How Much Money Can You Make Dropshipping on Shopify?

How Much Money Can You Make Dropshipping on Shopify?

What is Shopify?

Selling goods online wasn’t always easy. Creating a website connected to an online store that could securely process payments was once a task that required significant technological savvy. Shopify simplifies this process by creating a platform that easily allows business owners to create and manage an online store. 

Shopify can’t make you rich, but it can provide you with the appropriate tools to build an online business. It is a platform that serves your business goals. Whether you’re a brick-and-mortar store contemplating a pivot to digital or a business-minded individual looking to get into the ecommerce game, Shopify can remove many of the roadblocks to getting started with selling online.

Want to learn about other ways to money?

The Definitive Guide On Making More Money

Here’s the truth all the savings gurus in the world refuse to acknowledge: There are only so many ways you can cut your expenses. On the flip side, there are literally hundreds of ways to earn more money.  Click Here to get access to our guide now!

6. Shopify Pricing Plans 2021: Which Plan Should I Pick?

Jun 25, 2021 — You can buy a domain through Shopify ($14 per year) or redirect an existing one. this feature can be added with an app in the much cheaper Shopify Basic plan. Do I need to enter my credit card details for the free trial? Rating: 4.7 · ‎Review by Armin Pinggera(17)

How much do Shopify’s pricing plans cost compared to other ecommerce builders? Our review outlines each plan and helps you decide which one is right for  Rating: 4.5 · ‎Review by Jeremy(18)

How much does it cost to sell on Shopify? — A successful Shopify store still needs to do the work to find a product and a market, and sell  Rating: 4 · ‎Review by Nate Shivar · ‎$29.00(19)

Oct 27, 2019 — Do you want to make thousands a month from online business? One you can work on from anywhere? Hey, who wouldn’t love that? (Especially (20)

Video

Checklist Before Launching Your Shopify Store

Setting up a store with Shopify is indeed very effortless, but there are other things to consider in order not to face ongoing problems long term. Here’s a list of the essentials:

Shopify Apps: The third-party apps you install on your Shopify store through the App store. You can find various apps designed to assist you in your e-commerce efforts at every customer journey stage.

21 Best Shopify Apps To Increase Sales & Conversion (Free and Paid Apps)

Shopify Theme: The theme you select for your store will affect the way search engines see your site as well as the customer experience. A poor design can result in negative UX.

Support Your Store with Email Marketing: Email marketing is an excellent opportunity to return your abandoning customers, let your customers know about the sales and new product launches, etc. Using popup signup forms can help to collect the email addresses of users. Popup

Mobile: Most users browse websites on mobile. You need to make sure your Shopify store is mobile-friendly. Other ways you would be leaving a lot of money on the table.

9. Offer Your Freelance Service

Getting paid for something you are good at might b

Getting paid for something you are good at might be something you are already doing. But by building a Shopify site can make your freelance service grow and look more professional.

Whether you are a freelance writer, designer, illustrator, etc., you can use Shopify to list your services as products and disable shipping as it’s not something physical.

Cole Turner

Cole Turner started his dropshipping business on Shopify at the age of 18. He was always interested in the concept of doing business online. And, in just 4 years, he was able to build a successful e-commerce store on Shopify. This young entrepreneur earned $2 million between 2019 to 2020 through his store. 

He started with a small store with various kinds of products. Then he found a jewelry product that grabbed his shopper’s attention. Realizing the potential, he aggressively started focusing on Facebook ads and redesigned his store. That store made him $75k and then he sold it to a business giant for a whopping 2.1 million dollars.

Dropshipping Expenses

Dropshipping with (or without) Shopify comes with many unavoidable expenses. Your most significant will likely be advertising, but let’s do a quick overview of your other expenses…

Advertising Costs

I broke down the numbers earlier, but again, if you plan on $1 – $2 per click (depending on your niche and product), and it takes 10 clicks for every sale…

… you’re paying $10 per unit sold.

The challenge is that it doesn’t start out that way. Your first campaign might take 1000 clicks to get one sale. And you may be targeting competitive keywords that cost more per click. For example, if you were paying $2 per click and it took 1000 clicks for one sale, you’re paying $2000 per sale.

That’s obviously not going to work, so you’ll have to keep testing new campaigns to reduce your ad/sale cost.

Business Logo

You can come up with your own logo using a free tool like Canva or hire someone on a freelance platform like Fiverr or Upwork to do it for you.

Maintaining Your Store

Shopify prices start at $29/month and go up to $299/month as your business grows.

Payment Processing Fees

Credit and debit fees range from 0.5% to 2.9% plus $0.30 depending on your Shopify plan and payment method. Shopify also offers Point of Sale (POS) payment processing, ranging from free (for POS lite) to $89 per month.

Dropshipping Fees

Most suppliers charge a dropshipping fee. This fee covers the cost of invoicing, picking, packing, and shipping orders. Therefore, it’s important to choose suppliers who offer a fair price (and one that sells a high-quality product).

Marketing Costs

Marketing costs can range from a dedicated social media manager to social media marketing tools, SEO courses, email marketing courses, email autoresponder, etc. Many of these are hidden costs you don’t consider or count as a “per unit” cost, but they add up.

Business Costs

You’ll need a Tax ID number, business license, and small business insurance is also recommended. There are always scenarios that could cause you a headache if you don’t have insurance. 

Someone may get injured by a product you’re selling, for example. Or, maybe your customer ordered something critical for an event, and it didn’t arrive on time.

These are rare situations, and the likelihood of getting involved in a legal dispute is small, but it’s possible. Especially if you’re selling a significant number of products.

Product Sample, Branding, Images, and Descriptions

These are optional, but it’s difficult to compete with other online sellers if you’re using stock images and generic descriptions. You can either order a sample of your product(s) and take pictures yourself or hire someone to do it. Likewise, you can write your own product descriptions or hire a copywriter.

Shipping

You can charge your customers extra for shipping or work it into the price. Today’s challenge is that big online retailers like Amazon offer free shipping, and people have become accustomed to it. That makes it harder to sell if you’re charging additional fees on top of the price. In addition, it could cut your conversion rates down significantly.

Either way, the shipping company must get paid.

Defects and Lost Shipments

There would be no product failures, customer returns or lost shipments in a perfect world. Unfortunately, it’s not a perfect world, and you should budget for these mishaps.

How Much Do Shopify Stores Make In The USA?

According to the research, an average Shopify store in the USA makes around $72 from one customer and the same research has also shown the low-earning and high-earning benchmarks. For instance, the high-paying Shopify stores tend to earn $149 on a per-customer basis while low-earning Shopify stores earn $44 on a per-customer basis.

If we talk about profitability, it is completely profitable but different factors can impact profitability. For instance, the Shopify store owners need to read the market and look for the gaps that can be filled. In addition, spreading the business too thin can result in business disasters and won’t even captivate the customers.

The Shopify store owners can opt for content marketing while keeping the customers in mind (forget about the products) because it helps create a connection with the customers. Not to forget, you shouldn’t waste the time on other customers and you need to understand the ideal customer base and design the marketing strategies accordingly.

How Much Can A Shopify Store Make In South Africa?

When we look at the economies, it’s needless to say that South Africa is getting back on track which means the eCommerce businesses are growing. That being said, Shopify stores are doing pretty well in South Africa is the market is estimated to be $3.8 billion. On average, the monthly Shopify income is around $3,897.

Recent Posts

  • Is College Really Worth It? Cost-Benefit Analysis

  • Virtual Assistant Hourly Rates Compared – Guide for Entrepreneurs

  • Best Ways to Save Money for College Education: A Guide for Parents and Teens

  • Top 10 Sites and Apps to Teach Korean Students English Online (Make Up to $21 per Hour)

Product Uploads

It is a relief to have someone upload your goods, which can reduce the pressure on acquiring suppliers. It doesn’t matter if it is the first vendor.

We recommend that you do it yourself to learn and create a method.

Uploading goods can be very tedious and can quickly become a full time job.

This is especially true if you’re scaling up and supplying at a rapid pace, like we are at the moment.

Interactions with customers

In addition to your brand’s design and feel, your company also has a brand on how it performs. Based on our target audience, we decided to provide a premium experience to our customers. To us that means quality products, fast shipping, no hassle customer service, and no sales pressure. How this reflects on our business is that we are using premium oils that put beard care first, quality packaging, shipping within one business day, making things right with customers when things go wrong, and offer no discounts or sales on our store.

When we attend events, trade shows, or put on parties – then we carry the same attitude and image that we portray online. We try to be as friendly as possible, not pressure anyone into anything, and have a good time. There is more to life than just selling beard products. Your brand isn’t just your logo. It’s the feeling you leave people with after they interact with you. How you treat your customers is a choice you make that affects how your customers see you, and that makes it part of your brand. This goes back to building a company around a lifestyle idea. If your community of people wouldn’t like to see something happen, then your business probably shouldn’t do it.

Expenses Broken Down

The best part about a high-dropshipping ticket? Is the fact that startup and operating expenses are minimal. Google ads will be your biggest expense. However, they are not guaranteed to be profitable unless they are done correctly.

This is because there’s too many opportunities for errors. A deal that yields a profit of $500 can eliminate certain flaws in your ads campaigns, which you can then fix to make them more successful in the future. Here’s what you can expect to get from your expenses.

  • At the moment, we recommend a premium theme for $167. Although a premium theme isn’t required, it simplifies the process and gives me professional support. I don’t have time to be overwhelmed by technical issues. It won’t make or break your company, regardless of whether you use it.
  • Shopify is $29 per month after you sign up for a 14-day trial. If you are short on cash, hustle during your 14-day trial.
  • We want to have a professional 1-800 number. These costs around $29 per month and come with a free trial. Google Voice may be a cheaper option. If you feel brave, you can use your mobile number to get a very affordable talk-only contract or your phone number.
  • You can launch Google Advertising at $20-$30 per day and make it profitable. Google will give you a $100 coupon for $50 after you have paid. This is to make the company profitable.

Also Read   Private Label Hair Extensions Dropshipping Suppliers

Watch the Full Video Interview- How to Make Money from Shopify

I hope this post has inspired you and given you a roadmap to achieving unbelievable financial freedom through Shopify. You can watch the full Video from Mike Vistel below.

The only way to achieve success is by taking action, period. Shopify is currently offering a 14 day FREE trial (no credit card required) to get you started risk free. I encourage anyone to take that first step. Good luck!

Note: This posts may contain affiliate links. All opinions are my own,  however. Last updated January 2nd, 2018

Sarah and Audrey

Sarah and Audrey started their dropshipping career solo. But, in 2019 they joined their forces together and made a clever business switch. See, most dropshipping websites use Facebook ads to attract buyers. But, these two saw great promise in influencers. So, they started building their brand by marketing with them.

Their business model worked well. Sarah and Audrey eventually expanded their business to the US market. With the help of Instagram influencers, they made many product placements for maximum brand awareness. This made them quite successful during the lockdown. They brought in $1 million in a few weeks.

3. How this kid makes $1.5 million a month from his Shopify

Nov 14, 2017 — You can watch the entire video below, but I’ve summarized the key steps Mike lays out for any Shopify beginner to make serious income from (7)

Aug 27, 2020 — It’s an easy program to sign up for and once you get your affiliate link you can earn up to $2000 per new merchant referred to Shopify. B. Start (8)

What is Dropshipping On Shopify?

Shopify makes dropshipping much easier by providing a point-and-click solution to the eCommerce functions your online business requires.

Without Shopify, you would have to build your own website and piece together different solutions for things like payment processing using plugins that meet your needs. Shopify simplifies the process and makes dropshipping more accessible.

You’ll have to follow the rules and guidelines set by Shopify, though, which is not a problem if your products are legal and you’re not doing anything shady. 

Making Money on Shopify vs. Amazon and Etsy

Shopify isn’t the only way to sell products online. There are a growing number of online marketplaces that give business owners the opportunity to sell their goods or services to the masses. Here’s how Shopify compares to Amazon and Etsy, two other popular platforms with slightly different purposes.

ShopifyAmazonEtsy
Platform easy of useCustomer service for sellers available 24/7No customer service phone number for sellers, you must send a request and await a callOnline help resources and official forums, but difficult to reach seller customer support 
Monetization optionsCan create an online store with physical products or services, can do dropshipping, affiliate program availableSell wholesale goods or your own label, sell products as an Amazon Affiliate, sell handcrafted items through Amazon Handmade, offer services through Amazon ServicesSell vintage or handmade items, become an Esty affiliate
Online marketplaceNoYesYes
Platform costMonthly feeCommission on your salesCommission on your sales

Keep in mind that one pivotal difference is that Shopify doesn’t function as a marketplace. While Amazon sellers will show up in the website’s search listings, as a Shopify seller you are primarily responsible for driving traffic to your site. This is similar to other platforms in the Shopify category, such as competitor Oberlo. 

14 Legit Ways Real People Make Money on Facebook

Final Thoughts

If you’ve been thinking about ways to start a business or create a passive income stream, it’s time to get out there and create an online money-making business in your spare time.

You don’t have to go all in. Start small and validate with a side hustle and scale from there. Or, keep things small. The beauty of starting your own online business is that it’s all up to you. Before you go, you may want to check how to get more traffic to shopify store

Wishing you great success!

Tags

Leave a Reply

Your email address will not be published.