All You Need to Know About Shopify Dropshipping in 2024

Shopify has opened the doors of opportunity for many small to medium-sized businesses to have an online presence. But most of the people who are looking to enter into this eCommerce game fear one important thing: Inventory. Nobody likes to have a surplus amount of stocks lying down in your inventory and many entrepreneurs are struggling even to get an inventory for their eStore. This is where Shopify Dropshipping comes to the rescue.

Dropshipping is a great way to start your eCommerce journey who have a limited risk appetite and who want to focus on building their brand and marketing, rather than getting bogged down in inventory management.

As your reliable Shopify Development Partner, we've put together this blog to help you through the intricacies of Shopify dropshipping. So, let's talk no further and jump into this together, shall we?

Shopify has a business model where the store owner doesn't need a physical inventory to store the products. In essence, when a customer makes a purchase, the eStore owner or retailer sources the product from a third-party supplier, who then directly ships it to the customer.

This business model eliminates the complexities associated with inventory management and upfront investment, making it a go-to option for entrepreneurs, particularly those just starting out in the business. With DSers, you can essentially control your within the palm of your hand!

Low Initial Investment

As mentioned, one of the most appealing aspects of dropshipping is the minimal upfront investment. Traditional retail models demand substantial finances for purchasing and storing inventory. With dropshipping, entrepreneurs can launch their online store with relatively low money, focusing on marketing and customer acquisition.

Wide Product Range

Opting for Dropshipping would enable you to sell multiple products at once. If you have a wider target audience, this will be especially helpful for you. Moreover, this will allow you to test multiple products at your eStore, adapting within days to the current market trends.

Location Independence

The fact that you can run a business through online is alluring to many people. Dropshipping provides this freedom, making it an ideal choice for digital nomads or those seeking location independence.

Low Risk

The traditional retail model often involves the risk of unsold inventory, leading to financial losses. Dropshipping mitigates this risk since products are only purchased when a sale is made. This “just-in-time" inventory approach reduces the financial burden on entrepreneurs, allowing them to focus on growing their business without the fear of excess stock weighing them down.

Flexibility

The ability to run an eStore without having physical inventory will have a ton of flexibility. With dropshipping you can literally operate your business from anywhere as long as you keep an eye on the store and have a great partnership with your supplier.

Time Saver

Getting a different range of products for your customers can take up a lot of time and effort. A third-party supplier will take care of the packaging, labeling, and shipping without you spending time.

So, is Shopify Droppshipping full of roses? Well, not really. Let's see the limitation that it holds now.

Dependence on Suppliers

The success of a dropshipping venture relies heavily on the reliability and efficiency of suppliers. Delays in shipping or issues with product quality can negatively impact customer satisfaction and, consequently, the reputation of the business. So, choosing the best dropshipping supplier and building strong relationships with them becomes a critical aspect of a successful business.

Limited Control Over Inventory

Since store owners don't physically handle the inventory, they have limited control over product availability and quality. Issues like, stockouts can arise all of a sudden without any prior notice. As mentioned, who you choose as a supplier plays a vital role here.

Lack of Quality Customer Service

Lack of control over inventory and lack of customer service go hand in hand here. As a store runner, you will not be up to date with the product availability and can't ensure proper delivery. These will lead to customer dissatisfaction.

Lower Profit Margins

While the low upfront investment is a significant advantage, dropshipping comes with its own set of challenges. One notable drawback is the lower profit margins compared to traditional retail models. You can only see profits after settling for your dropshipping partner.

The short answer is Yes, you should. How? Let us shoot you some stats now.

According to Research and Markets, The dropshipping market is expected to reach $724.26B in 2027 at a CAGR of 30.6%. So we can safely say that Dropshipping is here to stay. What you should be aware of is the growing competition that dropshipping has.

Even now the answer is still a yes. It's just that you have to put your effort into the business and find a reliable partner who can be transparent with you throughout the sale process.

Before we move onto the listing, do note that these are just based on popularity and nothing else and there is no 'THE' one partner that can satisfy everyone's needs.

So, you should spend time on research to find the best and most reliable Shopify dropshipping for you.

Ali Express

Based primarily in China, AliExpress connects businesses with suppliers for well over a decade. Though the majority of the merchants are based out of China, it is available for free worldwide.

SaleHoo

SaleHoo has been around in the eCommerce game since 2005. with over 8000+ merchants with a price tag of $27 a month, it's a reliable choice for many.

Worldwide Brands

Worldwide brands stand tall in the supplier directories with over 16 million wholesale products. It comes with a cost of $299 which is valid for a lifetime.

Oberlo

Oberlo was established in 2015, it can be integrated seamlessly with Shopify and simplifies the dropshipping process by allowing users to import products directly into their stores.

Doba

Doba is one of the unique platforms where you can place orders from multiple warehouses from a centralized interface. The price starts at $24.99, making Doba accessible to many.

The eCommerce industry is growing in a rapid manner and Shopify dropshipping is a great way to kick start your journey.

Just remember to choose the best dropshipping supplier you can count on. Add this with your continued effort, you can succeed in this in no time!