Is Shopify Dropshipping Legit, Risky? Dropshipper’s OPINION

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Is Shopify Dropshipping Legit, Risky? Before coming to the specific answer, I want you to have a look at the following points.

These points will clear all the doubts in your mind regarding Shopify Dropshipping.

Shopify powers a huge share of dropshipping stores. This hosted e-commerce platform makes it simple to create and customize an online storefront while handling all the technical backend.

Shopify also offers useful features tailored for dropshipping:

  • Drag-and-drop store builder – Quickly build a professional-looking store.
  • Payment processing – Securely accept payments from customers.
  • Automation apps – Connect apps to streamline product research, order fulfillment, shipping, and more.
  • Analytics – View key metrics and optimize your marketing and conversions.
  • 24/7 support – Get help from Shopify’s customer service anytime.

Shopify has grown exponentially along with the rise of dropshipping. It now powers over 1.7 million businesses globally. The company brought in $4.6 billion in revenue in 2021, a 57% increase from the previous year.

Many successful entrepreneurs who run successful dropshipping businesses really like using Shopify. It’s a popular tool for managing their online stores.

Shopify is a great pick for creating, starting, and growing your online dropshipping store.

It’s strong and has lots of ways to customize it, plus it keeps adding new features.

Is Shopify Dropshipping Legit, Risky

Is Shopify Dropshipping Legit, Risky? – Quick Reply

Shopify itself is a perfectly legitimate platform. Shopify provides a fully legitimate and powerful platform for running a dropshipping business online.

While dropshipping does carry some risks like finding reliable suppliers, Shopify itself is a robust, trusted e-commerce solution used by over 1 million entrepreneurs globally.

With the proper strategy involving careful supplier verification, focused branding, solid marketing, and most importantly delivering an amazing customer experience Shopify dropshipping can be highly profitable and sustainable.

The upside: Why Shopify Dropshipping Is Worth It

Is Shopify Dropshipping Legit

So what makes Shopify such an attractive platform for running a dropshipping business? There are a number of compelling benefits that make Shopify a great choice:

Low Startup Costs

One of the best things about Shopify is that you can launch your dropshipping store without a huge upfront investment.

  • Shopify offers a free 14-day trial to test out their platform.
  • After the trial, their basic Shopify plan starts at just $29/month. Very affordable to get started.
  • You don’t need to spend thousands buying inventory before making your first sale.

This low barrier to entry makes Shopify an ideal starting point for new entrepreneurs or side hustlers looking to test out dropshipping.

Customizable Storefronts

Shopify offers beautiful storefront templates and extensive customization capabilities. You can tweak everything including:

  • Layouts.
  • Designs.
  • Content.
  • Images.
  • Product listings.

This allows you to carefully craft your brand image and stand out from competitors.

There are also many free and paid Shopify themes and apps to enhance the look, functionality, and conversions of your store.

Built-in Functionality

As a fully hosted platform, Shopify handles all the complex backend technical work for you.

  • Secure checkout and payments are built in.
  • Shopify makes shipping easy, with discounted rates from major carriers.
  • Order processing happens automatically.
  • 24/7 customer support is available if any issues arise.

You don’t need to spend time putting together all the things you need to run an online store.

Access Global Markets

Shopify allows you to sell in many countries around the world:

  • The Shopify platform supports multiple languages and currencies.
  • Their payment gateways work internationally.
  • Local tax rules and calculations are handled for you.
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This global reach enables your dropshipping business to expand well beyond your home country.

Robust Ecosystem

The Shopify App Store contains over 6,000 apps to help optimize and automate your dropshipping workflow:

  • Product research tools.
  • Supplier databases.
  • Order fulfillment.
  • Inventory management.
  • Accounting and analytics.
  • Marketing and SEO.

Integrating these apps can save huge amounts of time and effort in running your operations.

Reliable Platform

With a proven track record of over 15+ years, Shopify itself is a stable and reliable platform.

  • They handle hosting, speed optimization, security, and compliance.
  • 99.98% uptime over the past 2 years.
  • Level 1 PCI (Payment card industry) compliance to safely handle payments.

You can trust Shopify’s infrastructure to keep your dropshipping business running smoothly.

Shopify provides an amazing array of benefits that make it an ideal launchpad for aspiring dropshippers as well as established e-commerce entrepreneurs.

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The downside: Drawbacks of Shopify to consider

Is Shopify Dropshipping Legit

Shopify dropshipping has some challenges and drawbacks too, it’s not all easy and perfect.

There are some potential downsides to think about as well. Being aware of these drawbacks can help you make informed decisions and set realistic expectations.

No Built-In Audience

Unlike marketplaces like Amazon or eBay, Shopify doesn’t have a built-in base of buyers. You are starting from scratch building up your own audience.

  • Driving traffic to your new Shopify store requires effort and investment in marketing and advertising. SEO alone may not cut it initially.
  • Competing with established sellers on Amazon Marketplace can be challenging. Their built-in audience provides them with a huge advantage.
  • It might take a while and some money on advertising to get noticed and succeed with a new Shopify store, especially if you’re in a competitive market.

Additional Fees

Shopify does charge monthly subscription fees starting at $29/month for their basic plan. Here are some other costs to factor in:

  • Transaction fees – Payment processing incurs some extra fees.
  • Payment gateway fees – Gateways like Stripe have an additional cost if using external to Shopify Payments.
  • App costs – Many useful apps charge monthly or per-use fees. These add up.
  • Advertising spend – A budget is needed for marketing to drive traffic and sales.

While Shopify is very affordable, other costs come with running an active dropshipping business. Margins need to be high enough to offset these expenses.

Reliance on Suppliers

With Shopify dropshipping, you are highly dependent on your suppliers for key parts of the business:

  • You must trust them to ship quality products on time to customers.
  • Inventory levels and shipping times are out of your control.
  • If they have quality issues or inventory backlogs, your business suffers.

Scrutinizing your suppliers carefully and managing these relationships is crucial. Poor suppliers can sink your dropshipping business.

Low Margins in Some Niches

“The middleman nature” of dropshipping gets your margins squeezed as compared to traditional retail:

  • Wholesale supplier prices are usually marked up 2-3x for retail.
  • With drop shipping, there is only 1x markup between supplier and customer.
  • Highly competitive saturated niches make even small margins challenging.

Carefully researching and selecting products with healthy margins is important. Avoid competing solely on lower prices because it can lead to a situation where everyone tries to be the cheapest, and that’s not always the best strategy.

Time Investment Required

Profitable dropshipping requires significant time invested in aspects like:

  • Researching trending and winning products.
  • Sourcing and vetting suppliers.
  • Creating marketing campaigns and content.
  • Providing excellent customer service.
  • Order processing and supplier management.

While dropshipping offers flexibility, it also means you need to work hard and stay organized to handle all the different aspects of the business effectively.

When you’re considering Shopify dropshipping, keep in mind that there are some downsides you should consider and include in your business plans. But, being aware of these challenges and addressing them smartly allows you to create a very profitable business on Shopify.

Assessing legitimacy and avoiding scams

When researching dropshipping, you may come across claims that it is just a scam. However, the reality is that Shopify itself is a perfectly legitimate platform.

The concerns around scams typically relate more to finding reliable suppliers. Here are some tips on assessing legitimacy and avoiding pitfalls:

Shopify is Trustworthy

Shopify is a public US company traded on the NYSE (New York Stock Exchange) with a market cap of over $100 billion. They are fully transparent and compliant with regulations.

  • Shopify handles security, payment processing, and infrastructure very reliably. Your data and money are safe.
  • Over 1.7 million businesses trust Shopify globally. Their reputation is excellent.
  • Your Shopify dropshipping business itself operates just like any legal online retail business.
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Examine Suppliers Thoroughly

The dropshipping model means suppliers heavily impact your customers’ experience. Some red flags to watch out for when evaluating suppliers:

  • Unrealistically low prices that seem too good to be true.
  • Lack of transparency about company details or location.
  • Refusal to provide company registration or business license info.
  • Fake-looking reviews or lack of independent reviews.
  • Pushy sales tactics pressuring you to pay quickly.

Take time to thoroughly research suppliers before committing. Test order samples if possible.

Check Company Registration

For Chinese suppliers, look up their company information in registration databases like QiChaCha to verify they are legitimate.

You can search by names, phone numbers, or addresses provided. Make sure the information matches up and the company appears in the national registry.

Read Contracts Carefully

If you’re using suppliers outside of turnkey platforms like Spocket or Dropified, have contracts written up covering fulfillment terms, quality guarantees, refund policies, and more.

Consult a lawyer to ensure supplier agreements protect you and your customers properly in case issues arise.

Operate Legally

On the business operations side, some key areas to ensure you operate legally include:

  • Having proper business licenses and tax registrations filed.
  • Collecting and remitting sales tax according to regulations.
  • Following FTC guidelines about truthful advertising and packaging.
  • Publishing compliant privacy, returns, and other customer policies.
  • Structuring your business properly for liability protection.

Shopify is a trustworthy platform. But do research suppliers thoroughly. Confirm Chinese companies in registries.

Get supplier contracts written up properly. And make sure your own operations meet all legal requirements.

Following these tips will help you avoid pitfalls and create a legitimate, long-term profitable dropshipping business.

Optimizing your Shopify store for success

Launching a Shopify store is easy, but optimizing it for success takes some strategy and effort. Here are tips for making your Shopify dropshipping store flourish:

Choose a Less Competitive Niche

Rather than sell in oversaturated niches like fashion or electronics, consider a more specialized niche.

  • Research niche ideas with growing demand but fewer competitors.
  • Target audiences underserved by current offerings.
  • Focus on narrow niches where you can differentiate.
  • Use tools like Google Trends to validate demand.

Focus on Marketing Best Practices

Stand out from other dropshipping stores with smart marketing techniques:

  • Create social media accounts relating to your niche and post regularly.
  • Run targeted Facebook and Instagram ads optimized for conversions.
  • Build an email list by offering discounts for subscriptions. Send regular promos.
  • Publish a blog with high-quality content that engages your audience.
  • Leverage influencer marketing by partnering with relevant personalities.

Provide Excellent Customer Service

Customer experience is key for standing out and driving repeat business.

  • Respond quickly to questions and concerns.
  • Set up live chat to provide personalized support.
  • Follow up with customers after purchases to get feedback.
  • Make returns and exchanges easy.

Build an Authoritative Brand

Create a memorable brand that builds authority and trust:

  • Choose a brand name and design that relates to your niche.
  • Consistently use high-quality product photos and descriptions.
  • Curate products carefully to reinforce your positioning.
  • Publish helpful content like buying guides related to your products.
  • Get featured in media outlets that cover your industry.

Automate Operations

Automation apps help dramatically simplify running a Shopify dropshipping store:

  • Apps to quickly source and import products from suppliers.
  • Tools to auto-fulfill orders and update tracking information.
  • Services to analyze data and optimize pricing.
  • Email marketing automation.
  • Chatbots to handle common customer inquiries.

The right optimization and focus on best practices set your Shopify dropshipping business up for sustainable success in a crowded market.

Conclusion – Is Shopify Dropshipping Legit, Risky?

The short answer is yes – Shopify dropshipping is absolutely still worth pursuing today.

Even though every business has its risks and difficulties, the advantages of creating a dropshipping business on Shopify are generally greater than the possible disadvantages.

Shopify provides an amazing platform to sell globally while handling all the technical complexities behind the scenes. Their tools enable entrepreneurs to focus on sales, marketing, and product sourcing.

The Shopify ecosystem offers tremendous resources to optimize and automate operations. The overhead to build and run a competitive dropshipping store is lower than ever before.

Before wrapping up let’s have answers to some common questions about “Is Shopify Dropshipping Legit, Risky?“

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FAQs – Is Shopify Dropshipping Legit, Risky?

What are the benefits of Shopify for dropshipping?

Some key benefits of using Shopify for dropshipping include:
Low startup costs – You can launch a Shopify store for $29/month with no upfront inventory costs.
Hosted platform – Shopify handles all the technical backend and infrastructure.
Ease of setup – The process to create a Shopify store is simple and intuitive.
Customizable storefronts – Shopify offers beautiful themes and customization capabilities.
Built-in functionality – Shopify handles payments, shipping, order processing, and support.
Access to global markets – Shopify enables you to sell internationally.
Robust ecosystem – The Shopify App Store offers thousands of useful apps.
Reliable platform – Shopify has proven uptime and security over many years.

What is the downside to dropshipping on Shopify?

Some potential downsides to consider include:
No built-in audience – You start from scratch driving your own traffic vs selling on a marketplace.
Additional fees – Ongoing subscription, transaction, and payment gateway fees apply.
Supplier reliance – You depend on suppliers for inventory, fulfillment and shipping.
Low margins – Dropshipping margins tend to be lower than traditional retail.
High competition – Some niches have many competing dropshipping stores.
Time investment – Dropshipping takes significant effort to manage successfully.

How much does it cost to start dropshipping on Shopify?

The costs to start include:
Shopify subscription – $29/month for the basic plan. Can start with a free 14-day trial.
Domain – Around $14 to buy a domain name. Shopify offers free *.myshopify.com domains.
Payment fees – Transaction fees around 2.9% + $0.30 per order using Shopify Payments.
Apps (optional) – Useful apps typically range from $10-$100/month. Not strictly necessary.
So realistically you can start a Shopify dropshipping store for less than $50/month.

Is it easy to set up a Shopify dropshipping store?

Yes, it is very easy to set up and launch a Shopify dropshipping store. The process includes:
– Sign up for a Shopify account.
– Choose a business name and theme template.
– Customize the design using the drag-and-drop editor.
– Add your products using an app like AutoDS or manual entry.
– Set up payment gateways and shipping methods.
– Configure taxes, domains, and policies.
– Begin driving traffic and making sales.
The onboarding steps are simple and intuitive. No technical expertise is needed.

How do you find reliable dropshipping suppliers on Shopify?

Tips for finding reliable suppliers:
– Search supplier directories like Spocket and Dropified.
– Examine suppliers carefully – read reviews, and order samples if possible.
– Check company legitimacy – verify registration info.
– Ensure quick fulfillment times and order tracking.
– Communicate with suppliers to address any issues.
– For Chinese suppliers, use registration sites like QiChaCha.
– Use escrow payments or contracts to protect yourself.
Take time to properly vet suppliers before selling their products.

Is Shopify dropshipping still profitable in 2023?

Yes, dropshipping on Shopify remains highly profitable for stores that are optimized effectively. The key factors are:
– Choosing a niche with sufficient demand and profit margins.
– Sourcing quality products that stand out from competitors.
– Building an authoritative brand that engenders trust.
– Providing excellent customer service.
– Automating operations for efficiency.
– Driving consistent traffic through marketing and ads.
With the right strategy and execution, profitable Shopify dropshipping stores can be built in 2023 and beyond.

What are some common dropshipping scams on Shopify?

Most scams relate more to suppliers than Shopify itself. Some to watch out for:
– Dropshipping gurus selling overhyped “secrets” for a fee.
– Suppliers selling counterfeit products or sending fake samples.
– Suppliers collecting payment then disappearing.
– Suppliers sending poor quality or wrong items.
– Sales reps asking you to pay outside normal payment channels.
Always thoroughly vet suppliers, use trade assurance services, and consult contracts.

Is dropshipping with Shopify legal?

Yes, dropshipping on Shopify is completely legal. You simply operate like any other online retail business. To stay legal:
– Have proper business registrations and licenses.
– Collect/remit sales tax according to regulations.
– Follow FTC rules regarding claims and advertising.
– Post compliant refund, privacy and terms of service policies.
– Choose legitimate suppliers selling authentic branded products.
As long as you follow standard e-commerce regulations in your region, a Shopify dropshipping business is legal and above board.

That concludes the article “Is Shopify Dropshipping Legit, Risky?”. Hope you enjoyed it. Thanks for visiting.

Hello, I’m Samuel, and I’ve been in the dropshipping business for the past 9 years. Over the years, I’ve had the privilege of helping many novice dropshippers grow their businesses. Based on my experience, I’ve launched this blog to share my insights and knowledge with the dropshipper community.

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