How to Start Dropshipping on Shopify in 8 Easy Steps (2024 Guide)

You’ve got a brilliant idea for an online store and the digital marketing savviness to match but zero capacity to handle inventory management, packaging, and shipping. No sweat!

You can outsource all that work through our ultimate guide to “How to Start Dropshipping on Shopify in 8 Quick Steps” — Your pass to the newest strategies and insights for taping this lucrative marketplace.

Whether you are an old entrepreneur or a new one venturing into this field, Shopify has the most robust platform to allow easy tread towards dropshipping. With a forecasted CAGR growth of 23.20% from 2024 to 2032, now is the time to learn how to start dropshipping with Shopify and get ahead in this industry.

Why wait? Let’s get down to the eight pivotal steps that will turn your entrepreneurial dreams into reality!

Why consider dropshipping on Shopify?

Dropshipping is the ideal business model for starting a business with very little up-front investment, and Shopify is the most accessible platform to build and manage your store.

While using Shopify for dropshipping, you can

• Order just as many products as customers demand.
• Avoid obtaining too much stock at any time.

You see, this model differs from your average eCommerce business, which requires manufacturing products or buying bulk from wholesalers.

Furthermore, Shopify makes it easy to build an online store without coding knowledge. It’s affordable, and its comprehensive customizations bring about the look and feel you want.

Here are more reasons why you should learn how to start dropshipping on Shopify:

• Shopify gives you lots of flexibility

Shopify has a very versatile system that allows you to design your website with a few clicks. Once your store is built, you’ll be able to:

• Add categories to products
• Add pages
• Change sections
• Add hero banners or video sections.

While you have some flexibility and independence from the chosen theme, it offers much freedom in customizing your store.

How to start a Shopify dropshipping store with flexibility

• Shopify is affordable and budget-friendly

Starting at only $19/month, Shopify gives you a working dropshipping store with no limit on product uploads. For this amount, you will get:

• Additional sales channels, for example, Facebook
• Free SSL for your website
• Marketing automation
• Ability to Create Coupon Discount Codes
• Integrate with 3rd party systems
• Shipping Options and Price Automation

Besides, the Basic Plan offers numerous payment channels, such as Stripe and PayPal, to quickly charge customers’ credit cards online.

Shopify pricing plan

• Shopify has thousands of apps to enhance your store

Shopify store has an in-built app store with thousands of apps to improve your storefront’s appearance and functionalities.

Examples include:

• Apps for buy-one-get-one promotions
• Email Marketing Applications
• Product Labels & Badges
• Product review apps
• Purchase Orders
• Barcode Generator
• etc.

While most apps are free, some require a subscription for complete features. For beginners, it’s best to start with the free options.

Shopify has thousands of apps to enhance your store.

Although there are other platforms to choose from, like Magento, WooCommerce, BigCommerce, Ecwid, and Squarespace, Shopify might be better due to its simplicity and package being all in one.

One can set up dropshipping on Shopify store in under one day. It’s the best solution for beginners and professionals to learn how to start dropshipping on Shopify.

Is Shopify dropshipping really profitable?

YES! A Shopify dropshipping business can rake in enormous money for the store owners. According to Shopify’s estimates, most dropshippers typically spend about $2,000 per month, while the most successful earn well over $100,000 annually.

One can profitably dropship by picking the right product, supplier agreements, and good marketing. Generally speaking, this kind of dropshipping profit margin, as indicated above, stays within the range of 10% to 30%. Yet, this all depends on how each of these factors is managed.

Besides, you will not have to eat into the profit margin just for product showcasing or shipping since Shopify provides an all-inclusive solution. Also, the platform has tools that help you keep track of your profits and costs without spending extra on things like showing your products or shipping them.

This way, a Shopify dropshipping business will not be risky. Moreover, it could be very profitable for new entrepreneurs and those with experience.

Why do millions of merchants learn how to start Shopify dropshipping store?

How to start dropshipping on Shopify in 9 quick steps

For those beginners, Shopify dropshipping is the ideal business model. But how does this work? Let’s explore exactly how to start dropshipping with Shopify:

Step #1. Evaluate if dropshipping suits you

Dropshipping is only one way to run an online store, so evaluating whether it aligns with your business goals is essential before starting.

This becomes especially attractive for those with solid marketing skills who want to open a store with little upfront investment. One of the most incredible benefits is not having to stock or handle products, which means you can get by using your laptop and a stable internet connection.

However, some drawbacks to this ease of entry lie. At best, drop shippers usually have limited control over the products they sell. Further, since many merchants may be selling the same things as each other, it could get competitive.

✨If your strengths lie in marketing and you don’t intend to center your business around a unique flagship product, dropshipping could suit you.

Additionally, it can be a good fit if you’re looking to test different products and niches without significant financial risk. Yet, be prepared to differentiate your store through exceptional customer service, unique branding, and effective marketing strategies to stand out in a crowded market.

Step #2. Pick a specific market or product area

A niche is a subcategory within the marketplace in which one sets a targeted store with branding and product selection. Choosing a niche for dropshipping will define and give attention to your target audience to find products likely to appeal to them.

Only when you know your niche can you tailor these offers according to the needs and tastes of these particular customers.

There are two main approaches for selecting a Shopify dropshipping niche

• Passion-based: Choose a niche you’re knowledgeable or passionate about
• Demand-based: Select a niche based on market demand and competition levels

The second way is to find niches with high customer interest but low competition. Dropshippers do so through rigorous keyword and product research to determine the market demand.

Method #1: Finding a niche using keyword research

Keyword research might tell you what people are searching for online, which would wow your online store. It uses tools like Google Trends, Facebook Audience Insights, and Keywords Everywhere to discover trending products in search.

Look at the historical interest and current volume for trend demands in your searches while trying to assess demand from search. This will help find a niche with a consistent or growing popularity over time.

How to start dropshipping on Shopify with Google Trends

For instance, Google Trends suggests that searches for “left-handed pen” have been on the rise over the last two years, thus swallowing up interest in this niche perpetually.

Through keyword research, Lefty’s — a store in San Francisco, found a niche market in servicing left-handed people.

As 10-12% of the world’s population is still left-handed, Lefty’s provides many customized products to meet their needs. They engage with online marketing so that they may appropriately target their audience.

Whoever searches for “left-handed pens” will come across the ad for Lefties. Focusing on one specific segment allows Lefty’s to care for left-handed people’s needs and wants, thus creating brand-loyal customers.

Method #2: Finding a niche using product research

Product research would make available trending products and thus provide a way to know consumer preferences. Various categories are necessary for understanding consumer preferences.

Dropshipping apps like DSers allow one to see the volumes of orders taken for specific products on marketplaces such as Aliexpress, giving you an estimate of your potential market size.

Together, keyword and product research give the retailer a better picture of the dropshipping niche. Consumer habits tend to change rapidly. Hence, catching up on trends in keywords and the popularity of products every once in a while will keep you informed.

You can decide on a dropshipping supplier before choosing a niche to ensure your business aligns with available products Doing this will help you best match what is made available by the supplier (We will discuss this more in step #4).

Step #3. Look into what competitors are doing

After settling on a product, the third step in how to start dropshipping on Shopify is understanding your competition. It reflects knowing who they are, what they offer, and how they handle sales.

Besides, if your dropshipping niche is full of competitors, avoid getting lost in endless Google searches. Just focus on the top 5 of your competitors and two key players in that field. Study them well.

Study your competitors well.

With these practical dropshipping research tools, get a better understanding of your competitors by keeping track of their key metrics, including top traffic sources, monthly visitors, and social media engagement.

• Keyword-based Google research

Identify your top competition by searching for your most relevant and high-volume keywords. For example, that will mean an exact search for “bicycles” could return more than a billion results, but the real work will involve analysis of the top ten sites. Specifically, look at:

• What are their best-selling dropship products?
• How do they display their products to visitors?
• Do they offer special discounts on weekends and holidays?
• What kind of post-purchase support do they provide?
• How can you improve upon their offerings for your customers?

• Competitor insights analysis tools

Make use of tools like Semrush and Similarweb to find and analyze competitors’ strategies targeted towards keywords, trends in Google searches, PPC campaigns, and other marketing activities.

• Social media listening

Even though you’ve started doing Shopify dropshipping, this wouldn’t mean that diversification of traffic sources is any less.

Look at your competitors’ social media business pages — see if they run business pages or even collaborate with influencers and post daily content to keep the audience engaged. This will give you something to draw from to create a social media strategy for customer traction and retention for your business.

Step #4. Find a reliable supplier

A dropshipping supplier’s role is to procure products, manage inventory, handle order and payment processing, and ship products to customers. With these critical responsibilities, the success of your supplier becomes integral to your dropshipping business.

Depending on your niche and the range of your products, you would go for a single supplier or connect with many suppliers through a supplier directory. List a few of the more popular supplier directory apps and websites, and within seconds, you can put your store in touch with thousands of different dropshipping suppliers.

For example, Here are some Shopify apps that link you to trustworthy suppliers and automate your order fulfillment process:

• DSers‑AliExpress Dropshipping
• AutoDS All‑In‑One Dropshipping
• Spocket: US & EU Drop shipping
• Zendrop ‑ Dropshipping & POD
• CJdropshipping

Step #5. Choose items to sell and determine their prices

Whether it is electronics, clothes, or toys, you want to be quite clear about your pricing strategy in a dropshipping business for sustainability in profit-making.

To ensure you are profitable, calculate costs, including the price from the supplier and operational expenses, after which you can set a profit margin on every product.

After that, compare your product prices with similar products in the market to maintain competitiveness.

Step #6. Create an online store

Alright, so you’ve found your product and supplier! It’s time to learn how to set up your Shopify dropshipping store account. Don’t worry – this process is super easy and takes 2 – 3 mins.

You’ll want to pick a catchy domain name for your store at some point. No rush immediately, but definitely nail it down once you know what you’re selling. In case you’re stuck on ideas, check out Chat GPT and Claude 3 – they’re pretty handy for coming up with business names.

Here is where it gets fun – making your store look stunning and unique! Shopify has many themes, but let us tell you about this Eurus gem. It’s got rave reviews – we’re talking 99% positive on Shopify.

Eurus Shopify theme for dropshipping is talking 99% positive on Shopify.

What makes Eurus so awesome?

• Get your store looking slick in no time.
• It’s a one-time payment deal, and you get updates for life.
• They’ll even help you design your store for free.
• Have you got questions? Their support team is there for your help.
• You can test it for as long as you like before going live.

Of course, there are more key features that Eurus can offer:

• This theme is FAST with excellent Core Web Vitals metrics.
• You can drag and drop stuff to your heart’s content – over 40 sections and 80+ templates.
• Bring it all, as you want high conversion rates folded into affordable pricing: 4-level Mega menu, unlimited Product Badges, per-page Pop-ups, and many more.
• Eurus comes with Alpine.js and Tailwind CSS, having a lightweight design with easy syntax yet faster and stronger performances
• Detect the preferred theme, Light or Dark, depending on the surrounding light around the device
• Offer numerous out-of-the-box features, such as the Promotion Banner, Delivery Dates, Customizable Options, Pre-Order, Free Shipping Bar, Sales Campaign Popups, Countdown Timers, etc.

Trust me, a good-looking store can make all the difference. It’s like the difference between a welcoming shop window and a mess. Eurus helps you nail that first impression and keeps customers sticking around to browse.

Step #7. Decide on the legal form of your business

In our 7th step on how to start dropshipping on Shopify, you’ll need to choose a business structure when starting your dropshipping venture. Here are three standard options, each with its advantages and considerations:

• Sole Proprietorship

A sole proprietorship is the simplest type of business. It means:

• You’re the only owner
• Your business isn’t separate from you legally
• You report the business income on your tax return

In other words, it’s just you running a business by yourself without creating a separate legal entity. You keep all the profits but are responsible for all the debts and risks.

• Limited Liability Company (LLC)

An LLC, or Limited Liability Company, is a way to set up your business that:

• Protects your stuff (like your house or car) if the business gets sued or can’t pay its debts
• Keeps your business separate from you legally
• It is recognized in the United States

Think of it like a shield between you and your business. If something goes wrong with the company, your personal belongings are usually safe.

For example:

If someone sues your business, they typically can’t take your assets to pay for damages. This protection is why many people form an LLC instead of running their own businesses.

• C Corporation

Because C corporations have broad liability protection, they are widely used in big business. Incorporation, however, is costly. Also, like other corporations, they are subject to double taxation — a levying both at the corporate and shareholder levels on income.

Consult an attorney about choosing the proper business structure for your situation before deciding on one.

After choosing your business structure, the next step is to obtain an Employer Identification Number (EIN) from the Internal Revenue Service (IRS). An EIN is essential for:

• Filing business taxes
• Opening a business bank account
• Applying for wholesale dropshipping accounts
• Hiring employees (if applicable)

✨You can apply for a free EIN through the official IRS website.

Step #8. Promote your store to potential customers

Last but not least, in our guide on how to start dropshipping on Shopify, Omni Themes will show you how to scale your dropshipping store by putting in place a great marketing strategy.

There are plenty of tactics one can pick from in growing an eCommerce business — starting with paid ads across Google, Facebook, and Instagram. All these lead users to your store.

As we all know, social media is an effective platform for raising brand awareness and guiding prospects down the sales funnel. It also serves as an excellent channel for collecting email addresses from both existing and potential customers.

Social media is an effective platform for raising brand awareness.

With email marketing, you can tell your subscribers about upcoming promotions, limited-time discounts on specific items, or even give away some of your products without being out of pocket.

Aside from this, incorporate influencer marketing to attract more traffic to your Shopify store. Influencer marketing involves sharing products and promotions through social media personalities or micro-celebrities with large followings.

Incorporate influencer marketing to attract more traffic.

Just be sure to choose influencers in niches relevant to whatever order of products you have so their followers will also be your target audience.

Start dropshipping on Shopify today!

Anyone can practically learn how to start dropshipping on Shopify using marketplace suppliers and websites with templates. With minimal overhead for your business, you can quickly turn your side hustle into a full-time job by offering a product that interests some demographic. You can be an entrepreneur on as little as $100 and grow from there.

Among the many finer sides of dropshipping is its excellent room for new products to be tested for market interest. This process is straightforward, and it only takes time to perform an update in your store and make some noise about new items.

In other words, as a drop shipper, one will continuously test new products. This strategy sells more to existing customers and inherently will put targets on people who already trust your brand. It is easy, inexpensive, and should be one of the significant components of ongoing business development. Thank you for reading!

Go to Omnithemes.com for insightful articles on Shopify features, comprehensive reviews of Shopify themes, and recommendations for the best Shopify themes tailored to various business niches