How to Set Up Drop Shipping on Shopify [2022 UPDATE] (2022)

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What Is Drop Shipping?How to Set Up Drop Shipping on ShopifyPros and Cons of Drop Shipping on ShopifyShould You Use Shopify for Your Drop-Shipping Store?

The internet has created numerous opportunities for people to take advantage of careers or business opportunities that allow them to work anywhere across the globe. Within the e-commerce industry, drop shipping has been one of the most attractive business models for current and aspiring digital nomads because of how simple and lean the model is.

As the world’s most popular e-commerce partner, Shopify must have been one of the first things that jumped to your mind as a possible platform for your drop-shipping store. That’s good because it’s a superb option to set up your drop-shipping business. Let’s dig a little deeper into what drop shipping is and how it works on Shopify.

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(Video) How To Start Dropshipping on Shopify in 2022 (For BEGINNERS)

What Is Drop Shipping?

Today, there are many suppliers who find it too challenging or time-consuming to market and sell their products online. At the same time, there are platforms like Shopify that make it possible for anyone to create an online store.

That’s where drop shipping, and drop shippers, come in. Drop shippers list the products of these suppliers on their own online stores in order to market and sell them to end-customers. They act as an attractive storefront between these two. Customers buy products listed on the drop-shipper-owned website, and these orders are sent to the supplier who ships them to that customer.

In most cases, drop shippers have very little (if any) physical interaction with the goods they’re selling. Drop shippers can start a business with little or no overhead in the shape of physical infrastructure such as storage, shipping staff, etc.

Suppliers are usually low-cost mass-manufacturers from China or India that sell products at prices low enough for drop shippers to mark up the price to make a profit; give the supplier their cut; and pay for shipping, hosting, and advertising.

How to Set Up Drop Shipping on Shopify

There are many reasons Shopify gets such positive reviews. One of them is that drop shipping on Shopify is a surprisingly easy process. There isn’t just one way to do it, and there’s a range of tools, integrations, and methods you can utilize for a unique approach. However, I’ll stick to the most commonly used method with Oberlo and AliExpress. This method is the easiest and most effective, and it illustrates how the process works.

Step 1: Choose a Niche and Brand Your Store

Not enough people realize the full weight of how important this step is. There are hundreds of thousands (if not millions) of drop-shipping stores. Without a clear roadmap and identity, chances are that you’ll get lost among the sheer number of competitors.

(Video) How To Start Shopify Dropshipping in 2022 (NO BULLSH*T GUIDE)

So, put some time into finding a niche that you’re passionate about, that has an audience, and for which you can find sellable merchandise. Then, come up with a branding strategy that includes a name and identity for your store. This can change and evolve slightly with time, especially as you start hunting for products, but you should at least have a clear starting point.

Step 2: Choose a Plan and Sign Up with Shopify

All Shopify plans are suitable for drop shipping. The three basic plans don’t differ by much when it comes to building a drop-shipping business, which means that 9/10 people should be fine with the Basic Shopify plan, especially since there are no selling limits. However, keep in mind that the higher you go, the lower the Shopify transaction fees are.

If you already have a website hosted on another platform or you only want to sell via social media channels, then Shopify Lite is a cheaper alternative. Last, Shopify Plus+ is meant for large-scale businesses or those with highly specialized needs.

The Shopify signup process is very simple, requiring only basic personal info to start your trial. Once you choose a plan and set up your billing from within your dashboard, you’re good to go.

SIGN UP FOR SHOPIFY NOW

(Video) How To Automate Your Shopify Dropshipping Store (Step By Step)

Step 3: Build Your Online Store

Next, you’ll need to design and build out your store. This process can be as simple and cheap or as complex and expensive as you want it to be. Shopify provides a library of 67 online store templates; ten of them are free, and the rest need to be purchased. The quality of all templates are high, and they essentially provide you with a complete online web store with all the webpages you need. You just have to bring in your own branding, content, and products.

Shopifyalso allows users to completely customize templates or build their own from scratch using custom code. If you don’t have the skills, there’s a whole industry of Shopify developers and freelancers. This is a great option for those who want an entirely unique store. However, that could see your costs skyrocket.

Step 4: Configure Your Preferred Settings

I can’t run through every single setting with you, but there are a few pertinent things you should address if you plan to create a drop-shipping store:

  • Set Up Your Store Policies. Stores need to have certain policies in place in order to protect themselves and be transparent with their customers. The most obvious ones include a refund policy, Terms and Conditions, and a privacy policy. Shopify can automatically generate some of these for you using standard terms which you can then modify.
  • Set Up Shipping Rates. Here, you’ll choose how shipping rates are displayed and used when making sales. For example, you could display shipping as free on your product listings and then add it to the price of the products, or show it as a separate fee.
  • Payment Providers. You should also choose which payment providers you want to use based on which you’re comfortable with, which offer the best rates, and which will work for most customers.

Step 5: Add Products to Sell

For drop shipping, the easiest way to sell on Shopify is by integrating with a third-party platform that will help you find products from suppliers and import these listings into your store. The most popular way to do this is by using Oberlo to search for and import products from AliExpress. Of course, you can always manually find suppliers and create the listings yourself.

However, by using Oberlo and AliExpress, you can source, list, and sell products within hours (or even minutes).

To do this, you just need to install the Oberlo app from your Shopify dashboard. According to the niche you chose for your store, you should then create the product categories in which you wish to sell. Adding products from Oberlo to your store goes something like this:

(Video) How To Dropship on Shopify 2022 (FOR BEGINNERS)

  1. Launch the Oberlo app.
  2. Start searching for products on supplier marketplaces, such as AliExpress.
  3. Select products to import. Remember to research the quality of the product and the supplier.
  4. Choose your preferred shipping method based on the cost and shipping time.
  5. Let Oberlo import the products into your store.
  6. Review the listings and tweak them if necessary.

How to Set Up Drop Shipping on Shopify [2022 UPDATE] (3)

Step 6: Launch Your Shopify Store

Hard as it may seem to believe, you’ve already done most of the work building out your drop-shipping store. The next step is to market your products and attract customers. Shopify, Oberlo, and your supplier will take care of the rest.

To launch a Shopify store, just go to your “Settings” and then open the “Sales Channels” tab. Click on Add sales channel and add your store to launch it and make it live. Remember that you’ll need to be signed up to a Shopify plan to do this. Your store will be up and running, and you can start making sales.

Pros and Cons of Drop Shipping on Shopify

So far, it might seem too be good to be true. However, there’s no easy and bulletproof way to make money. Drop shipping on Shopify, and in general, also has its cons that run parallel to its advantages just like any other business.

Pros:

  • Because of best-in-class integrations with platforms like Oberlo, you can automatically import and generate product listings.
  • You don’t need to be involved with shipping, as Shopify can automatically ship and set rates, and show them to customers.
  • Because you have no physical infrastructure and no long-term commitments, you can change the direction of your business or stop operating at any time.

Cons:

  • Unfortunately, Shopify charges a percentage of all your sales as a transaction fee based on which plan you have. However, it’s only 2%, 1%, or 0.5%. Most competitors don’t charge a fee.
  • After business and Shopify costs (such as a subscription, professional template, apps, etc.), most drop shippers are left only with a small percentage of each sale (usually 20-40%). This is the price you pay for such a low risk/effort model.

Should You Use Shopify for Your Drop-Shipping Store?

In my opinion, the pros of using Shopify to run your drop-shipping store outweigh the cons, especially when comparing it with other platforms. The one aspect that really gives Shopify the edge is its deep integration with fantastic tools like Oberlo. These make setting up your store, sourcing products, and facilitating sales between customers and suppliers a breeze.

The biggest downside to using Shopify for drop shippers is their transaction fees, which can put a bit of strain on the low margins that these sellers usually operate on.

A wide range of pricing plans, including specialized packages like Shopify Lite and Plus+, means that it’s truly suitable for anyone who wants to drop ship, no matter what your scale is. Anyone — from individual social media entrepreneurs to SMBs, to large retailers — have a place there.

(Video) How To Build A FREE BRANDED One Product Dropshipping Store With Shopify 2022

Considering that enough features come with the Basic Shopify plan and that there are no long-term contracts, it’s also relatively risk-free if you consider that drop shipping itself requires almost no investment itself. The real question is: Why not try it and find out?

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FAQs

How do I set up dropshipping on Shopify 2022? ›

How to start a dropshipping business: 9 steps to a profitable dropshipping business plan
  1. Commit to starting a dropshipping business.
  2. Choose a dropshipping business idea.
  3. Do competitive research.
  4. Choose a dropshipping supplier.
  5. Build your ecommerce store.
  6. Decide on a business structure.
  7. Get your finances in order.
10 Mar 2022

How do I Dropship a 2022? ›

With this guide, you'll be able to start your own dropshipping business in no time.
  1. Choosing A Supplier. The first thing you need is a supplier. ...
  2. Creating A Store. ...
  3. Making Legal And Tax Preparations. ...
  4. Deciding What To Sell. ...
  5. Creating A Financial Plan. ...
  6. Marketing. ...
  7. Processing Payments.
11 Feb 2022

How do I add dropshipping to Shopify? ›

Here are the steps you need to take to open a dropshipping store with Shopify.
  1. Choose a store name. ...
  2. Create a Shopify account. ...
  3. Optimize your settings. ...
  4. Launch your Shopify dropshipping store. ...
  5. Work on your store's design. ...
  6. Dropship on Shopify with DSers. ...
  7. Make your first sale.
14 Apr 2022

Where can I find dropship items in 2022? ›

Summary: How to find the perfect dropshipping products in 2022
  1. Keep an eye on the latest product trends.
  2. Do some research on the top dropshipping niches.
  3. Find out what your competitors are selling.
  4. Research product videos on Facebook.
  5. Search social shopping sites.
  6. Join online communities discussing products.
12 Apr 2022

Is drop shipping possible in 2022? ›

Is Dropshipping Still Profitable? In 2022, absolutely yes. In fact, as more and more people have moved away from platforms like AliExpress, dropshipping has become all the more popular. It's an excellent option for those looking to jump in the ecommerce space.

Is dropshipping on Shopify still viable in 2022? ›

Yes, dropshipping is still worth the investment if you're looking for a low-cost business idea. The number of people searching the term “dropshipping” has increased exponentially in just a few years. Success lies in choosing the right products, maintaining profit margins, and choosing the right suppliers.

Is dropshipping saturated in 2022? ›

Is Dropshipping Saturated in 2022? Absolutely not! We can talk about a niche or a specific product being saturated but not dropshipping as a practice. Just imagine – you can sell almost anything in the world.

How do I start dropshipping for Free 2022? ›

Two of the top-notch platforms that stand out for dropshipping with no money are Shopify and WooCommerce. While Shopify offers a free trial for you to try and experience the store for free before starting selling, WooCommerce (a WordPress plugin) is also free to download and use.

How much money do you need to start dropshipping in 2022? ›

Technically speaking, you can start dropshipping for less than $100. With the right combination of free trials and starter plans—and a willingness to look the other way and hope for the best when it comes to the quality of your products—a little investing is all that stands between you and a dropshipping store.

How do I start dropshipping on Shopify for beginners? ›

Starting a dropshipping business on Shopify in 5 steps
  1. Find a lucrative dropshipping niche.
  2. Define your target audience.
  3. Look for dropshipping suppliers.
  4. Build your ecommerce store.
  5. Market your dropshipping store.
23 Jun 2022

Is dropshipping allowed on Shopify? ›

The Shopify e-commerce platform is a top pick for anyone considering dropshipping. Shopify directly connects to hundreds of vendors who stock, pack and ship products for you — with little to no upfront cost.

Does Shopify automatically fulfill orders dropshipping? ›

Every new order that comes into your store is now fulfilled automatically.

What are the most profitable dropshipping niches in 2022? ›

Profitable Dropshipping Niches in 2022: How to Find Them + Top...
  • Smartphone accessories.
  • Baby products.
  • Health and beauty products.
  • Office supplies.
  • Gaming.
  • Tools.
  • Kitchen and home products.
  • Pet supplies.
16 Aug 2022

Who is the most successful dropshipper? ›

  • Andreas Koenig and Alexander Pecka are among the richest dropshippers. ...
  • Cole Turner learned about dropshipping when he was just 18 years old but soon became obsessed with the idea.

Which platform is best for dropshipping? ›

The Best Ecommerce Platform for Dropshipping to Supercharge Your Business in 2022
  • WooCommerce.
  • Magento.
  • Shopify.
  • BigCommerce.
  • OpenCart.
  • Spocket.
7 Jul 2022

Is dropshipping still profitable 2023? ›

Is drop shipping still a profitable business to start in 2022-2023? - Quora. Yeah, Drop shipping has a vey major market growth in coming years. So you should definitely opt for drop shipping in2022–23.

How much do dropshippers make a month? ›

How Much Do Dropshippers Make? Dropshippers make between a 20% and 30% profit from each sale or up to $100,000 per year on average. This works out to be between $1,000 and $5,000 per month.

Can you lose money dropshipping? ›

The simple answer is YES. Yes, you can lose money with dropshipping, but only if you don't have a good plan. You see: Like most other business models—or business ideas for that matter—dropshipping has its fair share of pros, cons, and challenges.

How much do dropshippers make a week? ›

As of Oct 30, 2022, the average weekly pay for a Drop Shipping in the United States is $779 a week.

Can you become a millionaire dropshipping? ›

If success to you means making $1 million per year with your dropshipping store, then it may take a long time to be “successful.” If your idea of success means breaking six figures, there are many dropshippers making $100,000 per year, you just need to find good dropshipping suppliers and build a brand.

Is e commerce still profitable in 2022? ›

Q. Is ecommerce still profitable in 2022? A. Yes, ecommerce was very profitable in 2020 and is set to deliver record profits in 2022.

Is it worth starting dropshipping in 2022? ›

Yes, dropshipping is still worth the investment if you're looking for a low-cost business idea. The number of people searching the term “dropshipping” has increased exponentially in just a few years. Success lies in choosing the right products, maintaining profit margins, and choosing the right suppliers.

How do I fulfill orders on Shopify 2022? ›

From your Shopify admin, go to Orders. Click the number of an unfulfilled order. To buy a shipping label for your order, select Create shipping label. From the Fulfillment page, change the number of products that you want to fulfill for each line item in the Items section.

Who is the richest dropshipper? ›

  • Andreas Koenig and Alexander Pecka are among the richest dropshippers. ...
  • Cole Turner learned about dropshipping when he was just 18 years old but soon became obsessed with the idea.

Which niche is best for dropshipping 2022? ›

Profitable Dropshipping Niches in 2022: How to Find Them + Top...
  • Smartphone accessories.
  • Baby products.
  • Health and beauty products.
  • Office supplies.
  • Gaming.
  • Tools.
  • Kitchen and home products.
  • Pet supplies.
16 Aug 2022

Can I do dropshipping without money? ›

Well, there are many platforms that you can use to start a dropshipping business, with no money investment at all. Some of the major players are eBay, Amazon and Shopify. Often they offer a free trial for you to explore and test the plotform if it's suitable for you.

Can you start drop shipping with $0? ›

Technically, you can start dropshipping with $0 in the bank, but experts recommend that $299 should cover the basics. When dropshipping, you don't have to worry about stock control and you can focus instead on other aspects of your business.

How much do 2022 dropshippers make? ›

As of Oct 27, 2022, the average weekly pay for a Drop Shipping in the United States is $779 a week.

Can you get rich from dropshipping? ›

Is dropshipping profitable? Yes, dropshipping can be profitable to merchants. Dropshipping is a low-risk business model that allows you to sell products to your customers without incurring huge running costs like a wholesaler would have.

How many hours a week does dropshipping take? ›

Ever wonder how much time it takes to run an online business dropshipping? Well, time is money, and money is time. The good news is the amount of time spent running a dropshipping store is one of its biggest advantages. Running and managing your online business should only take you two to eight hours a week.

How do I automatically send Shopify orders to dropshipping suppliers? ›

This usually requires using email or some other form of communication.
  1. Automatically store new Shopify orders in a database.
  2. Let your suppliers view new orders in the database (and consequently, fulfill them)
  3. Send a confirmation email to the customer once an order is fulfilled.
23 Mar 2021

How do I fulfill digital orders on Shopify? ›

Steps:
  1. From your Shopify admin, click Settings > Apps and sales channels.
  2. From the Apps and sales channels page, click Digital Downloads.
  3. Click Open app.
  4. Click the name of the digital product that you'd like to create a download link for.
  5. Click the gear icon and select Manual URLs.
  6. Click Generate URL.

Videos

1. How to Setup Shipping in Shopify 2022
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2. Shopify Dropshipping Tutorial for Beginners 2022 - How To Create A Profitable Shopify Store
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3. How To Create A Shopify Dropshipping Store (2022 SHOPIFY TUTORIAL)
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4. The Best 2022 Shopify Tutorial For Beginners - How To Create A Profitable Shopify Dropshipping Store
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5. How to Create a Shopify Dropshipping Store in 2022 (STEP-BY-STEP TUTORIAL)
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6. How to Add Products to Shopify from Aliexpress (2022 Updated)
(Metics Media X)

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