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What Is the Definition of “Shopify Dropshipping”?

What Is the Definition of “Shopify Dropshipping”?

Last modified: March 19, 2023

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Are you wondering what is Shopify dropshipping? Then you can read the article below to find out more about dropshipping and Shopify.

What is Dropshipping?

Dropshipping is the process where three groups of people come together for the purchase of goods. The customer is the person who is paying a seller for one or a group of products that are being advertised on a website. The seller is the advertiser who has a brand and sells products and takes the transaction. The seller then contacts a merchant who manufactures or stocks the products, pays them for the goods and tells the merchant where to send the products for the customer.

The price between what the customer pays the seller and what the seller pays the merchant is the profit for the order for the seller. All the transactions and branding for the order is made in the name of the seller. The merchant stays anomalous during the process.

What is Shopify Dropshipping?

Shopify dropshipping is the process that has been described but on the Shopify eCommerce platform. There is no difference, it is just the platform where the transaction happens as the website where sales are made are on Shopify, which is what the seller is using to host and build their website with.

What are the Benefits of Shopify Dropshipping?

There are numerous benefits of Shopify dropshipping. The first is that Shopify has themes and apps that are specifically designed for the dropshipping process. For instance, they have apps like Oberlo Spocket that can help website owners to connect their website to merchants on AliExpress and other merchant sites.

Shopify also has easy to use payment gateways, good servers and good customer service. While dropshipping is available on other platforms, the customer support for the seller is often not as good. For instance, WordPress websites don’t have a uniform customer support team and the website owner is limited to community support or the technical skills of the hosting team.

Another benefit is that Shopify has the base code for eCommerce and lots of features that can help you take payments easier.

Is Shopify Dropshipping Profitable?

Yes, the best brands dropshipping on Shopify make lots of money and are usually run by very small teams, if not single people, who make large amounts of revenue per year. The key is to make sure that you have the profit margins on the products that you’re selling. The best profit margins are between 40 and 70%.

At the same time, you should limit other expenses if possible. So only have costs that you need. Don’t rent office space if you don’t need it, for instance, as this can be an unreasonable cost when your business can be run out of a home office.

Final Word: What Is Shopify Dropshipping?

What is Shopify dropshipping? It is an easy process where you can build a website on Shopify and have them dropshipped to your customers with ease. It is simple and can be very profitable.

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