How Dropshipping Works 

Oberlo is a marketplace that makes it easy to find awesome products to sell online. 

With Oberlo you can access a huge variety of different products with just a few clicks. Whether it’s fashion, electronics, toys, beauty, or the next trending product – Oberlo makes it easy for you to find products from suppliers all over the world and instantly add them to your own online store. 

This is how the dropshipping works: the customer places an order in your Shopify store and pays you the X amount. After that, you will need to purchase that product for the Y amount from the supplier, and they will ship the item directly to your customer.  Your Profit is equal to = X - Y.


Set Up Oberlo

If you do not yet have the Oberlo application, check out this article to learn how to get it. The videos below will walk you through the general and auto update settings to help you make the decisions.

Import Products

Oberlo helps you find great products to sell. Explore the marketplace, add desired products to the Import List and then import them to your Shopify store. 

Customize Products

The imported products appear with the supplier’s information and images, however, we recommend editing these products to make them look more professional in your Shopify store. You can customize products in the Import List before you import them to your store.

Set Up Product Prices

Once you have added products to your store, you can now consider what markup you should add to the wholesale price. With Oberlo "Global Pricing Rules" feature, you can price your products in bulk.

Set Up Shopify

When you start a dropshipping business, you shouldn’t spend months building your e-store. Simply go through all the Shopify settings and set them according to your preferences. 

However, there are some important settings, which need to be set in a specific way in order not to conflict with Oberlo. Go to Settings > Checkout and select "Do not automatically fulfill any of the order's line items." You need to choose the manual fulfillment in your Shopify settings because the fulfillment processes would be overridden by Oberlo. 

Send Notifications to Customers

You can also send automated email notifications to your customers about the orders being shipped and tracking information.

Order Products

After you receive an order, you will have to go to Oberlo > Orders page and click on the orange "Order Products" button. After you confirm the payment, the supplier will ship the product within 7 days. Oberlo will add the tracking code and will mark your order as "Fulfilled" in Shopify.

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