If you ever wanted to start your own online business, then dropshipping can be a good option. Dropshipping is a business model where you sell products that are stored and fulfilled by the supplier. Dropshipping is easy to start and doesn't require a large initial budget compared to other business models.
With tools such as Shopify, you can create your own online store, and with Oberlo you can source products to your online and place your orders.
On this page:
What is dropshipping?
Dropshipping is a way for you to sell products without storing the inventory yourself. You only buy products when you make sales. Your products come from suppliers who ship products to your customers on your behalf. You don’t have to worry about product shipping, storing, or packaging.
This is how the dropshipping business model works:
Your customer purchases the product for $200 USD from your online store.
You purchase the product from the supplier for $150 USD and make a $50 USD profit.
The supplier ships the product directly to your customer.
Learn more about dropshipping features, benefits, and drawbacks.
How to start a dropshipping business
You can start your dropshipping business with Shopify and Oberlo tools. Shopify makes it easy to build an online store and process orders from your customers. Oberlo helps you find suppliers of products you want to sell, add products to your Shopify store, and ship products directly from suppliers to your customers once you receive orders.
You can run your store from anywhere in the world and you can sell products to almost any country. However, you need to be at least 18 years, have a credit card to collect payments from your customers in Shopify, and purchase products from suppliers in Oberlo.
Shopify is an ecommerce platform that makes it easy to set up and manage your online store, sell products added through Oberlo, collect payments, and manage orders.
Shopify provides you with beginner-friendly tools to build and run your online store so you don’t need to have extensive technical and design skills. For example, you can easily design the appearance of your store by installing a free or paid website template.
Oberlo is a dropshipping app that lets you source products from AliExpress suppliers. With Oberlo, you can import products to your Shopify store, edit the product listings, and place orders individually or in bulk.
After you make a sale in your Shopify store, you purchase the products from a supplier and then they ship them directly to your customer. You don't need to store, package, or ship your products. This means you focus on adding products to your online store, making sales, and placing orders without managing or investing in inventory.
How much it costs to start dropshipping?
Dropshipping business starting costs are usually low compared to other business models. There are no costs associated with inventory, warehousing, research, and development, or retail space. This lets you focus your efforts on marketing and creating a good buying experience for your customers.
When starting your dropshipping business, you should expect the following expenses:
Shopify subscription (from 29 USD/month).
With Shopify, you build and run your online store. Shopify offers a 14-days free trial and multiple paid subscription plans.
Oberlo subscription (from 0 USD/month).
Oberlo helps you source products, add them to your Shopify store, and place orders. Oberlo offers a forever-free plan and a paid plan to scale your business.
Custom domain (from 14 USD/year).
A custom domain is optional, but it strengthens your brand and adds credibility to your business in the eyes of your customers.
Marketing costs (average of 250 USD for initial product testing).
Marketing costs depend on the market you target and which method you choose: free or paid marketing. Free marketing, such as engagement via social media, networking in local meet-ups, and building website SEO, may take more time to attract an audience and get sales. Paid marketing, such as Facebook, Instagram, TikTok, and YouTube ads help you quickly test the products that you're selling.
Additional apps (some apps are free, while others charge a monthly fee).
Apps are optional, but they can help you drive sales and run your store more efficiently.