Shopify Dropshipping Business Module

Welcome to AH Square!

We're a team of professionals dedicated to guiding you through the Shopify Dropshipping model, helping you build and grow a successful online business.

How and What – Shopify Dropshipping Model

“Patience Is The Key To Success”

Suggested Investment For This Business: $2000-$3000

How Does Shopify Dropshipping Function?

• Store Creation: We’ll create a customized Shopify store tailored to your niche.
• Product Selection: We’ll find and curate items for your store, connecting them to reliable suppliers like CJ Dropshipping or others.
• Product Listing: We display these products on your store and link them to the suppliers.
• Marketing Strategy: We develop and implement a robust marketing strategy. Run ads to attract traffic and generate orders.
• Order Fulfillment: Orders are sent automatically to the supplier, who then ships them directly to the customer. You act as the middleman.
• Customer Delivery: The buyer receives the order without any action required from you in the delivery process.

Essential Costs

• Shopify Subscription: $39/month (currently $1 for a limited time)
• Domain Name
• Company Formation: For business PayPal, product hunting tools, logo, and design.
• Payment Gateways: Business PayPal, Stripe, 2Checkout, Shopify Payments
• Marketing and Product Testing: $1000-$2000 recommended for initial creative testing (ICT) of products to identify winning items.

Strategy for Success

• Advertising Budget: Allocate roughly 70% of your advertising budget to Facebook and Instagram promotions. Collaborate with well-known influencers.
• Product Testing: Use a mix of video commercials and carousel ads to highlight product variations and increase engagement.
• Product Selection: Aim to test and identify 2-4 winning products with at least 40% profit margin.
• Sales Goals: Target selling 100 units, generating $2000 to cover store subscriptions, tools, and advertising costs.
• Scaling and Optimization: Continuously test and optimize ads, interests, and products to maximize sales and profitability.

Payment Gateways for Dropshipping on Shopify

Company Formation

To operate a dropshipping business, you need to form an international business entity, either in the US (LLC) or UK (LTD).

LLC (USA)

• Higher initial cost: $600-$1500 depending on the state
• State-specific taxes and regulations
• Advantage: Some states have low or no taxes

LTD (UK)

• Lower formation cost: £300-£350
• Fixed registration cost: £12
• Tax: 19% with a £75,000 annual threshold
• Advantage: Availability of Stripe for payment processing

Applying for the Payment Gateway

Stripe

Recommended for its ease of use and quick payment processing. Accessible from a Pakistani IP. Setup involves entering LTD details and connecting to the Shopify store.

Digital Banks

Wise and Payoneer: Both can be used to transfer payments from Stripe to your local bank account. Payoneer is preferred for direct transfers to local accounts.

Final Steps

Demo Payment: Perform a test transaction to ensure everything is set up correctly.

Revise Setup: Ensure smooth payment processing to enhance customer experience and increase conversions.

Key Takeaways

• LTD or LLC: LTD is recommended for its lower cost and availability of Stripe.
• Preferred Gateway: Stripe for its reliability and quick payment releases.
• Digital Bank: Use Wise or Payoneer based on your preference and ease of transfer.

Conclusion

Embark on your Shopify dropshipping journey with confidence. With the right setup, strategies, and consistent effort, you can build a successful and profitable online business. Stay tuned for more insights and tips to help you navigate the world of dropshipping!

If you have any questions or need further assistance, feel free to reach out. Let's make your dropshipping business a success together!

Thank you for choosing AH Square, where your success is our mission.