The Ultimate Guide to Dropshipping

 As a new entrepreneur, you’re likely short on two precious resources: time and money. Startups don’t make a profit right away, and without funds to pay yourself or employees, the race is on to make a sale.

Illustration of a warehouse with packages inside, next to a shopping cart containing a package.

That’s why so many first-time businesses choose dropshipping. By outsourcing manufacturing, warehousing, and shipping to a third-party seller, you can keep costs low and focus on actionable tasks like marketing and creating a great online shopping experience. 

Just because dropshipping is an accessible business model, however, doesn’t mean you necessarily know where to get started.

No worries! Follow this step-by-step guide on how to dropship. Find your dropshipping niche, select your target audience, source reliable suppliers, build your ecommerce store, and market your dropshipping business⁠. Let’s get into it.

Table of contents

What is dropshipping?

How to dropship with Shopify

3 tips for dropshipping

How to dropship FAQ

What is dropshipping?

Dropshipping is a business model where a retailer or ecommerce store sell products that are manufactured, warehoused, and shipped by a third-party supplier. The store only pays for products after they’ve made a sale.

Dropshipping is a great option for first-time entrepreneurs. It provides a low-risk way for small businesses to create a storefront, and allows established businesses to test out new product lines without paying for inventory.

How to dropship with Shopify

Below are the five big steps you’ll need to complete to get your dropshipping business off the ground using Shopify. Follow this workflow to find your products and supplier, set up your store, and begin the process of finding customers.

As you dive into each step, you’ll encounter questions and issues that are unique to your business. Remember, it’s how you overcome these obstacles that will define your dropshipping journey and shape your success.

  • Find a dropshipping niche
  • Understand a target audience
  • Select a product and a dropshipping supplier
  • Build an ecommerce store
  • Market your dropshipping store

1. Find a dropshipping niche

Some dropshippers sell unique private-label or print-on-demand products. But most dropshipping catalogs consist of items also available in other stores. So, how do you beat the competition and differentiate your business in a crowded marketplace?

The easiest way to avoid the threat of more established dropshipping stores is to find an under-served niche. 

A niche is a segment of a larger market that’s defined by unique customer needs, preferences, or interests. Through niching, smaller businesses are able to reduce competition and identify a customer base.

If you’re dropshipping coffee, for example, you’re going to face a ton of competition from other dropshippers and traditional retail businesses. But, if you sell vegan coffee, you can expect fewer competitors. Niche-down another level to vegandecaf coffee or vegan coffee subscription boxes, and you may find yourself with a unique value proposition. 

How do you find a lucrative dropshipping niche? 

Most dropshipping niches are found through keyword research. By analyzing the popularity of search queries entered into search engines and social media platforms, as well as the competitiveness of search results, you can identify areas of underserved demand.

Popular audience demand research tools include:

Facebook Audience Insights. Facebook has roughly three billion monthly active users. Audience Insights provide a well of information about their interests, demographics, and online activity⁠.

Google Keyword Planner. Google processes billions of searches each day. With its keyword planner tool, you can parse those searches for patterns and opportunities.

Google Trends. Like keyword planner, Google Trends has a deep well of information about what products people are searching for, and how interest fluctuates over time.

Ahrefs. Keyword research tool Ahrefs is a favorite among SEO marketing professionals. Use this tool to evaluate whether you can compete for traffic with established websites.

A niche audience is only valuable to your business if you can source relevant products to serve it. As you are learning how to dropship, you may find you’re limited in the variety of products you can offer a specialist audience.

Product availability is one of the main reasons why some niches remain underserved by dropshipping stores. So, working with a supplier or manufacturer to set up dropshipping for a new product line is another way to differentiate your business.

2. Understand a target audience

Once you’ve found a niche audience that would benefit from a dropshipping store, you’ll want to learn more about them.

Understanding your target audience will help you speak to customers in a way that resonates. You’ll have a better idea of which marketing channels you can use to reach people, what product features your prospects are looking for, and what types of content will effectively transport people toward your online store.

Test your understanding of your target market by checking whether you can give detailed answers to these questions:

Where does your target audience spend time online?

What types of marketing content does your target audience respond to positively?

What products are your target audience interested in?

What product features do they care about most?

What existing brands do your target audience like?

What existing businesses successfully serve your target audience?

Researching your target market doesn’t need to be complex. But by the end of this step, you should have a good idea of the type of person you’re selling to.

3. Select a product and a dropshipping supplier

Use your keyword research and target audience analysis to find a product category that’s relevant to your niche.

When you have a type of product in mind, the next step is to identify a supplier who manufactures or stocks it.

There are a ton of dropshipping suppliers to choose from. Some have online platforms where you can create a seller account and search their catalog for products. Others negotiate bespoke deals with retail partners.

If you want a completely automated solution for sending orders to a supplier, use a Shopify dropshipping app from the App Store.

When you use Shopify for dropshipping, information about your orders is sent directly to your third-party supplier, who marks the order as complete and (if available) sends a tracking number directly to your customer.

Here are a few popular dropshipping supplier apps: 

Spocket

Illustration of a person in a purple t-shirt pressing buttons on a webpage menu.

With Spocket, you can sell products from US, European, and international dropshippers through your Shopify store. Spocket features dependable suppliers and automatically updates inventory counts. It’s also an official partner of AliExpress and Alibaba.

Reviewers say that Spocket’s customer service is prompt and shipping from US and EU suppliers is relatively fast. You can even order product samples to check the quality before adding items to your store.

DSers

AliExpress webpage showing products including a cat comb, USB string lights, and an LED strip light.

With DSers, merchants can search, import, and edit product data from suppliers on AliExpress. One notable feature is the ability to compare different AliExpress dropshippers selling the same products, so you can find the most competitive prices.

Modalyst

Clothing products ready for dropshipping including t-shirts, hoodies, and leggings

Like the other dropshipping apps, Modalyst syncs with AliExpress, making it easy for merchants to import products directly into their Shopify store. Modalyst also offers curated lists of independent manufacturers, as well as high-end brands like Calvin Klein and Dolce & Gabbana.

Print-on-demand apps

Print-on-demand design screen showing a green t-shirt and a menu of graphic templates.

One drawback of dropshipping is that your products will likely be available from other online stores.

With print-on-demand dropshipping, merchants can add custom designs to products like t-shirts, tote bags, notebooks, and household items. That makes print-on-demand a good model for differentiating your store, while retaining a no-inventory approach to ecommerce.

4. Build an ecommerce store

With a catalog of products in mind, and a dropshipping supplier selected, you’re ready to start building your online store.

Log in to your Shopify account

First, log in to your Shopify account. If you don’t have a Shopify account, use the free trial to get started.

Choose a domain name

A domain name is the address that identifies your website. Domain names consist of two parts: the second-level domain and the top-level domain (TLD).

A second-level domain is unique to your website. For example, “google” is the second-level domain in “google.com.”

A TLD is used by multiple websites and follows the second-level domain. “.com” is the top-level domain in “google.com.”

Registering a domain name is the next step in creating your dropshipping store. If you don’t have an existing domain, choose one that fits your niche and clearly signals your product catalog. Land on a good online store name by following these tips:

Check availability. There are few things worse than coming up with the perfect domain name, only to find that it’s taken. Be sure to check for available domains.

Keep it short. Short domain names are easier to remember and pronounce—and harder to misspell.

Match search terms. Many SEO experts recommend choosing a domain name that matches a popular search engine query used by your potential customers. For example, if you plan to dropship hockey sticks, you might select the domain name “besthockeysticks.com.”

Be different. If a popular phrase isn’t available, try a domain name that reflects your wider niche or brand.

Use a unique TLD. If your second-level domain is taken with a .com TLD, consider using a unique extension like .shop or .store.

Design your ecommerce website and import products

Use one of Shopify’s professionally designed themes to quickly build your store. Brand your website with a color scheme, set up your checkout, and populate your most important pages with copy and images—but don’t invest too much time in the look of your store at this stage.

When your business is up and running, you can analyze successful store examples to improve your website design.

Once your store is live, start importing products from your dropshipping app. With Shopify, you can directly import products, including product images and descriptions, then edit them in your dashboard.

Price your products

Setting the right product prices is a delicate balancing act. You need to ensure your prices are competitive enough to attract customers and encourage them to browse your store, but you also need to maintain healthy profit margins.

It’s important not to engage in a price war with other dropshipping stores, as this can erode your profits until business becomes non-viable. Remember, it’s not always necessary to have the lowest price. When pricing among competitors is similar, customers also value factors like brand ethics, customer service, and shopping experience.

Don’t forget to account for additional costs such as shipping when calculating your profit margin.

5. Market your dropshipping store

Developing a marketing strategy for your dropshipping store is perhaps the most crucial step in generating sales. You’ll likely be competing against stores that sell the same products as you, so reaching potential customers first—or providing the most satisfying customer experience—is paramount.

Differentiation

The most basic aspect of dropshipping marketing is differentiation. By building a brand and carefully curating your product catalog, you can create the impression of a unique and relevant online store.

Strong brands are visually and conceptually consistent. The colors used in your website theme, your logo, the images you use, and the tone of your copywriting should all convey a cohesive message.

That message should match the content of your marketing materials, the values suggested by the products you choose to sell, and the story you tell about your business. 

Pricing is another effective form of differentiation. However, if you choose to reduce your margins to become more competitive, make sure you can still generate a profit after all of your costs have been deducted.

Harness social media

Social media marketing is an exceptionally useful tool for small businesses. Paid social ad campaigns have adjustable budgeting limits, so it’s easy to keep costs within your budget. Audiences are segmented by variables like their interests, online behavior, and the accounts they follow, making it easy to target users that are most likely to have an interest in your products.

Even without an advertising budget, there’s a lot you can do on social media for free. To sell on Instagram and Facebook and Instagram, you can open a “Shop” and sync your inventory, so followers can purchase your products without leaving the app. Market products on TikTok by putting your spin on popular trends and livestreaming product demonstrations.

Leverage search engine optimization

Search engine optimization (SEO) is the process of using data to make the content on your website more relevant to common questions and queries, with the aim of increasing your site’s ranking in search engine listings.

Google processes more than 100,000 searches every second, making increased visibility valuable to any small business. And with a ton of free SEO tools available to help you research the right keywords and select relevant queries to answer with your content, the cost of SEO marketing can be kept relatively low. 

Use email marketing to nurture your existing audience

When a person signs up to receive your email newsletter, they’re indicating an interest in your products. Don’t let those leads go to waste—nurture them with an ecommerce email marketing campaign.

Email marketing opens up an ongoing stream of communication with your customers. Good email content is a great way to share useful information about your products and help build brand loyalty.

Email campaigns produce lots of metrics, such as an email’s open rate and whether readers clicked on a CTA button. Use this information to refine your subject lines and content.

3 tips for dropshipping

Finished the steps above and started your dropshipping business? Here are three pieces of advice to keep in mind during your first months as a dropshipper.

1. Handle product issues professionally

As you learn how to dropship, you’ll find supplier mistakes are unavoidable. While repeated issues with products and delivery may signal the need to find a new wholesale partner, you should cover for occasional errors from your supplier. When they happen:

Own the issue. Apologize to the customer and explain the solution.

Compensate the customer. Offer a refund, exchange, or product upgrade.

Involve the supplier. A good supplier should cover the cost of any mistakes.

2. Source inventory from multiple suppliers

Dealing with multiple suppliers can make admin more challenging, but selling products from more than one wholesaler reduces the risk of stockouts and supply-chain issues. Try to:

Diversify your suppliers. This gives you more product options and a safety net for unexpected issues.

Select common products. Choose items that many suppliers carry.

Use generic descriptions. If necessary, you may be able to sell similar products under the same description.

3. Have an order fulfillment plan

When it comes to fulfilling orders, dropshippers play a minimal role. But that doesn’t mean you can’t be smart about processing your customer’s orders:

Route orders based on location. If possible, choose a supplier that’s nearest to the customer’s location.

Use automation to maximize availability. Automation tools can help you route orders to suppliers that have items in stock.

Leverage high sales. When your store grows and order numbers increase, invite suppliers to outbid each other to increase your profit margin.

Start a dropshipping store today

Shopify helps dropshippers get up and running quickly—while keeping costs low. With manufacturing, warehousing, and shipping outsourced to a third party, entrepreneurs have extra time to focus on product marketing and building their brand.

Product Photography Ideas

 When it comes to selling your products on social media or your eCommerce store, the way your products look matters far more than you think. We live in a world where people do judge a book by its cover or product reviews. Forbes found that 88% of shoppers characterize detailed product content as being extremely important to their purchasing decisions.

Your product photos can help to increase your sales, or it can stop them from happening. Here are some statistics you should consider before you publish your next photo photography:

  • We found that 22% of returns occur because the product looks different in person
  • Buffer found that good visual content is 40% more likely to get shared on your social accounts
  • 75% of online shoppers rely on product photos when deciding on a potential purchase.

Not to mention your customers are used to being bombarded with high-quality content on such a regular basis that they now expect all brands to do the same, and to fall short would only give the impression that your product lacks quality.

Instead of taking the chance to have your content overlooked, let’s make your content irresistible with these 8 product photography ideas.

1. Product Photography Idea: Use a White or Black Background

This is a classic product photography tip that most eCommerce stores based on their product images. Using a simple white or black background to give your customers a proper view of your product helps to eliminate any misconceptions.

A product photo’s quality reflects your brand image, creating the infamous first impression, so it should easily highlight your product’s best features. Based on the product’s color, you can decide whether you should use a white or black background, but it should be complimenting.

Pro Tip: Test and experiment with the right lighting regardless of whatever color your background might be. When you’re taking product images with solid backgrounds, be sure to check your lighting, too light, and the image might be blurry and too dark, and customers might not see essential details.

Try to stay away from background colors that look unappealing or too distracting. Remember, at the end of the day, the product is the focus.

2. Product Photography Idea: Take a Product Detail or Texture Shot

During early 2019 a common trend started to appear with skincare and food brands, close-up product shots showing off the textures, colors, and touch of the product. Brands do this because it works. It gives a truthful yet fun look at what customers can expect in your packaging before purchasing.

Nearly one quarter of product returns are because of inaccurate depictions of the product.

Yes, high-resolution photos allow customers to zoom in and examine the product with a fine-tooth comb. But they don’t show customers what type of texture, how it might feel or what they should actually expect it to look like in person.

Pro Tip: When doing texture or detailed product shots, you want your images to be as realistic but eye-catching; it’s not just about showing what’s in the jar or features of the product but displaying them as pleasing as possible.

3. Product Photography Idea: Take a Flatlay Shoot

Flatlays have entirely taken over every visual social media app. And rightfully so, people love a good flat lay. As staged as they are, people love them because it gives them an idea of what the product would look like laying in their own home, closet, or table. It’s relatable and natural.

Most flay lays shot from an above angle shot to help show off all the props and products.

When you’re creating a flat lay, you should have a set background, location, or props.

Try not to add too many products to your flat lay; instead, leave a little space between them. Create balance in your photo by mixing smaller objects with larger objects and placing objects of similar colors on both sides of the image.

Pro Tip: Keep in mind the dimensions of the picture when you’re taking your image. You don’t want to cut off too much of your flat lay. Whatever you’re going for, keep your theme in mind while selecting your props with a cohesive look.

4. Product Photography Idea: Create a Lifestyle Shot

 83% of online buyers consider images the most influential factor in their purchase decision.

When you take lifestyle shots, you allow customers to see your products in action. Instead of wondering what it would be like to own it, you share the experience right there and then.

Pro Tip: When you’re doing lifestyle shots, you can either surround your product with commonly used items or have a model pose with your product in action. Try to use places that your customers are most likely to use your products and capitalize on them.

5. Product Photography Idea: Use Props

Adding props to your product photography can help to add some creativity to your final look. These props could be flowers, everyday objects, or fabric. These props should help to enhance the visual experience and ensure that your work stands out no matter where it’s placed.

When you’ve found the perfect prop(s) you should play around with unique placement to help pull the whole photo together. There’s no hard and fast rule for using props. Just don’t put your prop where it logically makes sense for it to go.

Pro Tip: Sometimes less is more, it can be tempting to buy and use a lot of props, but this can make your product photo look crowded and distract viewers from what they should really be focused on, your product.

6. Product Photography Idea: Take Shots from Interesting Angles

You don’t always have to take your product photography straight on or above. You take product images from an angle. Different angles allow you to show off various dimensions your product may have. It can show just how tall, short, thin, or large your product is once the consumer has it in their home.

7. Product Photography Idea: Take Shots of Your Product in Use

Another fantastic product photography idea you can try is to take shots of your products in use. This could be content created by an influencer or with the help of models.

This type of product photography is especially great for fitness or products that your customers need to use actively.

When you’re taking active product photography, you should ensure that your photo’s timeliness is important as well.

Timeliness is when you retain the meaning and relevance of a photo that it has today many, many years into the future.

8. Product Photography Idea: Use Creative Photoshop Techniques

Remember, you don’t have to use a plain white background forever product image. For social media and branding on your website, you can get a little more creative by photoshopping your product photo’s background.

This would mean that you’d either need to hire a professional graphic designer or learn some photoshop tricks on your own. I suggest hiring a professional.

Product Photography Tips

Whether you’re doing these product photos yourself or hiring a professional, you’ll still need to have a few things on hand to ensure that you’re always prepared to take the perfect photo for your brand.

Here is a list of product photography tips and tools you should know:

  • Get a Tripod: A tripod should always be on hand. This can be used for a camera or phone so that you can get that steady shot. It also helps to get precise angles and take photos while working on a one-person team.
  • Invest in Proper Lighting: Lightening is so essential to your product photos. It’s always better to have a ring light or softbox on hand so you can control the lighting of your photos rather than being at the mercy of your room’s lightbulb or the sun.
  • Invest in Backdrops and Props: Go on sites like Amazon or even your local craft store to gather a collection of props and backgrounds. You might not need to use them right away, but it’s better to have options when you want rather than have none when you need them.
  • Use Editing Apps or Software: Invest in editing apps that can help to make your photos look more professional or edited. This could be simply adding a filter, or it could mean resizing, sharpening, and enlarging your product photo.
  • Create an Inspo Folder: Create a folder and save all your favorite product photography that can help to inspire your next shoot. You can use this to guide you when you’re doing it on your own or as Inspo for your photographer so they know what kind of photos you’d like to have at the end of the shoot.

Product Photography Recap

It may seem a bit overwhelming, but product photography is a skill like anything in business. Once you start practicing it.

Invest in the proper equipment, whether it means a better phone or DSLR camera it’s an investment that’s sure to pay off. Here’s a quick recap of the eight best product photography idea:

  • Use a White or Black Background
  • Take a Product Detail or Texture Shot
  • Take a Flatlay Shoot
  • Use Props
  • Create a Lifestyle Shot
  • Take Shots from Interesting Angles
  • Take Shots of Your Product in Use
  • Use Creative Photoshop Techniques