How To Set Up Magento Dropshipping Business
October 11, 2021 Sanjay Dabhoya

Ecommerce websites have been at the peak of popularity for being the best place for having all types of niche products and providing all services.

When you own an e-commerce store or a business with a backlog of orders, you can think about other ways to grow your business by finding ways that wouldn’t demand significant investment and would rather be easy to operate with great flexibility.

It’s one of the most efficient ways to grow your e-commerce business that you may use Dropshipping. Dropshipping is an excellent method to diversify your product range, organize your inventory and orders, or launch a new online business.

Let us delve deeper into the concept of drop shipping and how to set it up for your business.


What is Magento Dropshipping?

Magento Dropshipping is a standard e-commerce business strategy. Business owners buy things from third-party vendors, who are typically the distributors or manufacturers who keep stocks of the materials.

Then the shop owners sell them on their websites or pages. This technique can assist business owners in reducing the expenses and risks associated with stocking their inventory.

And one of the best parts of this strategy is that the local supplier disappears. Your purchaser will receive the item in the same condition as if it had been shipped directly from you.

Dropshipping is a retail fulfillment strategy that allows a firm to operate without having to manage or maintain the inventory, or own a place for storing or warehouse their products, or even undergo the process of shipping the products to their customers.


How Magento Dropshipping works?



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The process of working of Magento dropshipping can be explained in 3 steps:

    1. On the Magento store, you sell any product.
    2. After the order has been received from the customer, it is then forwarded to the supplier, manufacturer, or the wholesaler who has the on-hand inventory role.
    3. The order is then picked, packed, and shipped to the consumer in your name by your vendor or the supplier.

One of the best things about the Magento dropshipping is that the buyer wouldn’t even notice the seller, and they would receive it as if you had shipped it straight away.


Advantages of Dropshipping

Advantages of DropShipping

1. Wide Range of Selling products: Dropshipping allows you to access and sell a wide range of products. Wholesalers offer a vast inventory of various commodities, so you can quickly grow your business without worrying about running out of supplies. The merchants also provide a broad range of products for small businesses.

2. Location Flexibility: You do not require any particular region or location to sell the products as long as the locations are within your reach. You can select providers or the vendors closest to the target region to expedite the delivery of your products.

3. Reduced cost of Start-up: Businesses that use a dropshipping method don’t have to invest in inventory management or pay for a storage facility. Further, they also don’t have to spend much time arranging their inventory or recruiting a workforce to fulfill orders. Dropshipping is therefore ideal for those who are new to the eCommerce business. A dropshipping business is an option for those who do not have the necessary cash to launch a typical retailing firm.

4. Scalability: Order processing and fulfillment do not affect a physical facility’s size or the number of employees necessary for shipping orders. Thus, a dropshipping business can expand quickly. Retailers might gain significantly from dropshipping for this alone, as they endure variable sales owing to other causes, including seasonal considerations.

5. Easier Inventory Control: Dropshipping has the best advantage of reducing any form of management work that the retailers would generally experience by eliminating the need for assigning any physical inventories. The retailers do not have to handle inventory management or engage in the management of the infrastructure that stores it, or manage shipment that has been outsourced to suppliers.

6. Easy Business Launching: Dropshipping has a plethora of advantages to provide, and the easy method of operation and setup up makes it easier for starting a business. With a modest investment, you may start an online business and sell the products locally and abroad.


Why Choose Magento Dropshipping?

Magento Dropshipping has several practical reasons as to why they should be chosen, and some of these are:

  1. You do not need to be concerned about maintaining and managing product inventories with Magento.
  2. Magento Dropshipping results in lower overhead costs and saving you money both on rent and inventory management for storing and stocking your products. This would ultimately improve your conversion rates and returns on investment.
  3. You can sell a wide range of products with Magento for Dropshipping. It aids in the expansion of your product range and the servicing of your niche market. This also provides advantages for small businesses.
  4. Due to time limits, expensive shipping costs, and additional fees, delivering requested things outside the country is somewhat inconvenient. As a result, multiple sellers closer to the buyers can agree to provide the things sooner.
  5. The easy setup, low investment factors make it easy to start a Magento dropshipping business.


How to Start Dropshipping with Magento?

Now let us look at the process of dropshipping with Magento.

1. Decide on the Dropshipping business concept

Before you start dropshipping with Magento, the first and primary step is choosing and deciding on a dropshipping business concept and idea. You need to go through the list of concepts and ideas associated with the products you want to sell.

Furthermore, you need to necessarily conduct market research that would aid you in identifying the trending and in-demand products. This would also make you understand the market competition and the trends, and you can prepare yourself accordingly.

2. Understand and analyze your competitors and their strategic methods

Next, you need to research your market competitors and their strategies to determine the viability and profitability of their proposal. You shouldn’t base your research on assumptions; rather, be aware of what they sell and how they market it. This examination will assure your store’s competence in comparison to the competition.

3. Choose on Reliable Dropshipping suppliers

Identifying a trustworthy dropshipping provider is the next stage in the process. And for finding such suppliers, you would need to look for suppliers who can provide you with the products you desire and the solutions that best meet your needs.

Your supplier can be based on your business needs, i.e., either global or domestic. Check out their products to see if the quality, shipping time, policies, and services are up to par and if they are the best suited for your business.

All of these aspects are vital if your company is to run smoothly. You could also approach the providers who best fulfill your needs and propose a partnership.

After identifying and selecting some specific vendors, you can start by testing their items by ordering samples. This shall provide you with an idea of whether they are worth considering. You can also request custom services, such as custom labeling, to enhance your package and promote your business.

4. Develop an Online Store for providing a wide range of products

After you have decided and confirmed the suitable supplier, you need to now invest in the website where you would have the option of providing a wide range of products. You can order your eStore as per your requirements and can be hosted by any reliable web developer.

You may outsource all of these chores to a reputable eCommerce development company that would have expertise and experience in handling such matters. The people you hire to build an online shopping website should have experience doing this. You can look at their past work to see if it is good. If they have done projects before, you can even contact the people who worked on the projects.

5. Promote and Optimise your Store

When we get to this point, the establishment of your eCommerce store will be practically finished. This is the perfect time to market and optimize your eStore to receive your first purchases and expand your brand.

The promotion of your e-commerce store shall largely depend on your budget. Accordingly, you can think of promoting it via display ads, influence marketing or Facebook ads, or explore other options.

Ensure to pay close attention to your content’s SEO performance and functionality because it is a cost-effective strategy to improve your website’s rating. Also, ensure to employ free marketing methods such as social media marketing or e-mail marketing to reach out to prospective clients and customers.

Also Read: What Are The Advantages of Social Commerce?


Wrapping Up

The eCommerce platform you want and choose will determine the profitability of your dropshipping business. Dropshipping is a distinctive form of selling in which the store owner does not keep goods; instead, they send these orders to the suppliers, who then send or ship these products directly. This does the business, not in charge of the inventory but rather they would be in charge of delivery.

Dropshipping is simple to set up and involves minimal cost and effort. Magento comes with several tools that make inventory tracking easier.

In addition, Magento’s tax calculation mechanism is very robust and accounts for all factors. These all factors make it the best option for e-commerce stores.

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Sanjay Dabhoya

Founder & CEO

Sanjay is an entrepreneur who has been contributing to the overall vision of the organization as a mentor. Apart from being an entrepreneur, he is a developer, trainer and reader. His unique and innovative ideas has helped the organization and the clients to thrive and achieve a progressive business objective.

Read more posts by Sanjay Dabhoya

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