Do you know how Shopify works?  If not, you’re missing out on an excellent alternative for creating and managing your dropshipping online store with practicality and efficiency. When we first start getting into the world of dropshipping, it’s normal to have doubts and questions about the different components of this business model. Today, we are going to review the fundamentals of this selling channel.

Selling channels are an essential part of our journey as dropshippers; through them, we create a channel that allows us to sell products to our audience. With automation options and many valuable features, Shopify stands out as one of the best. Today, we will find out why and delve into the details of how it works!

Key Takeaways

Shopify offers a streamlined platform for setting up and managing a dropshipping store, providing practicality and efficiency.

Setting up a Shopify store for dropshipping involves creating your store, selecting a theme, and importing products, all of which can be streamlined with tools like AutoDS.

Product research and supplier selection are crucial steps in the dropshipping process. They ensure that you offer high-quality products and efficient shipping to your customers.

Optimizing your Shopify store involves customizing your homepage, setting up your store currency, and configuring payment providers and shipping settings for a smooth customer experience.

Fulfilling orders promptly and efficiently is essential for customer satisfaction and building trust in your brand, with automation tools like Fulfilled By AutoDS simplifying the process.

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How Does Dropshipping Work On Shopify?

Let’s break it down. To know how Shopify works, we must first fully understand how dropshipping works. As you may know, dropshipping is a low-risk business model with a smaller initial investment that allows us to sell products without needing to store them or spend on stock and inventory. How? Once the customer buys an item from us, we send that order to the supplier, who handles the packaging and shipping. It works like this:

How Shopify Dropshipping Works

Now, how Shopify works in this kind of business? Dropshipping on Shopify involves setting up an online store on the Shopify platform and integrating it with suppliers who handle inventory and shipping. Once your store is set up, you can add products from these suppliers to your store’s catalog. When a customer makes a purchase, the order details are forwarded to the supplier, who then fulfills the order by packaging and shipping the product directly to the customer.

This process allows you to sell products without the need to store inventory or handle shipping logistics, making it a low-risk and efficient way to run an e-commerce business. Shopify provides the infrastructure and tools to streamline this process, making it accessible to entrepreneurs looking to start a dropshipping business. Let’s dissect it step by step!

How To Set Up A Shopify Store For Dropshipping – Easy Steps

Understanding how Shopify works involves several steps that enable you to establish a functional business and start importing and selling your products to your target audience. This is a straight-to-the-point version of our comprehensive guide on dropshipping Shopify that you can refer to if you need to delve into any aspect or have any questions.

1. Create Your Shopify Store 

Of course, the first step is to sign up for Shopify. We must go to the official platform’s page and enter our email to do this. As you can see, Shopify offers a one-month free trial for just one dollar, allowing us to access its tools and try them out before committing to a plan. All you need to do to sign up is fill in the blanks with the basic details about your business.

Once registered on the platform, the next step is creating your store. For this, you’ll need:

  • Name Your Shopify Store: Choosing a name for your store is a crucial step in establishing your brand identity. Your store name should be unique, memorable, and reflective of the products or niche you’ll be focusing on. Consider brainstorming several options and researching to ensure your chosen name isn’t already used by another business. Once you’ve decided on a name, you can proceed to register it on Shopify as your store’s official title.
  • Connect Your Domain: Connecting your domain to your Shopify store is essential for creating a professional online presence. If you already have a custom domain, you can easily link it to your Shopify store for a branded and cohesive look. This step helps establish customer trust and enhances your store’s credibility. 
  • Design A Shopify Dropshipping Store Logo: Your store logo significantly conveys your brand identity to customers. It’s essential to design a logo that captures the essence of your brand, is visually appealing, and leaves a memorable impression. If you have graphic design skills, you can create your logo using software like Adobe Illustrator or Canva. Alternatively, you can hire a professional designer to create a custom logo for your Shopify store
  • Choose a Shopify Store Theme: The right one is crucial for creating an attractive and user-friendly online store. Your theme choice will impact your website’s overall look and feel, as well as its functionality and user experience. When choosing a theme, consider factors such as your brand aesthetic, target audience, and the type of products you’ll be selling. 

Beginner’s Tip: Did you know you can complete all these steps in just a few clicks with our AI Shopify store in less than 2 minutes? Create a store quickly and customize it to your liking!

Pro Step: Use A Dropshipping Automation Tool

Understanding how Shopify works and its intricacies involves realizing that this business model encompasses many small tasks and details that require attention. If we can automate these tasks, we gain a margin of free time that allows us to focus on other, more important things or simply enjoy our day.

Whether we’re starting a dropshipping business as a side hustle or aiming to replace our conventional job, automation will be one of our best allies on this journey. With AutoDS features, you can find winning products, manage and fulfill your orders automatically, import in a few clicks, and much more. Connecting with AutoDS is indeed quite simple:

1. Go to the AutoDS marketplace, click on “Add Stores” just below the logo, and select “Shopify Store.”

Add Shopify Store AutoDS

2. Next, add the AutoDS app and select your Shopify account. Then click on “install app” to integrate it with the store.

Integrate AutoDs Shopify

2. Conduct Product Research & Find Suppliers 

Once you’ve set up your Shopify dropshipping business to run smoothly, the next step is finding the perfect product. Doing good research on Shopify dropshipping products is super important. Picking the right product can greatly affect your store’s performance. If you choose something people really want that’s popular, you’re more likely to get customers and make sales.

Knowing what your target audience likes helps ensure your products match their wants. This makes customers happy and keeps them coming back. Remember, in the competitive world of dropshipping, picking the right products is key to building a successful online store and staying ahead of the competition.

What we should look for in a product is basically the following:

  • Products on demand 
  • Unique products or problem-solver articles
  • Healthy price margins 
  • Evergreen appeal

Some tools can assist you in conducting thorough product research, such as Google Trends, which allows you to analyze product demands based on the time of year, or spy tools that grant you access to information about winning products.

Beginner’s Tip: For instance, through our Hand-Picked Products Feature, you can access a curated and continuously updated collection of trending products. Take advantage of our 14-day trial for $1 and explore it!

 On the other hand, selecting the right supplier is crucial when entering the realm of dropshipping. They’re your collaborators and influence your brand’s perception and product sales. Why is this paramount? Primarily because they handle the shipping of the products you sell. Here’s what you should consider when choosing a reliable supplier:

  • Product Quality
  • Shipping Times
  • Customer Service
  • Return Policies 

Remember, suppliers play a pivotal role in your business. By selecting trustworthy ones, you can provide your customers with a positive shopping experience and position yourself for success in dropshipping.

3. Import Products To Your Shopify Dropshipping Store

After completing the previous steps, the next task you have to achieve is to import your chosen products into your Shopify store. This can be done manually or automatically.

To import products manually, visit your supplier’s page to download photos, copy descriptions, and gather all necessary information. While this process can be tedious for each product, automation can make it easier!

With AutoDS, importing products is as simple as a single click, saving you significant time. The Shopify Product Importer extracts all the necessary information for each product, adding it to your catalog in just minutes. Here’s how to use it:

How To Import Products With AutoDS

4. Optimize Your Shopify Store 

Once your store is ready and your products are prepared for sale, it’s time to optimize your Shopify store. Remember that this is the showcase where your audience accesses your products, so it largely determines what you will sell or not. At this point, you should consider certain key aspects, such as the following:


An optimized homepage is visually appealing, easy to navigate, and effectively conveys the store’s brand message and products. With this in mind, here are the key elements to consider when customizing the homepage of your Shopify dropshipping store:

  • High-Quality Images: Always use high-resolution images from suppliers highlighting key features to capture visitors’ attention and effectively showcase products.
  • Image Editing: Enhance image quality by using advanced editors to crop, resize, and adjust colors and lighting, making them visually appealing and on-brand.
  • Minimal Text: Avoid overwhelming visitors with too much text. Use clear and concise information to communicate product value without clutter.
  • Categories and Links: Create a streamlined shopping experience by organizing products into clear categories and adding simple, descriptive links to help visitors find what they need quickly.
  • Customization: Choose and customize a Shopify theme that aligns with your brand message to create a unique, visually appealing, and user-friendly online store.

Store Currency 

On the other hand, setting up your store currency is very important to understand how Shopify works fully. This way, your customers will see the exact price for the product they want to buy. To configure this, simply login to your Shopify account and click “Settings.” Then select “Store Currency” and choose your preferred option.

How Shopify currency works

Our store currency should match our target audience. For example, if we sell to US customers, we should set the currency to USD. To expand our customer base globally, apps like the Auto Multi-Currency Converter can automatically and accurately handle currency conversions.

Are you starting to understand how Shopify works better? Now, let’s get more specific and address a crucial aspect of any business: finances and legal issues. These are some of the most important things you need to set up at this stage of the process:

Setting Up Shopify Checkout Settings & Shipping Zones

The checkout settings and shipping zones in Shopify are crucial for providing a smooth purchasing experience for customers. It’s important to configure these settings accurately to ensure that shipping rates are calculated correctly and that customers can choose their preferred shipping methods. This includes specifying shipping zones based on geographic regions to calculate shipping costs accurately. 

Generating Shopify Store Policies & Legal Pages

Creating comprehensive store policies and legal pages is essential for building customer trust and ensuring legal compliance. These pages communicate important information about your store’s terms of service, privacy policy, refund policy, and other legal aspects. They clarify issues such as payment terms, shipping policies, returns, and data protection. To generate store policies and legal pages on Shopify.

Configuring Payment Providers

Payment processing is a critical aspect of any e-commerce business, and Shopify offers a range of payment providers to choose from. Configuring the right payment providers ensures seamless transactions and provides customers with various payment options. It’s essential to offer secure and convenient payment methods to accommodate different customer preferences.

6. Market Your Shopify Dropshipping Store

To fully understand how shopify works, we must understand that marketing plays a crucial role in directing our audience to our online store and motivating them to purchase. There are several effective ways to market our Shopify Store; here are a few:

  • Engaging Short-Form Video Content: Produce captivating short videos on platforms like TikTok, IG Reels, and YouTube Shorts. Experiment with different content styles to discover what resonates best with your audience.
  • Establish a Blog: Create a dedicated blog page to share valuable content such as insights, product details, and industry trends. This will not only enhance your credibility but also drive organic traffic to your store.
  • Email Marketing: Cultivate relationships with your audience through email marketing. Keep subscribers engaged by providing updates on new products, promotions, and exclusive content to foster brand loyalty.
  • Facebook Ads: Invest in targeted Facebook Ads to reach specific demographics. Utilize advanced targeting options to optimize ad effectiveness and drive traffic to your store.
  • TikTok Ads: Capitalize on TikTok’s popularity by running paid ads. Leverage the platform’s creative features to captivate your target audience and boost brand awareness.
  • Google Ads: Utilize Google Ads to appear prominently in search results and attract users actively searching for your products or business. This can be particularly effective for generating immediate traffic to your store.

7. Fulfill Your Shopify Dropshipping Orders

Fulfilling orders promptly and efficiently in a Shopify store is crucial for several reasons:

  • Customer Satisfaction: Timely order fulfillment is essential for a positive customer experience. Customers expect their orders to be processed quickly and delivered within a reasonable timeframe. Failing to fulfill orders promptly can lead to frustration and dissatisfaction, potentially resulting in negative reviews or lost sales.
  • Building Trust:  When customers receive their orders promptly and as expected, they are more likely to trust your brand and make repeat purchases in the future. Positive experiences with order fulfillment contribute to building long-term relationships with customers.
  • Reducing Returns and Complaints: Delayed order fulfillment increases the likelihood of returns and customer complaints. Customers may cancel orders or request refunds if they experience significant delays in receiving their products. By fulfilling orders promptly, you can minimize the risk of returns and complaints, saving time and resources in the long run.

Don’t leave such an important part of the process to chance! Through our Fulfilled By AutoDS feature, you can streamline your orders, eliminating the need to manually placing on the source site.

Frequently Asked Questions

Is Shopify Only For Dropshipping?

No, Shopify is not only for dropshipping. While it is a popular platform for dropshipping, it also supports various other business models, such as traditional e-commerce, print-on-demand, and hybrid approaches.

How To Make Money From Shopify?

Dropshipping is one of the best ways to make money on Shopify, as it requires little initial investment and offers little risk.

How Easy Is It To Start A Bussiness With Shopify?

Shopify is known for its ease of use and simplicity. Once you understand how Shopify works, you can leverage some tools, like AutoDS, provide features that allow you to set up your online store using AI in minutes.


All right, now you know how Shopify works! Established as one of the top eCommerce platforms, it remains an excellent choice for building your dropshipping business from scratch, thanks to its accessibility and convenience.

When you add the significant benefits of automation to the equation, Shopify can be the selling channel you’ve been looking for to take those initial steps in this business model. Remember, we’re here to assist you at any point along the way or provide more information. For now, we can suggest that you continue with these articles: