How To ACTUALLY Start A Digital Dropshipping Store On Shopify
Last updated: Jul 30, 2023
This video is about the pros and cons of starting a digital dropshipping store on Shopify, including higher profit margins, not having to deal with suppliers or shipping, and the challenge of standing out in a crowded market.
This video by Austin Rabin was published on Jun 11, 2023. Video length: 12:48.
This YouTube video is about digital dropshipping on Shopify.
The video discusses the differences between digital dropshipping and physical dropshipping, highlighting the higher profit margins and lack of supplier and shipping concerns in digital dropshipping. However, the video also mentions some cons, such as the challenge of standing out in a saturated market and the difficulty in preventing the sharing of digital products. The video then presents a theory on how to be successful in selling digital products, emphasizing the importance of offering personalized and unique products that cannot be easily shared.
An example of a personalized fitness plan is provided as an illustration.
Digital dropshipping has higher profit margins compared to physical dropshipping.
There are no product costs involved in digital dropshipping, except for a one-time customization fee.
Shipping costs are eliminated as the product is delivered through email or another app.
Organic traffic can lead to profit margins as high as 90% in digital dropshipping.
No need to deal with finding and vetting suppliers.
There may be limited demand for digital products as many things are available online for free.
It can be challenging to stand out in a crowded market and find success as a beginner.
Preventing sharing of digital products is nearly impossible, leading to potential revenue loss.
Any digital product can be easily torrented, posing a concern for the business model.
Unique and personalized products are necessary to overcome sharing and increase conversion rates.
Creating hand-catered and unique digital products that are personalized can discourage sharing and increase conversion rates.
Marketing through word of mouth can be effective when customers have a personalized product.
An example of a good product to sell is a personalized fitness plan based on a questionnaire filled out by the customer.
The questionnaire will generate a personalized plan based on inputs such as weight, goals, dietary restrictions, and available gym equipment.
The uniqueness and personalization of the product make it less likely to be shared and more enticing for customers to purchase.
Higher profit margins compared to physical products.
No need to deal with suppliers or shipping.
Ability to stand out in a crowded market by offering personalized digital products.
Opportunity to provide value and solve specific problems for customers.
Potential for upselling additional products or services.
Questionnaire software to map inputs and provide personalized outputs.
Domain registration for a professional and trustworthy online presence.
Fulfillment software to deliver digital products to customers instantly.
Storefront resource to showcase and sell digital products.
Option to use private label rights (PLR) to sell pre-created digital products.
Options for questionnaire software include Commerce and Octane AI.
Costs for questionnaire software vary based on features and revenue level.
Using a dot store domain can make your online store look more trustworthy and professional.
Dot store domains have become popular among e-commerce brands and celebrities.
Discount codes are available for dot store domains through the website get.store.
Fulfillment software like Easy Digital Products automates the delivery of digital products to customers.
There are various apps available on the Shopify app store for fulfilling digital orders.
Private label rights (PLR) allow you to purchase pre-created digital products to sell as your own.
PLR products can be sold as is or customized to add a unique selling point.
Choosing the right storefront resource is important for showcasing and selling digital products effectively.