Dropshipping companies will last

Oberlo Dropshipping FAQ

If you're interested in ecommerce, you may have heard of dropshipping as well. Dropshipping has grown in popularity tremendously lately. For many entrepreneurs, running their online shops with this business model has already proven to be extremely successful.

Even so, dropshipping is still a fairly new concept for many budding entrepreneurs around the world. In this article, we aim to answer some of the most frequently asked questions, such as: B. What exactly is dropshipping and what an online business is. We will also cover topics related to product suppliers and the operation of an online shop in general.

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Dropshipping FAQ:

What does dropshipping mean?

Dropshipping is a business model that allows you to run your shop without ever having to build your own inventory. Once you've made a sale, your supplier will deliver your products from their warehouse straight to your customers' doorstep. You don't have to worry about storing, packing or shipping your products.

How do you start a dropshipping business?

If you've been wondering the best way to start your own dropshipping business, we have good news. The whole thing is relatively simple.

You need to set up your own shop on Shopify, install Oberlo, add products and choose a theme. Then you are ready to go and can start your own dropshipping business.

How does dropshipping work?

Dropshipping is a simple business model. As soon as a customer places an order in your shop, you simply buy the product from your supplier and instruct them to deliver the product directly to your customer. The best part: You can run your dropshipping business from anywhere in the world.

Is Dropshipping Profitable?

Oh yes, dropshipping can actually be very profitable for merchants. The key to profitability lies in the business model: since you don't have to manage your own inventory, you save all the costs that a traditional retailer or e-commerce store would have.

Less costs mean more profit. You can further increase your margins by pricing your products in such a way that both your marketing and shipping costs are covered.

Do I have to buy products for my online shop?

No, the nice thing about dropshipping is that you don't have to hold any inventory yourself. You simply order the items from your supplier as soon as a customer has bought from you. However, we always recommend purchasing sample products from your suppliers before uploading them to your online store to ensure that you are satisfied with the quality of the product and the service provided by the supplier.

Do I have to register a business for dropshipping?

You must register a business as soon as you make your first sales. This is because the majority of payment providers will require you to provide information about a registered business.

Keep in mind that business registration varies from country to country. It is recommended that you contact your local authorities or an IHK in your area for more information.

Oberlo FAQ:

What is Oberlo?

Oberlo is a marketplace where you can easily find great products for sale on the internet.

With just a few clicks you can access a variety of different products here. Whether fashion, electronics, toys, cosmetics or the next trend product - Oberlo makes it easy for you to find products from suppliers from all over the world and to integrate them immediately into your online shop.

Once you've made a sale, your supplier will deliver the products from their warehouse straight to your customer's doorstep. You no longer have to worry about storage, packaging or shipping of your products. Instead, you can focus on the things that really important are: developing your brand and generating more sales.

Adding products to your shop is free with Oberlo. Easily choose the perpetual free plan to start dropshipping today.

How does Oberlo work?

Oberlo allows you to import products into your Shopify store with just a few clicks. You don't have to worry about shipping and packaging as the suppliers ship products directly to your customers.

Is dropshipping legal?

Yes, dropshipping is 100% legal. Companies can set up their online shop and sell products online without having to store or ship the physical items themselves.

Is Oberlo free?

Oberlo's Explorer plan is 100 percent free and you can use it for an unlimited number of orders. But keep in mind that Oberlo only works with Shopify, for which you have to purchase a paid plan.

Is Oberlo available in my country?

Yes! With Oberlo you can run your dropshipping shop from any country. With a dropshipping business, you don't have to store or manage any physical inventory yourself. Therefore, your geographic location does not matter.

Is Oberlo also available in German?

Yes! Oberlo is available in German and many other languages.

What are the delivery times at Oberlo?

Delivery time depends on the original location of the product and the final destination. It can take several days or a couple of weeks. There are several shipping methods available for most products.

Is Oberlo only available for Shopify?

Yes - Oberlo is an app that works exclusively on the Shopify platform. This means that you cannot use Oberlo on stand-alone websites or other e-commerce platforms.

Can I use Oberlo with Shopify's Lite plan?

Yes. Oberlo also works on Shopify's Lite plan, which allows you to sell products through Buy Buttons, which in turn are linked to a checkout functionality on Shopify.

Can I use Oberlo on my own website?

Oberlo was developed exclusively for the Shopify platform. However, there is a Shopify tool called the "Buy Button". This allows you to embed products or a collection of products on your own website.

FAQ for starting your online business:

How much money do I need to start a dropshipping business with Oberlo?

The best part about starting a dropshipping business with Oberlo is that you only need minimal seed capital. It is important, however, that you factor in all of the costs in your planning beforehand: the Shopify subscription, your marketing budget, and any additional funds you will need for your first orders. If you z. For example, buying a custom domain will cost a small fee.

However, you shouldn't forget one thing: Starting a dropshipping business is much cheaper than setting up a standard online shop. You don't have to source products in bulk or worry about delivery. It is still one of the best ways to run your own online shop and generate income as quickly as possible.

How can I change the currency in my shop?

Oberlo imports all products in US dollars. However, you can easily change your currency. The easiest way is to download a currency converter app from the Shopify App Store. After that, all you have to do is change the currency symbol in your Shopify settings.

Should I start with a general or niche shop?

One of the great things about Oberlo is that you can dropshipping practically anything. However, we recommend budding entrepreneurs to try a niche shop first. There are several advantages that speak in favor of starting a niche shop: less competition, easier targeting, more flexibility and much easier marketing.

What profit margins can I expect?

The answer to this question depends a lot on the products you sell.

If you buy cheaper products for around 5 EUR, you can be successful with a four to five times premium. That means that you would sell the corresponding products for 20-25 EUR. However, we do not recommend this approach for more expensive products. If you z. For example, if you buy a product for 30 EUR, we would suggest 60 EUR as a reasonable price.

In general, we recommend setting your prices at least $ 10 above the purchase price. This should help you make a profit while also covering your marketing expenses, Shopify subscription, transaction fees, and all other fees.

Reading tip: Pricing policy: Find the right price for your product

Another rule of thumb is to look at your competitors' prices for similar products. You can then use this information as comparison values. You should continuously monitor your product prices and then change them if you think it could improve your conversion rate.

How many products should I import into my shop?

Most of Oberlo's success stories revolve around dropshippers who focus on several core products in their shop. We recommend that you import 10–200 products into your shop. That way, customers aren't distracted and can find what they're interested in. However, you can import up to 30,000 products with Oberlo's Pro plan. The maximum number of products available in your shop is therefore determined by you alone.

Can I use my suppliers' product images?

Yes. It is actually common for dropshipping entrepreneurs to use their suppliers' images in their shop. However, most of them remove any logos, watermarks, or brand names from the product images. If you want to be on the safe side, you can of course also ask the supplier for permission in advance.

Pro tip: We always recommend taking your own product photos. If you want to learn more about photo editing, check out our article on photo apps for iPhone and Android.

How do I generate my first sale?

Getting your first sale with a new online shop is a real challenge - no matter how much experience you have as an entrepreneur. Once your shop is up and running, it is important that you provide it with sufficient traffic. There are several different ways you can accomplish this.

First, we recommend using free social media platforms like Facebook, Twitter, and Instagram. There you can publish appealing content that will encourage your audience to visit your shop. You can post links to your shop in relevant forums, Facebook groups, and other online communities where your target audience is. However, it is better to be more cautious about this so as not to directly gain the reputation of being a spammer.

Another great way to generate traffic is through influencer marketing. Influencers are people who are able to influence purchasing decisions and the interactions of certain groups of people. If you choose this method, you should rely on influencers who have a similar audience.

You can also use paid marketing channels to drive large amounts of traffic to your shop. These include B. Advertising on Facebook or Google AdWords. However, you should inform yourself thoroughly before you start advertising on these platforms. After all, you want to avoid wasting important start-up capital on actions that ultimately don't bring any results.

Once you've started generating traffic for your shop, sooner or later you'll see your first sale. After all, every visitor to your shop is also a potential customer.

How long does it take to make the first sale?

This mostly depends on yourself. You can make your first sale on your first day, after a month, or after a year. Three different factors are decisive for this: the success of your marketing activities, the amount of work you invest in your shop and the target group you are addressing.

Can my address be affixed to the consignments instead of the supplier's address?

Unfortunately, suppliers do not currently offer this service. Due to customs matters, it is necessary that the delivery address of the supplier appears on the package.

Are customers bothered by longer delivery times when shipping?

If you clearly communicate your delivery times, your customers won't mind waiting a little longer for their products to arrive. Make sure, however, that you formulate your shipping conditions unambiguously and present them to the customer in a prominent place.

In addition, we recommend that you offer free shipping. On the one hand, this will help you convince customers to buy. On the other hand, customers will have more generous expectations when it comes to delivery times. We also recommend using ePacket delivery so that your products can be shipped as quickly as possible.

If a customer orders more than one product, will they be delivered in separate packages at different times?

If one of your customers orders several products, but they come from different suppliers, the items will be sent in separate packages. However, this is unlikely to bother your customers. Ultimately, some of the largest e-commerce companies in the world also deliver multiple packages on the same order. If a customer complains about this, let them know that your distribution centers are worldwide and that this is the fastest way to get their products.

Why should someone buy from me instead of directly from the manufacturer?

Because you are just better!

As a shop owner, you offer your audience an individual sales platform to easily buy great products. That alone distinguishes you from a manufacturer.

Plus, you're building a trustworthy brand with your products, great design, and engaging content. All of this will convince your potential customers to buy into your shop.

Can i customize my products?

No, at the moment Oberlo does not support customization options, neither for products nor for packaging. However, we are working to offer this option in the future.

Why don't I see my shipping costs?

By default, shipping costs are not imported with the product as they are only for you. You should therefore set up your shipping settings in Shopify. Please note that each product has a different shipping price. It is therefore easier to select a few destination countries and calculate the average shipping costs based on them.

Can I B. Use DHL as the shipping service provider (stored in my shipping settings)?

No, shipping through these providers is not possible as they are not compatible with Oberlo. The shipping methods, prices and times are specified by the individual suppliers. Accordingly, you cannot offer any other shipping methods.

Can i sell anywhere?

Yes. However, it is better to select some target countries and then focus more on them. This makes it easier to calculate shipping costs, optimize your marketing, and reach customers more efficiently.

Can I return items or get a refund?

Yes. Please note, however, that each case is individual and there are no general rules. The very first step is to contact the supplier and explain the problem.

Shopify FAQ:

How do you set up a Shopify store?

If you're looking to start your own Shopify store, we recommend our guide to Shopify dropshipping. Inside you will find everything you need to start your own Shopify store, as well as lots of details about how Shopify works.

What do I do after I import products?

Once you've created your shop and imported products, you'll need to choose one of the many top-notch Shopify themes. After that, you should focus on creating an effective marketing strategy. We recommend using Facebook advertising, as this offers excellent opportunities, especially for dropshippers. You will also be able to effectively set your shop apart from the crowd.

Can I start making profits during the 14-day Shopify trial?

No, as long as you are signed up for the trial version of Shopify, you cannot go live with your shop. You'll need to choose a Shopify plan first, then remove your shop password or take orders. Note, however, that even if you choose a plan, Shopify won't charge you until your trial ends.

Can I change the name of my Shopify store later?

Yes! You can change the name of your Shopify store at any time. To do this, go to "Settings"> "General"> "Shop Details" in your Shopify account.

Please note that you cannot change your Shopify username or the “myshopify.com” URL you use to log in.

Would you like to find out more?

Would you like to learn more about dropshipping or any of the aspects discussed here? Then feel free to let us know in the comments below.