Dropshipping is very much similar to the affiliate marketing business. In a web-based affiliate marketing business, we have a website where affiliate products are displayed. There is a specific commission against each product. We earn commission where there is the sale of each product we say on our website. However, the issue is that this commission is lower and as much as merely 3% to 5%.
Dropshipping, on the other hand, is a very profitable business. Here, we still have a web store and don’t keep inventories as in the affiliate businesses. However, when we receive orders from our customers on our web store, we transfer those orders to our suppliers. Our supplier doesn’t know how much profit we keep for each order. This profit might be as much as 100% of the cost price or even more than that.
Dropshipping Store Through Shopify
Shopify is a content management platform that facilitates the dropshipping business greatly. On a Shopify store, we can display dropshipping items taken from AliExpress and many other suppliers. Tools and Shopify plugins help us manage and communicate the products on our Shopify store. These plugins also help us during the order processing procedure.
Another big challenge we face while establishing a dropshipping business is integrating a payment processor on our web store. Payment processors help us charge payments against customer orders. Shopify provides us with the suggested payment processors pertain to our region. Conclusively, we can say that dropshipping business is a remarkable idea that if we implement through the Shopify platform, our success rate is improved, and we can expect significant revenue.