Dropshipping in eCommerce
So what is dropshipping? Dropshipping is a retail fulfillment method where a store doesn’t keep the products it sells in stock. Instead, it purchases the item from a third party and has it shipped directly to the customer. As a result, the seller doesn’t have to handle the product now.
The most significant difference between dropshipping and the standard retail model is that the selling merchant doesn’t stock or own inventory. Instead, the seller purchases inventory as needed from a third party—usually a wholesaler or manufacturer—to fulfill orders.
Want to learn more about dropshipping? Know how to set up an online store, step-by-step, using dropshipping to fulfill orders. You’ll learn how to find profitable products you can quickly import and begin selling.
What is Shopify Dropshipping?
Two of the most common approaches for dropshipping on Shopify are to seek out a supplier located in your region or anywhere else in the world, use supplier databases, or seek out a Shopify app that connects you and your store to thousands of suppliers.
For the latter, we recommend Oberlo, a marketplace developed by Shopify that helps independent business owners find products to sell. With Oberlo, you can find and add products directly into your Shopify store that you can start selling immediately. Browse stores like AliExpress and import the products that pique your interest now to Oberlo—connected to your Shopify store—with the click of a button.
Once a customer buys a product, you’ll be able to fulfill their order in the Oberlo app. Fortunately, Oberlo automates this process. As the store owner, all you have to do is check that the details are correct and click the “‘order”‘ button. The product is then sent directly from the supplier to the customer—wherever they may be.
How does dropshipping work?
No more upfront inventory costs or shipping logistics.
With dropshipping, products are sent directly from your wholesaler to your customers.
Step 1: Your customer places an online order from your online store.
Step 2: Your store automatically sends the order to your dropshipping supplier.
Step 3: Your dropshipping supplier prepares your customer’s order.
Step 4: Your dropshipping supplier ships the order directly to your customer
What is Magento Dropshipping?
Dropshipping for Magento can be described in 3 steps:
- You sell an item on your Magento storefront.
- After receiving an order from the customer, you forward the information to a supplier, wholesaler, or a manufacturer (with whom you have an established relationship) that has inventory on hand.
- Your vendor (supplier) then picks, packs, and ships the order to the customer under your name.
How to Setup?
- Places order with the online retailer – Consumer
- passes the order to supplier – eCommerce Retailer
- Ships item(s) ordered directly to consumer – product supplier
Magento Dropshipping Extensions
An extension would ideally allow you to select and process all your orders from one platform. You can set rules of how orders are split between vendors and who your preferred vendor is. As a result, you’ll save yourself an abundance of time and effort than from manually doing it.
When looking for a Magento dropshipping extension, here are aspects to consider:
- Reliable source: Make sure that you use only trusted Magento extensions from reputable sources.
- Price: Don’t pay for more than what the extension is worth. Always compare the features and pricing with other extensions too.
- Integrations: Ensure that the extension has a secure integration method and your orders can be integrated automatically across all your sales channels.
- Feedback: Check out the feedback for the extensions. You’ll have a fair idea about the extension to decide whether to go with it.
- Splitting Orders: If you’re using multiple vendors, this one is important. Make sure your extension can intelligently fulfill different parts of the same order from different vendors.
If you’re a small to medium-sized business fulfilling orders just from Magento, an extension is probably all you need.
You can check out these dropshipping extensions provided by:
Is dropshipping worth it in 2022?
That’s up to you. Do your research when selecting the best dropshipping products to sell, put your best business ideas and marketing efforts forward and learn about the advantages and disadvantages of the dropshipping business model.
Dropshippers take minimal risk. It requires only a small investment, there’s no commitment to order minimums and it allows you to test out new markets. Best case scenario, you start a successful online business.
So, what are you waiting for? Customize your online store, connect to a dropshipper and start selling today.