Shopify Dropshipping Reviews: Is Dropshipping Still a Good Investment?

 Dropshipping is a type of eCommerce in which the online store owner does not keep any products on hand. Instead, the company sells the item and then forwards the sales order to a dropshipping supplier, who packages and ships the order to the customer.

And the best part is that you don't have to spend a lot of money to start. Just ask Shopify, you will get a fully-functional store in less than fifty minutes and all the tools you can think of.

But the question is whether success comes easily. Is this the secret to becoming a millionaire entrepreneur? This article will provide you with an answer to that question. We'll go over the fundamentals of Shopify dropshipping, including the benefits and drawbacks, as well as how much profit you can expect.
Even if you are a beginner or have been dropshipping for a while and are considering trying Shopify, this article will provide you with the information you need to make an informed decision. Before we begin, I recommend that beginners read some more of our dropshipping articles.

What is Shopify Dropshipping?

Shopify, which was founded in 2004, is a hosted eCommerce platform software that allows business owners to easily create and manage their online stores without any knowledge of programming, coding, or web development. The platform now has over a million active users and 500,000 online stores.

Shopify is the best choice for many business models, including dropshipping, due to its diverse tools, themes, and customization. Thanks to Shopify's official dropshipping tool, Oberlo, you get a hosted site that can sell and connect directly to the manufacturer.

Or, as Shopify puts it:

That's it; you're ready to start dropshipping with Shopify. They make it so easy that it's as simple as 1,2,3 to get started. There is a working guide for Oberlo, but we'll get to that later.

Why should you try dropshipping with Shopify?

Shopify is well-known for its user-friendliness. Timing is critical for an eCommerce entrepreneur. If competitors appear, your ideas for profitable products may change after a few months or weeks. And the ease of use of Shopify entices such individuals to make the most of their time.

The reasons to try dropshipping with Shopify can be listed as:

• Quick setup: You don't need to know any coding to start designing and setting up your online store. With a straightforward interface, you can control every aspect of your store from the dashboard.
• Hosted platform: This means you don't need to worry about hiring a host or buying a domain, Shopify can take care of that for you. You will get the base of an online store to start with right the way.
• Trusted performance: The Shopify platform is stable and can handle millions of customers, even on the biggest shopping holidays. Ask Kylie Cosmetics about it.
• Feature choices: You have themes, apps, and a dashboard with an automatic option to help you in every aspect of running an online store.
• Pricing: Starting at only $29/month, you can start doing business without a hitch. There are three pricing plans for when your store scale.
• Customer service: 24/7 support through email, live chat, phone.
• Oberlo: free to start at 500 products limit and dropship immediately from AliExpress.

These are the reasons why dropshippers, as well as other business owners, chose Shopify to start selling online. Tesla, MVMT, GymShark, Kylie Cosmetics, ColorPop, and other well-known brands are on display.

But Shopify isn't a perfect option, and I want to give you the full picture, so in the following section, we'll go over the pros and cons of Shopify dropshipping.

Shopify dropshipping pros and cons

Pros

• Hosted platform: You get the skeleton needed (host, domain, backend) to start and design your online store.
• Trusted performance: A stable platform that can withstand even the highest traffic.
• Customize options: Themes and apps made for dropshipping are available.
• Customer service: As mentioned, 24/7 support through email, live chat, and phone.
• Pricing: 29$/month is not high, and you get Oberlo basically for free at first.
• Oberlo: start dropshipping from a trusted dropshipping site which is AliExpress.
• Management: The dashboard makes it easy to handle hundreds of items and money flows.
• Shipping discount: up to 64% off on shipping price.
• Buying stores: You can buy Shopify dropshipping stores for sale on Exchange Market Place (by Shopify)

Cons

• Transaction fees: You need Shopify Pay to lose the transaction fee.
• Same market: Since anyone can use Oberlo, people can sell the same items. You have to find a way to set yourself apart from the competitors.
• Online credit card fees: starting at 2.9% + 30¢ for each transaction.

As you can see from the table above, the pros outnumber the cons. So, assuming you want to try Shopify dropshipping right now, let's get started in the next section.

How much money can you make with dropshipping

Even though it is extremely simple to get started, it is time to confront the difficult question: how much money can you really make from dropshipping?

Most people on the internet will tell you how simple the process is, how easily money can flow in, and how little time you need to spend managing per day. While these are true to some extent, dropshipping is not the way to make a million dollars overnight.

The reason for this is that dropshipping has a much lower margin than a traditional eCommerce store. The margins can range from 10% to 30%, depending on the type of product and the deals you have with your suppliers.

Your margins will be heavily influenced by how crowded your market is and how many competitors are present. However, an average margin of 10-30% can add up quickly as you sell more and more. That is the beauty of dropshipping; you can scale your business infinitely without worrying about storage or product chain.

Many people have made millions of dollars doing this, while many others fail right away. But, with so little to lose to begin with, they didn't have much to lose. Simply go to Exchange Marketplace and see how dropshipping companies with hundreds of thousands of dollars in revenue are offered to buy there to get a sense of the market.

You, too, can make that much money if you know how to focus your efforts on effective marketing, sales, and customer service. This brings us to the next question:

Is dropshipping worth it?

Yes, simply because it costs so little to try. I can't promise you'll make a lot of money or run a side hustle with only two hours of work per day, but I am confident that trying dropshipping is worthwhile.

You have the tools to automate your process and enjoy the ride, especially with tools like Shopify and Oberlo. It will still take work to make sales, but much of the hard work of creating a store or finding your own suppliers has been removed.

Following that, we'll go over when you should and shouldn't use dropshipping.

When to and not to do dropshipping

We can be divided into two groups based on your needs and goals. The first category includes people who are good candidates for dropshipping.

When to do dropshipping

Dropshipping, as previously stated, is extremely simple to get started with by opening an online store and posting hundreds of products in a single day. This shop can initially assist you with market research.

Based on which products attract the most attention from customers, you can choose to order more of them or consider storing them and selling at a higher margin. You now have two side hustles that complement each other in terms of profiting from online visitors.

Overall, these are when you should do dropshipping:

• You are new to eCommerce - As an eCommerce newbie, you have dropshipping as a good way to test and try your effort in the eCommerce world with very little risk.
• You need product validation - You can use dropshipping as a way to test new products with zero upfront risk.
• You want to have a large variety of products - If you are someone that likes having a lot of products to show diversity in taste, then dropshipping is the easiest way to try. With just a few dropshipping suppliers, you can quickly sell hundreds of items overnight.
• You are on a small budget - Dropshipping is still widely recognized as the cheapest way to get started in eCommerce due to the fact that you don't need to pay for any inventory.

When not to do dropshipping

Although it is an appealing eCommerce method, dropshipping has some drawbacks. Because you are selling other people's products, developing your own brand will be difficult. You also don't have much control over your customer service because you rely heavily on your suppliers' product chain and shipping.

For example, if an order is shipped late or, worse, never arrives, you are solely responsible, not your suppliers. And if you have a popular product but your supplier is out of stock, you won't be able to profit until they restock.

In a nutshell, if you want complete control over your brand, you should avoid dropshipping. If your suppliers are untrustworthy, your dropshipping business may perish.

Overall, these are when you should not do dropshipping:

• You want high margins - With only 10-30% margins, you need good marketing campaigns at a tight budget to promote your business. And only when you are able to sell a lot of products can you make a considerable amount of profit.
• You want to build your own brands - While it is possible to have your own branding on items and dropship them, the product chain is still under someone else's control. And if things go wrong, it is your brand that suffers. And, in fundamental, you are still selling someone else's products.
• You want exclusivity - When people can get access to the same source of products, there are likely thousands of other vendors that sell the exact same products. This not only limits your pricing power but also the chance for better promotion. And if you go into the price war, you may end up competing with Amazon or other large stores.

Was the article helpful to you and is Shopify dropshipping right for you?

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