Still wondering how much money do Shopify Dropshippers earn? Are these numbers fishy, or Is the dropshipping business really so profitable? Well, we got all your questions covered with utmost honesty, let's dive in!
Gone are those days when people used to invest hundreds of dollars to set up a legit business (by that we mean brick and mortar). From running miles to pick up a spot where you can open a store, save loads of bucks to buy that space, and advertise your products day and night to let at least a customer know about your existence. Back then, setting up a business was a tedious task, but now with smart technology interventions, the industry has changed just so much.
Until recently, the idea of setting up a business online was remarked into the “must be nice” category. But now it's remarked into the “how best it is” category.
With that being said, one such popular business model that has helped any individual earn thousands of dollars from the comforts of their home is – Dropshipping. The concept came into the picture when western countries started showing interest in Chinese products – since they were super cheap and attractive. Thanks to AliExpress, they were able to buy the best Chinese products for their personal use.
But since not many people were aware about the existence of AliExpress, and how the marketplace supports dropshipping, many dropshippers quickly hit the right spot. Wondering how? We have explained it all below!
The Complete Dropshipping Business Model (Updated 2024)
Dropshipping is a popular retail business model, where an individual never stores any inventory and does not even have to look after packaging and delivery. They basically outsource the whole process of Procuring, Storing, and Shipping products to a third party supplier – hence low overhead costs. But what exactly does a dropshipper do?
A dropshipper is a marketer who knows what their audience wants, how they can procure that product at the cheapest rate possible, and how they can market the same product in the best creative way to attract just the right customer.
Here's how the whole dropshipping process looks like:
- Dropshippers looks after the best products to dropship on AliExpress or Alibaba
- After picking the right product, they reach out to the seller to finalize the pricing and then sign an agreement
- Dropshipper then puts all the products finalized above in their Shopify store
- Visitor then makes a purchase online from the Shopify store
- Both dropshipper and the seller gets a quick notification whenever a new purchase is made on the website (or sometimes a dropshipper can even download the whole order in a CSV file and then pass it out to the seller to fulfill it all)
- If the product is in stock, the customer gets a quick order confirmation from the seller's end (but under the name of the dropshipper)
- Seller packs, ships, and delivers the order it to the customer and even gives them a tracking code to track the order instantly
- Sometimes the order is even delivered to the dropshipper itself, and then they ship the order
- Customer receives the product!
Since most of the business fulfillment process here is outsourced; a dropshipper sometimes even looks after the customer service part – because in DROPSHIPPING, it's all about HOW MUCH YOUR CUSTOMERS ARE SATISFIED WITH YOUR SERVICES.
But, if the dropshipping market is so easy to enter, is it that easy to make good dollars too?
The ease of dropshipping made everyone believe that the market is just too easy to step into. But, the reality is a lot different than this. There are hundreds of dropshippers who have already aced the marketing game. They are selling thousands of products across the globe, and have a good hold on their customers. They know the market really well, and because of being in the market for a long time, the trust they have gained is impeccable.
In simpler words, experienced dropshippers have learned the art of branding and because of this only competing with them as a beginner is a tedious task. But, you don't have to fret out here, there are many beginner dropshippers who have earned good in just a few time period, let's explore them now.
So how much Money do Shopify Dropshippers Earn in Real?(Beginners)
As a beginner, the answer to this question is – the effort and investment you will put into your brand development. Dropshipping is not just about buying any random domain name, setting up a store, pulling products from AliExpress, and selling it all. This is just a big picture almost every individual falls for. The reality is a lot different, you will actually have to:
1. Pick up a niche for Dropshipping
Picking up a niche that is actually more in demand in the market is quite a tedious task. You can't always pick up any random product from AliExpress or Alibaba and sell it in your store. You will first have to look after which type of product is more in demand (you can use dropshipping tools for this) and which niche can give you good profit margins.
2. Build a USP for your brand
After picking up the best dropshipping niche, the next thing you will have to do is build a unique selling proposition for your brand. Over here, you can try and test more creative ideas to stand unique from your competitors.
3. Work hard on building converting landing pages
Landing pages work wonders for dropshipping stores. The more attractive your landing page is, the higher the number of visitors you will convert.
4. Use the Best Dropshipping Softwares for Quick Assistance
Remember that dropshipping is not a one man game, but it can be, if you use the right dropshipping software. From Dropispy, Niche Scraper, Sellvia, Dropshipme, to Ecomhunt – there are literally too many tools available. Pick out the one that best fits your needs and budgets because these tools are a great investment for your dropshipping store.
5. Follow the Best and Latest internet Marketing Practices
To reach out to your target audience, the only thing that would work best is an effective marketing strategy. Hence, stay active on different social media sites. To get better at this, you can even use social media ad spy tools like Adspy, Adplexity, PiPiAds, Flowspy, Bigspy, and Dropispy.
6. Offer Top-Notch Customer Service
Offering high quality products is important for every dropshipping store, but so is the customer service. Stay in touch with your customer, let them know where their order has reached, and when they can expect the delivery. If there is any issue with the product, give them the best service, offers refunds and returns – this will make or break your business.
7. Build Strong Social Proof
To the last, as a beginner dropshipper, for new visitors to trust your store, you will have to build a strong social proof. And for this, you can use dropshipping software to extract reviews from AliExpress, and add it in your store.
And if you have done this (which probably will take upto three months or four), the dollars you can expect from your store can be anything around $1000 – $10,000 a month. Remember, in the initial days it's all about how great efforts you are putting in effective branding. The faster you will crack this code, the quicker you will earn huge dollars – work on it!
How much can an Experienced Dropshipper make?
Now that we have explored how much a beginner dropshipper can make, next comes the question – how much can an experienced dropshipper expect to earn?
To give this answer, we will just show you the traffic of the best Shopify dropshipping stores who are earning thousands of dollars every day/week, all of because of their great marketing tactics:
Warmly – Dropshipping store popular for home decor items, 10m+ monthly visitors
Meowingtons – Pet-specific dropshipping store popular for all things cats and their USP is their attractive social media pages
Bicycle booth – Popular print on demand dropshipping store selling design winning sports apparel products
Palo – A general dropshipping store selling literally everything – from rings, phone cases, to limited edition mugs
For my doggy – Popular drop shipping store offering best products for dogs, and also the store looks super attractive
Bohemians Mart – A niche-focused dropshipping store offering attractive bohemian products at best rates
Kawaiies – Started out in 2019, a popular dropshipping stores selling plush toys and offering downloadable freebies
The list goes on, there are just too many popular dropshipping stores who have either started out in 2019s or 2021s and are doing just too good. With such good traffic, these stores are able to make $5000 – $25000 all in a week. Moreover, the majority are Niche-focused stores, so it's simply your take as a beginner, what you really want to get into.
Pros and Cons of Dropshipping with Shopify
Pros
- Requires limited capital to get started with
- Easy to get started with, no major upfront costs
- Limited overhead expenses
- A great home-based business model
- Highly flexible when it comes to location
- No need to pre-purchase any product
- Wide product and services options to sell
- Easy to scale (anyone can run 3-4 dropshipping stores at one time).
Cons
- Lower margins
- Higher competition
- Product quality issues
- Shipping problems
- Limited branding and customization options.
To the last, Is Dropshipping still Profitable in 2024?
Undoubtedly, YES. As mentioned above, there are so many dropshipping stores who have just stepped into the space in the last year and have already earned billions of dollars.
So dropshipping is not at all dead in 2024. In fact, the good news here is, there are several best dropshipping tools available for new dropshippers to ease down the whole process.
These tools do not just help dropshippers find the right product to sell from millions of AliExpress products, but even helps dropshippers to find reliable suppliers selling just high quality stuff.
Thus, there you have it the answer of – how much money do Shopify Dropshippers earn? If you are still on quest for free dropshipping tools that can help you kick start your dropshipping business model – stay tuned to DROPTWEAKS!