After five years, the most typical question I get in the comments of my blog, videos, and webinars is still “What is drop shipping?” In addition to that huge question, there are a lot of smaller questions that I’m asked. Questions like: “How do you find a good niche?” Or “How do I get suppliers?” So to answer those questions and to show that you can reach your goals through wholesalers who dropship, I’ve come up with this comprehensive guide. It’s a written version of my very popular mini-course video series though with some enhancements.
My goal is to give you a complete guide of drop shipping. Like that, if you or a friend or acquaintance is curious, you will have the perfect resource. WARNING: This guide won’t provide you with all that you should start your very own eCommerce business, but you will be aware the typical process I prefer to be successful with drop shipping.
Before we go too deep into the details, we need to answer the question, “What is drop shipping?” I understand many people discover my full eCommerce coaching program, Drop Ship Lifestyle, by looking for the phrase ‘drop shipping’. And they aren’t really sure what it is or how it works.
Also, I know people wonder the way you could actually drop ship profitably since there are many ways to drop ship. And the reality is, some ways work as well as others don’t. To start out, let’s look at this diagram: So as basic as possible, this really is drop shipping in 4 steps.
You list the supplier’s product on the store for customers to buy.
The client purchases something from the eCommerce store.
You order that same exact item the customer purchased from the supplier.
Your drop shipping supplier ships this item right to your customer. Which means that your customer receives the item that they’ve ordered by you.
You get the amount of money you sold it for and then your supplier charges the wholesale price. So your profit is definitely the difference between that list price you sold it for and also the wholesale price that you simply pay to your supplier.
That’s drop shipping in 4 steps. What I’m planning to do now is further explain what drop shipping is. I’m also planning to show how it operates and also the different ways for you to use drop shipping. Lastly, I’ll show you which way is regarded as the profitable.
eCommerce Business Models
Before we go further into how drop shipping works, the things i really want to do is walk you through the different ways to earn money online. This way, we are able to eventually get to how drop shipping is different and why In my opinion it’s the easiest method to earn money online.
With dropshipping, you are able to profit without placing money for inventory. You can begin because of not much money. CLICK TO TWEET
HINT: With dropshipping, it is possible to profit without putting up money for inventory. It’s a business model that allows you to get going for not much cash upfront. As far as internet business models go, the moydmd popular are eBay, Amazon, and build your very own eCommerce stores (Shopify).
Ebay is surely an online auction site that enables so that you can sell as an individual or to put together a shop, inside their platform.
When I first began in this business over I think almost ten years ago now, I was using eBay and that got saturated very fast and have become a pricing war. It merely wasn’t worthwhile, therefore i cut that out.
There are numerous different choices for building your very own store and we’ll go into them just a little later. But basically, Shopify is a plug and play online software that can be used to construct your personal eCommerce store.
Let’s say you understand how to promote online. It may be eBay. It could be Amazon. Or if you follow my advice, it can be your very own eCommerce store. The next step is finding products to market. You can find three main options and I would like to break them down to suit your needs right now.
The initial choice is to import your products or services. It is possible to head to websites like Alibaba and you could find products to imports from, let’s just say China.
This is certainly the way i were only available in business. Before I ever drop shipped, I was importing products.