Dropshipping
Dropshipping lets you sell products without handling inventory or shipping. Suppliers fulfill orders directly to customers, reducing upfront costs and logistical complexity. Dropshipping is ideal for new entrepreneurs and it integrates seamlessly with Shopify's tools for product sourcing and order management.
There are multiple common types of dropshipping business models:
- Product reselling: Curate products from suppliers, such as niche-specific items. For example, you can sell eco-friendly home goods.
- Business extensions: Partner with local retailers to expand their online presence, such as selling handmade crafts from a boutique.
- Product creation: Bundle existing products into new offerings, such as DIY craft kits using supplies from a single supplier.
Learn more about setting up a dropshipping business, such how the order fulfillment works, how to choose a supplier, and how to build your product line:
The supply chain and fulfillment process starts with suppliers who source, manufacture, and warehouse products. When a customer places an order on your store, it triggers a multi-step fulfillment process: the order details flow from your customer to your Shopify store, then to your supplier. The supplier picks, packs, and ships the product directly to your customer, handling all logistics while maintaining your store's branding. This streamlined process eliminates the need for you to manage inventory or shipping operations, though you remain responsible for customer service and order tracking.
When choosing suppliers, avoid those that charge monthly fees, prioritize suppliers that don't sell directly to the public, and verify their order processing efficiency. For ideal partnerships, seek out suppliers with proven expertise in their product categories, dedicated customer support teams, and centralized warehouse locations that have faster shipping times. Take advantage of Shopify's integrated apps for print-on-demand services and supplier marketplaces to streamline and simplify your product sourcing process.
When building your product line, take advantage of Shopify's ecosystem which supports integration with suppliers through third-party apps. As you develop your product strategy, carefully align your offerings with supplier capabilities . For example, creating bundles using products from a single supplier helps avoid split shipments and simplifies order fulfillment. This strategic approach to product selection and supplier partnerships helps create an efficient, scalable dropshipping business.