Complete Business Plan for Shopify Dropshipping

May 20, 2021

Complete Business Plan for Shopify Dropshipping

I’m drafting this complete business plan for shopify dropshipping, keeping all my years of experience with dropshipping and shopify in front of me. I will try to answer any misunderstanding that might arise in your mind.

There are 5 phases of Shopify Dropshipping project and some of these phases are continuous. 

Phase 1: Research Phase

Phase 2: Store Development

Phase 3:  Marketing 

Phase 4: Search Engine Optimization

Phase 5: Management

PHASE 1 : RESEARCH

Research is the first but most important phase of dropshipping. Not just dropshipping but for any business, research is the most important thing. There are three categories for this research phase

1- Niche Research

2- Supplier Research 

3- Product Research

NICHE RESEARCH

In this phase, We research the niche for the store and research the best store type for the store. My method of researching Niche includes manual research with Flippa, Shopify Exchange, Google Trend and some niche hunting tools.

Then we research the best store type for this project, whether we should opt with one product store or Niche store or General Store.

My suggestion would be to go with a niche store and make it as a brand. Because there are thousands of dropshipping stores but few of them perform well because they build a brand and have return customers. 

If we keep dropshipping in mind then we’re always low on profit, because we need to pay product cost to supplier, shipping cost, virtual assistant fees etc. And if we don’t build a brand and have return customers we won’t be able to make good profit from dropshipping. 

One product store is good for quick sales, If we find the perfect winning product and run ads for it. Let's say our ads perform very well and we get alot of sales, but there will come a time when a product will lose all its potential and get saturated. And if we switch to other products then obviously we will lose our brand reputation. 

Estimate Time For Niche Research: 5 Hours (with complete report)

 

SUPPLIER RESEARCH

Once we decide on a niche then we need to find some reliable suppliers! We should try to find a supplier from aliexpress so our store can be automated. There are many reliable suppliers on aliexpress but we need to find them and reach out to them. We should use a supplier having Warehouse is in the United states so that delivery time won’t be more than 10 days. 

Estimate Time For Supplier Research: 5 Hours 

 

PRODUCT RESEARCH

After finding a reliable supplier we need to find the products that are trending and have the potential to be a winning product. People say that they will pick winning products for you. But in reality, someone's winning product won’t be our winning product. We need to research our own winning products and test them with marketing ads to find the winning product. We should do manual product research and use product hunting tools like nichescraper, ecomhunt etc for finding products.

Estimate Time for Product Research: 10 Hours

PHASE 2: STORE DEVELOPMENT

Store development is the most crucial part of the project. Even if you have a winning product but your store look not professional then you won’t get sales. As I said earlier, 80% of the dropshipping stores follow the same design and it becomes obvious that they’re doing dropshipping. People usually don’t link to purchases from dropshipping stores as they know that they can buy the same product from amazon or aliexpress at a cheaper price. Also, shipping takes time for dropshipping products. 

I will build you a responsive store with professional design, I will make sure people would trust the store by adding trust badges. Most of the dropshipping stores lack features that could increase the conversion rate of the store like sticky add to cart bar on product page, product reviews etc.

Estimate Time for Store Development: 20 Hours

PHASE 3: MARKETING

Marketing can make or break store success. We will be marketing our store with facebook ads, google ads,snapchat ads and influencer shoutout. We will need a good marketing budget at the start because first of all we have to build brand reputation by getting likes and followers on social media. These ads won’t earn us sales but we need them as these followers can be our loyal future customers.Marketing is a continuous process.

Here’s my marketing plan:

Platform

Ads Type / Work

Process

Facebook

1- Engagement Ads

2- Pixel Integration

3- Conversion Ads

4- Retargeting Ads

5- LLA (Lookalike audience)

  • We will start with $10 per day for engagement ads and our aim will be to get 1000 followers and likes on both facebook and instagram page
  • Then we will integrate facebook pixel and test product by product to find winning products with Conversion ads. $15 per day per product. We will test 4-5 products per week
  • After a month, once we have a good number of product views then we will run retargeting ads and capture abandoned add to cart. $10 per day.
  • Whenever we have got enough customer data captured in our pixel, we will create LLA and start targeting countries other than the US. Ads with LLA gives the ROI (Return on investment) so we need to show patience until we reach this point.

Google

Google Search Ads and Shopping Ads

  • We will create product feeds and submit it to a google merchant account for review. Google usually suspends new listings. So we need to wait for 6 months until we get our product feeds approved on google merchant account then we will run google shopping ads. For Google search ads, we will run only if we find some product having potential with Google ads

Snapchat

Conversion Ads

  • We will only run snapchat ads if there’s any product focused for teenagers or <35 age people. Snapchat ads show a good trend if we target the audience well. We need to spend $25 per day on snapchat ads as its performance is optimized with $25 ads budget per day.

Influencers

Shoutout with Instagram or Snapchat influencers

  • It's a fact that if celebrities or influencers recommend some product, their followers rush to buy them. Shoutout price depends on the followers of the influencers. Usually they charge $100 to $1000 per shoutout. 

PHASE 4: SEARCH ENGINE OPTIMIZATION

Search engine optimization is one of the things that 95% of the dropshippers neglect and that’s why out of those 95% people 88% failed and closed their store within the first year of launch. Search Engine optimization brings organic traffic from search engines like google, to our site. It's a continuous process. SEO takes 4-6 months to show its effects.
There Are two types of SEO

  1. Onpage SEO
  2. Offpage SEO

Onpage SEO includes keyword research, product meta description optimization, image alt text, homepage title and meta description optimization, submitting sitemap to google for crawling. And after that adding blog posts every week so google give authority to our domain and start indexing our listing well. I can’t estimate time for this because it's mostly dependent on the number of products.

Off Page SEO is a continuous process and we need to create backlinks each and every day to become competitive with other dropshipping stores.

For me, SEO is the most important thing because once you market your store with facebook ads you only get traffic when you’re running ads. Once you stop ads, traffic will fall back to ZERO. For SEO, once your site gets indexed well on google you will receive continuous traffic from search engines.

PHASE 5: MANAGEMENT

Management phases include managing stores, managing social media, fulfilling orders, researching new products etc. It's a continuous thing and we can’t give an estimated time for it.

Start your shopify dropshipping journey with us: Contact Now

Fun Fact: Amazon Affiliate site can be the best source for passive income. I'm sharing one of my amazon affiliate site. Here's the site: Ignitto 
If you're interested in discussing about amazon affiliate sites then you can also contact me.


Leave a comment

Comments will be approved before showing up.


Also in articles

Tidio Chatbots
Tidio Chatbot Automation Guide

November 13, 2020

Tidio can help you reach thousand of customers, but you need to automate chatbot in perfect manner. Let me show you how you can use Tidio chatbot to its full potential.
Read More
How to research winning product with Shopify Exchange Platform
How to research winning product with Shopify Exchange Platform

November 12, 2020

Shopify exchange product research strategy is one of the best and unique strategy to find proven winning product for your dropshipping store.
Read More
One Product Store Or Niche Store | Honest Comparison
One Product Store Or Niche Store | Honest Comparison

November 11, 2020

All dropshipping business owners want to be successful with their dropshipping venture. Yet, they find it hard to pick the kind of dropshipping store to start with.
Read More

Subscribe