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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
Whether your preferred dropshipping tool provides options for product or package customization will determine the answer.
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.
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.
We always suggest that you take your own product photos, which makes you stand out from other dropshippers.
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.
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.
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.
For customs purposes, the supplier's return address must be on the package; unfortunately, suppliers currently do not permit this.
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.
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.
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.
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.
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.
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.
SimplyTrends is a toolkit for Shopify and dropshipping business at every scale.
You can discover, spy and track any Shopify store, find real-time winning ads, find suppliers with image search, and there are just so much more. Explore all features in SimplyTrends
Sure thing! We gather real-time profitable winning ads while you can also search for keyword-related winning ads.
We've also visualized active ads over time on a graph so that you can anticipate the trend beforehand, and recognize whether it's a winning product. Try it now.
Of course, and it's FREE FOREVER!
SimplyTrends is a great combination and upgrade of all Shopify related Chrome extensions. Spy on any Shopify stores with store-level and product-level insights, and scrape products in bulk from Shopify-powered stores instantly with a few clicks.
It also runs on AliExpress page for scraping digitals at the best quality, and capture ads on any Facebook page you are browsing at the moment. Pin it to your browser now.
We analyze millions of searches, conversations and mentions across the Internet to ensure our data are accurate. But some data are estimated, for example, the revenue of a store.