Dropshipping Store

After successfully setting up your store, you can launch your Shopify Dropshipping store. Through the “Sales Channel” on your Shopify settings, you can easily launch and have an online store up and running.

add sales channel dashboard

Step 4: Set Up Your Shopify Dropshipping Store

To make your store look more attractive, you can visit the “Customize theme” to customize your store’s layout and color scheme. Besides, you could choose your Shopify Dropship themes from different suppliers.

Customize shopify theme

Next, adding a payment option to your Shopify Dropshipping store is an integral step. To install, click on Settings, select the “Payments” tab, and fill in the information.

Shopify Payments dashboard

In addition, other settings such as policy, shipping, or delivery are also important. In general, do as Shopify asks, and your store will look more perfect.

Step 5: Adding Products

To start selling, you must add products to your Shopify Dropshipping store. You can add products in two ways: manual and automatic. If you want to save time and effort, you can choose the manual method by using another application.

add product

Step 6: Designing Your Shopify Dropshipping Store

design store

Next to creating an account, you should take the time to design your website according to your business philosophy. A beautiful and professional website will increase the credibility of customers as well as stimulate their buying needs of customers. After you’ve selected, edited, and published all of your products, it’s time to focus on designing your store, such as:

  • Select themes
  • Add more photos to layers
  • The layout of web pages
  • The color scheme of your website
  • The Typography of your website
  • The social media icons you use and the accounts you link to
  •  Add more Subtitle Pages

The good point of Shopify is that you can keep editing until you are fully satisfied with the finished product; then ‘Save’ to get the result. 

Step 7: Making Your First Sale

Once you have completed the above steps to have a complete online store, it is time to bring your products to introduce to your target customers. Setting up a performance Shopify dropshipping strategy play an important roles to reach a thousands of potential customers. 

Promote your online store and products on many different channels to let more people know about your store and products on Shopify. If the product is attractive, there is the right demand, the store has enough trust, and they will buy your product.

We will divide into two traffic sources to attract target customers:

  • Free traffic: You will build free social media channels to attract customers. This costs no or very little money, but in return, you have to invest a lot of time and effort before receiving the first orders. For example, Facebook, Youtube, Instagram, Tiktok…
  • Paid traffic: This solution is the fastest way for you to sell and sell in large quantities in a short period. You will pay to buy ads from Facebook, Youtube, and Google … to reach your target customers. However, you also need to understand that it will depend on your advertising skills and advertising budget.

Pros and Cons of Shopify Dropshipping

What are the benefits of Shopify dropshipping? 

Shopify Dropshipping gives you a wide range of sales benefits; however, it still has limitations. Here are the main pros and cons we listed for you to compare easily:

ProsCons
Little CapitalLow margins
Can sell a variety of productsCan not control inventory or supplier issues
Simple to expandHigher shipping costs
Easy to manageCustomer services
Few overhead costs 

Is Shopify dropshipping really profitable?

Today, there are thousands of e-commerce platforms on the market. However, Shopify is the top choice for any business considering dropshipping. This platform fully converges features such as connecting with hundreds of suppliers to stock, pack, and ship products. Especially the upfront cost is very little or free.

Shopify’s outstanding feature offers is that it connects to more than 100 dropship applications. That way, you can launch and manage your store more simply and efficiently.

Final Words

To sum up, Shopify has many featured advantages, such as cost, scalability, speed, security, and fast customer support. It is suitable for a small store to a large business corporation without complicated management and setup resources. 

After reading this article, you may have more confidence to start a Shopify Dropshipping storer. We hope you will succeed, and if you need further support, do not hesitate to contact us!

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