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What Dropshippers enjoy the most is not having to carry inventory and the cash that's associated with that. Consequently, suppliers enjoy moving product when they don't really have the reach to the audience and has the benefits to reach the end customer quickly. The savings in eliminating the shipment from the supplier to the online store's warehouse and the cost of storing the inventory/tracking makes this business model very efficient allowing for greater discounts and profits. So what's in store from Shopify to support this business model?
Key Shopify Advantages
With a strong marketing strategy where an eCommerce business has a strong reach to an audience in tune with product categories that they have curated, testing out a product or buying an end-of-life product at a discount allows to either see the new item can sell without much risk/investment or can do a blowout sale. In either scenario, the online store takes little to no risk or lowers the risk of inventory. Shopify provides several tools and advantages for these stores:
Labels - For the eCommerce store owner, keep the "Dropshipper address" hidden and in the background while the store brand/address is in the forefront. To achieve this there is some coordination within the systems to be executed with some accuracy. A return address needs to be established under the name of the store owner, RMA procedures, and handling. Therefore for the 3PL Shopify App that would be used the addresses need to be set correctly, and orders to be passed ready for label printing.
Integrations with the dropshipping supplier - Making the 3PL Shopify App connection is based on the IT infrastructure of the Dropshipper's warehouse. The warehouse IT system usually handles multiple vendors (online stores) requests and has several functions. Accounting for every order request, its logistical cost (boxing, labor, scanning, label printing), and time stamping of fulfillment with the carrier information. With this system in place - handling Shopify Orders is a given since major eCommerce platforms are covered by the IT systems and have Apps in the Shopify App Store.
Email marketing - Shopify has added an Email Marketing feature to the platform, allowing for email campaigns for the various dropshipping products. This allows for subscribers' email addresses to be recorded and then be part of the target audience. Just entering your email will alert you of additional promotional and new product introductions.
Social Media marketing - It is very easy to set up an eCommerce website using Shopify to link up a dropshipping business even for a single product, and use social media to sell online. Facebook Ads for example target demographics with good precision, and it makes your marketing efforts easier.
Ease of setting up a store - For experienced Dropshippers, setting up a store almost becomes routine. Picking their theme, adding the assets (content and imagery) with their branding, connecting their store to Shopify Payments of their choosing, and connecting to their Dropshipper's warehouse. Turn on the domain and you can start selling.
Strategic Marketing bonuses - Shopify's SEO features are very complete and can formulate a strong strategic marketing plan for each rollout of a product. Selecting the appropriate theme, and with the right funneling tools you can have a strong conversion when the product is well matched to the audience. The various types of marketing options are all available to engage with.
Product Ideas - when it comes to selling products assessing the demand, finding the price sensitivity of the audience, calculating the cost of sales, logistics to get to the gross profit and net profit is a financial art. When it is mastered, working with Dropshippers is an engagement that's productive where sifting through the product portfolio can yield some key items that will match up well. The ability to test them out is where Shopify shines because after all - calculating vs. testing brings reality to your strategy.
Credit Card Processing - having the right set of cards doesn't take a credit score genius to figure out that it is a critical conversion tool. Shopify has integrated over 100 payment processors that provide global reach when it comes to processing transactions.
Conclusion
Shopify has a while Dropshipping guide which is easy to follow if you are looking to see if this business model is for you. Keep in mind that the space is quite competitive and might require an experienced Dropshipper to be a guide. For further study, the below link might be of assistance. If you require additional information on the online store setup - feel free to reach out to us at wish@thegenielab.com
https://www.shopify.co.uk/blog/dropshipping-guide
