Shopify Drop Shipping: A Step by Step Guide for Beginners
Shopify Drop Shipping: A Step by Step Guide for Beginners
- July 11, 2018
- Posted by: Editorial Staff
- Category: Uncategorized
Launching a Shopify dropshipping store is a kickass way to burst into eCommerce for many entrepreneurs.
Investing time and money in managing inventories can be a good deal in the long run.
But, what if you have a business model where you never have to keep any inventory, let alone spending money or time.
That is a dropshipping business model for you!
This model helps merchants to focus more on increasing their sale and promoting their online store.
Most of the big eCommerce platforms support drop shipping because of its flexibility. These include Shopify, which is arguably the biggest eCommerce platform in the world.
Our goal is to make your everyday life as an eCommerce merchant easy for you. So we are presenting a definitive guide of Shopify dropshipping. This guide will help you to kick-start your dropshipping business on Shopify with ease.
Dropshipping: what is it?
Dropshipping merely means selling products without holding or carrying the products. Online stores having dropshipping business model lets the store owner contact the supplier upon receiving an order on site. The supplier will ship the product straight to the buyer’s door. So the store owner is not holding any inventory on his own. So this makes you pay for the product only when its sold.
You have the option to test products, and you don’t have to order in bulk. Just keep selling and adding. Dropshipping model allows you to be free of wholesale orders in bulk and you also don’t have to be concerned about production cost. So it takes a decidedly less initial investment to get started. You are entirely free of the in-house supply chain management and the additional expenses related to it.
Dropshipping allows you to hold as much as inventory you want virtually. Its the perfect choice for entrepreneurs who are just getting started in the eCommerce business. You don’t need to be a full-timer on it. You can run your dropshipping business in spare time and don’t need to quit your job for it.
Shopify: What and Why?
Shopify is the most popular eCommerce system that enables users to set up their online store easily in few clicks. It provides a complete solution to build your store from scratch and sell your products. There are no technical jargons, and this platform is for exclusively for entrepreneurs who want a hassle-free experience.
Shopify has an easy backend administration with professional support. The platform has multiple payment gateways, clear UX, useful built-in tools, a massive community of experienced developers and marketers and beautiful design possibilities.
Shopify also takes the lead in its well equipped App store. You will find almost all type of apps to grow your online store in both paid and free categories. You get advanced reporting, SSL & secure payment processing, inclusive hosting and many more features. The pricing is reasonable compared with the benefits you get.
Getting started: Setting up your dropshipping store
Setting up your store is the first step to your walk. Here we will show you a step by step way to start your dropshipping business on Shopify right from scratch.
Naming your store: Giving the right name to your store can be a deal breaker. Here are some tips to consider before you chose the proper name for your store-
- Keep it memorable and short
- Easy to pronounce
- Keep it meaningful
- Stay creative
Once you’re done in selecting a few, look it up and see if its available for use. You can look it up on Godaddy, NameCheap and other domain hosting companies. Make sure you also search if there is a .com domain already being used.
Signing up on Shopify: Getting started with Shopify is as simple as it gets. It takes only a few clicks, and you are all set. Just visit Shopify website and wait till the page loads. Once the page loads, you will see an empty field to enter your email address.
Just put your email in the box and click on get started. That will take you to the next step of your sign up process, and you will be asked to put a password. You will also be asked to put a name of your store. Here, you can set the name which you decided earlier.
After you fill out the details here, click on “Create your store,” and you will land on the following page-
Here you got to answer a few easy questions about yourself and your eCommerce business. Once you’re done with this step, your store will be up and running. You may spend some time to make changes in the design and templates. But the main part of your store setup will be done right here.
Configuring the settings of your Shopify account
Optimizing the settings of a newly created Shopify account is crucial. There are critical areas to optimize such as payment settings, shipping rates, store policies and so on. To run a store successfully, It’s essential that you configure these settings right at the early stage.
Configuring payment settings: You are running a store cause your selling products and getting paid for it. So it is significant that you set up the payment options for your Shopify store before you start selling. Otherwise, you won’t be able to receive your payments.
To set up payment information, click on the “settings” option at the bottom left corner of the page and that will take you to the settings page. Click on the payment tab on the left and add your payment information.
There are various payment methods to select. You can choose PayPal, Credit Card payments, Alternative Payments like BitPay, GoCoin and also select manual payments like Bank Deposit, COD or Money Order. You can choose the method that fits best to you and your customers.
Configuring shipping rates: Having an exact shipping rate on your Shopify dropshipping store is essential. Its always preferred to have free shipping as its an easy option.
Different shipping rates for different regions can be bit confusing so merely apply free shipping rate into your product prices.
For example, if you are selling a dress for $30, increase the price to $35 and make it FREE SHIPPING. It helps critically to impress the customer and buy your product.
Free shipping is an attractive element to increase your checkout rate.
To set up the shipping rate, click on the “settings” option and go to the settings page. Then click on the “shipping” tab to access further information.
First, delete all the residential shipping zones. Then find the “Rest of World” section and click on edit. From there, you can add “Free International Shipping” and select “Free Shipping Rate.”
Configuring store policies: You must make sure that you have made necessary store policies while launching your own Shopify dropshipping store. To make it easy Shopify has built a handy tool that generates standard refund policy, terms and conditions and privacy policies for your store.
Just go to the settings page of your Shopify account and click on the “Checkout” tab.
Now scroll down to the bottom to find the refund privacy and TOS statement. You will see a box beside it where you can put the necessary information needed.
Just click on the generate button, and you are all set.
Initiating your Shopify dropshipping store
So you are all done configuring the necessary setting to start your dropshipping store. Now its time to launch your store. So you first click on the settings option and go right into the settings page. From there, click on the “sales channel” tab.
After you click on this tab, you will land to the sales channel page where you can add or manage your sales channels. Once you are done setting up here, you are all set to run your online store.
Designing of your Shopify dropshipping store
Having an artistically pleasing eCommerce store is very important to compete in the long run. You need to entice your customers at first glance, and for this, a great design is a must. So while designing your store two things are crucial to consider- your theme and logo.
Choosing the right theme: Shopify has beautiful and attractive themes to hook up customers on their first look. All the themes are pre-designed and ready to use. Shopify offers both free and paid themes. Their premium themes are worthy of paying for, and the design entirely lives up to the money you spend on it. So depending on your budget, you can choose either a free them to start with or use a premium theme right from the get-go.
Creating the right Logo: Logo helps your customers to remember your brand. You should think hard and take enough time to decide how your logo will look. If you intend to design the logo on your own, you can use handy graphic designing software like Photoshop or Canva. There are free software’s online that can help also.
You may also outsource the design task on different platforms and make it done by an expert pretty quickly. There are many freelance platforms like Upwork and Fiver where you can get the job done at an affordable price.
Must know things while dropshipping
There are things to remember while you are running a dropshipping business on Shopify. Dropshipping is a more relaxed business model but yet requires critical assessment in many areas. Here are the common areas where you may encounter issues-
1: Legitimate & genuine suppliers:
So how do you know if it’s not a fake a supplier? They all look convincing from the outside and are an expert in covering up. However, after reading this guide, you won’t face any trouble identifying fake suppliers as they all will have the following characteristics-
a. Will demand ongoing payment- Legitimate suppliers don’t charge monthly fees from their buyers only cause they are doing business with them. If your supplier is asking for a monthly membership fee that may not be a real supplier.
b. Will sell to the customer directly in wholesale price- Wholesalers offering products to the consumers directly at a wholesale price would most probably be just another retailer in disguise of a supplier.
c. They will demand pre-order fees- It’s a standard practice by many genuine suppliers. Many suppliers doing dropshipping would charge a pre-order free ranging from $2 to $5 depending on the order complexity. Shipping and individual packing orders are more expensive than bulk orders.
2: Finding wholesale suppliers:
It’s is both fun and hectic. It’s not easy to find out the real suppliers but when you know the way it’s exciting. That’s is what we are going to show you here.
A. Contacting the manufacture directly– When you know which product you want to sell, reach the manufacturer first. Then ask them for their wholesale distributor’s list. That will allow you to source suppliers quickly. Few calls and reach outs will be good with a professional approach.
B. Use online platforms: Many big online platforms and software’s can help you to find suppliers. There are platforms like Oberlo, worldwidebrands, salehoo, doba, wholesalecentral and many more. You will be able to find some genuine suppliers from these places.
C. Track competitors supplier: A vintage yet effective method of sourcing genuine supplier. What you do is find the top guns in your niche and order a product from them. Then you check the return address with the delivery on Google. in many cases, its the supplier’s address. So you can contact them and strike a deal you were looking.
3: Contacting suppliers in the right way:
Your approach does a lot of the job in sourcing genuine suppliers. The way you communicate plays a vital role in striking a good deal. So here we will share some useful tips on it.
A. Be completely legal: Most suppliers will check first if you are a genuine business and got everything legal on the table. Make sure all your papers and business aspects are entirely legal and do not have anything shady. Creating trust on the get-go makes it easy to achieve your goal.
B. Appear convincingly: You need to understand that genuine suppliers are bombarded by great business plans every day. Don’t be surprised if your emails are not being replied or you’re not getting an appointment over the phone. The market is, and you have to get your attention. So make your approach look cool, legitimate and transparent. Don’t keep any confusing element in your communication.
C. Be specific in your way: Get to the point straight and make it short. Don’t say “I am planning to launch a great website and sell your product.” Instead, say “My website is ready and going live on XXX date.” Share as many details as possible. Be careful while making special requests. It’s more viable to build trust by selling first before making any special offer which the supplier may not entertain usually.
4: Payment options for suppliers:
Paying your suppliers on time and without any issues is a critical factor to consider. Most of the suppliers accept payment typically in the following two ways.
A. Credit card payments: The most famous, credible and trustworthy payment method for suppliers is by credit card. Almost all supplier provides that option, and you can use it to pay for the goods every time there is an order. You can also buy in bulk and large quantity. As the end customer would have already paid for the products, you don’t have to face any out of packet expense.
B. Net Terms payment: In this payment method, the supplier will be in a term with you to pay for the goods you purchased in a certain number of days. So if you are on “net 15 days term” it means that you got to pay for the goods by cheque or bank transfer in 15 days time from the date you purchased the products.
Over to you
Building a dropshipping store on Shopify should be a piece of cake to you by this time. Just follow the steps explained to create your store and start sourcing suppliers as discussed above. There will be more things to explore which you will gradually experience while running your store.
But don’t forget to bookmark this guide and keep a note of the necessary points mentioned here. You can earn as much as money you want from your dropshipping business on Shopify. So dive into it and start generating sales and revenue.