How to Start Dropshipping in 2020 Your All Killer No Filler Guide How to Build Your Shopify Store in an Hour
How to Start Dropshipping in 2020: Your All Killer, No Filler Guide How to Build Your Shopify Store in an Hour Skip to content
When shouldn’t you offer free shipping: You’re trying to increase average order value (AOV). AOV or average order value measures the average amount a customer spends on your website. When the focus is on increasing AOV, you’ll still offer free shipping but there’s a catch. The customer must spend a certain amount of money before they can access free shipping. Common thresholds include $25, $35, $50 and $100. When the shipping costs are too high. Another time when you shouldn’t offer free shipping is when the shipping costs are too high. For example, when products are delivered within seven days, it’s often regarded as “express shipping,” which increases the cost. 🏆 From the Pros Dropshipping pros Rodney Zachariuk and Kory Szostak are long-time besties who made $346,071 within nine months of launching their fantasy gaming store. They had great results when they started using a shipping threshold. “We did a ‘free shipping when you spend $50’ offer. We saw a huge increase in our average order value, which was massive. I think our average order value before that was $12-14, and now it’s about $35-40. The margins you make on an order like that – you don’t have to hold your breath until you make your next sale.” Should I offer free shipping, a free shipping threshold, or free plus shipping? The best way to answer the question is to test all three methods on your store. You can try one method for a few weeks and compare it to another method shortly after. For example, you offer free shipping on all products for a month. The month after that, you can switch to free shipping on orders over $35 next month onwards. Then you can compare the revenue made in the first month with the revenue made in the second. This should give you a good idea of what shipping method to use for your store. How to set up shipping in Shopify In Shopify, you’re required to enter an address for the “Shipping origin,” and this should be your business address (which is probably your home address too, unless you decide to rent a mailbox). But don’t worry, customers won’t see this once we change the settings. First, delete the existing pre-set shipping zones. Click “Edit” next to the pre-existing zones. Now Scroll down to the bottom and click “Delete zone” and then “Delete shipping zone” in the confirmation window that pops up. Repeat for all of them (there are usually two – one for “Domestic” and one for “Rest of world.”) Once it’s clear, click “Add shipping zone.” If you’re offering free shipping, just type that in. Customers won’t see this label. You can add the countries you plan to ship to. Just add “Rest of world” if you’re ok with shipping to other places. Go to the “Add rate” in the “Price based rates” section. Here, you can select “Free shipping rate” if you plan to include shipping in your prices. If you want to charge customers for shipping, you can add a flat rate here instead. (In this case, change the name to something like “Flat rate $2 shipping” so it accurately reflects your plan.) Click done. When everything’s set up, don’t forget to click “Save” as always.
How to Build Your Shopify Store in an Hour
Chapter 5 by Amanda Gaid & Adeel Qayum 30 Jun, 2020 Adeel here. The time has come. Now we’re going to start building your store! Shopify is a fast and easy way to get online and start selling. Using Shopify, you can get access to an admin panel where you can add products, set shipping prices, and even customize the design. Of course, I don’t expect you to make the perfect store upfront. When you’re a first-time dropshipper, you can waste a lot of time there before you even know what works. Like we mentioned earlier, the formula should be to start small now, then learn and improve along the way. So the first step is to simply build your ecommerce store. You can dig into things like logo designs and ad campaigns, once you have the basics. 🏆 From the Pros Dropshipping pro Ross Madden also believes in the power of a steady and stable approach. He went through three failed stores before finding success with a store selling charcoal-related beauty products – a success that earned 30,000 sales, to be exact. “My advice is to not start off big. One thousand products on your website sounds impressive, but you don’t know the workload involved in it, and it will put you off. With Charcoal Beauty, I launched with only six products. Once it’s up and running you can add more products.” In this chapter, I’m going to share step-by-step how to build a Shopify store in under an hour. No bells and whistles, just what you need to get started and build your momentum. Start selling online now with Shopify Start your free trialStep 1 Create Your Store 10 Minutes
Pick a Name
Picking a name is important, but don’t spend too much time on it. Think of something random and simple. For example, you could opt for a name like “PetsOne Shop” or “The Pup Store” – that might work while you’re running a pet supplies business. I recommend adding “store” or “shop” because you will need to find an available internet address (domain). It’s easier to find an available one when there are several words in the name. A useful tool for coming up with a dropshipping store name is the Oberlo Business Name Generator. You can add a word or two that you’d like to have in your ecommerce store name and it will provide you recommendations. Then you can simply scroll through the options and select your desired business name, and launch your business. Not only is the Oberlo Business Name Generator free, but it’s also extremely easy to use. That’s one less thing to worry about when starting your own business. Additionally, make sure the .com domain name is available for your business. Why? It’s simple, “.com” has been around since the start of the Internet, and most professional brands use this type of domain as well. 🕒 Tip Time Use Shopify’s Domain Name Registration tool to search for available domains. You can search for domain names, check how much they cost, and buy and install them to your store too.Create a Shopify Account
Shopify lets you create an online store in just a few clicks. Here’s what you need to do: Log into the Oberlo account you made in Chapter 1. Go to your dashboard and click “Create or Connect a Store” in the area that says “Step 1.” You’ll get a popup that asks you if you have a store already. Click “No, I don’t have a store yet.” Then click “Create your Shopify store.” Keep this window open, as you’ll be coming back to it in step 3! You’ll automatically be taken to Shopify.com. Click “Start free trial” in the top right corner of the homepage. Enter your email, create a password and business name, and click “Create your store.” Keep this window open too. 🕒 Tip Time There are a whole lot of Shopify stores, so your favorite store name might be taken. Don’t worry, because if you buy a custom domain URL later on and connect it, no customers will ever see this name. Just keep it professional because your Oberlo suppliers will see this name! Go back to the Oberlo window. There will be a new popup asking you to enter the store URL. Copy and paste the URL from the Shopify window. This will be the store name you typed in, except with dashes instead of spaces between the words. So the store URL for my store Makeup Den is makeup-den. When you’re done, click “Connect.” You’ll then be taken to your Shopify dashboard, and asked to install Oberlo into your Shopify. Scroll down and click “Install app.”Step 2 Configure Your Settings 15 Minutes
You’ll need to set up a few things to get the store running smoothly. Let’s run through the settings. In the bottom left corner of the dashboard, click the “Settings” button with the gear icon. First, go to “General” and fill out all your store details.Set Up Taxes
Then, go to “Taxes.” Select if you want to just include taxes into your prices, or if you want the customer to pay for taxes based on the location they’re making their purchase from. In the US, this would be based on their state/county/city. In other places, this might be based on their country. Most dropshippers choose to include taxes into their prices. This is usually my recommendation too. Check the appropriate box and click “Save,” go to “General” and fill out all your store details.Set Up Payments
I’m a fan of using Shopify Payments and PayPal Express (for US customers). They make it super simple for you to get paid, and they’re lightning fast to set up. ⚡️ Some of the other payment gateways can take weeks to set up completely. So let’s do Shopify Payments first. Go back to settings and click “Payment providers.” Click “Complete account setup” to use Shopify Payments. Fill in your personal details, including: Business details Personal details Product details (just a quick description – like “Women’s fashion accessories store”) Customer billing statement (how you want your company to be listed on their credit card transactions) Banking information (bank account and routing numbers) Double-check and make sure it’s all correct, then click “Complete account setup.” Next, set up PayPal by going to the “Payment providers” page and click the “Activate” button in the PayPal section. To set it up, click the “Activate” button in the PayPal section of the “Payment providers” page. Click “Save” and you should be good to go.Set Up Checkout
Let’s set up the checkout process for your customers. Here are my recommendations for settings for new store owners: Customer accounts ➜ Accounts are optional Customer contact To check out ➜ Customers can only check out using email Form options Full name ➜ Require first and last name Company name ➜ Hidden Address line 2 ➜ Optional Shipping address phone number ➜ Required Order processing While the customer is checking out Use the shipping address as the billing address by default Enable address autocompletion After an order has been paid ➜ Do not automatically fulfill any of the order’s line items After an order has been fulfilled and paid ➜ Automatically archive the order Email marketing ➜ Show a sign-up option at checkout Abandoned checkouts ➜ Automatically send abandoned checkout emails Send to ➜ Anyone who abandons checkout Send after ➜ 10 hours (recommended) Note: You’ll learn more about abandoned cart emails in Chapter 9. Be sure to click “Save” when you’re done.Set Up Shipping
Let’s talk about free shipping. You know customers love it, but is it the right choice for your business? 🤔 To help you answer the question, I’m mentioning a few scenarios where offering free shipping makes good sense (and where it doesn’t). We’ll also see how it compares to free shipping threshold and paid shipping. When should you offer free shipping: You’ve calculated the costs and can afford to. Sometimes, dropshipping suppliers offer ePacket, which may not be free but has a low cost. What you could do is include the ePacket’s price in your retail price and offer free shipping to your customers. Your competitors offer it. If other brands in your niche are offering free shipping, you should offer it to stay competitive. But even if they don’t, you might be able to have a competitive edge over competitors if you do. You’ve adjusted product costs to accommodate free shipping. If you need to pay for shipping, you can include the shipping cost into your product cost. Use Oberlo to bundle the prices (cost of goods + shipping fees) into one retail price. This will help you make a profit and also save your customers from getting sticker shock. 📖 Ecommerce Dictionary sticker shock: Shock or dismay when people find out the price of a product is much higher than expected.When shouldn’t you offer free shipping: You’re trying to increase average order value (AOV). AOV or average order value measures the average amount a customer spends on your website. When the focus is on increasing AOV, you’ll still offer free shipping but there’s a catch. The customer must spend a certain amount of money before they can access free shipping. Common thresholds include $25, $35, $50 and $100. When the shipping costs are too high. Another time when you shouldn’t offer free shipping is when the shipping costs are too high. For example, when products are delivered within seven days, it’s often regarded as “express shipping,” which increases the cost. 🏆 From the Pros Dropshipping pros Rodney Zachariuk and Kory Szostak are long-time besties who made $346,071 within nine months of launching their fantasy gaming store. They had great results when they started using a shipping threshold. “We did a ‘free shipping when you spend $50’ offer. We saw a huge increase in our average order value, which was massive. I think our average order value before that was $12-14, and now it’s about $35-40. The margins you make on an order like that – you don’t have to hold your breath until you make your next sale.” Should I offer free shipping, a free shipping threshold, or free plus shipping? The best way to answer the question is to test all three methods on your store. You can try one method for a few weeks and compare it to another method shortly after. For example, you offer free shipping on all products for a month. The month after that, you can switch to free shipping on orders over $35 next month onwards. Then you can compare the revenue made in the first month with the revenue made in the second. This should give you a good idea of what shipping method to use for your store. How to set up shipping in Shopify In Shopify, you’re required to enter an address for the “Shipping origin,” and this should be your business address (which is probably your home address too, unless you decide to rent a mailbox). But don’t worry, customers won’t see this once we change the settings. First, delete the existing pre-set shipping zones. Click “Edit” next to the pre-existing zones. Now Scroll down to the bottom and click “Delete zone” and then “Delete shipping zone” in the confirmation window that pops up. Repeat for all of them (there are usually two – one for “Domestic” and one for “Rest of world.”) Once it’s clear, click “Add shipping zone.” If you’re offering free shipping, just type that in. Customers won’t see this label. You can add the countries you plan to ship to. Just add “Rest of world” if you’re ok with shipping to other places. Go to the “Add rate” in the “Price based rates” section. Here, you can select “Free shipping rate” if you plan to include shipping in your prices. If you want to charge customers for shipping, you can add a flat rate here instead. (In this case, change the name to something like “Flat rate $2 shipping” so it accurately reflects your plan.) Click done. When everything’s set up, don’t forget to click “Save” as always.