As the retail industry continues to become bigger and bigger, it also continues to evolve at all times. One of the most recent changes that took place due to this evolution was the introduction of the concept of dropshipping — a practice that removes the need to worry about supply chains and inventory management among eCommerce entrepreneurs.
Since its introduction, dropshipping became a very attractive business model for online store owners. In fact, a study conducted by Lehigh University and DiCentral proved that adopting dropshipping is actually quite beneficial.
Those who adopted it saw financial improvements on multiple different levels. They saw an increase in revenue, as well as margin growth. In addition to that, their market share expanded, as well. Meanwhile, the sellers were also able to improve customer experience, and increase traffic.
To make it easy to integrate, developers created dedicated dropshipping tools that can easily be added to services like Shopify. One such tool, that has grown to become a favorite of many in the retail industry, is Oberlo. Therefore, BestCloudTools gives an overview of the Oberlo dropshipping tool, with all its pros and cons.
What is Oberlo Dropshipping Tool?
Oberlo is a company that has created a highly popular dropshipping tool of the same name. The firm was founded five years ago, in 2015. However, since then, it gained massive popularity, and it is among the most popular apps in the Shopify marketplace.
As mentioned, Oberlo is more of an app, or an extension, than a full eCommerce platform. However, that makes it easy to install in sites created on Shopify, instead of having to make your store from scratch and face other complications.
The way it was designed allows people to access the eCommerce environment quickly and cost-effectively.
What Does Oberlo Actually Do?
What Oberlo does is very simple — it allows you to list items on your website that you do not already own in your warehouse. In fact, with Oberlo, you don’t need a warehouse at all. You also don’t need to worry about supplies.
Instead, you can list the items that you wish to sell, and once someone decides to buy them, you can order the exact quantity of the desired items from the supplier directly, and ship the product to your customer.
This is beneficial for you, the show owner, as you do not have to buy items and store them, which means that you get to cut the costs when it comes to warehousing and fulfillment concerns.
You can easily export products from AliExpress or some other site, and import them to your Shopify-based store.
I keep referencing Shopify because Oberlo currently only works with Shopify stores. In other words, if you have a WordPress site, you will have to either re-create your store on Shopify or use a different tool.
But even so, this is not seen as a problem for most shop owners. Shopify is available around the world, and the same is true for Oberlo. After all, Shopify is a preferred choice for most shop owners anyway. Also, read my full Shopify Review and find out yourself.
So, whenever you decide to order something by clicking the order button, Oberlo will open AliExpress and allow you to fill in the order and shipping details, display your purchase history, and more.
Not only that, but Oberlo will also notify your buyer automatically when you order the product they had requested. That way, the buyer is not kept in the dark, and they are fully aware of the stage in which their order is at any given time.
How Much Does It Cost to Use Oberlo?
Another great thing about Oberlo is that it allows you to start dropshipping for free. The tool offers three different plans, with the first one being completely free. This also means that you can start dropshipping pretty much right away, and with no credit card required in order to do so.
Each of the three plans comes with its own set of features, with each one offering more. The plans look like this:
1) Starter Plan — Free
The starter plan is completely free, as mentioned, although it is somewhat limited if you wish to run a large store.
You are limited to only listing 500 products. However, you can have unlimited monthly orders. In addition, you also get a number of other features, such as:
- An extension for Chrome
- Automated monthly pricing
- Inventory updates
- Product statistics
- Import list
- Sales reports
- Order number sync
All in all, it is a good plan if you wish to start a brand new online shop and you need some time to figure things out and earn a bit before you continue to expand. With Oberlo’s free plan, you will not have to pay for warehousing and supply management, nor for Oberlo itself, so it is a pretty good deal.
2) Basic Plan — $29.90/mo
Next up, we have a Basic plan, and this one does come with a price tag. However, the price is actually very reasonable, and you only have to pay $30 per month to use it.
In return, your product limitation gets significantly larger, as you get to list and offer up to 10,000 items.
Of course, this plan will also bring all the features seen in the previous one, plus a few new ones, such as:
- Variant mapping
- Bulk orders
- Real-time orders tracking
- Affiliate program
- Orders fulfillment monitoring
- Captcha solver
Obviously, this is a more advanced plan that will certainly see to the needs of anyone who has already developed their online store, and is now looking for ways to make it more modern and advanced.
3) Pro Plan — $79.90/mo
Lastly, we have a Pro plan, which is for true professionals, but it also comes at a higher price of $80 per month.
This plan will increase your product limit to 30,000 items, which is a massive amount of products to have listed in your store. This way, you can offer a truly impressive selection for your customers. Meanwhile, just think about how much you would save on warehousing and buying items in advance. It is certainly worth $80 per month.
Like with the previous plan, you get all the features listed before. In addition to that, you also get multiple staff accounts, as a store of this size certainly requires more than just yourself to maintain it, update it, and keep everything in check.
Clearly, all of that is easier to do with a dedicated team, and with the Pro plan, you can secure a separate account for each member.
Pros and Cons of Oberlo to Keep in Mind
So, with all of that said, let’s talk about the pros and cons of using Oberlo. As you are about to see, the downsides pale in comparison to advantages that Oberlo brings, which is why this dropshipping tool is one of the biggest and most popular ones out there today.
- Exceptional value for the money
- Very competitive prices
- Easy setup and integration with Shopify-based shops
- You can run an entire store on autopilot
- You get to use the package depending on the size of the shop and usage
- It offers a free plan
- Filtering products and searching is extremely easy
- Great product customization options that let you stand out from competitors
- Sales and shipment tracking
- It is available in multiple languages (English, Italian, French, Portuguese, German)
- Only works with Shopify
- None of the products you can offer are edited within Oberlo
To Sum It up — When to Go for Oberlo?
Oberlo is an excellent dropshipping tool that will help you cut the costs when it comes to storing goods and buying them in advance, just so you could ship them to your customers quickly. It is a perfect tool for any online shop owner. While it is limited to Shopify-based shops — which is its only real downside — most shops are made on Shopify anyway, since it is the best choice available.
With that in mind, you don’t really have anything to lose, and statistics and reports show that you have a lot to gain, including better profits and more traffic.
It is certainly worth giving it a chance, and thanks to its free plan, you can do it without having to pay for anything in advance. If you end up liking it, you can easily upgrade to one of the larger plans and make your shop as large as you want it to be.
- Go for Oberlo if you want your own automatic online shop.
- Go for Oberlo if you do not wish to buy goods you are offering in advance.
- Go for Oberlo if you want to save money by not renting warehouses.
- Go for Oberlo to make your customers’ experience even better.
- Go for Oberlo if you use a Shopify-based store, and easily integrate it into your website.
Oberlo’s Starter plan is 100% free. Pay only when your store’s product range and customer numbers grow. The Basic plan starts from $29.90/mo.
When you already own the Shopify store then it requires only time to set up Oberlo for your online store. Otherwise, you need minimal funds when starting your own dropshipping business. Please take a look at Shopify Prices before you start.
Yes. Simply uninstall the application from your Shopify store if you feel that Oberlo is not the right solution for you.
Good Luck with Your Dropshipping Business!
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