Shopify Dropshipping In 2023: A Guide on How to efficiently dropship on Shopify?

Dropshipping is a business model where you can start an e-commerce business with less risk of losing money. When combined with the powerful e-commerce platform Shopify, dropshipping becomes even more accessible and profitable. This business model allows you to sell physical products that are manufactured, stored, and even shipped by third-party dropshippers directly from your own online store. To put it simply, you don’t have to manufacture or maintain an inventory of any sort, you only sell.

You can order products from a wholesaler whenever there’s a new order, instead of storing the products upfront. When you receive an order on your online store, you have to order the same from the wholesaler and they will ship it directly to the customer’s address. This helps save time and effort in managing orders, storing inventory, and shipping-related tasks. You can then focus on providing your customers with products on demand.

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How does it work?

Imagine you sell wristwatches on your Shopify store. A wristwatch from a popular model costs $50 on the supplier’s website. You like the deal and list the same watch on your store for $65. If a customer purchases this watch from your store, an order will be sent automatically to your supplier along with the necessary customer information like the address etc. The supplier will now process the order and deliver the wristwatch to your customer with the name of your brand on the package. This is how simple it is!

Now, what if the product doesn’t sell? You won’t need to worry about moving a large amount of pre-purchased inventory. You only need to have an internet connection and a device. This makes it a great option as a side hustle and earns good money.

Shopify Dropshipping offers a host of benefits. Some of them are:

Greater Functionality

One of the primary reasons why dropshippers choose Shopify is its extensive functionality. Shopify provides a user-friendly interface, intuitive navigation, and a range of customizable themes and templates. With its robust features, dropshippers can easily create professional-looking online stores, optimize product listings, and enhance customer experience. The platform also offers various apps and integrations that enable sellers to automate processes, manage orders, and streamline operations efficiently.

Ease of Use

Shopify’s user-friendly interface makes it accessible to individuals with little technical expertise. The platform offers a drag-and-drop editor, allowing dropshippers to design and customize their online stores with ease. It also provides a seamless and intuitive dashboard where sellers can manage their inventory, track sales, and analyze performance metrics. Additionally, Shopify offers extensive documentation, tutorials, and customer support to assist dropshippers throughout their entrepreneurial journey.

Zero Upfront Investment

Traditional retail businesses often require significant upfront investment to purchase inventory. However, with dropshipping on Shopify, you can start your business with minimal investment. As a drop-shipper, you only need to pay for the products when a customer places an order. This eliminates the need for a substantial initial investment, reducing financial risks and barriers to entry. By leveraging Shopify’s platform, you can focus your resources on marketing, customer acquisition, and business growth.

Zero Inventory Management

Inventory management can be a complex and time-consuming aspect of running a business. Fortunately, dropshipping with Shopify eliminates the need for inventory management altogether. As a dropshipper, you act as a middleman between customers and suppliers. When a customer places an order on your online store, the supplier takes care of packaging and shipping the product directly to the customer. This allows you to focus on marketing, customer service, and scaling your business without the burden of inventory management.

No Shipping Costs

Shipping costs can eat into a business’s profit margins, especially for international orders. However, when dropshipping with Shopify, you are not responsible for shipping products to customers. The suppliers handle all shipping logistics and associated costs, ensuring that you can offer competitive pricing and increase your profitability. This advantage allows dropshippers to expand their customer base globally without worrying about the complexities and expenses of shipping products.

Shopify provides a vast marketplace where dropshippers can sell a wide range of products. From apparel and accessories to electronics, home goods, and niche products, there is a diverse selection of items to choose from. Additionally, Shopify integrates with numerous third-party apps and platforms, allowing dropshippers to source products from reliable suppliers and wholesalers. This extensive product availability ensures that dropshippers can cater to various customer preferences and explore different niches.

Apparel and Footwear

As per data from Statista.com, the revenue generated by the global apparel and shoes industry is valued at $1.5T. And this number is only expected to grow to $2T by 2026. 

Buying clothing online is a common practice and as a Shopify dropshipper, you can take advantage of the same. 

By breaking down this niche into more specific categories like menswear, women’s clothing, accessories, and bags, you can market your products to specific audiences easily.

Beauty and Personal Care

The beauty and personal care industry is expected to grow to $758.4B by 2025, according to data from Statista.com. While conventional products occupy 85% market share, consumers have been increasingly preferring products that are vegan, organic, and natural.

There are two especially popular categories within the beauty and personal care niche- Skin care and hair care. Skin care products like herbs and plant extracts accounted for $141.86B worth of revenue in 2022 and are expected to generate over $204.62B by 2030. Hair care products like those that promise to alleviate common hair problems like split ends, hair fall, dandruff, and more, could also sell well easily.

Kitchen and Dining

The demand for Kitchen and Dining products has seen a steady rise over the past few years. With more and more people working from home due to the shift in work culture, this niche has grown steadily as well. Some trending products that you can sell are portable blenders, electric kettles, toasters, sandwich makers, mini refrigerators, etc. 

Baby Products

The Baby Products sector is among the select few that can never see a recession. According to an estimate, the global baby care market is projected to grow to $88.72B by 2026. The searches for baby care products have grown significantly over the last few years and suggest a steady demand will continue to exist in the near future as well. However, people are increasingly cautious when selecting baby products like food, cosmetics, and other safety items, you’ll need to build trust that only gets stronger over time.

Pet Supplies

The demand for pet supplies is at a five-year high. With a market size of $261B, there are many products you can target in the pet care market. Moreover, with an estimated 6.1% CAGR, the figure is expected to reach $350B by 2027. Products like clothing, food bowls, treats, toys, collars, and carriers see a great number of searches and can be targeted for easy sales. The key factor for the growth of this sector is the wide range of multifunctional and fashionable accessories that consumers can choose from.

Home Interior

Recent searches reveal that interest in home interiors, decor, and furnishings has been steady over the past few years. According to an estimate, the home interior market size is set to reach over $838.6B by 2027, which is a CAGR of 3.9% from 2020. 

Since people are always in need of home products like pillowcases, microfiber sheets, and laundry baskets, the demand for them is only expected to grow in the near future.

Office Products

With an increased number of people working remotely since the pandemic, the demand for office supplies has seen rapid growth. The market size for office products is valued at $8.65B and is expected to remain the same in the years to come. Products like pens, desk pads, desk decor, sticky notes, and markers are easy to sell. These products make for a lucrative option for remote workers and companies as everyone needs supplies for their own working space.

Tools and Home Improvement 

Again, since remote and hybrid work is so widespread, people have been looking for ways to make their homes more comfortable and functional. From fixing a new patio light in the backyard to installing a soap dispenser in the bathroom, there are numerous ways someone may want to do things on their own. And that’s exactly what makes this industry a profitable option for dropshippers. 

You can choose products like smart plugs, smart bulbs, step ladders, shelves, air purifiers, drill machines, etc., and sell them through your Shopify store. Suppliers are easy to find and you can proceed even without storing them.

Phone Accessories

With the widespread smartphone adoption, the demand for phone accessories like charging adapters, charging cables, phone covers, tempered glass screen protectors, and more has seen a great rise. According to an estimate, the market size for protective mobile covers is expected to reach $35B by 2027. 

You can choose products like tripods, ring lights, screen protectors, selfie sticks, etc., and list them on your Shopify store to start selling easily.

Car Accessories

The search interest for car accessories like sun shades, cleaning gels, wiper blades, window shades, floor mats, car trash cans, wheel covers, etc. has been rising steadily over recent years. As per an estimate, the global car accessories market is expected to reach $1946.3B by 2028. 

When you add these products to your Shopify product portfolio, make sure you are selling something that actually works. You can consider adding reviews to your product page, which is one of the greatest ways to assure potential buyers of the quality of the product you are selling.

Find a dropshipping niche

Whatever you’re selling, there’s always a good chance that your products are available from other sellers as well, with private-label goods and print-on-demand products being an exception. Therefore, you’ll need to find a way to differentiate yourself in a crowded marketplace, sometimes… overcrowded. And that’s going to be difficult.

But, how do some store owners/dropshippers do it easily? Answer is in finding a lucrative dropshipping niche.

Finding a niche is like identifying a segment from the larger market that’s different in terms of needs, preferences, identity, and interests. Commodities that are widely available have a lot of competition, however selecting a niche reduces that to a smaller level. However, you’ll need to ensure that whatever niche you select, there’s an audience you can target.

Ensure that the product you are looking to sell is profitable and has great demand. Conduct thorough market research to assess competition, profitability, and customer preference-like factors. There are a lot of tools you can use like Facebook Audience Insights, Google Keyword Planner, and Google Trends, etc.

Define your target audience

Once you are done selecting a niche and have confirmed there’s an audience for it, you’ll need to further segment the audience group as well. It is important to understand the demographics, preferences, and buying behaviors of your target audience. Take time to learn where they live, what they do, and what their needs are. This knowledge will guide your marketing efforts, product selection, and customer engagement strategies.

Here are some questions you can ask yourself:

Who will benefit from my product?

What makes the product different from those of competitors?

Who is going to search for my products and how?

Conducting research doesn’t have to be complex, but it is important to have a good idea of the audience you are trying to sell the product to.

Look for suppliers

After you are done selecting a niche and identifying your target audience, there has to be a way to reach them. This is where dropshipping suppliers come in. There are a lot of dropshipping suppliers to choose from, but if you are looking to have a completely automated process starting from product selection to checkout, you would want to consider dropshipping apps.

You can research and identify reputable suppliers or wholesalers that align with your chosen niche and meet your quality and fulfillment requirements. Consider factors such as product availability, pricing, shipping options, and reliability. You can find suppliers through online directories, trade shows, or by reaching out to manufacturers directly.

Build your e-commerce store

Once you have shortlisted and selected a dropshipping supplier, you can start building your online Shopify Store. If you are not familiar with the process, Shopify experts at Webguruz can help.

Sign up for a Shopify account and set up a domain name. Adding a domain name is important and must be done before you launch your store. Choose a business name and domain that resonates with your target audience. This will help you stand out among the competition and build a distinct image among them.

Choose a visually appealing theme for your store that complements your niche and brand identity. Once set up, you can import products from your dropshipping app. Add products along with the product description and edit them in your Shopify dashboard. Set up payment and shipping options after calculating your profit margin. Furthermore, ensure that your store is mobile-friendly and optimized for search engines to attract organic traffic.

Also Read: How to Build Custom Shopify Sections for More Flexible Store Design?

Market your dropshipping store

Develop a comprehensive marketing strategy to generate traffic and drive sales. Engage with your target audience, build brand awareness, and incentivize customers to make purchases through promotions, discounts, and compelling product descriptions. 

Utilize various channels such as social media marketing, content marketing, email marketing, influencer partnerships, paid advertising, etc. to build brand engagement and grow your sales.

There is no definitive answer to this question as the best Shopify dropshippers vary depending on your niche and target audience. However, some popular and reliable dropshipping platforms include Oberlo, Spocket, Modalyst, and AliExpress. These platforms provide access to a wide range of suppliers and products, making them suitable for dropshippers at different stages of their business.

Dropshipping with Shopify in 2023 offers several advantages for aspiring entrepreneurs:

Growing e-commerce market

The global e-commerce market continues to expand, providing ample opportunities for dropshippers to reach a wide customer base and generate significant profits. 

Advanced features

Shopify continually updates its platform with new features, integrations, and apps, enhancing functionality and convenience for dropshippers.

Established reputation

Shopify has a strong reputation as a reliable and secure e-commerce platform, providing peace of mind to both sellers and customers.

Diverse product selection

The Shopify marketplace offers a wide range of products, allowing dropshippers to cater to different niches and customer preferences.

Extensive support resources

Shopify provides extensive documentation, tutorials, and a helpful community, making it easier for newcomers to navigate the dropshipping journey.

Recommended Read: How To Build An Ecommerce Website with Shopify?

Dropshipping with Shopify in 2023 presents an enticing opportunity for aspiring entrepreneurs. With its user-friendly interface, extensive functionality, and zero upfront investment, Shopify simplifies the process of starting and running a profitable dropshipping business. By leveraging the advantages of dropshipping, such as zero inventory management and shipping costs, entrepreneurs can focus on marketing, customer service, and scaling their businesses. Remember to conduct thorough market research, choose reliable suppliers, and implement effective marketing strategies to maximize your chances of success. With dedication, strategic planning, and continuous adaptation, dropshipping with Shopify can be a rewarding venture in the dynamic e-commerce landscape of 2023.

Is dropshipping a good idea in 2023?

Yes, dropshipping remains a viable and profitable business model in 2023. The e-commerce industry continues to thrive, and consumers increasingly turn to online shopping. However, success in dropshipping requires thorough research, strategic marketing, and providing a positive customer experience.

How to make money dropshipping in 2023?

To make money through dropshipping in 2023, focus on finding profitable niches, sourcing quality products from reliable suppliers, implementing effective marketing strategies, and providing exceptional customer service. Continuously monitor and optimize your business operations to maximize profitability.

Is Shopify Dropshipping legal?

Yes, dropshipping with Shopify is legal. However, it is essential to comply with relevant laws and regulations, such as consumer protection, product labeling, and data privacy. Ensure that you source products from legitimate suppliers and clearly communicate delivery times,

How much does it cost to open a Shopify Store?

Shopify offers different pricing plans to accommodate various business needs. The cost of opening a Shopify store depends on the plan you choose. The basic plan starts at $29 per month, which provides essential features for small-scale businesses. The Shopify plan costs $79 per month and offers additional features such as gift cards and professional reports. For larger businesses or those requiring advanced features, the Advanced Shopify plan is available at $299 per month. Additionally, there are add-ons and third-party apps that may incur additional costs depending on your specific requirements.