Ever dreamed of running your own online store without the hassle of stocking products or managing shipping? You’re not alone—many aspiring entrepreneurs are drawn to the promise of drop shipping. Oberlo, once a popular tool for connecting Shopify stores with suppliers, made the process even simpler.
Understanding how drop shipping with Oberlo worked can help you grasp the essentials of this low-investment business model. In this article, we’ll walk you through the basics, key steps, and practical tips to get started.
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How to Start Dropshipping with Oberlo: A Step-by-Step Guide
Dropshipping has become a popular way to start an online business without worrying about inventory, packaging, or shipping. Oberlo makes the dropshipping process easier, especially if you’re using Shopify as your eCommerce platform. In this detailed guide, you’ll discover what dropshipping with Oberlo is, how it works, and actionable steps to launch your store. Let’s dive in!
What is Dropshipping with Oberlo?
Dropshipping with Oberlo means running an online store without holding inventory. When a customer buys an item from your online shop, you simply purchase it directly from a third-party supplier—usually from platforms like AliExpress. The supplier then ships the product straight to your customer.
Oberlo acts as a bridge between your store (typically on Shopify) and suppliers, automating many processes. It lets you easily import products, customize listings, and handle orders without heavy lifting on your part.
Why Choose Oberlo for Dropshipping?
Oberlo has become a go-to tool for aspiring entrepreneurs for several reasons:
- Simple Integration: It connects directly with Shopify, making setup fast and efficient.
- Product Importing: With a click, you can add products from suppliers to your store.
- Order Automation: Orders are sent automatically to suppliers, saving you time.
- Inventory & Price Syncing: Oberlo tracks stock and updates prices to avoid overselling.
- Customizable Listings: Edit product titles, descriptions, and images as you like.
Step-by-Step Guide to Dropshipping with Oberlo
Ready to start your business? Here’s a simple roadmap for launching a dropshipping store using Oberlo.
1. Set Up Your Shopify Store
You’ll need a Shopify account because Oberlo is built to work closely with it.
- Sign up for Shopify and choose a suitable plan.
- Pick a store name and select a memorable domain.
- Customize your store’s look with themes and basic settings.
2. Install Oberlo
- In the Shopify app store, search for Oberlo.
- Click “Install” to integrate it with your Shopify storefront.
3. Find Products to Sell
Oberlo offers built-in access to various suppliers, primarily from AliExpress:
- Use the Oberlo product search to browse items by category, price, or shipping speed.
- Assess product ratings, supplier reliability, and customer reviews.
- Select products that align with your niche and business values.
4. Import Products to Your Store
- Click “Add to Import List” on chosen products in Oberlo.
- Customize product titles, descriptions, images, and pricing before publishing.
- Once ready, push them live to your store.
5. Optimize Product Listings
To stand out, uniquely present your products:
- Write original and detailed product descriptions.
- Use high-quality images and consider video demonstrations.
- Highlight shipping times and return policies.
6. Set Competitive Prices
Pricing is vital in dropshipping, so consider:
- Product cost (what you pay the supplier)
- Shipping fees (often passed to customers)
- Desired profit margin
- Market competition
A common formula is:
Retail Price = (Product Cost + Shipping Fee) × 2 to 3
7. Manage Orders Automatically
When a customer orders from your store:
- Oberlo auto-generates the order and notifies the supplier.
- You review and confirm the order within your Oberlo dashboard.
- Tracking details are added once the product is shipped, and customers get notified.
8. Monitor Inventory and Prices
Oberlo updates product stocks and prices in real-time:
- Avoids selling out-of-stock items.
- Automatically adjusts your store’s prices based on supplier changes.
9. Handle Customer Service
Strong customer support builds trust:
- Respond quickly to emails or chats.
- Provide clear shipping and return info.
- Handle complaints or returns politely and according to your policy.
Benefits of Dropshipping with Oberlo
Oberlo brings several advantages to your dropshipping journey:
- Low Startup Costs: You only pay for products when you make a sale.
- No Inventory Risk: No money tied up in unsold stock.
- Time Savings: Automated processes free up your time.
- Scalability: Easily add new products and expand to new niches.
- Global Market Access: Many suppliers ship worldwide.
Challenges and Realities
While Oberlo simplifies dropshipping, be aware of challenges:
- Long Shipping Times: Most products ship from China, so delivery can take a few weeks.
- Variable Product Quality: Quality can differ among suppliers—always test products first.
- Competition: Many stores might sell similar products. Branding and marketing set you apart.
- Customer Expectations: Clear communication about shipping times and policies is essential.
Practical Tips & Best Practices
To boost your chances of success, keep these best practices in mind:
Product Selection Tips
- Research Trends: Use Google Trends, social media, and Oberlo’s trending products feature.
- Sample Products: Order samples to check quality before listing them.
- Focus on a Niche: Serve a specific market for more targeted marketing.
Store Optimization
- Branding Matters: Create a strong logo, cohesive color scheme, and consistent messaging.
- Mobile Friendly: Ensure your store looks great on smartphones.
- Clear Policies: Display shipping, refund, and privacy policies prominently.
Customer Service
- Respond Promptly: Aim for same-day replies to customer inquiries.
- Feedback Loop: Encourage reviews and use feedback to improve.
- Transparent Tracking: Always provide tracking numbers and shipping updates.
Automate Routine Tasks
- Let Oberlo handle inventory, order placement, and tracking updates.
- Use Shopify apps for email marketing, abandoned cart recovery, or loyalty programs.
Managing Shipping and Costs
Shipping is a crucial aspect of customer satisfaction and costs:
Shipping Methods
- ePacket Shipping: Popular for fast, affordable shipping from China to many countries.
- Standard Shipping: Cheaper but slower—set customer expectations accordingly.
Cost Optimization Tips
- Offer Free Shipping: Factor the shipping fee into your product price for psychological appeal.
- Minimum Order for Free Shipping: Encourage higher cart values.
- Bulk Importing: Some suppliers offer discounts for larger order volumes.
Scaling Your Dropshipping Business
After you’ve handled the basics, think about how to grow:
- Introduce upsells and cross-sells on your store.
- Launch retargeting ad campaigns to bring back abandoned visitors.
- Analyze best-selling products and source similar high-demand items.
- Consider creating your own branded products for higher margins.
- Use analytics to track trends and optimize marketing.
Frequently Asked Questions (FAQs)
What exactly does Oberlo do in dropshipping?
Oberlo makes it easy to add and sell products on your Shopify store without managing inventory. It automates product importing, order placement, and syncing inventory between your store and suppliers.
How much does it cost to use Oberlo and Shopify together?
Shopify has monthly subscription fees, with plans starting at a basic level. Oberlo has offered both free and paid plans, catering to different store sizes. Always check the latest pricing to plan your startup budget.
Can I sell products from suppliers outside of AliExpress with Oberlo?
Oberlo primarily specializes in products from AliExpress suppliers. While it’s optimized for AliExpress, you should check the app or platform for the most current sourcing options if you want to work with other suppliers.
How do I handle returns and refunds when dropshipping with Oberlo?
Set clear store policies and communicate them with customers. For returns, you typically coordinate with your supplier. Refunds can be issued once the supplier confirms receipt of the returned item. Always support your customer and aim to resolve issues promptly.
Is dropshipping with Oberlo saturated or still profitable?
While the dropshipping model is popular and competitive, success is possible with the right product selection, branding, marketing, and customer service. Focusing on a specific niche and providing excellent support can set your store apart from others.
Conclusion
Starting a dropshipping business with Oberlo and Shopify is an accessible way to enter eCommerce. By following clear steps, researching products, and focusing on customer experience, you can build a sustainable online store. Remember, while automation eases operations, your dedication to branding and service creates long-term success. Embrace constant learning and adapt to changes for the best chance at growth.
If you’re ready to begin, take these steps one at a time, stay organized, and focus on delivering value to your customers. Happy dropshipping!
