1 
 
 Table of Contents 
 
About the Author 5 

Introduction 6 

The Value of Dropshipping 7 

The Pros and Cons of Dropshipping 9 
The Pros 9 
The Cons 11 
My Dropshipping Success Story 13 

The Supply Chain and Fulfillment Process 16 

Manufacturers 17 
Wholesalers 17 
Retailers 17 
AliExpress 18 
How Dropshippers Fit Into the Supply Chain 18 
The Dropshipping Order Process 19 
Customers Don’t Know About the Dropshipper 20 
Summary of Chapter 2 21 

Developing a Professional Relationship with Suppliers 22 

How to Spot Fake Dropshippers 23 
Recurring Fees 23 
Products are sold directly to consumers 23 
Qualities of a Good Dropshipper 24 
Experienced Staff with Industry Focus 24 
Support Representatives Who Work with You in Mind 24 
A Strong Technological Framework 25 
Accepts Email Orders 25 
Centrally-Located 25 
Lack of Haphazardness 26 
Dropshipping Fees 26 
Create the Right Brand Identity 28 
Contact the Product’s Manufacturer 29 
Use Oberlo for Shopify 29 
Use the DSM Tool for EBay 30 
Do a Google Search 30 
Use a Supplier Directory 31 

2 
 
 Attend a Trade Show 32 
Do Competitor Scoping 32 
How-To Pay Suppliers 33 

Choosing the Right Products 35 

Put Passion Aside 36 
The Power of Pricing 37 
Minimum Advertised Pricing (MAP) 37 
Marketing Strength 37 
Potential for Selling Accessories 38 
Products with Few or No Iterations 38 
The Level of Demand 39 
Smaller Products Are Better 40 
The Competition 40 
The Types of Customers 41 
Your Location 42 
Summary of Chapter 4 43 

Business Startup Checklist 44 

Choosing the Right Ecommerce Platform 45 
Setting Realistic Expectations 46 
Updating Skills 47 
Choose the Right Business Structure 47 
Dealing with Finances and Taxes 48 
Getting a Business License 49 
Use the Right Payment Gateway 49 
Summary of Chapter 5 49 

How to Run a Successful Dropshipping Business 50 

Dealing with Botched Orders 52 
Dealing with Inventory and Multiple Suppliers 53 
Efficiently Fulfilling Orders 54 
Dealing with Security and Fraud Issues 55 
Dealing with Chargebacks and Returns 57 
Dealing with Shipping Issues 58 
How to Provide the Right Customer Support 60 
Summary of Chapter 6 60 

Creating and Marketing 62 

Your Shopify Store 62 

Step 1: Name Your Store 63 

3 
 
 Step 2: Create a Shopify Account 63 
Step 3: Optimize the Settings for Your Shopify Account 63 
Step 4: Launch Your Store 64 
Step 5: Design Your Store 64 
Step 6: Sync with the Oberlo App 64 
Facebook and Instagram Marketing 65 
Email Marketing 66 
Summary of Chapter 7 66 

4 
 
 About the Author 

Kirk Buchanan is a very successful serial entrepreneur, content creator,

father and author. He operates several booming businesses both online
and offline. Kirk lives in Kingston, Jamaica where he’s most recognized as
the co-founder of the local company CraziiSocks. He has inspired and
motivated hundreds of young entrepreneurs to launch their own
businesses.

Kirk is an avid reader and enjoys listening to music and audiobooks. He’s
an experienced data analyst and marketer, having worked a corporate job
in both fields for over 6 years.

If you want to learn more about Kirk and see what he’s up to now, you can
find him using the links below.

Click Below to Contact the Author!

Email: ​buchanan.kirk@gmail.com

5 
 
 Introduction 
Approximately 1.66 billion people globally purchased goods online in 2017.1
Online shopping has become so popular that several brick and mortar
stores have had to close their doors. E-commerce is the new
entrepreneurship wave helping ordinary people like me achieve financial
freedom.

I’ve created this guide to help people like you create your own dropshipping
e-commerce business. Dropshipping provides the best way to enter the
e-commerce industry without the liabilities of producing, selling and storing
your own products.

By the end of this guide, you’ll become an effective dropshipping merchant.

This guide is jam-packed with valuable information that will help you get
started. I’ve outlined all the essential information you need, but this is just
the starting point. Rest assured, however, that you will have access to
everything you need to know, and you can get further support by visiting
my ​YouTube channel​, which features over 125 video tutorials on
dropshipping.

I’m also giving you an exclusive offer because you’ve downloaded this
guide. You’ll get FREE access to my ​Private Mastermind Group​. This group
currently has over 600 entrepreneurs who are willing to share their
knowledge and expertise upon request. Bear in mind, however, that even
with this information handed to you, ​the power to succeed rests entirely
in your hands.

Wishing you great success!

Kirk

11​
​ https://www.statista.com/topics/871/online-shopping/ 

6 
 
 Chapter One 
The Value of Dropshipping 
Have you identified a need for a particular product in your community? That
one thing that people can’t stop talking about but must travel several miles
to purchase. Dropshipping can help you fill this gap. ​All you need is a
supplier, an online store, and customers willing to purchase the
product online.

Dropshipping derives its name from the model used to sell products. In this
model, the product is essentially dropped off at the customers’ doorstep
without passing through the merchant’s hands. Therefore, there’s no need
for you to worry about stocking inventory. ​Study the illustration on the
following page, for a full understanding of the dropshipping process.

When a customer makes a purchase from your online store, you fulfill the
order by contacting your supplier and having the product shipped directly to
the customer. So, you act as a merchant who facilitates sales for a
wholesaler. The wholesaler is the dropshipper.

Think of it like the baby delivery storks we see in cartoons. Someone wants
a baby but doesn’t want to do the work necessary to make that happen. So,
an order is placed, and the stork magically appears with the baby in tow.
You would facilitate the order and the supplier (aka dropshipper) is the
stork that delivers the baby.

7 
 
 

8 
 
 The Pros and Cons of Dropshipping 
Dropshipping allows you to become your own boss. Finding and selling a
product that’s in high demand opens up opportunities to earn significant
income. However, although dropshipping provides this amazing benefit,
there are some disadvantages that you must consider. It’s important to
enter the arena with a balanced perspective. Let’s look at some of the most
important pros and cons.

The Pros 

1. Minimum initial investment

Dropshipping is far less expensive to start and maintain than a physical

store or a store that requires inventory storage. You don’t have to purchase
thousands of dollars of inventory at once. You also don’t have to pay for
storing the inventory.

Products are only purchased when a sale has been made. The only startup
investment that you’ll need to consider is the cost of creating an online
store and marketing. Therefore, you can start a dropshipping business with
a small amount of money.

2. Simple to Create

Many of the common challenges faced by online stores won’t affect you.
You won’t have to worry about:

• Warehouse management and additional storage fees

• Packing and shipping orders

• Tracking inventory

9 
 
 • Dealing with inbound shipments

• Ensuring that the stock is constantly replenished

These are your supplier’s concerns.

3. Low Overhead Costs

All you’ll need is an internet connection and a laptop or PC. Your electricity
and internet bills will be your only initial recurring costs, which you’re likely
already paying for. Other expenses may arise as your business grows.
However, they won’t be anywhere near what inventory-based companies
spend per month.

4. Work from Anywhere

The beauty of dropshipping is that it’s an internet-based niche. You only

need a reliable internet connection. That’s something you can access
almost anywhere in the world. So, you don’t have to worry about losing
money when traveling. You can manage your business wherever you are.

5. You Aren’t Limited to One Product

Diversity is a hallmark of dropshipping. You can sell an array of products.

This provides the opportunity for you to test various products to determine
what’s in demand. You can then choose to sell the best performing
products and maximize your profit.

6. Growth Won’t be an Immense Challenge

Growth for inventory-based businesses can create logistical and storage

issues. These challenges aren’t a part of a dropshipping business. Growth

10 
 
 of your dropshipping business affects your suppliers more than it affects
you. Your suppliers will deal with the logistics of additional orders. Your
main concerns will be providing the best customer service so that
customers will keep returning to your online store. 
 

The Cons 

1. Profits aren’t High

Low startup costs make dropshipping a highly competitive niche. You will
be competing against merchants who sell similar, or even the same,
products at lower prices. Even if their customer service is poor, and their
websites are poorly designed, customers will compare their prices to yours.

Beating this challenge means finding the right product to sell. We’ll discuss
this later in this guide.

2. Inventory Challenges

Avoiding dealing with inventory is a perk, but this perk can also be a
challenge. Stocking your own items allows you to keep tabs on what is
available. Sourcing items from various suppliers means that inventories
change daily. In most cases, you can’t keep tabs on the quantity each
supplier actually has.

Software exists to solve this problem, but not all suppliers support this
software. Fortunately,​ AliExpress​, a popular ​Shopify​ supplier, supports the
Oberlo​ software. Merchants who use AliExpress can use Oberlo to source
items and keep tabs on inventory. You will learn more about Oberlo in
chapter 3.

11 
 
 3. Varying Shipping Costs

You will be working with multiple suppliers. Each supplier will have varying
shipping fees. So, it can be challenging trying to identify the shipping cost
to quote on your website if a customer chooses products from different
suppliers. ​PRO TIP:​ Most merchants include shipping charges in their
product price, and offer free shipping on their e-commerce stores, to solve
this problem. I recommend you do the same.

4. Falling Victim to the Blame Game

Customers purchase products through your website. They hold you

accountable for any issues they face. The issues may be supplier related,
but they don’t care about that. In their eyes, it’s only right to blame the
place where they made the purchase.

Therefore, you must make finding high quality suppliers a priority. Low
quality suppliers sell goods at lower costs, but they bring a series of
complications that you’d rather avoid. We’ll discuss this in more detail later
in this guide.

12 
 
 My Dropshipping Success Story 
My dropshipping journey began in September 2016. I started selling
products on eBay and was able to quickly scale to ​$1500 per month​ profit
within 6 months. That’s when I realized the potential of dropshipping.

I launched a Shopify store in early 2017. My Bachelor’s in Marketing, 5

years of on the job experience in the marketing industry, and the
knowledge I garnered from reading 25 self-help books helped me create a
successful Shopify store. I was soon able to move from earning $100 per
day in profit to ​$500 per day​ in profit. My story shows that dropshipping
success is possible with the right knowledge and dedication.

I’ve since created a successful ​YouTube channel​. The channel is

jam-packed with insightful dropshipping information that can help anyone
create a successful dropshipping business. Some of my subscribers shared
that they were able to earn high profits because of the knowledge they
garnered from my videos. Below are just a few screenshots of some
success stories.

13 
 
 You can also achieve this success. It’ll take time, but you too can soar to
dropshipping heights once you put in the hard work and make a
commitment to continuous learning.

Summary of Chapter 1 
Dropshipping helps merchants meet consumer demands. Its primary
benefit is avoiding the costs and issues associated with inventory storage.
Overhead costs are low and it’s simple to manage your dropshipping
business from anywhere in the world with just an internet connection.

14 
 
 Succeeding in the business requires a commitment to providing a
high-quality user-experience and finding the best products and suppliers.
Be prepared to face complaints for things beyond your control. So be sure
to enter the dropshipping world with a solution-oriented mindset and a
desire to help customers find the products they’ve been searching for.

15 
 
 Chapter 2 
The Supply Chain and Fulfillment 
Process 
 

Products follow a chain, often called the supply chain that links them to
customers. This supply chain begins with the product being manufactured
and ends with it being delivered into the hands of the customer. Good
dropshippers understand that the supply chain impacts their fulfillment
process. Therefore, they work well with manufacturers, wholesalers and
retailers to create a secure and efficient system.

16 
 
 This chapter outlines the roles of these key players in the supply chain.
Understanding these roles will help you adequately meet your
customer’s needs.​ This chapter also provides a real-world example of the
dropshipping process in action.

Manufacturers 
Inventors conceptualize a product; manufacturers bring this concept to life.
They create large quantities of the product to sell in bulk to wholesalers and
retailers. Few manufacturers sell directly to the public.

It’s best for you to purchase directly from wholesalers. Purchasing directly
from a manufacturer requires bulk purchases. Dropshipping’s allure comes
from a merchant’s ability to avoid storing products, which is something you
can’t achieve if you make a bulk purchase. So, avoid purchasing directly
from manufacturers.

Wholesalers 
Wholesalers increase the price of the products they purchase from
manufacturers. Price hikes increase profit. Some wholesalers have
purchasing minimums. However, these minimums are far lower than those
of a manufacturer.

Most wholesalers stock a variety of products and operate within a specific

niche. You may, therefore, be able to find a wholesaler who offers the
variety of products you need. 

Retailers 
Retailers sell products directly to the public. Like wholesalers, they increase
the price of the products so that they can make a profit. ​Dropshippers are
retailers.

17 
 
 AliExpress 
AliExpress can be considered a ​“hybrid”​ supplier. It’s a cross between a
wholesaler and a retailer. AliExpress offers a variety of
wholesalers/retailers that you can choose from for your Shopify
dropshipping business. This is one of the perks of using AliExpress as a
dropshipping supplier and why it’s favored and recommended to most new
dropshipping merchants.

How Dropshippers Fit Into the Supply Chain 

Always remember that a dropshipper is someone who acts as a “middle
man” between the customer and the supplier. The dropshipper’s role is to
ensure that the product arrives, damage-free, at the customer’s doorstep.

You are the merchant in the process. Your role is essentially to form an
invisible connection between the customer and the dropshipper. You help
sell products, but you don’t create, store or ship them.

Manufacturers, wholesalers and retailers are dropshippers. Manufacturers

ship products to wholesalers; wholesalers are their customers. The
manufacturer can dropship by only producing and shipping products when
orders are made.

Wholesalers ship products to retailers; retailers are their customers.

Wholesalers can also become dropshippers by only ordering products
when retailers have made orders. This prevents long-term storage of
inventory since the products would be quickly shipped to the retailer.

Being a dropshipper doesn’t mean that the company is selling products at

wholesale prices. The company is just shipping products on your behalf.
Venturing into the dropshipping world means that you must work with
reputable wholesalers to get the best prices.

18 
 
 The Dropshipping Order Process 
You’re now going to follow the dropshipping process of a theoretical store,
Kandy’s Fashions. All of Kandy’s products are dropshipped by the
wholesaler Trendy Designz. Let’s follow each step of the process.

Step 1: Customer Places an Order

Natasha needs a new pair of shoes for her cousin’s wedding. She visits
Kandy’s Fashions’ online store and browses through the selection. She
finds a pair she likes, adds it to her cart, and proceeds to checkout.

Both Kandy’s Fashions and Natasha get an email confirmation of the order.
Natasha’s payment is also automatically deposited into Kandy’s Fashions’
bank account.

Step 2: Kandy’s Fashions Places Order with Trendy Designz

Some dropshippers support XML software that automatically updates

inventory and new orders. The Oberlo software can be used to automate
approximately 95% of the Shopify dropshipping order fulfillment process.
However, if you are not using a dropshipping software like Oberlo, the norm
is for the email confirmation to be forwarded to one of the dropshipper’s
sales representatives.

Natasha’s order is forwarded to Trendy Designz. Kandy’s Fashions pays

Trendy Designz to fulfill the order. The bill includes the wholesale cost of
the item, shipping and processing fees.

Step 3: Trendy Designz Ships the Order

Shipment depends on 2 criteria:

19 
 
 1. The item being in stock.

2. The bill being paid in full by Kandy’s Fashions.

The shoes are shipped once these 2 criteria are met. Kandy’s Fashions’
name and address will appear on the return address label and its logo may
appear on the invoice and packing slip. This will depend on whatever prior
agreement was made with the supplier. An invoice and tracking number
are emailed to Kandy’s Fashions once the shipment has been made.

Some dropshippers can process orders within a few hours. If you’re

working with one such dropshipper, you can advertise same-day shipping.
It’s imperative to note at this point, however, that same-day shipping is
usually only available from United States-based suppliers. AliExpress, and
other suppliers from China, will take longer to ship. Products can take as
long as 20 days to arrive in some countries and even longer in others. ​We
will talk more about AliExpress in chapter 6.

Step 4: Kandy’s Fashions Alerts Natasha

Kandy’s Fashions then forwards the shipping information to Natasha. This

completes the fulfillment process. Kandy’s Fashions’ profit is what’s left
after Trendy Designz is paid in full for the product, shipping and processing
fees.

Reference the diagram in chapter 1 to cement the dropshipping process

firmly in your mind.

Customers Don’t Know About the Dropshipper 

As mentioned in the previous chapter, customers will ​only ​engage with
your website. They won’t know about your supplier. Any issues they have

20 
 
 with the product will be directed to your company. It’s then your
responsibility to work with your supplier to rectify the issue.

Summary of Chapter 2 
Manufacturers, wholesalers and retailers are essential links along the
supply chain. Wholesalers and manufacturers are usually the dropshippers.
You function as a merchant/retailer in your dropshipping business by
helping these manufacturers and wholesalers sell products.

The fulfillment process can flow smoothly if you find the right supplier..
When an order is placed, you must establish a clear process by which you
will notify the supplier of the order and communicate shipping details.

Your company’s name and logo can be placed on the packaging if you
desire. Therefore, you need to be prepared to deal with any complaints
customers may have. You’ll work with your supplier to solve any customer
issues.

21 
 
 Chapter 3 
Developing a Professional 
Relationship with Suppliers 

Not all suppliers are equal. Some retailers will pose as wholesalers to
attract merchants and sell products at higher prices. A wholesale supplier
gets products directly from the manufacturer. This enables the wholesaler
to sell products at much lower prices than retailers. You must carefully
consider the authenticity of your supplier before forging a relationship.
Contacting and forming business relationships with dropshipping suppliers

22 
 
 doesn’t have to be a lengthy and tedious process. Simple email
correspondence between merchant and supplier will suffice.

The supplier you choose is also dependent on the e-commerce platform

used. I use both Shopify and eBay. It’s possible to find a variety of
suppliers for both platforms. Also, there are multiple software available to
help you find products from the right dropshippers. These software will be
described later in this chapter.

How to Spot Fake Dropshippers 

The best wholesalers are often the most difficult to locate. Substandard
wholesalers are easy to find. Be wary of the first set of wholesalers who
appear in your searches. Fake wholesalers can easily be spotted if you
look for the following tell-tale signs:

• Recurring fees

• Products being sold directly to consumers. ​ (Please note that

AliExpress sells directly to customers because it functions as both a
wholesaler and a retailer. This doesn’t mean, however, that it’s a fake
supplier.)

Recurring Fees 
Authentic wholesalers don’t require monthly subscription fees. However,
supplier directories are good places to look for potential suppliers and
they’ll be the only places where you may have to pay a subscription fee.

Products are sold directly to consumers 

Hybrid suppliers​, such as AliExpress, sell directly to customers. Suppliers
who don’t fall in this category shouldn’t sell directly to customers, unless
they have a different pricing structure for wholesale and retail sales.

23 
 
 There is a legal process that must be followed to become a wholesaler.
Anyone hoping to be a wholesaler must:

1. Apply for a wholesale account.

2. Prove that the business is legitimate.
3. Get approval to operate as a wholesaler.

Non-hybrid wholesalers​ that sell directly to customers usually haven’t

gone through this process. They’re essentially retailers posing as
wholesalers.

Qualities of a Good Dropshipper 

Knowing the key indicators of fake dropshippers is a good starting point for
identifying the right dropshippers. Good dropshippers have the following
key qualities.

Experienced Staff with Industry Focus 

A high-quality dropshipper has a knowledgeable team. Everyone on the
team has extensive knowledge about the industry and products the
company offers. You won’t call a sales representative who constantly puts
you on hold to find the answers to your inquiries. The knowledge these
sales representatives provide can help you learn more about an unfamiliar
industry.

 
Support Representatives Who Work with You in Mind 
Dropshippers ensure that each client is assigned a support representative.
The title may differ for each dropshipping company, but the role is the

24 
 
 same. Support representatives work assiduously to address any issues or
concerns you may have.

You won’t be given the run around when you try to report an issue. This
support representative will become crucial for your business as you try to
address your customer’s concerns.

A Strong Technological Framework 

Technology creates a seamless dropshipping experience. Suppliers who
invest in technology are usually able to provide the best service possible.
These suppliers typically provide:​ real-time inventory,​ ​a detailed
catalogue, customizable data feeds and an online searchable order
history​.

Accepts Email Orders 

Email orders save time. Placing orders by phone or by manually inputting
the data on the dropshipper’s website can be tedious. High-quality
dropshippers take email orders.

Centrally-Located 
A centrally-located dropshipper is ideal because packages can be delivered
quickly. The further the dropshipper is from the country’s center is the
longer it’ll take for a package to be delivered. Working with a
centrally-located dropshipper enables you to promise faster delivery times
to your customers. If you are dropshipping internationally, using suppliers
from China for example, the issue of location becomes null and void.

25 
 
 Lack of Haphazardness 
High-quality dropshippers are organized and efficient. They have a strong
team that effectively carries out the fulfillment process. You won’t need to
worry about frequent order errors that can negatively impact your business.

The only way to truly determine if a supplier is high-quality is to test that

supplier’s services. A test order will help you answer the following
questions:

1. Does the supplier effectively carry out the order process?

2. How long does it take for items to be shipped?
3. Do the tracking number and invoice arrive in a timely manner?
4. Was the product appropriately packed and free of damage?

View the test order as an investment. It will cost you initially, but you’ll end
up paying more if you work with a dropshipper that’s inefficient.

Dropshipping Fees 
Most suppliers require that dropshippers pay 2 main fees. ​AliExpress
suppliers don’t require these fees.

The first is per-order fees. Your supplier will charge a per-order

dropshipping fee that starts at $2. The fee depends on the size and
complexity of the product.

The second is a minimum order size fee. Some suppliers require that a
minimum amount of product be purchased for your first order. This fee
helps the supplier weed out merchants who aren’t committed to
establishing a long-term relationship.

Minimum order size fees can be converted to pre-pay credit. It’s pointless
to purchase large quantities of products if you don’t have those orders.
You’ll end up with unwanted inventory and that’s something you’re trying to
avoid.

26 
 
 Pre-pay credit allows you to build credit that can be used for future orders.
Products aren’t shipped unless orders are made. The supplier gets the
guarantee of your long-term commitment and you essentially make a down
payment for future orders.

How to Find Wholesale Suppliers

Finding the best wholesale suppliers is a 3-step process.

1. Build the right image.

2. Contact the manufacturer.
3. Use directories, online search engines, Oberlo, competition scoping
and trades shows to further narrow your options.

Build the Right Image

Your search will be more effective if you’ve already laid the framework for
becoming a merchant. The aim of the search is to forge a partnership with
a high-quality supplier. These suppliers won’t take you seriously if you
haven’t created a legitimate business. There are 2 things that you must do
to become a legitimate business.

Do the Legal Work

Establishing an online business doesn’t exempt you from ​registering as a
business entity.​ Legal requirements differ from state-to-state and
country-to-country. Some key elements that you should consider are
discussed here. More information will be provided in a later chapter.

The simplest business structure for a merchant business is a sole

proprietorship. In the United States, the sole proprietorship allows you to
use your Social Security number to conduct business. Your business’

27 
 
 earnings are reported on your personal taxes. However, one of the pitfalls
of this structure is that you’re responsible for all debts of the business.
There’s no protection for your personal assets.

Some merchants may choose to register their businesses as Limited

Liability Corporations (LLCs). LLC registrations require registering online
with your Secretary of State’s department, a fee, articles of organization
and a federal or state employer identification number. You will also need to
pay incorporation and ongoing fees. The primary benefit of an LLC is that
your personal assets and liabilities are separated from your business’
assets and liabilities.

If you’re operating your business from home, you may also need a home
occupation permit. This permit protects your neighbors from an increase in
traffic, noise, or environmental hazards because of your business.

Finally, your business will need sales tax registration. Selling products
online requires collecting sales tax from customers. Some states require
that a business obtains a tax permit before making its first sale. An
accountant can help you with the necessary paperwork for filing for a tax
permit and sales tax registration. To learn everything you need about taxes
for your dropshipping business, I recommend ​TaxJar​.

Create the Right Brand Identity 

Wholesalers often get daily requests from merchants with great business
plans. Many of these merchants ask countless questions, but never order
any products. Suppliers will, therefore, initially label you as a time waster
and won’t be inclined to go out of their way to help you.

Some tips for portraying your business in the right light to suppliers include:

28 
 
 ● Focusing on building a relationship with the supplier. This relationship
begins by creating a dropshipping account with the supplier without
asking for discounts or deals.
● Showing concrete plans and evidence of your commitment to creating
a successful business.
● Explaining past successes (especially those that relate to sales and
marketing).
● Writing your questions before making a call to a potential supplier.
Entering a call prepared is important.

These points become even more important if you’re trying to convince a

supplier who doesn’t presently offer dropshipping services to begin offering
those services.

Contact the Product’s Manufacturer 

The manufacturer is a good starting point for your supplier search.
Manufacturers already ship to wholesale suppliers and would, therefore, be
able to provide a list of wholesalers you can contact. Ensure that the
following questions are answered when you call the wholesaler:

1. Does the wholesaler dropship?

2. What is the wholesaler’s dropshipping process?
3. What fees does the wholesaler charge?
4. What’s the minimum amount of product that can be purchased?
5. Are other products offered?

Use Oberlo for Shopify 

Oberlo is an app that pairs perfectly with Shopify. It allows users to identify
products from AliExpress and import them directly to their ​Shopify stores​.

29 
 
 It’s easy to use and provides all the features of a high-quality dropshipper.
The only limitation is that it only provides products from AliExpress.

Shopify is where more than 80 percent of my dropshipping sales originate. I

use the Oberlo app to identify sellers based on the following criteria:

● The seller’s star rating. Sellers must have at least 4.5 out of 5 stars
before I consider working with them.
● Sellers must have a minimum of 500 orders fulfilled on their
AliExpress accounts.
● Each seller must offer ePacket shipping. This is the best value for
money shipping method available on AliExpress. It provides the
perfect balance between shipping speed and cost.

Use the DSM Tool for EBay 

AliExpress is often the main supplier used by Shopify merchants, especially
new dropshippers. However, it is not the main supplier for eBay
dropshippers. Notwithstanding, the ​DSM tool​ allows merchants to dropship
products from AliExpress to eBay. However, merchants aren’t limited to
AliExpress with the DSM Tool. They can use the tool to automate their
dropshipping business from major wholesalers such as Amazon, Walmart,
Target and Home Depot.

The criteria for choosing a seller with the DSM Tool are the same as those
for choosing a seller using the Oberlo app. Sellers without established
reputations usually aren’t worth your time. Choose wisely.

Do a Google Search 
Just google it! Google is an amazing resource for finding answers.
However, typing “best ​[insert product name here]​ supplier” isn’t

30 
 
 necessarily going to provide you with the right options. Countless search
results will pop-up that you must sift through. Use these tips to get the most
out of your search.

1. Most wholesalers won’t be on the first page of search results. You’ll

have to go through each page to create a list of possible wholesalers
to contact. That may mean going through the first 10 pages of results.
It’s like looking for a needle in a haystack.

2. Some high-quality wholesalers have poor websites. Therefore, the

website isn’t necessarily the best way to judge what the supplier can
offer. The true test is what happens when you make a test order.

3. Use a variety of search queries. Try search queries that include

words such as ​distributor, reseller, bulk, warehouse​ and ​supplier​.
Each set of queries will produce different results.

Use a Supplier Directory 

Directories are another search-engine type option. The suppliers listed in
directories usually pass through a screening process before being listed on
the site. This provides the guarantee that you’ll be looking at lists of
genuine wholesalers.

Most directories charge a fee. However, if you’re familiar with your niche it
may be better for you to use one of the other methods to identify a supplier.
Paying the recurring membership fee will become an unnecessary
expense.

31 
 
 Nevertheless, directories are good options for finding a list of possible
suppliers in one place. They’ll save you time and help you effectively
narrow down your list. Some of the most popular directories include:

• Worldwide Brands
• SaleHoo
• Doba
• Wholesale Central

Attend a Trade Show 

Trade shows offer 2 benefits. They allow you to identify new and interesting
products before they reach the market. They also allow you to connect with
top manufacturers and wholesalers in your niche.

Attending trade shows require both time and money. However, the pay-off
is rewarding.

Nothing beats establishing a connection with manufacturers and

wholesalers in person.

Do Competitor Scoping 
Some merchants find high-quality dropshippers by ordering from their
competition. Let’s say that your biggest competitor is ​Sam’s Hardware
Supplies.​ You place an order for 2 drills. When the drills are delivered, you
Google the return address and identify the original supplier.

This strategy should be your last resort. Chances are if you haven’t been
able to find a good supplier ​your niche may be too small​ and the demand
for the product may be too low. You’ll need to revisit your product choice.

32 
 
 How-To Pay Suppliers 
Congratulations! You’ve done your research and found the best supplier.
The next step is identifying how to pay this supplier. You have 2 options:

1. Credit Card

Credit cards are the most convenient payment options. They also allow you
to earn points that can be used for air travel or other purchases. The
beauty is that your customers would have already paid for the product.

So, you won’t accumulate credit card debt since you’ll be depositing that
money into your account frequently, constanting clearing off the balance.

2. Net-Terms

A supplier can also offer a net-terms on invoice arrangement. This

arrangement gives you a specified number of days to pay for the goods
purchased using a check or bank deposit. The supplier will ask for credit
references before offering this option because it’s essentially them loaning
you money to purchase the products.

Summary of Chapter 3
The supplier is one of the most important parts of your business. Poor
suppliers will wreak havoc on your sales because they will turn customers
away. They negatively impact your reputation.

Locating the right wholesaler is a 3-step process. You must establish your
business so that potential wholesalers view you as legitimate. It’s wise for
you to contact the product’s manufacturer to get a list of wholesalers to

33 
 
 begin your search. You can then use one, or a combination of the search
strategies mentioned above to narrow down your list.

The true test of a supplier, however, is the efficiency of that supplier’s

process. ​Testing the process by completing a test order is crucial
before establishing a relationship. You must see how the process works
first-hand.

34 
 
 Chapter 4 
Choosing the Right Products 

Success as a dropshipping merchant depends on the demand for the

products you sell. Demand depends on the niche and type of product.
There are several questions you should ask before choosing a product:

1. What makes this something people will want to buy?

2. Who is the target customer?
3. Can this product be sourced easily?
4. Where is the target customer located?
5. Is this a highly-specific niche for which industry knowledge is
necessary?

There are no guarantees with dropshipping sales. Selling a product in a

popular niche can generate high revenue if you can overcome the
challenge of numerous competitors. On the flip side, selling a product in a

35 
 
 highly-specific niche will only generate high revenue if you use the right
marketing tactics. In both instances ​it’s about getting your product in
front of the right people.​ Here are some considerations for choosing the
right products so that you earn great profits.

Put Passion Aside 

It’s highly likely that the products you love the most aren’t the products that
most people will purchase. Profitability depends on sales. Therefore, your
focus should be on what has been proven to sell.

Nevertheless, this doesn’t mean that you should sell a product that you
know nothing about. The likelihood of you selling a product that many other
merchants sell is high. The only way you’re going to stand out is if you
convince customers that ordering from you is their best option.

Educating customers about the product, its benefits and its value will help
them make a purchasing decision. There will be customers who are
unfamiliar with your product although they know they must purchase it.

For instance, let’s say you’re selling home stereo systems. Your customer
may want to self-install a home stereo system but may not know how to do
it and what to purchase. Having a blog on your website that explains the
steps in the process and the items that must be purchased helps these
customers.

Providing valuable information such as this to your customers sets you

apart from the competition. Your store becomes more than a place to
purchase products; it becomes a valuable resource for learning various
applications of the product.

   

36 
 
 The Power of Pricing 
Pricing affects sales. Some common considerations include:

1. The cost price of the product

2. The amount of pre-sale service that customers will need
3. Any overhead costs

Customers will request pre-sale service for high-priced items. Pre-sale

service is only viable, however, if your profit margins are between $50 and
$200. Lower profit margins won’t justify the amount you’ll spend. I have a
pricing strategy that works. You can ​download the template here​.

Minimum Advertised Pricing (MAP)  

MAP is the minimum price at which manufacturers allow resellers to sell
their products. It creates a level playing field so that all merchants can
make a profit. Products with MAP are good for dropshipping businesses
because you can instead focus on marketing and building a strong website.
Your competitor can’t outprice you. ​AliExpress doesn’t offer MAP
because it facilitates both wholesale and retail sales.

Marketing Strength 
Marketing is crucial for business growth and success. You must develop a
strong marketing plan the moment you decide to become a merchant.
Think about your 6-month business goal. What marketing plan can help
you achieve that goal? Possible marketing options include:

37 
 
 • Blogging
• Social media marketing
• Product giveaways
• Using online communities

If you can’t find viable options for your business, you’ll need to reconsider
the product. Visit my ​YouTube channel ​and watch the videos on marketing
your Shopify dropshipping store.

Potential for Selling Accessories 

Accessories often make the greatest profit. Customers tend to care less
about the cost of smaller accessories than they do for high priced items.
For instance, a customer is more willing to pay $15 for a cell phone case
that probably cost $2 to make. However, they’ll think twice about spending
$800 on a smartphone. It’s, therefore, a good idea to consider selling the
accessories for popular products in your store.

Products with Few or No Iterations 

Products that have new releases each year can become a logistical
nightmare. It will take a lot of work and money to keep up with the updates.
Your aim is to get longevity from your website. Your website will have to
change annually if you sell a product that changes each year. Focus on
selling products that are evergreen. Some examples of these are items
such as those related to pet care, fitness and beauty. A great place I
recommend for researching evergreen products is ​Pexda.

38 
 
 The Level of Demand 
As with any other business, success depends on the level of demand for
the product or service. The product you sell should be in demand and be
something that’s difficult for customers to find in the area.

Identifying the level of demand isn’t based on your gut instinct that demand
exists. A true measure of demand must be evident. ​Google Trends​ and
Google’s Keyword​ Tool can be used to ascertain the level of demand for
the product you’re hoping to sell.

Google’s Keyword Tool allows you to see how often people search for
keywords related to the product you’re selling. Pay attention to the following
tips when using the tool:

● Use exact match keywords that specifically relate to your product.

These keywords paint a clearer picture of the search volume.

● The location. Your search query should focus on where your target
audience is located.

● The way people use search engines has changed. More people are
using long phrases and questions to perform their searches. Longer,
more specific and lower volume search queries will comprise most of
your search engine traffic. A product and niche that has a high variety
of high volume and low volume search queries is a good sign.

Google Trends shows more detailed search information. This information

includes:

● Search volume over time

● Top and rising terms

39 
 
 ● Geographical concentration
● The product demand in each season (some products are seasonal)

Smaller Products Are Better 

A product’s weight determines shipping costs. Free shipping has almost
become an expectation for dropshipping customers. Therefore, you must
minimize your shipping costs by selling smaller items. The smaller the
items, the easier it is for them to be shipped.

The Competition 
Highly competitive markets are often difficult to break into. Remember that
you’re looking for ​products that are in high demand​. High demand products
are sold by a variety of merchants. Everyone wants a piece of the pie.

Having active knowledge about your competitors helps you have a better
sales advantage. Google search is a good place to begin your competitor
search. Type in the search queries with the highest volume and create a list
of the merchant stores that appear on the first page of the results. These
are often your strongest competitors.

Other factors to consider include:

● The number of links that direct to the website. You can get this figure
by using ​Open Site Explorer.​ Sites with over 250 linking root domains
are often difficult to compete with because it takes several years to
build that many links. However, if your competitors have 50 to 250
link rooting domains, a robust year-long SEO strategy can help you
rival them in no time.

● The site’s page rank. Page Rank can be checked by using a browser
extension such as ​SearchStatus for FireFox.

40 
 
 ○ A page rank of 1 to 2 for websites in the first page of search
results indicates a small market.
○ A page rank of 3 to 4 for websites in the first page of search
results is most common.
○ A page rank of 4 to 5 for website in the first page of search
results indicates that the site has numerous links from high
authority sites.
○ A page ranking higher than this requires a marketing team
dedicated to extensive marketing initiatives.

● The quality of the site. Would you want to purchase something from it
based on its overall appearance and usability?

● The site’s reputation and customer loyalty.

Competition is healthy for businesses. However, it can be detrimental to a

novice merchant trying to establish a presence. You must determine if the
amount of effort you’ll need to input to market that product will be
worthwhile.

The Types of Customers 

You don’t want highly demanding customers who spend little or nothing at
all. Reaching quality customers requires a targeted marketing approach.

Possible customers to target include:

● Hobbyists.​ These customers are often willing to spend high dollar

values to support their hobbies. For instance, a person who loves
photography will be more willing to purchase a high-quality camera
and the lens that goes with it than someone who doesn’t.

41 
 
 ● Businesses​. These customers are more likely to order in large
quantities for special discounts. It’s good to sell goods that appeal to
both individual and business customers.

● Repeat customers​. These customers are your best. They’ve already

purchased and love the products and your service. So, they’ll keep
coming back for more. More customers means more income.

Your Location 
Your location is one of the most important considerations when you’re
creating a dropshipping business. Google customizes your searches based
on your location and search history. You won’t get accurate search query
results when searching for your competitors if you don’t change your
settings to reflect your target audience’s location. You should:

● Perform an incognito search. Incognito search essentially helps you

to search invisibly. Your browser history is deleted so you’re able to
get an unbiased list of results.

● Force nation-specific results by adding geo-targeting terms at the end

of the URL in the address bar. For instance, you’d add ​“&gl=us”​ if
you want US results but are located elsewhere.

   

42 
 
 Summary of Chapter 4 
There are no guarantees when choosing a niche and product for your
dropshipping business. It’s best to work with products that are in high
demand that customers can’t find locally. Such products, however, are
often found in highly competitive markets.

Winning in a highly competitive market requires a solid marketing strategy.

This will be further discussed in the final chapter of this guide.​ For
now, focus on finding as much information as you can about the product,
your competition and your niche. Knowing as much as you can will help
you better market your company as a niche authority.

43 
 
 Chapter 5 
Business Startup Checklist 

The past 4 chapters have focused on the fundamentals of

dropshipping. ​The framework has been laid for you to formalize your
dropshipping business.

However, your dropshipping business will only be official when you pay
attention to these elements:

1. The ​ecommerce platform ​you’ll use to create your website

44 
 
 2. Any new information and skills you’ll need to acquire
3. The amount of capital needed
4. Business structure
5. Finances and taxes
6. Business licenses

Choosing the Right Ecommerce Platform 

Shopify​ and eBay are the most popular dropshipping ecommerce
platforms. I use both platforms, but most of my business comes from
Shopify. Becoming an eBay seller is a quicker process than creating a
Shopify website. However, one of Shopify’s main strengths is that it allows
you to create and manage your own ecommerce sites. As an eBay
merchant, you’re at the mercy of the website and can only list items for
sale. An eBay seller’s page can’t be ​FULLY​ personalized which makes
building your brand’s identity impossible.

EBay also has more restrictions for sellers, especially sellers outside the
United States. These restrictions can impede the growth of your
dropshipping business. Advertising your Shopify store, however, requires
more work than advertising yourself as an eBay seller. More details about
advertising on both platforms will be shared in the final chapter.

The autonomy Shopify offers merchants makes it the preferred choice.

EBay’s restrictions aren’t it's only challenges. It also charges merchants a
variety of listing fees which cut into profits.

Amazon is another dropshipping option. I don’t use this platform for several
reasons that are similar to those mentioned for eBay. Some of these
reasons include:

● Amazon’s high commission fees.

● Amazon has strict seller policies which deter dropshippers.

45 
 
 ● Amazon uses sales data to compete using their own branded
products.

Experience has taught me that Shopify is a good place to start a

dropshipping business. It’s flexibility and the level of autonomy it offers
merchants is far superior to eBay and Amazon.​ It’s the best platform for
true dropshipping growth​. Sales will be slow initially, but you can achieve
Shopify success with the right advertising strategy.

Setting Realistic Expectations 

Let’s be real. Nothing about entrepreneurship is easy. If you’re expecting a
get rich quick scheme with dropshipping, ​don’t read any further​. A
realistic approach to starting and growing your business will help you
sustain the momentum needed for it to succeed. Your dropshipping
business will require:

● Time:​ It’s highly likely that you’ll start your business while maintaining
your 9 to 5. Effective time management is, therefore, crucial. I
recommend investing at least 10 to 15 hours per week for the first 12
months. If you’re able to take on dropshipping fulltime, most of your
time investment will be in marketing if you want your business to earn
at least $50,000 within the next 12 months. Your sweat equity will
help you build a business that becomes an asset.

● Money:​ You’ll need about $1000 to do everything necessary to

create your dropshipping business from the ground up. This provides
enough capital for operating expenses and incorporation fees.
However, bear in mind that the more money you have to invest in
marketing your Shopify store, the faster your business is likely to
grow and scale.

46 
 
 Updating Skills 
Dropshipping success requires commitment and the development of certain
core skills.

The skills you’ll need include:

● Digital marketing.​ This is important for winning new customers and

developing your brand.

● Basic website creation and management skills.​ Shopify offers an

easy-to-use platform for creating and managing your dropshipping
website.

● Effective communication and customer service skills​. Your

customers need to hear from you. They want their concerns to be
addressed in a timely fashion. They also want opportunities to
engage with meaningful content.

Choose the Right Business Structure 

The sole proprietorship and LLC business structures were described in
Chapter 3. The C Corporation is another option for dropshipping
merchants. In this business structure, the business is taxed separately from
its owners. Therefore, your assets won’t be in jeopardy if something
happens to the business. The company will also continue to exist even
after the owner’s leave; it essentially functions as a stand-alone entity.

One of the pitfalls of a C Corporation is that it’s expensive to start. Several

fees must be paid for filing Articles of Incorporation. There are also state
fees and several other fees that must be considered.

47 
 
 The business structure you choose depends on several factors. Therefore,
it’s best to discuss your options with a lawyer. Merchants tend to use the
LLC​ for their dropshipping businesses because of the separation between
personal and business assets without the expensive fees of a C
Corporation.

Merchants outside the US can incorporate businesses within the US

albeit a complex process.​ If you are a merchant outside the US you’ll
need either:

• a US-based business partner

• an agency that helps with the process

Dealing with Finances and Taxes 

Taxes are unavoidable. All businesses must have an Employer
Identification Number (EIN). The EIN is used to file taxes, apply for
wholesale dropshipping accounts, open a business bank account, and
carry out various business-related activities.

You must have a separate business checking account, PayPal account,

and credit card. Mixing business and personal income is a recipe for
disaster. It makes accounting tedious, makes it more likely that you’ll take
on business liabilities, and creates problems if you’re audited by the IRS.

Sales taxes only apply if the state in which you operate collects sales tax
and an order is placed by someone living in your state. You’ll need to
register with your state’s Department of Commerce and find out how
frequently you must submit sales taxes if they’re required.

In some countries however, it is quite possible for dropshippers to avoid

paying taxes. Visit ​TaxJar​ to learn more about taxes for your dropshipping
business.

48 
 
 Getting a Business License 
Some cities and towns require local businesses to have a business license.
This license must be renewed annually. However, a business license may
not be required for dropshipping businesses in your city or town. You’ll
need to check local laws and regulations to determine if a business license
applies to you.

Use the Right Payment Gateway 

Payment gateways are very important but can be hard to get for people
from some countries. ​Stripe​ is one of the most popular payment gateways,
but it’s not available in most countries.

PayPal​ is the most popular payment gateway. However, one of its main
drawbacks is taking people off your store for them to checkout. This can
cause you to lose customers. Ideally, you should have PayPal and another
payment gateway, such as Stripe, but for people who are not able to get a
second credit card processor set up, you can still dropship using only
PayPal.

Summary of Chapter 5 
Dropshipping, like any other type of business, requires an investment of
time and capital. However, the sweat equity ultimately pays off in
sustainable returns. A dropshipping business must be officially registered.
There must also be a clear distinction between your personal financial
accounts and your business’ financial accounts. All other regulations are
dependent on the state and town in which you live.

49 
 
 Chapter 6 
How to Run a Successful 
Dropshipping Business 

It’s time to start your dropshipping business! Excitement must be coursing

through your veins as anticipation mounts. ​The gates to success are
open ​but keeping on the success path won’t be easy. This chapter
presents useful strategies for creating sustained success regardless of the
dropshipping platform you choose.

50 
 
 Some general strategies for business success that you should consider
include:

1. Adding value to the customer.​ The only way you’ll set yourself
apart from your competitors is if you offer a level of unparalleled
value. Your business isn’t limited to posting items for sale on a
website. Providing educational content related to the niche of your
products is the way to go.

2. Always having a marketing and branding mindset​. Operating a

Shopify website means that digital marketing must become your best
friend. You can reach customers without leaving your home office.
Digital marketing is something that can be learned, but the learning
process includes several trials and errors. It is often better to hire a
digital marketing expert who can truly take your marketing initiatives
to the next level. More details about creating an effective digital
marketing plan will be discussed in the final chapter.

3. Focusing on one niche.​ Trying to sell everything creates confusion.

Be specific so that you can have a clearly defined customer base. For
instance, if you’re selling notebooks they aren’t just notebooks.
They’re notebooks made with the highest quality, environmentally
friendly paper. Being specific helps you more effectively communicate
with customers and spend less on your marketing campaigns.

4. Plan for the long-term.​ Dropshipping isn’t a get-rich-quick scheme.

It will take time for your business to grow and start generating the
revenue you desire. Make wise decisions that will help you achieve
your business’ long-term goals.

51 
 
 5. Make stellar customer service your priority.​ Nothing beats
state-of-the-art customer service. A customer who feels valued and
respected will come back to make another purchase. That customer
will also promote your business to other potential customers.
Word-of-mouth advertising can’t be beat.

The general strategies described above are applicable to any business.

However, there are some industry-specific strategies that can further
enhance your success. These strategies are described below.

Dealing with Botched Orders 

Things will never be perfect when dealing with third-party suppliers. You
would have done your due diligence to ensure that you find a high-quality
supplier. However, even the best suppliers will have botched orders and
out-of-stock items. The instances of these will be fewer than they would be
with a low-quality supplier, but you must be prepared for when they do
happen.

Remember that the customer will vent his or her frustrations to you if a
botched order is received. Customers are unaware of your supplier.
Therefore, blaming your supplier only mars your reputation and adds to the
confusion the customer is already experiencing. It’s your responsibility to
address the customer’s concerns as quickly as possible and appease the
customer in the best way possible.

One of the best ways to appease a customer is to offer to refund the

shipping fee. It’s amazing how quickly the anger dissipates when this offer
is made. The conversation could go something like this:

Irate Customer: “I paid $105 for this item and all I got was an empty
box! This is unacceptable! I want my f---- item!”

52 
 
 You: “I understand your concern and I am so sorry that this
happened. We will speak to our supplier about this issue and ensure
that the item is sent as quickly as possible. In the interim, may we
refund the shipping fee that you paid?”

Irate Customer (less irate now): “Send back the money and ensure
that I get the item ASAP!”

You: “We will sir. Your refund will be sent shortly.”

Refunding the shipping fee doesn’t mean that you must lose the sale. Any
reputable supplier will acknowledge the error made and pay for it. Such
suppliers will be more than willing to work with you to ensure that your irate
customer becomes a satisfied customer.

Never stick with a supplier who habitually ships botched orders. Numerous
botched orders affect your reputation and will be the death of your
dropshipping business. If you notice this trend developing, it’s time to find a
new supplier.

Dealing with Inventory and Multiple Suppliers 

Managing inventory across multiple suppliers is arguably the greatest
challenge you’ll face as a dropshipping merchant. There are web-based
services, such as Ordoro and eCommHub that can help you sync inventory
if your suppliers use them. Some suppliers don’t support these software
programs.

Using multiple suppliers increases the likelihood of your inventory never

being out of stock. There is always a supplier to fall back on if the other
doesn’t have the requested item. Furthermore, relying on one supplier is

53 
 
 putting your eggs in one basket. Your business will suffer if anything should
happen to that supplier’s business.

Another benefit of using multiple suppliers is the geographical diversity they

provide. Suppliers in different areas of the country can help you keep the
promise of faster delivery times. The supplier closest to a customer is, in
theory, the best to use for order fulfillment.

Don’t list products on your website solely because they’re also listed on
your supplier’s website. The supplier may not consistently carry the items.
Speak with a sales representative to determine how often the items are
stocked. Items that aren’t consistently stocked, or are only stocked in small
quantities, shouldn’t be listed on your website. Listing those means that you
probably won’t be able to fulfill the order.

There will be times when an item is out-of-stock even after you’ve identified
the best products to sell. The best solution is to offer customers a
complimentary upgrade to a similar, but better, product. This creates
satisfied customers who’ll become repeat clients. You’ll lose money, but the
trade-off of a lifelong customer is a greater reward.

Efficiently Fulfilling Orders 

There are 4 order fulfillment options. The option that best suits your
business ultimately depends on your experience and relationship with your
suppliers. The options are:

1. Using a preferred supplier as a centralized hub. You may have found

an ideal supplier, but you’re still using other suppliers so that you
don’t have all your eggs in one basket. Rerouting orders from other
suppliers to this main supplier is as simple as adding the central
supplier’s email address as the recipient on all new orders.

54 
 
 2. Sending orders to customers based on location. As previously
mentioned, you can route orders to customers closest to each of your
suppliers.

3. Sending orders based on availability. This may become your only

option if some of your suppliers don’t have the required item; you’ll
have to ship the item from the supplier that has the product in stock.

4. Using pricing. Pricing isn’t limited to the item’s cost. It also includes
shipping fees and other associated costs. When your business is
more established, you can have competing suppliers bid so that you
can determine the best possible price for the item. This isn’t
recommended when you’re just starting out. Suppliers are more
willing to go the extra mile for established merchants.

Dealing with Security and Fraud Issues 

Online transactions bring with them a slew of security issues. Using Shopify
to create your dropshipping websites helps you deal with the issues
associated with storing credit card numbers and a customer’s personal
data. However, creating an independent website makes these concerns
your responsibility.

The best advice, if you’re planning to create an independent website, is for

you not to store your customers’ credit card data. Ensure that the “store
card information” feature is unchecked when you’re creating the website.
Customer will be required to input their card information each time they

55 
 
 make a purchase, but that’s better than being held liable for credit card
fraud.

Fraudulent orders are an issue that having a Shopify account won’t

address. There are measures you can implement to either minimize the
losses from or avoid fraudulent orders altogether. It’s best to look for a
combination of at least 3 of the red flags listed below.

1. The Address Verification System (AVS)

AVS requires that customers input the address associated with their credit
card. Therefore, a purchase can’t be made if the credit card was stolen and
the thief didn’t have the credit card holder’s address. Some thieves may,
however, have also stolen the card holder’s identification and have the
address as a result. So, using the other indicators listed below may also be
helpful.

2. Different Billing and Shipping Addresses

Several customers will have a shipping address that differs from the billing
address. Therefore, using only this marker may cause you to lose
legitimate customers. It should be used in combination with the other
markers mentioned.

3. Names Don’t Correspond

Different names on the billing and shipping addresses can indicate fraud.
Once again, this marker can’t be used in isolation. It must be considered in
combination with the other markers mentioned.

4. Bogus Email Addresses

An email address such as abcdefg@gmail.com is more than likely fake. It

was probably just created to facilitate the purchase.

56 
 
 5. Expedited Shipping

An identity thief will use the most expensive shipping option. A speedy
shipment reduces the chances of you catching them before the item is
delivered.

If you suspect fraud, pick up the phone and dial the contact number given.
An illegitimate order will result in a dead number or a conversation with a
customer who never made a purchase. You can then refund the payment.

Dealing with Chargebacks and Returns 

A chargeback occurs when a customer contests a payment made to your
company. You must provide proof that the product has been delivered to
the customer so that you can retain the disputed amount. Proof is in the
form of:

● Documentation of the original order

● Tracking information showing delivery
● Wholesale packing slip showing the items that were purchased and
shipped

Lack of proof will result in you losing both the amount of the purchase and
the amount paid as a chargeback processing fee. You also risk losing your
merchant account if there are too many chargebacks relative to the volume
of orders.

Delayed response to a chargeback results in you losing the chance to get

back your money. Also, you won’t get back your money if the customer’s
billing and shipping addresses are different. The latter chargeback isn’t
worth responding to.

57 
 
 Returns are another complexity of the dropshipping business. Your return
policy should align with those of your suppliers. Consider the supplier with
the strictest return policy and use that as your benchmark. The
dropshipping return process usually involves the following steps:

1. The customer requests a return.

2. You request a Return Merchandise Authorization (RMA) number from
the supplier.
3. The customer writes the RMA on the product’s packaging and mails it
back to the supplier.
4. The money for the item is sent back to your account. The refunded
amount is the wholesale, not the retail, price.
5. You repay the customer the full price of the item.

The process becomes complicated when there are restocking fees and
defective items. Don’t pass on the restocking fees to your customers.
Always refund customers for defective items even when the supplier
refuses to pay for them. In fact, if the item is inexpensive it’s better to just
send the customer a replacement. The short-term costs pay off in acquiring
a long-term customer.

Dealing with Shipping Issues 

Setting a standard shipping rate is often impossible for dropshipping
merchants. You’re using multiple suppliers that each have varying fees.
You’re also selling multiple products. Possible shipping rates include:

1. Real-Time Rates: Weight of Items + Shipping Destination

2. Per-Type Rates: Shipping rates based on the types of items.

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 3. Flat-Rate Shipping: There’s one flat-rate. This rate is often the least
accurate but is the best to use when you’re just starting out. Your
focus in the initial stages should be on marketing and building a
customer base.

AliExpress is the main supplier for Shopify. There are 5 shipping options
with AliExpress:

EPacket, EMS, China Post, FedEx and DHL. EPacket ships to the following
countries:

• The United States

• Australia
• Belgium
• Canada
• Finland
• France
• Germany
• Ireland
• Israel
• The Netherlands
• New Zealand
• Portugal
• Russia
• Saudi Arabia
• Spain
• Sweden
• Switzerland
• Ukraine
It is the most common shipping option because it offers faster deliveries
and free returns on undeliverable orders. EPacket also requires that
recipients pay customs clearance on duties and taxes.

I recommend avoiding FedEx and DHL when using AliExpress. Their rates
are far higher than those of the other shipping options mentioned. EPacket
is your best option. AliExpress shipments can be tracked using 17track.net
thus making it easy to use EPacket to track shipments.

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 How to Provide the Right Customer Support 
You need an effective email management system to deal with online
customer inquiries.

Flooding your email inbox with customer inquiries makes them difficult to
track and manage.

Some possible options include:

• HelpScout
• Zendesk
• Kayako

Customers also appreciate an option that facilitates phone inquiries.

Creating a dedicated phone line, however, requires a full-time employee.
So, it isn’t something that you can do if you’re still working a 9 to 5. It also
isn’t worth the effort if you’re selling products costing less than $50.

The phone number should be strategically placed on the Contact and

Shopping Cart pages. Prominently displaying it on your website will lead to
a lot of low value calls. Grasshopper and RingCentral are the best
web-based software programs for creating a business phone number.

Summary of Chapter 6 
Succeeding as a dropshipping merchant requires close attention to every
detail. You must have a plan to deal with:

• Botched orders
• Inventory and multiple suppliers
• Order fulfillment
• Fraud

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 • Chargebacks and returns
• Shipping issues
• Customer support

This doesn’t mean that you should spend a large amount of time trying to
put plans in place. You should have the framework, but more time should
be spent starting and marketing your business. The success you desire
won’t happen if you don’t start. Your business phone number should be
strategically placed on the Contact and Shopping Cart pages. Prominently
displaying it on your website will lead to a lot of low value calls.
Grasshopper and RingCentral are the best web-based software programs
for creating a business phone number.

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 Chapter 7 
Creating and Marketing  
Your Shopify Store 

Shopify’s e-commerce platform​ is used by over 500,000 businesses in 175

countries.2 Merchants love Shopify because it’s easy to use and allows
them to develop a brand. The previous chapters have provided a general
guide for entering the dropshipping industry. This chapter focuses on
creating and marketing a successful Shopify store.

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​ https://www.shopifyandyou.com/blogs/news/statistics-about-shopify 
 

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 A Shopify store can be created in 6 easy steps.

Step 1: Name Your Store 

You’ll need a store name to create a Shopify account. Be creative with the
name, but ensure it uses keywords that relate to your niche. Keywords will
help with Search Engine Optimization (SEO).

Write at least 3 options before making a final decision. Once you’ve

identified your top pick, do a Google search to determine if the name is
available. Type “[company name].com” to perform an effective search.

Step 2: Create a Shopify Account 

Visit Shopify.com, type in the email address you’re using for your business
and click the Get Started button. Follow the subsequent instructions and
you’re all set. It only takes a few minutes!

Step 3: Optimize the Settings for Your Shopify Account 

You won’t be able to list products and makes sales if your Shopify account
isn’t optimized. The first thing you must do is add your payment
information. The Payments tab can be found on the Settings page. You can
use whichever payment option works best for you. However, most
merchants use PayPal because it’s the most secure.

You must then create your store policies. Shopify has a pre-created tool
that automatically generates a standard privacy policy, refund policy and
terms and conditions page for your store. You can edit the content, but it’s
a good place to start.

Setting shipping rates is the next step. The shipping rates should be set as
described in the previous chapter.

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 Step 4: Launch Your Store 
It’s now time to launch your store. Launching your store only requires one
simple click.

Go to Settings and then click on Sales Channels. You then click the Add an
Online Store option.

Step 5: Design Your Store 

Shopify has a wide variety of templates. Some of the themes are free.
Others have small fees and more features. It’s important for your store to
be attractive, user-friendly, and have an appropriate layout. You want to
make the right first impression.

Your website will also need to feature your logo. You can hire a graphic
designer to create your logo for as little as $5 on freelancer websites such
as ​Fiverr ​and 99Designs. The logo adds authenticity to your brand and
creates a cohesive image.

Step 6: Sync with the Oberlo App 

The Oberlo App is needed for you to add products to your store. You can
install the app by visiting the Oberlo website. You’ll then use the Oberlo
app to search for products and import those products into your store. Once
the products have been imported, you’ll need to place them in relevant
categories.

These 6 steps will get your Shopify store off the ground. Your marketing
plan is what’ll truly make it soar. Dropshipping advertising is primarily
digital. Your strongest digital marketing strategies will incorporate

64 
 
 Facebook, Instagram, Email Marketing and Influencer Marketing. A brief
description of each strategy is given below. Feel free to visit websites such
as HubSpot and Medium to gain more insight.

Facebook and Instagram Marketing 

Facebook is the most used social media platform for digital marketing. This
is no surprise since Facebook has 2.01 billion monthly active users
globally.3 Advertisers can reach the most people and use the greatest
variety of content in their ads.

Facebook has also created a website add-on called Facebook Pixel that’s
perfect for your paid ad campaigns. The pixel is a string of code that is
added to your website. It allows you to measure, optimize and build
audiences for your ad campaigns.

Instagram, a Facebook subsidiary, is perfect for dropshipping because of

its strong emphasis on images. Images are what help sell your products.
Instagram’s hashtag feature also makes your images more discoverable
without the need for paid advertising.

Here’re some tips I can offer based on my Facebook and Instagram

advertising experience:

1. High-quality video ads are best on the Facebook/Instagram platform.

2. Any ad that is subpar in any aspect will suffer and do poorly
(image/video quality, copywriting, targeting).
3. Choosing the right ad objective when setting Facebook ads for
Shopify is very important. Sometimes you may want to do an
engagement ad, a traffic ad or a website conversion ad.

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​ https://www.wordstream.com/blog/ws/2017/11/07/facebook-statistics 
 

65 
 
 4. Using the Facebook pixel data to build lookalike audiences for
retargeting is extremely effective. That's where 90% of the sales
come from.

Email Marketing 
Wordstream states that “email subscribers are 3 times more likely to share
content on social media than leads who come through another channel.”4
Email is one of the best channels to bolster customer engagement.
Customers are more likely to make a purchase and become returning
customers if they receive personalized emails that relate to their interests.
Some of the best email marketing services include:

• Get Response
• Constant Contact
• Convert kit
• MailChimp

 
Summary of Chapter 7 

The steps for creating a Shopify account are simple. There’s no need for
complex coding and expert web design skills. All it takes is a few clicks and
you’re all set.

Your Shopify store won’t be successful if you don’t market it effectively.

Facebook, Instagram, email marketing, and influencer marketing are the
most effective digital marketing strategies for dropshipping merchants.
Digital marketing has a steep learning curve, but there is a wide range of
content available to help you create the right plan for your business.

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​ https://www.wordstream.com/blog/ws/2017/06/29/email-marketing-statistics 
 

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 The End

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