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The Ultimate Guide to Dropshipping

start a dropshipping business

The term dropshipping may have caught your eye several times and you probably might have wondered what it is. If yes, then you have come to the right place. We have designed this comprehensive dropshipping guide to answer all your questions and doubts regarding dropshipping. This dropshipping guide can also come in handy if you are looking for a way to start your own dropshipping Indian business.

To begin with, let's understand what dropshipping is.

Dropshipping is an e-commerce 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.

The interesting part here is dropshipping sellers can run the business without having to maintain physical inventory. In addition, they are not required to deal with the fulfilment process by themselves, and nor do they have to spend any capital on stocking inventory or renting a warehouse space.

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 expands the scope for people who want to pursue entrepreneurship but do not have enough starting capital.

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 dropshipping model continues to mystify many people. That’s why we wrote this comprehensive dropshipping guide.

In this Shopify dropshipping guide, we’ll cover how dropshipping actually works, where you can go to source reliable suppliers, how to pick the best products that are a perfect match for dropshipping, how you can successfully run the dropshipping business, and the sales and marketing advice everyone should consider when looking for customers. Use this dropshipping guide to its full potential and take a step towards setting up your very own dropshipping website in India.

  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?

You can start dropshipping with Shopify using the following easy steps:
  1. Create an account on Shopify.
  2. Look at a dropshipping website app like Oberlo to find and add products you’d like to sell.
  3. Set up your store and design it to give your brand a better look and feel.
  4. Add a domain, set up payments and select a plan for Shopify to get started.

You can keep a track of all your orders and dropshipping activities with the Shopify dropshipping app.

Is dropshipping still profitable?

Yes, dropshipping is still a profitable business. There has been a 7% annual increase in dropshipping over the last ten years, with profits reaching over $4 billion. But the success of your dropshipping business depends on what you want to sell, to whom you want to sell and how you market your products.

What are the benefits of dropshipping?

Some benefits associated with dropshipping business model are:
  • As no physical inventory is required, it requires less capital.
  • Super easy to start without worrying about maintaining a warehouse, shipping orders, handling returns, etc.
  • Enjoy low overheads with no product inventory or storage costs.
  • You can start from anywhere on earth. Online entrepreneurs can earn from home with Shopify.
  • A large product library. Offering a variety of unique products to your potential customers is easy, thanks to dropshipping suppliers.

How much do dropshippers make on an average?

YDepending 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, hand sanitisers, masks, fitness equipment, silicone kitchen essentials, 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 upon your area.

Which are the top dropshipping companies in 2022?

Listed below are some of the top dropshipping companies transforming the dreams of countless business owners into a reality:
  • Importify
  • Oberlo
  • SaleHoo
  • Shopify
  • Worldwide Brands
  • Spocket

Are there any don'ts associated with dropshipping?

If you want your dropshipping business to run smoothly, follow these dropshipping guidelines:
  • Don’t focus on your niche market and avoid selling the same thing everyone else sells.
  • When trying to set yourself apart from the competition, don't rely solely on price.
  • Don’t forget to display your brand prominently.
  • Don’t create complex return and refund policies.
  • Don't expect to become wealthy overnight through dropshipping.
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