Aug 03 , 2019

What You Need To Know About Dropshipping


So what is dropshipping?

As mentioned, dropshipping is a retail fulfillment method where a store doesn't keep the products it sells in stock. Instead, when a customer buys a product, the merchant purchases the item from a third party and has it shipped directly to the customer. As a result, the merchant never sees or handles the product. The merchant essentially acts as a middle-man who runs marketing for the product and profits from the difference in price.

You must be wondering why don't these companies sell these products directly then? Well the thing some of these companies or manufacturers only focuses on innovating the products and rely on retailers such as you and I to market and sell these products.

Why choose dropshipping?

Online shopping is more prevalent than ever and given that it's an online store; it's reach across the globe is unmatched compared to a physical store where it's audiences are limited by location. There's a myriad of other reasons that supports dropshipping and I'll go through a few of them below.

1. Convenient and accessible product sourcing with built in apps (Orbelo, Dsers, Importify). With a turn-key, retailers are able to source for any products they desire or switch their stores completely within a matters of hours or days.

2. Amazing ghost storage. A conventional e-commerce or physical store usually requires large storage space to store their items. Storing 10 to 100 items might be imaginable, however, when a store's carrying large amounts of orders, you can imagine that getting a rental to store those items would burn a hole in your pocket. The dropshipping model solves the issue of a high warehouse rent; as the products stay with the manufacturer or wholesale supplier until they've been purchased. Voila! Free storage space.

3. Order fulfillment is hassle free in comparison to physical stores. For a physical store, the routine of having to pack and ship an order might be troublesome and requires some effort. With dropshipping, order fulfillment is simply a few clicks away as the product is with the manufacturer! (Time to build a good rapport with the supplier huh?)

4. It's a low risk business. Given that you only have to pay when your customers order a product, you're not required to order bulk quantites to get started. This saves you alot of capital and time. You won't find yourself caught in a situation where your product is stale and you're left with an abundance of it.

5. Super high ceiling for scalability. Yup you would've guessed it by now, being able to access a much larger audience at the cost of a lower rental for storage as well as overhead costs such as electrical and lighting definitely allows the retailer to expand his/her business indefinitely. All the retailer has to focus on is branding and marketing, which takes a lot off the plate in comparison to a physical store; where undoubtedly the retailer has many other technical aspects to take into account.

6. It's easy to get started. You will be able to starting selling products on the same day you sign up. Since products can be imported to your store within a few clicks using integrations like Oberlo or Dsers, you are able to starting promoting immediately as you do not carry any inventory. 

What do you need to dropship?

Dropshipping doesn't incur a high start-up cost. No doubt capital is still needed, but not much. The amounts you'll have to pay right off the bat would be

-Monthly Shopify fee (USD29) 
-Yearly domain name fee (USD14 ~ USD999 depending on the uniqueness of the domain)

Other than that, it's probably best to have some extra capital set aside to pay the cost of productions from sales, (You would have to pay first) Shopify apps and for your marketing campaigns. (Facebook Ads, Google Ads, SEO Optimizer, Insta Ads)

If you have a low budget, I'd recommend to start with Instagram Influencers, Instagram Niche Pages to help promote your products at a reasonable price.

If your budget is slightly higher, you can start straight with Facebook Ads! 

There are some Shopify applications that would require payment, but fret not as there are loads of other free apps that are just as effective as well!


1) Product Research

2) Shopify Store/Web Creation

3) Social Pages (Facebook, Instagram)

4) Advertising Creatives (Order the product beforehand and film by yourself, request for services on platforms such as Fiverr or getting material from your aliexpress supplier if possible)

5) Marketing Strategy

All the best on your business endeavour!

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