SHOPIFY PART ONE: WHAT ARE SHOPIFY AND DROPSHIPPING? 12


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WHAT ARE SHOPIFY AND DROPSHIPPING?

Welcome to this series of articles focused on e-commerce, in particular, the Shopify platform and the dropshipping e-commerce model.

I decided to create these articles because I want to share everything I have learned. There are many influencers and YouTubers who make informative videos, give only a small fraction of what they know and then they promote the sale of their course. It seems that they really were more interested in selling the course than in selling through their online stores.

Let’s start then

What is Shopify?

Shopify is a huge e-commerce platform. It was founded in 2004. Its founders, who were not satisfied with the existing tools to build their own online store (they wanted to sell snowboarding equipment from Canada), created their own store since one of them was a programmer. After two months of development, they launched their store, and two years after they launched the Shopify platform based on their previous creation.

Since then the platform has grown incredibly fast. It is estimated that there are currently around 600,000 stores and this number continues to grow.

But why has this platform grown so fast?

The growth and development of the internet are intimately linked to electronic commerce. More and more people prefer to connect to the internet and with the power of the keyboard and mouse, they select and buy their favorite articles. The established stores are closing their premises and they either adapt to the technology or they risk disappearing.

It is estimated that electronic commerce will continue to grow, as buyers in developed countries have already become accustomed to searching for their favorite items online, comparing them and acquiring them with the touch of a finger with their credit cards. In developing countries, electronic commerce is not at the same level as in developed countries, but the trend is irreversible.

Why is Shopify so popular?

WHAT ARE SHOPIFY AND DROPSHIPPING

WHAT ARE SHOPIFY AND DROPSHIPPING

There are several e-commerce platforms, the most used are Shopify and WooCommerce. The latter is a plugin that can be installed on websites based on WordPress. Both platforms are very good, but Shopify has the advantage of being very easy to install and startup.

Most entrepreneurs who want to start in e-commerce do not have programming knowledge or web page development skills, so Shopify is perfect for them.

By contracting the basic Shopify plan (29.99 monthly), your store’s hosting is included, the SSL certificate for security, you do not have to install anything, you just choose a theme (which can be free or paid) and you can start adding products in your store. You can also easily add your favorite payment processors, such as Paypal and Stripe.

What is DropShipping?

There are several e-commerce business models. One of them is dropshipping, which is to find a product that you can sell and add it to your online store. When a sale occurs you contact the supplier of the product, you pay it and you pass the shipping information of your client so that he sends it directly to your customer.

This model of e-commerce is highly beneficial for new entrepreneurs since they do not have to spend on having a stock of merchandise, which may or may not be sold. They only pay when a sale occurs, and the profit generated goes directly to the seller.

This model is highly profitable, and if we add products made in China, which are very cheap, and shipping times are not that long, (usually between two or three weeks to the United States), then we find an incredible business opportunity.

There is a plugin for Shopify called Oberlo. This plugin what it does is grant the seller the ability to select products from Aliexpress (the largest online store in China) and add them to your online store. This plugin keeps track of the supplier’s stock and prices so that if you increase the cost of the product, it notifies the seller so that he also adjusts the price.

The combination of Shopify and Oberlo creates an incredible business opportunity and attracts many entrepreneurs looking to make their online store profitable.

If you want to start your own online store, click on the link below. You will have 14 days free trial in which you can experiment and start learning e-commerce.

<<<SUBSCRIBE TO SHOPIFY WITH A 14 DAY FREE TRIAL>>>

This is Shopify Part One. Be ready for our next article Shopify Part Two: Create a Niche or General Store? or SHOPIFY PART THREE: WHAT ARE THE BEST PRODUCTS FOR DROPSHIPPING?


About Ruben

I was born in Mazatlan, Sinaloa, Mexico. I am an Electronic Engineer and father of three beautiful kids, two males and one female. I like movies, tv series and console games. I am an entrepreneur and blogger and I want to help people to realize their dreams.

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12 thoughts on “SHOPIFY PART ONE: WHAT ARE SHOPIFY AND DROPSHIPPING?

  • Craig

    Dropshipping sounds pretty interesting, but it also sounds a bit difficult to manage. How do you handle things like inventory numbers for products if you are selling something that someone else owns? Is there a way to integrate your website with the warehouse or something so you don’t make sales of products that are out of stock?

    • Ruben Post author

      Yes there is, the Oberlo Plugin integrates the information from your product source to your online store. I will explain this in more detail in my next Shopify article.

  • hong

    Thank you for writing this article. I have always heard of shopify and dropshippinng, but I never really had a good understanding of them. I liked how you explained them in an easy way to understand. Now I have a much better understanding of them. Thank you for sharing.

    • Ruben Post author

      Shopify is a great way to make money online, many young entrepreneurs are jumping in and making tons of money, some of them are as young as 16 or 15 years old.

  • Stephanie

    Thanks for sharing this Shopify guide. I’ve seen so much talk about Shopify the last few months and it looks like a great online business opportunity. I look forward to reading part 2!

  • Colleen Fonseca

    Thank you for the information. I am curious, and if we are to sell a product, we are to pay for it first and then the customer pays you? Do you make up a higher price, therefore to make a profit? Also, does it cost to have Paypal? Thank you, I am new to all of this and am trying to figure out if I can sell some of my photos and well as affiliate products.

    • Ruben Post author

      Your customer pays you first, then you pay for the product, but you will need to make the purchase with your credit card. After a few days, the money that your customer paid will be available to you. Paypal does have a cost, and it is about 4.5% of the cost of the transaction plus a fixed fee that depends on the currency used.