A Guide to Automated Dropshipping on Shopify

Automated dropshipping is when a business outsources inventory-related tasks to a third party. This includes inventory management and order processing, with the aim of freeing up the business owner to focus on more critical tasks. The third party responsible for dropshipping uses technology and automated processes to take care of approving, packaging, and sending orders. In our ultimate guide on Shopify Dropshipping, we answer ‘What is automated dropshipping?’ in greater detail.

As mentioned above, an automated dropshipping store is a type of business using automated dropshipping technology to handle day-to-day tasks that a human would usually do. This includes processing orders, picking and packing orders, printing off order forms and labels, and sending the orders. Using fully automated technology allows the dropshipping stores to boost workflow processes and efficiency. There are lots of examples of successful automated dropshipping stores including Amazon, Alibaba, and AliExpress.

If you want to automate dropshipping for your eCommerce business, there are a few things you need to do. Here, we explain the whole process as well as what to expect. Don’t forget if you need any support on how to set up automated dropshipping, a team of experts at Vsourz is always readily available to help.

Search the Shopify App Store

To begin, you need to search the Shopify App Store for automated dropshipping tools. There are several to choose from, and the best one for your eCommerce store will depend on your preferences and business needs. Some are better for those businesses that want help with product pricing, others automatically send over customer information, and then there are apps that are suitable for businesses with multiple dropshipping suppliers.

Streamline orders with suppliers

One of the most common reasons why a business invests in dropshipping is because it makes order processing easier. A customer places an order, and those order details are automatically sent to your dropshipping supplier. By streamlining this process, you reduce the risk of manual error and boost the speed of your orders being picked and packed, which is essential for good overall customer service.

Align inventory management across the board

For automated dropshipping on Shopify to work well, you need to ensure your inventory levels across all platforms are accurate. This will prevent any errors associated with overstock and out of stock products. By knowing exactly what stock you have on-site as well as the stock that your dropshipping suppliers are working with, you can save time and expensive mistakes.

Optimise pricing models

Another reason why some Shopify business owners choose dropshipping is because it allows them to automatically sync, optimise, and price for their dropshipping business. In a click, you can set pricing rules and apply them across categories or even when new products come in. Automatic pricing markups can also be implemented, which not only does the hard work for you but protects your bottom line as well.

Automate order tracking updates

Customers don’t just want their orders delivered quickly but they want to be able to track them. Nearly 90% said the shopping experience is enhanced with real-time tracking. By automating this process, you’ll be levelling up your customer service. What’s more, order tracking can be beneficial for you too as you can stay one step ahead of any delays and put steps in place quickly to combat any issues.

It’s estimated that around 33% of online businesses automate dropshipping. There are plenty of benefits to doing so too. Here, we highlight some of the biggest advantages of automated dropshipping on Shopify.

Improved efficiency

Dropshipping removes the need of someone having to manually process orders, pick and package the parcels, and then physically send them. Instead, you tell the technology the process and the heavy lifting is done for you. What’s more, dropshipping technology often works at a quicker pace than humans meaning you can get more orders out.

Better accuracy

Automated processes reduce the risk of human error, which can cause irreparable damage when it comes to orders and overall customer satisfaction. With fewer errors, your business data will be of a higher quality too, which is crucial when you’re making critical business decisions.

Less capital required

With dropshipping processes in place, you don’t need to worry about housing stock on-site. This is because your dropshipping suppliers will be responsible for producing, holding, and shipping the stock. Dropshipping technology also makes it super easy to determine stock levels, so you don’t need to purchase additional stock until it’s needed.

Reduced costs

Dropshipping diminishes human error, speeds up tasks associated with orders, and reduces the need for human resources to handle orders. This all has a positive impact on costs so you can benefit from the extra time, resources, and capital, which you can use to invest into other areas of the business such as marketing.

Seamless order management

Automated dropshipping processes means that your business can grow efficiently and won’t be restricted by time or resources available. It also offers business owners a clear overview of the position of their business, as well as current and past sales.

Scalability

Dropshipping can help businesses to scale with more ease. This is because processes are already optimised, customers are getting their orders quickly and can track them, and businesses have the ability to fulfil even more orders. Automation also means that scaling these processes further is possible with the click of a button.

A fully automated dropshipping business is a great way to free up time, resources, and ultimately money. You can then use this to grow and expand your service offering and products. Don’t worry if you’re not sure where to start because we’ve got you covered! Our team of Shopify experts can help you set up and configure Shopify dropshipping automation to suit your business needs. What’s more, we’re well-versed on Shopify best practices and can help you to propel your eCommerce store towards your objectives.