The Ultimate Guide to Dropshipping on Shopify (2024)

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Dropshipping on Shopify is a fantastic way for budding entrepreneurs to enter the ecommerce world. Not only is it a beginner-friendly option that doesn’t require a hefty upfront investment, but with a third-party managing inventory and shipping, it's a great way to practice building a brand and connecting with customers.

Learn more: What is dropshipping?

The easiest way integrate dropshipping on your Shopify store through the use of dropshipping apps that connect you with dropshipping suppliers, manage inventory, and process orders for shipping to customers.

Using dropshipping apps on Shopify

Dropshipping apps on Shopify connect your store with a host of suppliers, enabling you to easily browse and import products to sell while automating the process of order fulfillment, as dropshipping products are processed and shipped by third-party suppliers only when purchased, eliminating the need to hold inventory. 

The apps also manage real-time inventory levels to prevent overselling and provide tracking information for customer shipments, streamlining the entire order process.

Benefits of using dropshipping apps

  • Discover products. Browse a wide selection of items that fit your niche.
  • Import product information. Easily add descriptions, images, and pricing to your store.
  • Automate order processing. Send order details to suppliers for direct fulfillment.
  • Access a broader product range. Partner with various suppliers for diverse offerings.
  • Compare prices. Find the best deals for your customers by evaluating different suppliers.
  • Enhance inventory diversity. Cater to varying customer preferences with a wide range of products.

While dropshipping apps provide numerous advantages, they also come with some challenges. For instance, competition can arise from other sellers offering similar products. 

Additionally, many apps connect to suppliers overseas, which may lead to longer shipping times. This aspect is important to consider, as it can affect customer satisfaction and retention.

How to start dropshipping on Shopify

1. Create a Shopify store

If you don’t already have one, start by creating an account for your Shopify dropshipping store. Set-up your home-page, product pages, and menu navigation. You’ll also want to add a domain to your store and set-up a payment method to allow customers to purchase. 

2. Optimize payment, policies, and shipping settings

There are couple of steps to setting up your store that will be particularly important if you’re dropshipping: 

Payment information

The first thing you’ll need to do is set up payments for your Shopify dropshipping store. This is a vital step, as you won’t be able to receive money from customers if you don’t add a payment option.

To add payment information, you’ll need to access Shopify’s Settings page. Simply select the Payments tab on the left and add your payment information.

Store policies

When you’re launching your own Shopify dropshipping store, you’ll need to make sure you have created the necessary store policies. Shopify has a bunch of helpful tools that automatically generate a standardized privacy policy, refund policy, and terms and conditions for your store.

You can access these tools from Shopify’s settings. Click on the Checkout tab and scroll down to the bottom to find the relevant fields.

Shipping rates

It’s critical that your Shopify dropshipping store has clear shipping rates. We recommend that you always offer free shipping, as this is the easiest option. If you offer different shipping rates for various regions, it can become confusing, so simply incorporate your shipping fees into the price of your products and make shipping free. 

For example, if you’re planning to sell a t-shirt for $20, raise the price to $25 and offer free shipping. Using “FREE SHIPPING!” as part of your Shopify dropshipping store’s marketing will help you sell your products.

You can set free shipping on your store by accessing the Shipping tab in your Shopify settings.

3. Pick a dropshipping app

Selecting the right dropshipping app directly influences how you source products and fulfill orders in your Shopify store. Here are some key factors to consider when choosing a dropshipping app:

  • Product selection: Look for an app that offers a wide range of products relevant to your niche.
  • Pricing structure: Review the app’s pricing model to understand any fees associated with using the service and how they impact your profit margins.
  • Customer support: Consider the availability of customer support and resources in case you encounter issues or have questions.
  • User reviews and ratings: Check user feedback to gauge the app's performance and reliability based on other merchants' experiences.
  • Shipping options: Evaluate the shipping methods available through the app, including delivery times and costs, to ensure they meet your customers' expectations.

Learn more:How To Start Dropshipping: A Detailed Step-by-Step Guide

Using print-on-demand to dropship custom products

If you prefer to design your own products, a print-on-demand app may be the way to go. Print-on-demand is a dropshipping model where you’re able to sell products that include your own custom designs. 

Like other dropshipping models, products are manufactured, housed, and shipped by a third-party⁠—but this approach allows you to differentiate your brand by offering exclusive designs more tailored to your specific niche. This creative control not only strengthens your brand identity but also fosters a deeper connection with customers who appreciate the originality of your offerings.

And who knows? Print-on-demand could serve as a gateway to building your own fashion brand, home decor line, or any niche market you’re passionate about. 

Check out some print on demand apps by clicking here.

Learn more: What Is Print On Demand? Your Guide to Selling Custom Products

Over to you

We’ve covered a lot in this Shopify dropshipping guide, but you’ll learn even more while you’re actually getting your hands dirty running your own business. There’s no limit to the amount of money you can make with your online store, so it’s time to start making sales and generating revenue. With the availability of Shopify and third-party tools, it’s no longer a struggle to dropship products online.

Shopify dropshipping FAQ

    What are the benefits of dropshipping on Shopify?

    • Less upfront investment required
    • Easy to start
    • Customizable store
    • Wide selection of dropshipping tools
    • Various payment options

    Is Shopify dropshipping worth it in 2024?

    Dropshipping has some definite advantages, but it introduces a number of complexities you’ll need to resolve. For instance, shipping is complicated when you’re working with multiple suppliers, because each will charge their own rate for sending the item to the customer.

    The good news is that with some careful consideration and planning, most of these roadblocks can be eliminated and you can progress toward building a thriving Shopify dropshipping business. 

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