Shopify Dropshipping: The Complete Guide for 2020

If there’s one thing that most of us have lived through recently, it’s the experience of working from home! For many, this has happened entirely by accident due to COVID-19 restrictions and an extended period of lockdown.

What this almost certainly has done for lots of people is given them flexibility, new time-management skills and a work-life balance that they may not have ever been able to experience before.


There is no doubt that there is likely to be much ‘re-thinking’ going on as lockdown starts to ease and future paths are decided. The temptation to try a different route and embrace the flexibility of working from home will be strong!

With this in mind, starting an ecommerce business is likely to be an attractive proposition for some.

It’s a new challenge, offers that longed for work-life balance, facilitates time with family while simultaneously putting food on the table. What’s not to like? And there are options: eBayAmazonEtsy or Shopify.

Shopify dropshipping business is a popular choice right now. There’s no stock to store, no parcels to dispatch, allowing you to concentrate on marketing your products, making sales and focusing your valuable time and resources on growing your business. Sounds great, doesn’t it? But, it’s not a magic bullet, nor a get rich quick scheme.

You cannot expect a full bank account overnight, so it’s an excellent option to consider as a part-time venture initially. So, if you are considering starting an ecommerce business, why should you choose the popular Shopify dropshipping model?

What is Shopify?

First, a little about Shopify, a leading ecommerce platform that allows budding entrepreneurs to start their own online store, sell products and take payments. It’s pretty simple to use without any technical experience, and the support and tutorials provided are in-depth enough to help you should you get stuck when using any of their themes or apps – which are in abundance.

So, Shopify is a great place to start for anyone who wants to launch an online business but has very little skill.

What is Dropshipping?

Now let’s look at dropshipping. A storage and fulfilment service which allows small businesses to set up and manage with very little trouble. Perhaps most importantly, you won’t need to invest a large amount of capital upfront. This is because dropshipping allows you to sell products without having to stock them yourself.

Instead, products are stored by separate suppliers in several locations. It really is a simple as taking an order in your store from a customer, contacting the dropshipper you have chosen to work with and confirming that they will ship the order to your customer.

You won’t need to worry about over or under-stocking, as you’ll only ever order the necessary products to meet the requests from your customers. It really is that simple.

However, working with a reliable dropshipper is vital! Your reputation will depend on this as you won’t ever see the product before it is shipped to your customer.

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Why Use Shopify for Dropshipping?

So, now you are au-fait with Shopify and the dropshipping idea, what’s so great about the pair of them that they work so well together? Well, a Shopify store can be set up with little hassle, not least because it integrates so smoothly with the dropshipping model.

If you don’t have the resources to manage manufacturing, supply and fulfilment, then dropshipping with Shopify is a great option and is one of the simplest and most popular platforms you can use to create and run your store.

1. Shopify is Dropshipper Friendly

The dropshipping model is massively supported by Shopify, and so there are numerous solutions specifically created for dropshipping that seamlessly integrate with the platform. This makes things a whole lot easier for you when starting your business.

For example, Oberlo is a dropshipping app that works exclusively with Shopify. You can read more on this and other dropshipping apps later.

2. Shopify has a Host of Design Features

Shopify offers a vast range of features that allow you to actually create an ecommerce business rather than just a website, so it’s ideal for newbies! The online store builder is there for you to design your store and get all the aesthetics in place. You’ll be able to choose from a selection of free and paid design templates alongside other great features which make handling your sales, marketing and payments super simple.

3. Shopify is Simple to Use

The Shopify platform is one of the most user-friendly platforms available. Even though it’s features and functions are in abundance, it’s intuitive and not daunting. The tutorials are easy to follow, and these do a great job of explaining how to use the software, plus you can have multiple users, so as your store grows and you need more help, you can add new team members easily.

4. Shopify Does Not Require You to Overthink!

To get started, it’s as easy as having an idea of the products you would like to sell and pairing your thoughts with a dropshipping solution. Shopify provides all the tools you need to get set up and start selling.

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What Products Can I Sell on Shopify?

This leads us nicely to the question of what you should sell. You must find your niche. With the dropshipping model, you will be selling physical products rather than digital products or services, so bear this in mind. Rather than having a massive range of products in different categories available, a niche store will be far easier for you to market and has the benefit of placing you as an expert in your niche.

Ultimately this increases trust, helps your reputation and drives sales. When you pick a niche, choose something that you’re passionate about. Not only will your passion filter through to your customers, but it will also make your job hugely enjoyable and keep your motivation high.

You should also choose a niche in which there is demand and profit to be made, so make sure you do plenty of keyword research and look at product trends. Think about the future, whether it’s a product or niche that’s sustainable and something that you will ultimately remain interested in. If you don’t consider this, it may be harder for you to make a success of your Shopify dropshipping store.

What Dropshippers Work With Shopify?

As mentioned, there are a range of dropshippers which integrate really seamlessly with Shopify, so let’s take a look at some of these to review your options. Here you’ll find the main five Shopify dropshippers, all of whom have their own benefits, and all integrate with Shopify smoothly. Typically, you’ll have the choice of free and paid options with each of these solutions.


5 Mistakes New Amazon Sellers Should Avoid

Amazon is a platform intended for you to build a successful business upon, selling premium products – preferably your own brands – with exceptional standards of customer service, and getting all those things right requires quite a steep learning curve.

Amazon Sellers

With this in mind, these are the top seven mistakes almost every new Amazon seller makes and how you can avoid them!

Stick to these rules and you will not only save yourself time, money and heartache but you will also achieve your goals much faster.

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1. Don’t Try to Run Before You Can Walk

Of course, you want to get started! I get that. Your enthusiasm and motivation are at its peak when you’re getting a new business off the ground, but you simply must be realistic about what you can and can’t do. There’s no point in getting ahead of yourself and trying to create an empire when you haven’t listed a single product yet.

By all means dream – dreams are what motivates us – but in reality, every business must start small and grow. This is particularly true if your budget is tight. Know what you’re capable of, how far your knowledge and buying power goes, and start by taking baby steps.

Get your first product researched, sourced and listed – and most importantly actually start making sales before you start adding multiple products and trying to rival long established companies!

2. Don’t Be Unwilling to Invest the Money!

I’m not sure why, but for some reason, many people hold the belief that starting and building an online business takes absolutely no money and all they need is an internet connection to access great riches!

This is simply not the case for Amazon (or eBay) businesses or indeed any eCommerce venture. This type of business – just like any other – requires investment if you want to build a real, successful business.

There will be costs such as Amazon fees and there will also be variable costs, like marketing and so on. Most obviously you will need to invest in a stock, and whilst it’s possible to do so with less than £1000, I always recommend an initial investment of around £1500.

You’ll then need to reinvest your profits for as long as possible before you even contemplate taking any profit for yourself!

3. Don’t Pick the Wrong Product!

This sounds obvious of course but you would be surprised at the number of newbie sellers who totally underestimate their buying power. The issue happens because you make the mistake in choosing a product that you think is perfect, based only on its selling price of, let’s say £100 for example. That’s a decent amount and you want some of that action, so you’re feeling confident because you’ve got £1000 to spend on the stock…

Unfortunately, even though £1000 is a good investment, it’s not going to allow you to invest in a product that retails for £100. Depending on the product, you may be able to purchase a few units but that isn’t enough to be able to get the best deal from the manufacturer. It’s essential that you choose the right product for YOUR buying power. This is crucial and is vital to your success!

4. Don’t Try and Compete with the Lowest Price!

This is a recipe for disaster! The simple truth is that your buying power and sales volume won’t support this strategy! And anyway, why would you want to cheapen yourself and sell low priced products?

There will always be sellers on Amazon with rock-bottom prices who are simply turning money or using the product as a ‘loss-leader’. These businesses will have the buying power to purchase container loads of stock at a time giving them the best wholesale prices and lower shipping costs. There is no way you can compete with that – so don’t even try.

Instead, price for a decent profit, offer a free gift or incentive, provide fast dispatch and shipping and second to none customer service along with a quality product. Take a look and you’ll see that prices vary wildly on Amazon for the exact same products, so you do not have to be the cheapest seller!

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5. Don’t Expect Results Overnight

Building an online business takes time, effort and patience so don’t expect results like magic. Slow and steady is the way forward and whilst that may seem frustrating, persistence will pay off as long as you ensure you stay motivated, set goals, celebrate achievements and milestones – however small, and make progress every day.

The temptation to quit after a month – or even a year – will sometimes be great, particularly if you hit a hurdle or make a mistake, but actually, your biggest mistake – and ultimately your biggest regret – will be to throw in the towel.

It’s important that you understand you are in it for the long haul and quitting is the easy option, which leads nicely into mistake number six


What is Amazon TACoS Mean?

Amazon TACoS If you’re a third-party Amazon seller advertising on the marketplace then it’s essential that you measure how it performs. Sellers want to gain buyers’ attention affordably — so, if you’re spending a lot of money on advertising and not seeing much back in terms of extra sales, then you might want to stop or optimize it.


In a study by Econsultancy, 77% of marketers agreed that the success of advertising should drive the level of budget allocated to it.

There are many ways to measure the success of Amazon advertising. This post will examine Amazon TACoS which has started to gain traction recently as a key performance metric.

Before we dive in any further, let’s start with the basic question.

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What Does Amazon TACoS Mean?

Amazon TACoS has nothing to do with Mexican food. Instead, it stands for the total advertising cost of sales. It measures your advertising spend relative to the total revenue generated.

The TACoS metric is growing in popularity across the eCommerce sector and gives you a snapshot of how your Amazon PPC ads are performing and directly affecting sales.

How to Calculate Your TACoS

To work out your TACoS, you divide your total advertising spend by your total sales revenue and then multiply it by 100.

TACoS = (Advertising Spend/Total Revenue) x 100

With this information, you can better decide how much your advertising is driving sales.

How to Identify If You Have a Good Amazon TACoS

Amazon sellers worry about how their Amazon ads are performing. If terms of TACoS, the lower the better,

  • A low TACoS rate means your advertising is generating steady sales and your brand is growing.
  • A high TACoS rate means your advertising is generally underperforming and needs to be optimized (new bids, new products or new keywords).


     Example scenarios:

  1.   TACoS is flat or falling – Organic sales are increasing
  2.   TACoS rising – Organic sales are decreasing. Ad costs are increasing.
  3.   ACoS falling and TACoS rising – Organic sales are decreasing.
  4.   ACoS and TACoS both rising – Acceptable for new product promotion.

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Final Thoughts

Amazon TACoS is a key performance metric which assesses the impact of advertising relative to Amazon sales. Calculating TACoS is crucial for any Amazon seller advertising on the platform.

Monitoring TACoS will give you a more comprehensive view of your overall business performance than your ACoS. It will also help you decide the long-term strategies for your Amazon business.