After five-years, the most typical question I get in the comments of my blog, videos, and webinars remains “What is drop shipping?” In addition to that huge question, there are plenty 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 and also to show that one could reach your goals through wholesalers who dropship, I’ve put together this comprehensive guide. It’s a written version of my extremely popular mini-course video series though with some enhancements.
My goal is to give you a total guide of drop shipping. This way, if you or someone you know is curious, you will find the perfect resource. WARNING: This guide won’t offer you all you need to start your personal eCommerce business, but you will understand the general process I use to be successful with drop shipping.
Before we go too deep into the details, we have to answer the question, “What is drop shipping?” I understand lots of people discover 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 how it operates.
Also, I am aware people wonder how you will could actually drop ship profitably because there are different ways to lower ship. And the reality is, some ways work and others don’t. To start, let’s go over this diagram: So as simple as possible, this really is drop shipping in 4 steps.
You list the supplier’s product on your own store for customers to purchase.
The customer purchases something from your eCommerce store.
You order that same exact item that the customer bought from your supplier.
Your drop shipping supplier ships this item right to your customer. So that your customer receives the item that they’ve ordered on your part.
You obtain the cash you sold it for and then your supplier charges the wholesale price. So your profit is the distinction between that retail price you sold it for and also the wholesale price that you simply pay for your supplier.
That’s drop shipping in 4 steps. What I’m going to do now is further explain what drop shipping is. I’m also likely to show how it works as well as the different ways you can use drop shipping. Lastly, I’ll explain to you which way is the most profitable.
eCommerce Business Models
Before we go any more into how drop shipping works, the things i really 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 differs and why I believe it’s the easiest method to earn money online.
With dropshipping, it is possible to profit without putting up money for inventory. You can begin because of not much money. CLICK TO TWEET
HINT: With dropshipping, you can profit without putting up money for inventory. It’s an organization model that lets you get going for not much money upfront. As far as online business models go, the moydmd popular are eBay, Amazon, and make your own eCommerce stores (Shopify).
Ebay is an online auction marketplace site which allows that you should sell as being an individual or to set up a shop, in their platform.
When I first began in this business over I believe almost 10 years ago now, I used to be using eBay which got saturated extremely fast and have become a pricing war. It simply wasn’t worth the cost, and so i cut that out.
There are numerous different options for building your very own store and we’ll enter into them a little later. But basically, Shopify is really a plug and play online software which you can use to construct your personal eCommerce store.
Let’s say you are aware how to sell online. It can be eBay. It can be Amazon. Or maybe you follow my advice, it may be your personal eCommerce store. Your upcoming step is finding products to promote. There are three main options and I want to break them down for you at this time.
The initial option is to import your products or services. You can head to websites like Alibaba and you could find products to imports from, let’s just say China.
This is really the way i were only available in business. Before I ever drop shipped, I was importing products.