After five years, the most frequent question I get in the comments of my blog, videos, and webinars remains “What is drop shipping?” Additionally huge question, there are tons of smaller questions that I’m asked. Questions like: “How do you find a good niche?” Or “How should i get suppliers?” In order to answer those questions as well as show that one could reach your goals through drop shipping wholesalers, I’ve assembled this comprehensive guide. It’s a written version of my extremely popular mini-course video series but with some enhancements.
My goal is to give you a complete guide of drop shipping. This way, if you or a friend or acquaintance is curious, you will find the perfect resource. WARNING: This informative guide won’t provide you with all you need to start your very own eCommerce business, but you will be aware the typical process I prefer to succeed with drop shipping.
Before we go too deep into the details, we must answer the question, “What is drop shipping?” I understand lots of people learn about my full eCommerce coaching program, Drop Ship Lifestyle, by looking for the word ‘drop shipping’. And they aren’t really sure what it is or the way it works.
Also, I am aware people wonder how you will could actually drop ship profitably since there are different ways to drop ship. And the truth is, some methods work and others don’t. To start, let’s review this diagram: So as easy as possible, this is drop shipping in 4 steps.
You list the supplier’s product on your store for customers to purchase.
The consumer purchases something from your eCommerce store.
You order that same exact item that this customer purchased from the supplier.
Your drop shipping supplier ships this item straight to your customer. Which means that your customer receives the product that they’ve ordered from you.
You get the amount of money you sold it for then your supplier charges the wholesale price. So that your profit will be the distinction between that retail price you sold it for as well as the wholesale price that you simply pay to your supplier.
That’s drop shipping in 4 steps. What I’m likely to do now is further explain what drop shipping is. I’m also likely to show the way it works as well as the different methods for you to use drop shipping. Lastly, I’ll explain to you which way is easily the most profitable.
eCommerce Business Models
Before we go any more into how drop shipping works, a few things i actually want to do is take you step-by-step through the numerous ways to earn money online. That way, we can eventually get to how drop shipping is unique and why I think it’s the best way to make money online.
With dropshipping, you are able to profit without putting up money for inventory. You can start for not much cash. CLICK TO TWEET
HINT: With dropshipping, you are able to profit without putting up money for inventory. It’s a company model that allows you to get going because of not much money upfront. In terms of web business models go, the moydmd popular are eBay, Amazon, and build your very own eCommerce stores (Shopify).
Ebay is surely an online auction marketplace site that allows for you to sell as an individual or to put together a shop, inside their platform.
Initially when i first started in this business over I do believe almost a decade ago now, I used to be using eBay and that got saturated very fast and became a pricing war. It just wasn’t worth it, therefore i cut that out.
There are lots of different alternatives for building your very own store and we’ll enter into them a little later. But basically, Shopify is a plug and play online software which you can use to construct your own eCommerce store.
Let’s say you know how to promote online. It can be eBay. It can be Amazon. Or if perhaps you follow my advice, it could be your own eCommerce store. Your upcoming step is finding products to promote. You can find three main options and I would like to break them down for you personally right now.
The first option is to import your product or service. You are able to go to websites like Alibaba and you could find products to imports from, let’s just say China.
This is certainly how I began in business. Before I ever drop shipped, I used to be importing products.