Hey everyone, I'm Aly
and welcome to Oberlo!
Today, I’m giving you a crash course on dropshipping.
In this quick video, you’ll learn what dropshipping is, how to get started with Shopify
and Oberlo, what business costs you can expect, and some tips on getting started.
So, what is dropshipping?
With dropshipping, you don’t buy product up-front or keep inventory while you wait
for sales to come in.
Instead, you only buy product after you make sales.
The main advantage of dropshipping is that you don’t have to worry about storing, packaging
or shipping products.
And, you can run your business from anywhere in the world, and sell products to almost
any country in the world.
Here’s an example of how a dropshipping business works:
One.
Your customer purchases the product from your online store for the price you set.
In this example it’s 200 USD.
Two.
You purchase the product from the AliExpress supplier for 150 USD using your personal payment
method like a credit card.
Your customer’s credit card details are not used to buy the product from the supplier.
Three. The supplier ships the product directly to your customer.
The difference between what the customer paid you, and what you paid the supplier is your profit.
So how does dropshipping work with your Shopify store and Oberlo?
Let’s start by learning about each platform.
Shopify is an ecommerce platform that makes it easy to set up your online store, add products,
and sell them to your customers. Shopify gives you beginner-friendly tools to build and run
your online store.
Oberlo makes it easy to find products that you can add to and sell from your Shopify
store.
You can find products from AliExpress suppliers directly in the Oberlo dashboard.
Add the product to the Import List, edit it to suit your brand identity, and import it
to your Shopify store.
After a customer makes a purchase on your Shopify store, you can purchase the products from
the supplier and they ship it directly to your customer.
Oberlo helps you with this process by adding the customer’s product to the shopping cart
on AliExpress, moves to the checkout and fills in the customer details automatically.
You only need to select the preferred shipping method, add your personal payment card and
confirm the order.
Aside from offering products to sell, Oberlo is also a platform that gives you access to
learning material: Like how to build a successful dropshipping business, how to master marketing,
learning from other merchant success stories, and more.
Now that you know how dropshipping works with Oberlo, let’s look at the initial costs
of starting a dropshipping business.
First, to use Shopify, you need to select a subscription plan.
Shopify offers a 14-day free trial and multiple plans to choose from.
Visit Shopify.com/pricing to learn more about the options available.
Next, Oberlo also has a variety of plans to choose from including a free plan.
The free plan is enough to get you started while you learn how to run your new dropshipping business.
Additionally, you should consider buying a custom domain.
Prices range but generally start around 14 USD per year.
This step is optional, but a custom domain strengthens your brand and adds credibility
to your business.
Another cost is marketing.
On average, dropshipping businesses spends around 250 USD for initial marketing campaigns.
Marketing costs depend on the audience you target and which promotional method you choose:
free or paid marketing.
Free marketing, like networking in local meetups, might take more time to attract an audience
and get sales.
Paid marketing, like Facebook ads, can help you quickly test the products that you’re
selling and gauge customer interest.
Finally you might want to use some additional apps.
Some apps are free, while others charge a fee.
Apps are optional, but they can help you drive sales and run your store more efficiently.
For example, you can use a customer support app like Shopify Ping to chat with shoppers
and answer their product questions.
So all together, be prepared to budget at least 300 USD to get started with Oberlo.
Finally, I’m going to share some getting started tips!
Have the right mindset.
Dropshipping is like every other business - you have to put in a lot of time and effort to make it work.
No one gets rich overnight, but the more you try and learn, the more you will achieve.
Have the right equipment.
You need to have a laptop or a desktop computer, and a stable internet connection to be able
to run a dropshipping business with Oberlo.
Right now, Oberlo has limited usability on tablets and mobile devices.
Choose a product category or niche.
When you’re browsing through the catalog of products available on Oberlo, you’ll
notice there is something for everyone.
Decide what you want to focus on, and import relevant products.
If you’re passionate about cooking, consider selling kitchen related items.
Having a product category will also make it easier to target your audience through marketing.
Understand your responsibilities.
When you start a dropshipping business, it’s important to understand the responsibilities
you are taking on as a business owner.
This means handling returns and refunds, customer support, and everything else that
comes with being a business owner.
Are you ready to begin your dropshipping journey?
Visit Oberlo.com and get started today.
And don’t forget to check out the description below for resources mentioned in this video
and for our essential dropshipping store setup checklist.