Commerce Inspector Blog

What is Shopify Dropshipping, and How Can It Benefit My E-Commerce Business?

If you’re looking to grow a highly profitable online business, starting a Shopify dropshipping business is an incredibly straightforward approach. 

We understand how challenging it is to manage finances and inventory while increasing an e-commerce business from scratch. Fortunately, you can start an online store based on the dropshipping business model, where you don’t have to carry any inventory. This means you are free to invest your resources and time in growing your eCommerce store and generating more leads. 

So, before we move any further, let’s dive into the depths of this unique business model.

What is Dropshipping?

Dropshipping is based on an order fulfillment method where online stores don’t have to warehouse any inventory. Instead, when a customer places an order, the eCommerce store will purchase the needed products from a third-party supplier, who will deliver the order directly to the potential customer. 

For many entrepreneurs, dropshipping is a great business model to start with, as it’s pretty easy to set up and manage without breaking the bank. Dropshipping apps like Shopify let you build your eCommerce store and list products from different sellers to expand your range of core offerings. Above all, you can even start a Shopify dropshipping business as a side hustle without quitting your job.

Pros and cons of dropshipping

People often see dropshipping as a get-rich-quick scheme, but that’s not true. We all know that great power comes with great responsibility, and dropshipping is not an exception. Before starting up your online dropshipping company, it is better to know the benefits and challenges aspiring entrepreneurs face.


  • It's easy to manage and set up with a small amount of startup capital.
  • It necessitates a low overhead cost for inventory warehousing and purchase order management.
  • Control your online business from anywhere with a stable internet connection.
  • List products from a wide range of sellers to improve your product offerings.
  • It's reliable to test new ideas and tweaks in your online business.
  • Highly scalable to handle additional orders and business requirements.


  • Due to fierce competition, every order harms profit margins.
  • Hard to keep track of actual inventory with the suppliers.
  • Have to bear unnecessary shipping charges from different sellers.
  • Low-quality and irresponsible sellers can damage your business’s reputation.

Why Would I Start Dropshipping on Shopify?

Dropshipping is an ideal business model for many business owners to launch their eCommerce store with small up-front capital investment. Shopify is your go-to platform for creating and managing your online store. 

You can easily import and list products from various manufacturers and sellers. With its user-friendly interface, Shopify lets you take control of your inventory in a matter of a few clicks. That’s why it is recommended to use Shopify for handling your dropshipping business.

Dropshipping by the numbers

Dropshipping is a $15 billion industry that offers many business opportunities for aspiring entrepreneurs to start their eCommerce store. However, it’s hard to estimate the exact cost required for setting up an individual business, as every drop shipper has to spend money on a few items to get started, like eCommerce website builders, domain names, online advertising, testing orders, etc. 

Make sure to keep your budget around $500-$1000 or more to start and grow your online eCommerce store from scratch with the right blend of products to market to potential customers. Dropshipping is a money-pumping machine, and you can’t pump out more money if you don’t pump money into the system first.

How to start dropshipping on Shopify

Launching a Shopify dropshipping business is pretty easy with Shopify. We know how aggravating it is to set up an eCommerce store, especially when you’re new to the online market. Don’t worry about it, as we have shared our go-to guide that lets you start your dropshipping business on Shopify.

  • Acknowledge your desire to start a dropshipping business.
  • Do thorough research and select a dropshipping niche.
  • Select an authentic dropshipping supplier.
  • Create your online store and choose a business structure.
  • Gather your finances and start marketing your dropshipping store.
  • Update and expand your product offerings.

4 Great Dropshipping Chrome Extensions

  1. Commerce Inspector

The Commerce Inspector lets you inspect and reveal the database of any e-commerce store you visit. So that you can optimize your listings and do the needful to beat your competition, this chrome extension provides in-depth information about recently launched products, new tools, hot selling products, and so on.

  1. Shopify App Detector

One of the fantastic Shopify extensions you can add to Chrome is the Shopify app detector. With it, you can detect Shopify apps used by the top leading drop shippers on the market. You can also increase your chances of converting more visitors.

  1. Alitools Shopping Assistant

Are you tired of dealing with bad AliExpress sellers? Alitools Shopping Assistant is what you need right now. This tool will screen out and score sellers on a scale of 0-100 based on product quality, overall customer reaction, active duration, seller reliability, and shipping time.

  1. Shop Monitor

Shop Monitor lets you notice the products added to Shopify stores every day. This chrome extension lets you spy on highly profitable dropshipping stores and discover what they sell the most. You can even export products in CSV files and list them on AliExpress.

  1. Oberlo

Oberlo is among the top dropshipping apps that allow you to import products from various sellers and fulfill desired orders. Even though other dropshipping apps can also get the job done, Oberlo is the most recommended app for dropshipping businesses because it’s compatible and easy to use with Shopify.

Conclusion: Is Shopify for Dropshipping right for you?

Shopify is a perfect platform for starting your dropshipping business with its user-friendly interface and compatibility with other apps. However, we recommend you start small and get yourself acquainted with the ins and outs of the process. 

Working with a handful of products or a few reliable suppliers can help you learn how things work around the Shopify platform and dropshipping. Once you are well-versed in the dropshipping business, you can expand your business by dealing with more sellers or introducing a new product category to your offerings.

CommerceInspector is our pick for discovering the hottest products, and it could be the Chrome extension you’ve been looking for. This extension lets you find out the hottest products on the market, sold by successful eCommerce stores. Install the Commerce Inspector now and learn everything you need to beat your competition.