Dropshipping is one of the most popular sales channels for Shopify retailers. I mean, who wouldn’t want to start a business from the ground up while never laying a hand on inventory? I sure would.
So, why isn’t everyone launching a dropshipping store? To some, the cons outweigh the pros and this is a sales strategy to steer clear of. But, some sellers are rocking their online sales, making money on Shopify. Let’s see what we can learn from satisfied drop-ship merchants who host their stores on the platform.
First, What are the Pros and Cons of Dropshipping?
All types of retail have a unique set of advantages and disadvantages. When it comes to dropshipping, here’s what you can expect.
Advantages of Dropshipping
Why do some sellers choose to ship directly from the supplier to the customer? In summary, here are the benefits:
- Low Financial Risks
- Low-Cost Startup
- Low Inventory Investment
- Low Fulfillment Costs
- Enables Sellers to Test More Products
- Simple to Launch
- No Need to Manage Stock
- No Storage Fees
- Generally High Cash Flow
- Easily Scalable
Disadvantages of Dropshipping
And, why do other sellers prefer other online retail methods? Here are the drawbacks:
- Lack of Control Over Fulfillment
- Complicated and Often Slow Shipping
- Small Profit Margins Per Sale
- Low Customer Satisfaction
- Lack of Quality Control
- Highly Competitive
- High Risk of Stock Shortage
- High Fulfillment Costs
For sellers who choose a dropship retail strategy, the pros outdo the cons. If you want to launch a store that leverages dropship suppliers, you need to know what other successful merchants do to maintain success — what tools they use, what tactics they employ, and what products they sell.
Next, What are the Most Popular Dropship Apps for Shopify Stores?
There quite a few dropship apps to work with inside the Shopify platform. Choosing the right one can be a challenge. Here are a couple of the most popular apps and a summary of what you can expect with each.
App #1: Oberlo
If you want instant access to thousands of products available for drop shipping, Oberlo can be helpful. The app gives users access to unique resources for automation and scalability; this brand is truly dedicated to helping users succeed.
Oberlo is competitively priced, with a free plan that allows up to 500 products. From there, you will pay $29.90 per month for up to 10,000 products or $79.90 for up to 30,000 products.
Oberlo suppliers are connected through AliExpress. So, there are over 100 million products to choose from. You can pretty much find any product you can think of.
App #2: Modalyst
Modalyst is steadily gaining popularity as a dropshipping app by sellers in several niches. One main perk is that they boast “fast shipping.” And, many suppliers are domestic rather than international. So, 5-7 day delivery is what you can expect, which is exceptional in this line of work.
Modalyst is a little more expensive than Oberlo with a 25-product limit on their free plan. After that, you will pay $35 per month for up to 250 products or $90 per month for unlimited products.
Modalyst suppliers must apply directly through the platform, which currently works with over 650 brands in a handful of categories:
- Apparel & Accessories
- Women’s
- Men’s,
- Children’s
- Home
- Lifestyle
- Beauty
The platform doesn’t offer the same volume of inventory as nor a comparable category list, but their suppliers are more carefully vetted than Oberlo’s.
Now, Let’s Look at Some Sellers Who Are Killing it & What We Can Take Away From Their Online Sales Strategies
Now that you have an idea of which app might be best for your dropshipping store and understand the pros and cons of dropshipping, look here. Below are seven successful Shopify dropshipping stores with specific takeaways. Finally, it’s time to get inspired.
1. Hippie G. Rockstar (Shopify + Oberlo)
Hippie G. Rockstar sells trendy accessories for men and women. And, the great deals make this store a hipster’s paradise.
Takeaway: Make Buyers Feel Like They’re Getting Something for Free
Here, you can see an offer for a free hat. The buyer only pays to ship the item from $8-12 dollars. No doubt the seller’s costs are low enough that a profit is being made.
If you can make a customer feel like they’re getting an exceptional deal, you’re sure to land more sales.
2. Verbena Sky Boutique (Shopify + Modalyst)
Verbena Sky Boutique offers name brand bags & wallets, jewelry, and decor for domestic shoppers. The elite selection makes this store every diva’s dream.
Takeaway: Show Images of Your Products in Real-Life Scenarios
Above is an example of what happens when you scroll over a product image on the Verbena Sky website. At first glance, shoppers see stock images. Then, when their cursor hovers over a product they’re interested in, a picture of the product in a real-life scenario takes over.
Shoppers want to see authentic pictures before they buy products online. So, when you can, figure out a way to give that to them. Hire models, take at-home photos, or run a UGC campaign.
3. Pug You (Shopify + Oberlo)
Pug You is for pug lovers only. And, this elite group of shoppers gets to feel special and understood as they browse the entire store.
Takeaway: Choose a Hyper-Targeted Online Store Niche
Another great idea for dropshippers is to choose a super-targeted niche for their products. In doing so, they can stand out from the competition. Pug You offers products for the pug dog breed and their owners. When searching for a gift for the pug lover in your life, where else would you shop?
4. Shop Chriss Zoe (Shopify + Modalyst)
Shop Chriss Zoe is a women’s clothing and accessories store. The website’s above-the-fold appeal is on-point for their target shoppers. Plus, the brand knows how to sell.
Takeaway: Give Your Shoppers Every Opportunity to Make a Purchase
Shop Chriss Zoe uses AfterPay to entice shoppers to convert, even if they might not have the funds right now (which is an especially useful tactic for dropshipping stores whose products are higher up on the price scale). It works well here, and you can easily mimic the tactic by installing a financing app like AfterPay on your Shopify store.
5. The Golden Galleon (Shopify + Oberlo)
The Golden Galleon appeals to the fantasy nerd in people like me. WIth accessory collections from some of the most popular sci-fi and fantasy series, they’ve powered their online sales.
Takeaway: Pull Shoppers Into Their Favorite Fantasies
The product selection on The Golden Gallion is out-of-this-world. By selling items that make a specific niche of shoppers feel like they’re in their favorite fantasy realm, you might be able to sell more. Focus on the story your customers want to be in, then deliver a product catalog that pulls them into it.
6. Ga. (Shopify + Modalyst)
Ga. doesn’t have the best site layout I’ve ever seen. But, their men’s accessories are selling in a high enough volume to keep the doors open. How do you think they’re doing that?
Takeaway: Offer Something Outside-the-Box
How many other stores can you go to where you can purchase ancient Egyptian, Christian, and electrician jewelry in one place. If you keep your product offering unique, you have yet another chance to stand out from would-be competitors.
7. Blue Firefly Design (Shopify + Oberlo)
Blue Firefly Design sells pendants. You’ll have to see them for yourself.
Takeaway: Sometimes Simplicity is on Your Side
Compared to Ga., Blue Firefly Design doesn’t have a ton of imagery on their simple Shopify theme. They have no text overlay in their headers nor advertised promotions. Instead, they sell pendants in a few categories. And, this works well for them. So, before you go thinking you need all the bells and whistles Shopify has to offer, look at your operations. And, if it’s not broken, don’t fix it. K.I.S.S.: Keep It Simple, Stupid.
Final Thoughts
No dropship retailer has the perfect strategy. But, if you want to scale your store, you need to be informed. The information above should give you ideas about whether you want to open a dropshipping store and which tools and strategies you may want to implement. And, if you haven’t already, head over to Shopify for your free trial today.
