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Dropshipping FAQ: Dropshipping Frequently Asked Questions(2022)

Sep 26, 2022 · 14 min read

Dropshipping is a great place to start if you've been interested in ecommerce as a side business or a way to be your own boss. With just as much potential for growth as a traditional ecommerce store, dropshipping has experienced a recent surge in popularity.

As a beginner, you may have so many questions about dropshipping. Here we collected some frequently asked questions from real people who plan to kickstart dropshipping business, and provide answers given by an experienced expert in the industry.

Let's begin.

Dropshipping FAQ: Basics

What is Dropshipping?

Once you've made a sale, your supplier will ship your products from their warehouse, right to your customer's doorstep. The dropshipping business model allows you to operate your store without ever having any inventory. You won't ever have to be concerned about how to store, package, or send your products.

How You Can Start a Dropshipping Business?

You'll need to set up your own store on Shopify, add products, and make your store sexy before you can start your own basic dropshipping business. If you're looking for products to sell, check out this page.

Check out our post on How to Start a Dropshipping Business in 2022 to learn how to operate this business model.

How Much Money Do I Need to Start a Dropshipping Business?

One of the best things about starting a dropshipping business with Shopify is that it requires very little initial funding, but it's important to think about all the costs you'll have: a dropshipping tool, your marketing budget, and any other funds you'll need for your first orders. A small fee will also be charged if you want to buy a custom domain.

Dropshipping is still one of the best ways to run a store if you don't have experience or aren't 100% sure that you want to go all in because it's significantly less expensive to get started than it is to open a traditional ecommerce store and you won't have to worry about sourcing products in bulk or delivery.

How Does Dropshipping Work?

Dropshipping is a straightforward business model where you buy the item from your supplier and have them send the order straight to your customer's door after they place an order with your store. With no need to worry about stocking and shipping goods yourself, you can operate your own business from anywhere in the world.

Is Dropshipping Profitable?

The secret to this profitability is in the business model: since you don't need to manage your own inventory, you're saving on all the expenses that a traditional retailer or ecommerce store would have. Oh yeah, dropshipping can be profitable to merchants who have the dedication and drive to make it work.

Another popular method to increase your profit margin is to price your products in a way that covers both your marketing and shipping costs. Less costs equals more money that can go into your pocket.

Should I Start With a General Store or a Niche Store?

There are many benefits to starting out with a niche store: less competition, more flexibility, marketing is much simpler, and it's easier to find your audience. Nevertheless, if you can locate the right goods to sell, an online general store can bring in a sizable profit for you. SimplyTrends, the tool specially designed for Shopify owners, would be a helpful hand for your product sourcing work.

What Profit Margins Can I Expect?

If you're sourcing cheaper goods for $5, you might find success by marking them up four to five times, which would mean that you'd be selling them for $20 to $25.

For more expensive products, however, such as those you source for $30, we'd advise keeping your price around the $60 range.

Check out this article for more information if you want to learn more about pricing tactics. In general, we advise setting your prices at least $10 above the cost you paid to source it, as this will help you turn a profit while also paying for marketing costs, your Shopify subscription, transaction fees, and any other fees you may have.

More information about conversion optimization can be found here. You should always monitor your product prices and change them if you think they'll improve your conversion rate (while making sure you're not cutting too deeply into your profit margins). Another rule of thumb is to look at the prices that your competitors have set for similar products.

Can I Sell Everywhere?

Yes, but it's better to pick a few target nations and concentrate more on them, as it will be simpler to plan shipping costs, execute your marketing strategy, and effectively reach customers.

Do I Need to Register a Business Entity to Dropship?

The majority of payment providers will require you to provide proof that your business is registered once you reach a certain income level, so there's no rush to register before you start making sales consistently.

If you're operating your dropshipping business in the US, you can get in touch with a local government representative, or similar local authority, for more information.

Dropshipping FAQ on Products

How to Find Winning Products?

Winning product means the best-selling and most profitable product in recent days. If everyone is selling the same product, you can easily sell it too. 

But, how to do that successfully? 

Use Simplytrends to easily find profitable products that are actually selling across 1 million Shopify stores. You can pick out the best one by accessing the real-time sales, from which you can get the real data of hot-selling products like 24-hour sales volume, 7-day sale trend chart, etc.

Can I Customize My Products?

Whether your preferred dropshipping tool provides options for product or package customization will determine the answer.

Do I Need to Purchase Products for My Online Store?

It's a good idea to buy sample products from your suppliers before uploading them to your online store to ensure you're happy with the quality of the product and the supplier's service. The beauty of dropshipping is that you don't need to hold any inventory yourself.

How Many Products Should I Import to My Store?

We recommend that you import 10 to 200 products into your store so that the customer's focus will not be scattered and they can find what they're interested in. Most dropshipping success stories feature entrepreneurs who concentrate on several flagship products in their store.

Can I Use Product Pictures From My Supplier?

We always suggest that you take your own product photos, which makes you stand out from other dropshippers.

Why Should Somebody Buy From My Store Instead of From the Manufacturer Directly?

Because you're better!

One thing that sets a store owner apart from a manufacturer is that they give their customers a place to conveniently buy the goods they're interested in.

With amazing products, fantastic design, and engaging content, you're also creating a trustworthy brand that encourages potential customers to shop at your store.

Dropshipping FAQ on Suppliers

How to Find the Best Supplier?

Suppliers are essential to almost every business. If you are struggling to pick out an excellent supplier from a large quantity, SimplyTrends would help you.

Drop an image on SimplyTrends, and you can instantly find the right suppliers direct from factory AliExpress. With criteria like customer rating and order volume for your reference for supplier selection. And, there is another trick---find out what suppliers some good-performing stores are using. If the stores are selling well, their suppliers are likely solid too. You can find this type of info available on SimplyTrends as well.

Can I Return Items or Get a Refund?

Yes, but every situation is unique and there are no general guidelines. Your very first step should be to contact the supplier and explain the issue. You can read more about returns and refunds here.

Dropshipping FAQ on Shipping

Can I Use My Address on the Package Instead of the Supplier’s Address?

For customs purposes, the supplier's return address must be on the package; unfortunately, suppliers currently do not permit this.

Do Customers Mind About Longer Delivery Times When Dropshipping?

Yes and no. If you clearly manage your customers' expectations for shipping times, your customers won't mind waiting a little bit longer for their products to arrive. Make sure you define your ecommerce shipping policy and communicate it clearly in your online store.

Be open and transparent about your shipping times before they even place an order. If you fail to manage expectations, that's when customers might get angry at you.

We always advise using ePacket delivery so your products will be shipped quickly. You might also want to offer free shipping - this will help you to convince customers to make a purchase and they'll be much more flexible with delivery times.

If a Customer Orders More than One Product, Will It Come in Separate Packages at Different Times?

The items will be shipped in separate packages if one of your customers orders multiple products from various suppliers, but it's unlikely that they'll mind since some of the biggest e-commerce companies in the world also ship multiple packages for the same order. If a customer does object, explain that since you have global distribution centers, this is the quickest way to get their products to them.

Why Can’t I See My Shipping Fees?

Since the product is only for you, shipping costs aren't automatically imported with the product; however, you should set up your shipping preferences in Shopify (more on that here).

It's simpler to select a few target countries and determine an average shipping cost so you can fairly charge your customers. Keep in mind that shipping rates for different classes of products tend to vary.

Can I Use USPS, DHL, or Canada Post Shipping That Is in My Shipping Settings?

Shipping methods, prices, and times are provided by suppliers, and you are unable to provide any additional shipping options. You shouldn't use carrier shipping methods if they are incompatible with your dropshipping app.

Dropshipping FAQ: Conversion

How Long Does It Take to Make the First Sale?

It mostly comes down to your marketing efforts' level of success, how much effort you put into your store, and the target market you choose. You can get your first sale on your first day, after a month, or after a year, but the majority of the time it takes is up to you.

How Can I Get My First Sale?

No matter how much business experience you have, opening a new e-commerce store and making your first sale can be a real challenge. There are numerous ways to accomplish this.

Use your best judgment when deciding how frequently to do this, though, as you don't want your shop to develop a bad reputation. You can share links to your store on pertinent forums, Facebook groups, and other online communities that your target customers use. First, we recommend using free social media services like Facebook, Twitter, and Instagram to post valuable content that encourages people to visit your ecommerce store.

If you use influencer marketing, make sure you're working with influencers who have an audience similar to yours (see our post on social proof for more information). Influencer marketing is a fantastic way to persuade people to visit your store because it has a powerful ability to persuade people to buy particular products or make certain decisions.

And trust me, it can happen very quickly. Read up on these platforms before you jump in - you don't want to waste your valuable resources! You can also use paid marketing channels or Google Ads to drive a ton of traffic to your store.

Sales will eventually begin to occur once you've begun to increase foot traffic to your store, as every person who enters your store is a potential customer.

Check out this page for more information on how to make your first sale.

You can also find FAQs on Shopify from our blog. Click here to get to know it.

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