Dropshipping lets you sell products online without holding inventory. With Shopify, you can easily launch a dropshipping store even without specialized knowledge.
"Is Shopify recommended for dropshipping?"
"I want to know about Shopify apps for dropshipping."
Reading this article will resolve the questions and needs above.
Shopify is an e-commerce cart platform that's a great fit for dropshipping. This article explains why you should choose Shopify for dropshipping, recommended apps, and specifically how to get started.
If you're thinking of starting dropshipping, please use this as a reference.
What Is Dropshipping? 3 Main Types
Dropshipping is a business model where you run an online shop without holding actual inventory of products — a form of no-inventory sales. When the shop receives an order from a customer, the supplier (manufacturer or wholesaler) ships the product directly to the customer.
Since the shop owner doesn't need to manage inventory or handle shipping, they can focus on sales. It's also appealing because it can be started with less capital, since you can keep down costs like product sourcing, warehousing, and management fees.
There are mainly three types of dropshipping. Here's an explanation of each one's characteristics, benefits, and drawbacks.
1. DSP Type
The DSP type is a method that uses a wholesaler called a "dropshipping provider." The DSP handles everything from sourcing to shipping the product on your behalf. It's ideal for beginners, since you can choose from a large number of products handled by the DSP, and the order integration system is well established.
The benefits are that it's easy to get started and requires little effort for product management. On the other hand, since fees are charged, the profit margin tends to be lower, and there tend to be many competitors handling the same products.
2. Direct Contract Type
The direct contract type is a method where you contract individually with manufacturers or wholesalers. Since you can cut out the middleman's margin, the biggest benefit is a higher profit margin. There's also the possibility of handling unique products not available at other stores.
The drawback is that you need to find a trustworthy supplier yourself, and negotiation and contracting also take time. Compared to the DSP type, the system isn't as well established and it can sometimes take more effort to operate.
This is suited to those with some business experience or those knowledgeable about a specific industry.
3. Original Merchandise Sales Type
The original merchandise sales type is a method where you outsource the manufacturing and shipping of products you've designed yourself. For example, by using an on-demand printing service that supports dropshipping, you can sell original products like T-shirts and mugs without any inventory risk.
The biggest benefits are being able to differentiate yourself from other stores and a high profit margin. The drawbacks are that you need to create an appealing brand and design, and the product lineup is limited. This method is recommended for those aiming to build a brand, or those with some name recognition, such as influencers.
These three types of dropshipping can also be run simultaneously within a single store.
Points to Note When Running Dropshipping
The dropshipping business has many benefits, but there are also points to note.
Profit Margins Tend to Be Low, Making It Easy to Get Caught Up in Price Competition
With dropshipping, fees and shipping costs are added on top of the supplier's price, so profit margins tend to be low. Especially with the DSP type, there tend to be many competitors handling the same products, making it easy to fall into price competition.
To avoid this problem, it helps to find products that competitors don't handle, or to target a niche market. Rather than simply competing on price, it's also important to build your own unique strengths.
Inventory and Shipping Status May Be Reflected With a Delay
Since you don't manage inventory yourself, the supplier's inventory status may not be reflected in real time. If the timing is bad, a trouble may occur where a product a customer ordered turns out to actually be out of stock.
Furthermore, since tracking of shipping status also becomes indirect, there may be cases where you can't respond quickly to customer inquiries. Choose a trustworthy supplier and build a system for rapid inventory coordination.
Controlling Product Quality Is Difficult
Since this is a business model where you don't actually keep the product on hand, care is needed as quality control is difficult. Since you can't directly check the condition of the product that reaches the customer, unexpected complaints may occur.
Especially when using overseas suppliers, there may be a discrepancy between the product description and the actual item. As a countermeasure, it's important to first purchase a sample yourself to check it, or to carefully select highly trustworthy suppliers.
Why You Should Choose Shopify for Dropshipping
Shopify is the best platform for starting a dropshipping business. Here's an explanation of why.
Reason 1: A Wealth of Dropshipping Apps
Shopify's biggest strength is that it offers a large number of apps that support dropshipping. These range from dropshipping research apps to apps that integrate with DSPs and on-demand printing services.
By making use of these apps, you can efficiently manage the entire workflow, from product research to automating order receipt and shipping. As a result, you can significantly reduce the effort and cost of launching and operating your business.
Reason 2: Easy to Build and Operate Even for Beginners
Shopify's feature is that even without specialized design knowledge, you can easily create a stylish e-commerce site by using theme templates. With over 200 themes available, you're sure to find a design that matches your brand.
Payment systems and shipping settings can also be configured through an easy-to-understand screen. This creates an environment where even dropshipping beginners can operate without getting lost.
Reason 3: Low Initial and Running Costs
If you build your Shopify store yourself, the initial cost starts at $0. Even using a paid theme costs only a few tens of dollars. The monthly fee is relatively reasonable, at around $30. This lets you maximize dropshipping's biggest benefit — being able to start at low cost.
Compared to other e-commerce platforms, it offers a good balance of features and price, with a pricing structure that's easy to keep using even as sales grow. It's also easy to upgrade your plan as you grow.
3 Recommended Apps for Successfully Running Dropshipping on Shopify
Shopify has many apps for dropshipping. Here are 3 that are especially useful, carefully selected.
Fiidom | AI-Powered Dropshipping Product Research and Content Creation
Fiidom is a Shopify app for dropshipping from AliExpress, the e-commerce site operated by the Alibaba Group. It uses AI to find AliExpress's best-selling products and import them into your store with a single click. It also suggests optimal pricing to maximize sales and profit. Additionally, AI automatically optimizes product descriptions, also contributing to improved search rankings.
It also integrates seamlessly with dropshipping platform apps such as DSers, Zendrop, and AutoDS, helping streamline your operations.
For store owners handling many products, this can lead to significant savings in time and effort. What's more, this app is free to use.
Dropshipman | A One-Stop Platform for Dropshipping
Image source: Dropshipman｜Shopify App Store
Dropshipman is an app for efficiently running dropshipping. It lets you easily import products from major platforms such as AliExpress, Alibaba, and Temu, and automates everything from order processing to shipping. Since price, inventory, orders, and tracking numbers are automatically synced from AliExpress, it significantly reduces the burden of running your store.
Up to 10 products can be used for free, and it's priced to be easy to start with, at $9.9/month for up to 300 products beyond that. It also offers optional package customization and printing of original products, making it recommended for users whose brand has grown.
Printify | Best Suited for Selling Original Merchandise
Image source: Printify｜Shopify App Store
Printify is an on-demand printing dropshipping service that lets you sell products with your original design without holding inventory. Since it prints images or logos you've designed yourself onto products such as T-shirts, and manufactures and ships them only after an order comes in, you can start selling your own original products without upfront investment or inventory risk.
Supported products include clothing, mugs, phone cases, stickers, and more. It's characterized by easy integration with Shopify, letting you automate the entire flow from manufacturing to shipping products.
Installation is free, and since you're only charged for the product cost and shipping fee when a product sells, there are no running costs.
Specifically How to Do Shopify Dropshipping
Here's a specific explanation of how to start dropshipping on Shopify.
Set Up a Dropshipping Site on Shopify
First, create an account from the official Shopify site and launch your online shop. Configure basic information such as your store name, logo, payment methods, and shipping settings.
Next, choose a theme that matches your brand. If you use a theme that supports Japanese, even beginners can easily create a site.
Please refer to the article below for details on how to set up your store.
Install a Shopify Dropshipping App
Install a dropshipping app from the Shopify App Store. Installing the apps introduced in the "3 Recommended Apps for Successfully Running Dropshipping on Shopify" section will greatly streamline your operations.
Depending on the app, features like bulk product data registration and automatic price adjustment are also available, letting even beginners get started without hassle.
Choose and List Products to Sell via Dropshipping
First, research market demand and trends. Then look for products to list on your site, such as through DSP sites. The key is to find products with little competition where you can secure a profit. Profit margins are generally said to be around 20–30%, though this varies depending on the products handled and the presence of competitors. Using a research app makes this easy.
Also, choosing lightweight, durable products can reduce shipping troubles. Choosing products in a field you're interested in or knowledgeable about will also make product descriptions and customer support go more smoothly. Beginners are recommended to start with around 3–5 types of products and gradually increase from there.
Drive Traffic to Your Site
Once your site is live, drive traffic using social media (Instagram and TikTok), Google Ads, SEO, and more. It's important to craft messaging suited to your target audience. If you want to keep costs down, social media is recommended. Post visually engaging content, such as scenes of the product being used.
Don't forget measures to turn visiting users into repeat customers. Encourage newsletter sign-ups or offer coupons to increase touchpoints with users and create opportunities for repeat visits. Additionally, introducing a review feature or a points system can also motivate repeat purchases.
Arrange Shipping Once an Order Comes In
Once an order comes in, arrange for shipping. The arrangement method varies by DSP provider, so check this when choosing a DSP provider. Some Shopify apps will automatically place the order with the supplier for you.
After placing the order, obtain the tracking number and send a shipping notification email to the customer. It's a good idea to check the shipping status regularly and contact the customer in advance if there's a delay. Also, don't forget a follow-up email after the product arrives. Careful attention like this raises customer satisfaction and leads to repeat purchases.
Let's Start Dropshipping on Shopify
This article explained the characteristics and points to note about dropshipping, why you should choose Shopify, recommended apps, and how to start dropshipping on Shopify.
Dropshipping is an appealing business model that requires little effort and can be started at low cost. Using Shopify enables more efficient operations. On the other hand, since there's a lot of competition, thorough product research is important to avoid falling into price competition.
Use this article as a reference and consider starting dropshipping on Shopify.
Finally, the blog article below introduces Shopify apps useful not only for dropshipping but also for growing sales, improving customer acquisition, and boosting operational efficiency. Please use it as a reference when choosing an app or expanding your store.
