How to Turn a Quick Profit on Your Shopify Store
Posted by on 16 May 2016 10:22 AM

Let's say you want to open a Shopify store but don't actually have physical products to sell. You might be thinking that selling physical goods is not for you because you do not have any inventory. This article will show you the basic method for sourcing goods and turning a profit.

You can certainly open a Shopify store even without any inventory or physical products. Our Etsafy and Instafy programs go into how to do this in detail, but the general idea is that you can source products from vendors, arrange drop shipping and bulk discounts and get started that way.

Another option is selling digital goods on Shopify. This would allow you to sell practically any digital good where you have an affiliate relationship with product owner. You can read more about selling digital goods on Shopify here:

The goal at this point is to create vendor relationships where you can get at least a 30% discount on the listed price, and start to think about how to use "free shipping" to generate more sales.

When you negotiate a 30% discount off the retail price of another vendors goods, you are basically looking at your profit margin. You would list that item at a 30% to 40% mark up on your store to make a profit. Now you could pass on savings to customers by lowering your profit margin to 25% so your listing is below retail, but be careful of doing this as it might cause problems down the road with the original vendor and a potential race to the bottom (other shops going lower than you).

As for free shipping, on physical goods people generally expect this. You should offer it on orders of $50 or more (this help sell more products on your store, especially if your items are in the mass market range of $10 to $40). Given you've marked up items 30% to 40% of your costs, the shipping becomes one of your additional costs for orders that meet the criteria.

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