The Ultimate Guide to Dropshipping and Shopify

Dropshipping is a fulfillment model that gives you the chance to purchase products directly from the manufacturer and ship them to your customers.

In other words, you become a “middleman”. You sell the products without buying high volumes and keeping them in a warehouse.

How Dropshipping Works?

Step #1 Find a beautiful product on AliExpress or other sites.

Step #2 Copy the images, a few product details and include them in your Store. Then you set a much higher price.

Step #3 The visitor buys the product from your store

Step #4 You go to the AliExpress, order the product and place your customer’s shipping address.

Step #5 Repeat the process.

The benefits of dropshipping

– You don’t have to invest thousands of dollars. With dropshipping, you don’t have to buy the product until the sale is over.

– You don’t need to deal with physical products. You don’t need to keep products in stock, pay for a warehouse or workers.

– Flexibility.

– Good product selection. You spent time finding the highest quality products.

Cons of starting a dropshipping store

– Too many competitors. Since it’s very easy to start many people will open a store and add products at a lower price.

In many cases, these merchants might have a terrible design and no customer support but this doesn’t stop customers from comparing prices.

– You don’t have control over the quality of the product.

– Supplier Errors. If the vendor makes a mistake, you still need to take responsibility for it.

But there are many ways for you to know if the vendor is correct or if the product is as advertised.

Best Dropshipping products and niches 2019

  • Eco-friendly products
  • Shapewear/Bodycon Apparel
  • Weight Loss Items
  • Workout Gear
  • Winter Bots
  • Cannabidiol oil
  • Personalized Necklace
  • Reusable Bags
  • Pet Supplies
  • Sunglasses
  • Smart Watches
  • Laptop Fan
  • Wireless Gadgets
  • Phone/tablet Holder
  • Printed Socks
  • Vintage Astronomy Posters
  • Products related to baby’s safety
  • Christmas Decorations
  • Flying UFO Helicopter Toy

How to price your products?

You should consider:

  1. Supplier Price
  2. Shipping Cost
  3. Marketing
  4. Shopify Cart Transaction Fee
  5. Paypal
  6. Taxes

Finding Popular Products

Think for a moment what products you like. What you would buy?

Well, forget that. Nobody cares what you like. And nobody cares what I like.

You should search for products that are in high demand right now.

There are many ways to find popular products that might sell like crazy for you.

WatchCount – It shows the most popular products on eBay. Choose a category or set a keyword to see how many people watch that product live.

Facebook – Pay attention to Facebook Ads because you can see what others are selling. I suggest adding a Chrome Extension called Turbo Ads.

When it’s On, it will show only Ads.

After choosing your favorite Ad, go to their site and see if they are a Shopify Store. You can see it at the end of their page “Powered by Shopify”.

Then you might want to go to Ad Library to see all their ads.

Facebook Groups or Forums – Try to find groups where people are discussing a particular product.

Google Trends – It shows how much a specific phrase is being searched.

Search for a product and if the interest is low then also the demand is low.

For example, let’s search for smartwatches:

The number of searches has been rising over the years. And December is the peak of making the most sales for this product.

Amazon

Go at Amazon Movers Shakers because it shows the best-selling products in the last 24 hours.

Most of the products aren’t suitable for drop shipping but all you need is one product or a great idea.

Then you can head over at AliExpress to see if the product is available.

Niche vs Generic Store

Niche – It’s focused on a specific passion.

Pros:

– Easier to develop a social brand because you have more passionate customers. The engagement and conversion are higher than on a generic store.

– Develop a “cult-like” following

– Easier to choose products to market. You have more information in your hands about what your customers like.

Cons:

– It’s harder to scale the business (there is a ceiling). You have a limited amount of products you can offer.

– Start from scratch every time you break into a new niche. It will require more money and time to run the business.

Generic Stores are focused on all niches.

Pros:

– Easier to scale the business (More Revenue)

– You have the flexibility to test any niche/product

– More cost-effective (Less cost for updates/operation)

– Learn while you earn (sell what is selling)

Cons:

– Lower open rates with email marketing

– Less passionate customers (lower conversion rate)

But we can counter it with Niche Facebook Fan Pages.

You can market the product through these FB Pages and include a link to the generic store.

If you are new and just starting out, the generic store is a good option because it allows you to adapt faster. (If a product doesn’t work, you try another)

AliExpress Dropshipping

There are millions of products on AliExpress and no matter what you want you can find it there.

The products are cheap and the quality is high.

The vendors are all from China. They produce huge volumes because of cheap labor and low-cost materials.

Choosing the right Vendors

This is very important because you’re counting on these people to deliver good products on time.

As you get more experienced, you’ll build a relationship with a few vendors whom you trust.

You can even negotiate better prices and they might include your logo on the package.

But first, you need to learn how to avoid bad vendors.

There are some indicators you should always pay attention:

– Check out if they offer ePacket. It’s a faster shipping method between China and the USA.

They usually ship in 15-20 days.

Considering it’s coming from China then the time is pretty good.

So, it’s worth spending a little more money for faster shipping and better customer satisfaction.

– Check out “Return Policy,” and “Buyer Protection”.

– Make sure to not include images with celebrities or big brands.

–  Don’t work with vendors who have been open in less than a year or when the “item as described” is less than 4.5

 – Check out the customer comments. Are they happy with their purchase? What are the ratings?

Some of them will post a picture with a product and that can help you understand if it is a good one.

– There might be other vendors with better prices and better products.

At the end of the page check out “Seller Recommendations”

Example

Let me give you an example of the whole process.

We go to AliExpress and search for a product. And let’s look for Bohemian Earrings.

After finding them, let’s analyze the store. They have been open since Nov 29, 2018; Good Positive Feedback (97.4%)

You can also instant message with the owner. But, it depends on where you live because of different time zones.

You can ask them if they can do bulk dropshipping for you.

And they might help you find more winning products.

This is a very popular product. And there are many color variations.

You should always offer products with different variations.

The reason is that the customer might buy two or three products.

There is the ePacket shipping method. It also offers a money-back guarantee and Free Return.

Over 10,000 customers took the time to comment on these earrings. And the comments are mostly nice (89% rated it with 5 stars).

We can also look for images in the comments to see if the product is as advertised.

Bulk Dropshipping

At the end of every day, you create a CVS file with all orders.

It helps you save time. You won’t have to order each product one by one.

Follow 5 simple steps:

1. Export order files in CVS from Shopify and email it to the vendor.

2. They will send back an invoice with a payment link

Pay the invoice using Ali Pay or Paypal.

Whether you’re paying for a single product or on bulk, ALWAYS leave this message:

“Please don’t include the price or any advertisements in the package”

Or “Please do not include any promotions in this order because I’m dropshipping”

3. They send the original file back with tracking numbers included.

4. They’ll ship out the items to all of your customers.

Price Negotiation

I showed you how to choose the best vendors and build a relationship with them.

And, after selling big amounts of their products, you’ll be in a good position to ask for lower prices.

You can also make them compete for you.

You can find another vendor who’s selling the same product at a lower price. Then you can say to your current vendor, “can you beat this price?”

Be confident and tell them how many products you might sell.

There are two things you should consider:

Don’t try to negotiate in the beginning because there is no trust between you two. Unless you show them proof of selling high volumes of similar products.

Don’t be greedy. Asking for big discount prices will put them in an uncomfortable position.

Oberlo

It’s a Shopify app that makes dropshipping easy.

Following all the steps of adding a product to your store can be time-consuming.

You want to do that as quickly as possible so you can spend your time on what actually matters – product research and marketing.

Install the App and the Google Chrome Extension.

Then search for products on Aliexpress.

In your store, you can change the name, product description, variants, and price. If all looks good, click “Import to Store”.

PS: If the images contain the watermark, go to the Products page, delete the images, and upload them once again. (After you screenshot them on Aliexpress)


PillowProfits

We saw how to sell products from AliExpress at low prices. Or maybe you’ll use the FREE + Shipping method.

But, it’s always good to include better products at a higher price. It helps increase the level of trust.

And that’s when PillowProfits comes into play.

They are one of the most innovative fulfilling platforms on Shopify.

They started fulfilling pillows but now they do other products.

PillowProfits headquarters are in New Jersey but they have massive factories on China and they can produce high volume at low prices.

You’ll have access to their products catalog – choose the product and design.

The Express Line allows you to ship the product in a few days for a little more money. It’s very convenient on holidays because people might buy your product as a gift.

We Recommend Reading:

Shopify Marketing: 7 Effective strategies to promote your store

How to Build an Online Store with Shopify