Dropshipping on Shopify is a way for you to sell products without storing the inventory yourself. Many businesses on Shopify use dropshipping, partly because it can be easy to set up.
If you run a dropshipping business, then your products come from suppliers who ship products to your customers on your behalf. Theses suppliers could be manufacturers, warehouses, or even family members who make products from their home. With Shopify, it's easy to find suppliers through print-on-demand apps and dropshipping apps.
Before you try dropshipping, make sure you understand how it works, its features and drawbacks, and the process that orders and products go through.
Types of dropshipping
Simply put, dropshipping refers to any business that fulfills orders by purchasing products from another person or business and has them ship the products to the customer. Because this definition is so broad, it allows for many different types of dropshipping.
Review the different types of dropshipping below to learn what they are and what people and businesses they work best for.
The most common type of dropshipping is where a company finds products from a variety of sources and makes them available for online purchase all in one place.
These businesses make it easier for the general public to find and purchase these products. Also, these businesses usually provide extra value through in-depth reviews of the products, unique content about the products, or a curated library of resources for the products.
Who it's good for
Straight product reselling is great for someone who has a good amount of knowledge of an industry or particular demographic. For example, someone who knows about child development could create a dropshipping business around the different toys that are best suited for children of different ages.
Another example could be someone who knows a lot about people who work from home. They could create a store full of unique and practical office supplies for a home office.
This type of dropshipping is also good for people who excel at marketing. Because product reselling is a common type of dropshipping, finding a way to attract customers can be difficult. If you can come up with unique ideas to market your business, then you're more likely be to successful with this type of dropshipping.
Many retail stores don't have an online presence. Although they might want one, many don't have the time, funds, or knowledge to put their business online. Some dropshipping companies choose to work with these businesses and become their online presence. Each time the dropshipping business gets a sale, they ask the retail store to ship the item to the customer.
Who it's good for
Dropshippers who choose to be the extension of a business tend to have an established relationship with the retail store. You need to gain access to inventory levels and product details, as well as take good-quality photos of the products. This works well in smaller cities where businesses might be more willing to look into expanding their market, and can be harder to do in rural areas.
This type of dropshipping takes more effort because you need to establish a relationship with the retail store. Getting the appropriate inventory levels, writing the product details, and taking product photos can take a lot of time. However, the benefit is that you have less competition through exclusive access to the retail store's products and can partner with them on branding and marketing.
Some dropshipping businesses choose to bundle or group products together and have them available for purchase as one product. For example, a dropshipping business could find a supplier with a large product line of craft supplies and build their own crafts using those supplies. By creating new craft ideas, the dropshipping company can bundle the craft supplies together and sell a “Make your own craft” kit. They can then dropship the supplies and email the customer instructions, or make the instructions available for download on the website after purchase. Dropshipping on Shopify is one the Best Skill Now a Days.