How do I dropship other merchants' products on Shopify with Shopify Collective?

Overview

There are two reliable ways to sell products you do not stock on Shopify. You can use a dropshipping app to source products from external suppliers, or you can partner with other Shopify stores through Shopify Collective. Both options let you expand your catalog without holding inventory.

This guide explains how each model works, where responsibilities sit for pricing and fulfillment, and how to set them up step by step. You will import products, set margins, confirm taxes and shipping, and run a test order so you can launch confidently.

If you are new to this, start by deciding which model fits your brand and operations best. Then follow the setup sections to go live.

Content

• What is the difference between dropshipping and Shopify Collective?
• Step 1 - Choose your fulfillment model
• Step 2 - Set up a dropshipping app and import products
• Step 3 - Set up Shopify Collective to sell other merchants' products
• Pricing, taxes, and policies
• Q and A: Operations, inventory, returns, and customer care
• Measure and optimize

What is the difference between dropshipping and Shopify Collective?

With a dropshipping app, you source products from third party suppliers who ship directly to your customer when you place or auto forward an order. With Shopify Collective, you partner with other Shopify merchants who act as suppliers and fulfill orders on your behalf. In both cases, you do not hold inventory.

• Catalog source: Dropshipping apps often aggregate suppliers outside Shopify. Collective sources come from participating Shopify stores.
• Pricing control: You set your retail price in both models. Collective also supports compare at pricing rules and synchronized updates from the supplier.
• Inventory sync: Dropshipping apps usually sync inventory via the app. Collective syncs product and inventory data directly between Shopify stores.
• Fulfillment and returns: The supplier ships the order. You own the customer relationship and must publish clear return and shipping policies based on the supplier terms.

When should I pick one model over the other?

• Pick Dropshipping apps if you want broad product availability across many categories and global suppliers.
• Pick Shopify Collective if you want curated products from known Shopify brands with built in data sync and a closer supplier relationship.

For full definitions and capabilities, review the official docs for dropshipping on Shopify and Shopify Collective.

Step 1 - Choose your fulfillment model

Before you install anything, decide which model matches your brand promise and operational constraints. This will inform your pricing rules, shipping policy, and support processes.

• Margins: Estimate landed cost, including product cost, shipping, and transaction fees. Aim for a realistic markup that covers marketing and support.
• Shipping expectations: If your brand promises fast delivery, prefer suppliers with local stock or Collective partners with regional fulfillment.
• Category fit: Choose products that complement your existing assortment to protect brand coherence and lifetime value.

Tip - Draft a one page policy for shipping and returns based on supplier terms so customers know what to expect.

Step 2 - Set up a dropshipping app and import products

This path uses a Shopify app to connect to external suppliers. Exact steps vary by app, but the flow is consistent across reputable providers.

1. Install a trusted dropshipping app. From your Shopify admin, go to Apps and install your chosen app. Confirm permission scopes and onboarding steps. See the Shopify dropshipping overview for considerations.
2. Connect your supplier account. Many apps require you to log in to a supplier marketplace or connect an account so products and inventory can sync.
3. Import products. Use the app catalog to select products. Map variants, options, and images, then import to your Shopify Products with draft status.
4. Set pricing rules. In the app, define fixed markups or percentage rules. Review your cost, taxes, and shipping to ensure margin covers payment and ad costs.
5. Configure shipping rates. In Shopify, align your Shipping and delivery settings with supplier methods and delivery times. Add clear delivery estimates to product pages.
6. Publish policies. Update refund and shipping policies to reflect supplier timelines and return addresses where applicable.
7. Run a test order. Create a test product or place a low value order to confirm the app forwards or creates the supplier order correctly and that notifications are sent.

Side note - Some apps auto fulfill when the supplier ships. Make sure your order notifications and customer messaging match that behavior to avoid confusion.

Step 3 - Set up Shopify Collective to sell other merchants' products

Shopify Collective lets you act as a retailer of another Shopify store's products. The supplier handles fulfillment while you merchandise and market the products in your store.

1. Enable Shopify Collective. Add the Shopify Collective sales channel from your Shopify admin and complete the setup checks.
2. Find and connect suppliers. Request access to suppliers or accept invitations from brands you want to retail. Confirm product categories, shipping regions, and service levels.
3. Import supplier products. From the Collective channel, select products to import. Product data, variants, and images will sync into your Products as drafts.
4. Review pricing and compare at rules. Set your retail price and optionally use compare at pricing where appropriate. Verify tax settings according to your and the supplier's regions.
5. Confirm inventory sync. Inventory and availability are synchronized from the supplier. Do not override stock levels manually unless instructed by the supplier.
6. Place a test order. Publish a test collection and place a live or staff order to ensure the order routes to the supplier and fulfillment status updates flow back to your store.
7. Publish collections and merchandising. Create collections, add navigation, and write product descriptions that match your brand voice. Highlight fulfillment timelines on product pages.

For detailed roles and data flow, see Shopify Collective documentation.

Pricing, taxes, and policies

Your pricing must cover product cost, shipping, payment fees, discounts, and expected marketing cost per acquisition. Always test price sensitivity on a small set of products before wider rollout.

• Taxes: Configure tax collection in Shopify based on your nexus. Suppliers in other regions may have different tax obligations. Confirm who remits tax in each jurisdiction.
• Shipping: Match rates to the supplier methods. If the supplier charges you shipping per order, reflect that cost in your pricing or shipping rates to preserve margin.
• Returns: Publish clear instructions. State return windows, conditions, and the address used for returns. For Collective orders, align with each supplier's policy.

Tip - Keep a private spreadsheet with supplier costs, your retail price, and realized gross margin to catch changes quickly.

Q and A: Operations, inventory, returns, and customer care

Who handles fulfillment and shipping?

The supplier fulfills and ships. You own the customer relationship, messaging, and any post purchase support. Keep customers informed with accurate delivery estimates.

How does inventory sync work?

In dropshipping apps, the app syncs inventory from suppliers to your products. In Collective, product and inventory data sync between Shopify stores. Avoid manual stock edits to prevent mismatches.

What if a product is out of stock?

Use back in stock alerts and remove out of stock items from key collections. Communicate transparently on product pages and at checkout to manage expectations.

Measure and optimize

Track performance by supplier, collection, and product. Identify products with high view to add to cart rate but low purchase rate and review pricing or delivery estimates. Rotate out underperformers.

• Use product analytics and cohort tracking to measure repeat purchase behavior for each supplier category.
• Run small price tests within your acceptable margin range to learn elasticity before you scale.
• Refresh product photography and descriptions to improve conversion. Align benefits and delivery timelines.