{"id":16490,"date":"2021-01-13T14:02:32","date_gmt":"2021-01-13T12:02:32","guid":{"rendered":"https:\/\/www.become.co\/blog\/?p=16490"},"modified":"2021-08-12T11:14:59","modified_gmt":"2021-08-12T08:14:59","slug":"make-money-dropshipping-shopify","status":"publish","type":"post","link":"https:\/\/www.become.co\/blog\/make-money-dropshipping-shopify\/","title":{"rendered":"How to Make Money Dropshipping with Shopify: 4 Key Points to Consider"},"content":{"rendered":"\n

Dropshipping is on the rise!<\/span><\/p>\n

It should come as no surprise that dropshipping is on the upswing when you look at how e-commerce and mobile technology have developed together, and pair that \u201cco-evolution\u201d with the enormous impact that COVID has had on online retail shopping.<\/span><\/p>\n

Just a couple of years ago, the global market value for dropshipping was a bit more than $100 billion. By 2025 though, the <\/span>dropshipping sector<\/span><\/a> is expected to see a CAGR of nearly 30%. That spells huge potential for anyone involved (or planning to get involved) in the dropshipping scene!<\/span><\/p>\n

With such significant growth rates on the horizon, you may have some questions like \u201cis dropshipping worth it\u201d, \u201chow can I ensure that I see dropshipping profit\u201d, and \u201cwhich platform should I use to dropship\u201d (our answer to the last question is Shopify – we\u2019ll tell you why in just a bit).<\/span><\/p>\n

Well, if you\u2019re looking for those answers, you\u2019ve come to the right place! We dive into all that you need to know about how to make money dropshipping with Shopify in this detailed guide.<\/span><\/p>\n

Ready to pick up your profits with Shopify dropshipping?<\/span><\/p>\n\n

Choose the right product<\/span><\/h2>\n
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Quick note:<\/b> If you\u2019re not so familiar with dropshipping, take a minute to find the answers to questions like \u201c<\/span>what is dropshipping<\/span><\/a>\u201d and \u201chow does dropshipping work\u201d.<\/span><\/p>\n<\/blockquote>\n

To be a successful dropshipper, you need to sell. To sell, you need a great product to offer your potential customers.<\/span><\/p>\n

Finding the \u2018right\u2019 product to sell can be a lot easier said than done. If you\u2019ve spent any time looking into dropshipping, you\u2019ve probably seen your fair share of self-proclaimed dropshipping experts and gurus who claim to have the secret formula to identifying \u201cwinning\u201d products. Heck, you might have even found an app or two that make the same sort of claim.<\/span><\/p>\n

We\u2019re here to tell you that there is no one-size-fits-all answer to picking the right product. With that said, there are some general guidelines and rules that you can follow to help you determine how successful you might be when trying to sell one product or another.<\/span><\/p>\n\n

Tip #1<\/span><\/h3>\n

The product (or products) you choose to sell should solve a problem for your potential customers. If there is no dilemma to resolve, then you\u2019ll basically be telling people \u201chey, I\u2019ve got this really cool thing and I\u2019d like you to give me your money for it\u201d. If you\u2019re new to the sales game, allow us to be the first to tell you: that\u2019s not how selling works. People need to have a reason in order to want to buy something – it\u2019s your job as an online merchant to identify a need that exists commonly enough that you can sell a product to fill that need <\/span>and <\/span><\/i>be profitable in doing so. In the end, what is dropshipping doing for you if you\u2019re not earning a profit? Not very much.<\/span><\/p>\n\n

Tip #2<\/span><\/h3>\n

You\u2019ll want to see how common that product is. Is the market already saturated with other sellers pushing the same product? If so, you\u2019ll likely find it difficult to get your foot in the door. On the other hand, if there\u2019s no demand for the product at all, you\u2019ll have just as hard of a time trying to find customers to buy it.<\/span><\/p>\n

What you\u2019ll want to do is find a product that has enough of a demand, but not too much of a supply. Again, this can be easier said than done. Just be patient when exploring products and be sure to do your due diligence. A hasty decision could ultimately turn out to be a waste of time and, worse, a waste of money.<\/span><\/p>\n

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Side note:<\/strong> In order to put up some real competition in your niche, you’ll want to get a reliable look at what your competitors are doing to stake their own claim. The easy way to do that is to use the Koala Inspector app<\/a>, which reveals the secrets of how your successful competitors do so well. Discover their best sellers, their theme, and tons of other details that help you get an edge!<\/p>\n<\/blockquote>\n\n

Tip #3<\/span><\/h3>\n

Try to be relatively consistent with the assortment of products that you sell on your Shopify store (or any store really, though we focus on Shopify for the duration of this article). Trying to stick to more-or-less of a narrow niche can do a few things to benefit your online business.<\/span><\/p>\n

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  1. It can make it easier to deal with suppliers<\/b>, since one supplier might be able to provide a wide variety of related products – whereas selling a bunch of very different products will likely require that you coordinate your sales efforts with several different suppliers.

    <\/span><\/li>\n
  2. It\u2019ll make your online store look more professional.<\/b> For example, if you sell kitchenware and exercise equipment and skincare products, customers may give your website a bit of a skeptical look – and understandably so. A lot of the trust that customers have in a brand comes from the level of expertise that the brand has in its industry. When you try to sell too many different products, it becomes much harder to claim to be truly knowledgeable in any one industry.

    <\/span><\/li>\n<\/ol>\n

    The old clich\u00e9 still rings true: sometimes less is more.<\/span><\/p>\n

    \"Business<\/p>\n\n

    Think about your optimal margins<\/span><\/h2>\n

    At the start of this article, we mentioned that Shopify is our platform-of-choice for dropshipping. For full disclosure, it\u2019s not really <\/span>us<\/span><\/i> that have chosen Shopify as the most favorable dropshipping platform – it\u2019s American e-commerce sellers! Out of the nearly 2 million <\/span>online retailers<\/span><\/a> in the United States, more than <\/span>30%<\/span><\/a> of them use Shopify. With so much competition, how are you supposed to maintain a strong profit margin?<\/span><\/p>\n

    As a matter of fact, it can actually be pretty easy to optimize your profit margins with a dropshipping business given the fact that you already <\/span>cut operational costs<\/span><\/a> you\u2019d pay through any other e-commerce model and, of course, the overhead expenses you\u2019d pay by running a physical storefront. Part of the answer to keeping a strong profit margin lies in choosing the right <\/span>pricing strategy<\/span><\/a> for your Shopify store. You\u2019ll need to strike a balance between outpricing the front-runners in your store\u2019s niche and making healthy revenue – this can take some trial and error.<\/span><\/p>\n

    The best pricing strategy to get started with dropshipping?<\/b> Consider penetration pricing as your way to make a big splash and attract a lot of customers in your niche. Keep in mind, though, that eventually you\u2019ll need to bring prices up in order to keep your business in the black. This is also a great pricing strategy even if you\u2019re not dropshipping and you\u2019re just <\/span>starting an e-commerce business<\/span><\/a> in general.<\/span><\/p>\n

    The best pricing strategy to increase your dropshipping profit?<\/b> Try psychological pricing which can help steal away some of your competitors\u2019 business, or play around a bit with cost-plus pricing which you can use to <\/span>increase your profit<\/span><\/a> margins. Just be careful not to overprice your products, otherwise you can kiss those customers goodbye (no, not literally – we\u2019re still social distancing).<\/span><\/p>\n

    Shifting and changing your pricing strategy can help or hurt, but you can\u2019t really know unless you\u2019re monitoring your profit margins. There could be unknown expenses that are <\/span>draining your Shopify profits<\/span><\/a>. Ultimately, optimizing profits for your Shopify dropshipping business comes down to having an effective way to track expenses that your store pays.<\/span><\/p>\n

    [bctt tweet=”Out of the nearly 2 million #onlineretailers in the United States, more than 30% of them use #Shopify. Find out how to stay ahead of the competition!” username=”Become_co”]<\/p>\n\n

    Track your expenses<\/span><\/h2>\n

    If you\u2019re dropshipping it can be easy to forget that – even though you’re not spending money on production – there are still many expenses involved in running the business.<\/span><\/p>\n

    What sort of expenses can you expect to pay to operate a dropshipping business on Shopify? <\/span>Here are a few:<\/b><\/p>\n