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The Ultimate Guide to Dropshipping

start a dropshipping business

Dropshipping is a business model that allows entrepreneurs to start an online business and sell products to their buyers without ever actually stocking the items themselves. Instead, when a dropshipping store sells a product, it purchases the item from a third party and has it shipped directly to the customer.

At Shopify, what we really like about dropshipping is that it provides a lower-risk approach for independent businesses to test out new product ideas (and product lines) without having to own and pay for the product up front. It's a business model that allows many more people to participate in entrepreneurship.

Often, because entrepreneurs have to spend a significant sum of their money on inventory before they can start selling, these costs feel really restrictive. While we’re also building services like Shopify Capital to help businesses get the money they need when they need it, dropshipping remains a highly accessible way for enterprising founders to connect customers with products on-demand—without the need to stockpile inventory. It’s like retail’s version of cloud computing.

Still, the model continues to mystify many people. That’s why we wrote this comprehensive dropshipping guide. In it, we’ll cover how dropshipping actually works, where you can go to source reliable suppliers, how to pick products that are a perfect match for dropshipping, and the sales and marketing advice everyone should consider when looking for customers.

  1. What Is Dropshipping (How Does Drop Shipping Work?)
  2. Dropshipping Fulfillment: Understanding The Supply Chain
  3. Finding and Working With Dropshipping Suppliers and Wholesalers
  4. Find the Most Profitable and Best Dropshipping Products
  5. How to Start Dropshipping: The Easiest Way to Sell Online
  6. Dropshipping on Amazon and eBay: Evaluating Sales Channels
  7. How to Run a Dropshipping Company
  8. How to Make Dropshipping a Success
  9. How to start a dropshipping business in India  
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Frequently asked questions about dropshipping

How to start dropshipping on Shopify?

First, create an account on Shopify. Then look at a dropshipping app like Oberlo to find and add products you’d like to sell. Next, set up your store and design it to give your brand a better look and feel. After that, you need to add a domain, set up payments and select a plan for Shopify to get started.

Is dropshipping still profitable?

Yes, dropshipping is still a profitable business. Dropshipping businesses have seen a 7% year on year increase for the last 10 years. But the success of your dropshipping business depends on what you want to sell, who you want to sell and how you market your products.

How much do dropshippers make on an average?

Depending on what you plan to sell on your dropshipping store, you can make anywhere from $200 – $3000 in the first month or two. But again, it also depends on how you price your products and market them.

What kind of products can you dropship?

You can dropship health supplements, fashion and apparel, electronics, home decor and a lot more items. You can search for the products you'd like to sell on apps like Oberlo. Sometimes, there could be suppliers who offer products in other ranges of consumables and perishables too, depending on your area.