Dropshipping allows entrepreneurs to build an effective website without much hassle or complication - and it seems to be the only ecommerce topic anyone talks about.

You can’t watch a YouTube video without getting bombarded with ‘The Best Way to Dropship on Shopify!’ or ‘The EXPERT Shopify Dropshipping Masterclass’, all promising $10k in the first week.

Whilst dropshipping may not be the faultless route to Shopify success that many ‘experts’ keep touting, it is an incredibly effective, efficient, and easy route to running your own business.

In this article, we'll be covering:

What is Shopify dropshipping?
Advantages of Shopify dropshipping
Disadvantages of Shopify dropshipping
How to start a dropshipping business on Shopify
The best Shopify dropshipping apps
Shopify dropshipping FAQ

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What is Shopify Dropshipping?

Dropshipping is where a business doesn’t hold any of its products and instead purchases the products from a manufacturer at the time of the sale.

You may sometimes hear the person or business running dropshipping stores being referred to as a ‘dropshipper’.

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Example

Let’s say you may have a dropshipping business selling t-shirts.

You wouldn’t hold or own any of the t-shirts you’re selling. Instead, you’d find a manufacturer selling the t-shirts and market those t-shirts through your store at a higher price. Once a customer bought a shirt, you’d get the manufacturer to send it directly to them.

At no point between production to delivery have you even touched the t-shirts you’re selling. You don’t produce the product, carry any stock, or even ship the items - that’s all handled for you.

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How does Dropshipping Work?

Dropshipping effectively makes you the middleman between the supplier (and creator of the product) and the customer. Your only job is to market the product effectively.

Most dropshipping models work by seeking out one or more wholesale suppliers, finding a product to sell, and then setting up an online store using an ecommerce site builder - like Shopify.

Here are a few example dropshipping stores:

Some of the most common wholesale suppliers include AliExpress, SaleHoo, and Worldwide Brands.

However, Shopify makes it a lot easier than that.

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How does Dropshipping work on Shopify?

There are several apps you can use from the Shopify app store that automatically connect you to thousands of suppliers helping you to source your products much easier.

For example, DSers connects you to AliExpress and automatically pulls product information to your Shopify store and handles a lot of the fulfilment for you.

We’ve added a list of Shopify apps for dropshipping further down in the article.

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Advantages of Shopify Dropshipping

Now you understand Dropshipping, the potential is (hopefully) quite clear.

Dropshipping allows entrepreneurs to build an effective website without much hassle or complication. You don’t need to worry too much about start-up costs, inventory management, or even shipping, really.

Alongside the low upfront costs, you also benefit from lower running costs. You don’t need to pay for any inventory storage or production costs, your main costs will come from your Shopify plan and any paid marketing you run.

All you need to focus on is selecting a product you think will sell and then, well, selling it.

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Benefits of Shopify Dropshipping

Low start-up costs
Low running costs
Easy and accessible way to start a business
Not fixed to a specific location - you can run your site from anywhere and ship to anywhere
Wide range of products to choose from
Easier to scale than traditional models

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Disadvantages of Shopify Dropshipping

The main disadvantage of dropshipping is also one of its biggest advantages: you’re working with pre-made products.

That means you have a limited ability (or even impossibility) to create a truly unique product. You may be able to have some form of personalisation depending on your supplier, but creating a truly one-of-a-kind product with dropshipping is impossible by its very nature.

And as you’re not making your own product, you’re at the mercy of your supplier. If they face production issues, send a faulty product to your customer, or stop producing your product altogether, that’s your problem to fix.

Customers don’t want to know that you’re dropshipping. They like to think your product is special and had real time and effort put into it, so if they get sent a product with an issue, you can’t blame it on your supplier. And if that supplier keeps having issues, you quite quickly need to find a new one.

The simpler something is in the short run, the more likely it is to be complicated in the long-run.

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Negatives of Shopify Dropshipping

Limited ability to create a unique product
Can have low profit margins depending on what markup you use. The higher the markup, the more profit, but the harder to sell.
Unknown inventory
Responsible for customer service from supplier errors
High competition from other dropshippers due to low barriers to entry

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How to start Dropshipping on Shopify

Here’s a step-by-step guide to start dropshipping on Shopify.

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Set up a Shopify account:

You can set up a dropshipping account with any of Shopify’s plans. Sign up here.

Select a theme

Shopify offers a range of paid and free plans you can use. Select the right one for your brand and product range.

Customise your store

A theme is a great starting point, but now you need to make your store stand-out. Spend some time adapting and customising your store with a logo, text, and additional pages.

Find a dropshipping app

Use the list below to find an appropriate dropshipping app for your store. Think about price, supplier, ease-of-use, and customer service.

Link your store to your supplier

Follow the instructions on your app to connect your store to the supplier, bringing across all relevant product information.

Market your product

All that’s left to do is sell! Consider getting a Shopify mobile app to boost your mobile sales. Mobile apps convert 3x better than mobile websites and 79% of traffic to Shopify stores comes from mobile, so that’s a whole lot more bang for your buck. You can use a Shopify mobile app builder, like the one offered as part of StoreLab's Shopify growth service. Talk to us today to find out more.

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The Best Shopify Dropshipping Apps

Below are the highest-rated Shopify apps for dropshipping on the Shopify app store.

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4 Top Tips for Dropshipping on Shopify

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1. Keep your product range focused

A lot of people get overly excited when they start dropshipping and want to sell everything they see. We’ve seen Shopify dropshipping stores selling jeans, chairs, cutlery, artwork, and stuffed toys all on the same site, wondering why they aren’t making any sales. Effectively, all they’re doing is making another AliExpress on a different website with more expensive products. As with any effective e-commerce business, you need to pick one industry and one niche.

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‍2. Take time designing your website

With dropshipping, there’s less room to be expressive with your product, so you need to be expressive with your brand. Take time when designing your website so it really stands out. A lot of dropshippers just set up a basic site and expect the rest to take care of itself - but dropshipping is just like any other Shopify business, you need to give it love and attention to thrive.

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‍3. Take your own product shots

Most product shots carried through from the suppliers aren’t fantastic. It’s important to order each product you sell to take more professional shots ready for your website, social, and wider marketing to bring more originality to your store and help your customers see the products in context.

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4. Use a Shopify mobile app builder to maximise your sales

79% of traffic to Shopify stores comes from mobile and mobile apps convert 3x better than mobile websites. Shopify mobile apps provide a better customer experience for customers, make it easier for them to browse your product range and eventually purchase.

Get in touch with a Shopify growth expert at StoreLab to learn more about how getting a mobile app for your Shopify store will help you boost sales, increase AOV, and drive customer loyalty. Or, read our guide, 8 signs it's time to create a mobile app for your Shopify store.

Shopify Dropshipping FAQ

Can you do dropshipping with Shopify?

Yes! Dropshipping on Shopify is relatively straightforward and easy compared to other business methods.

However, don't expect to be a millionaire in a few weeks. It still takes a lot of hard work, strategy, and difficult decisions to make a profitable Shopify dropshipping business.

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What Shopify apps should I use for dropshipping?

Some of the most popular Shopify apps for dropshipping are:

We also recommend using a Shopify mobile app builder, like the one offered as part of StoreLab's Shopify growth service, to drive more sales from your main source of traffic.

79% of traffic to Shopify stores comes from a mobile defice and mobile apps drive 3x more sales than mobile websites. That means you could be making 3x more sales than 4/5 customers.

Find out how to get a Shopify mobile app for your store.

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Can I start Shopify dropshipping with $100?

Yes, you can start a Shopify dropshipping business with just $100.

However, don't expect to get the same results as other businesses with more funds. The more money and time you put in, the better your business wil be and the higher the chance of success.

Money isn't everything, and dropshipping on Shopify is one of the most affordable starting points for a business, but it does make a difference.