After five years, the most typical question I get in the comments of my blog, videos, and webinars is still “What is drop shipping?” On top of that huge question, there are plenty of smaller questions that I’m asked. Questions like: “How should i find a good niche?” Or “How do you get suppliers?” In order to answer those questions as well as show that you could reach your goals through dropship, I’ve put together this comprehensive guide. It’s a written version of my quite popular mini-course video series but with some enhancements.
My goal is to give you a total guide of drop shipping. That way, in the event you or someone you know is curious, you have the perfect resource. WARNING: This guide won’t provide you with all that you should start your personal eCommerce business, but you will be aware the overall process I use to be successful with drop shipping.
Before we go too deep in to the details, we have to answer the question, “What is drop shipping?” I know lots of people find out about my full eCommerce coaching program, Drop Ship Lifestyle, by searching for the term ‘drop shipping’. And they aren’t really sure what exactly it is or how it works.
Also, I understand people wonder how you could actually drop ship profitably as there are different ways to decrease ship. And the simple truth is, some ways work as well as others don’t. To begin, let’s review this diagram: So as simple as possible, this can be drop shipping in 4 steps.
You list the supplier’s product on your store for customers to purchase.
The consumer purchases something out of your eCommerce store.
You order that same exact item that the customer purchased from the supplier.
Your drop shipping supplier ships this item straight to your customer. So that your customer receives the product that they’ve ordered by you.
You get the cash you sold it for and then your supplier charges you the wholesale price. Which means that your profit is definitely the difference between that list price you sold it for as well as the wholesale price which you pay for 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 going to show the way it works as well as the different methods for you to use drop shipping. Lastly, I’ll demonstrate which way is regarded as the profitable.
eCommerce Business Models
Before we go any further into how drop shipping works, what I actually want to do is walk you through the different ways to earn money online. This way, we could eventually be able to how drop shipping is different and why I believe it’s the simplest way to generate income online.
With dropshipping, it is possible to profit without setting up money for inventory. You can start because of not much money. CLICK TO TWEET
HINT: With dropshipping, you can profit without setting up money for inventory. It’s a company model that permits you to begin 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 definitely an online auction site which allows so that you can sell being an individual or to put together a shop, inside their platform.
Initially when i first began in this business over I do believe almost a decade ago now, I used to be using eBay and that got saturated really quick and have become a pricing war. It merely wasn’t worth the cost, therefore i cut that out.
There are lots of different options for building your very own store and we’ll go into them just a little later. But basically, Shopify is actually a plug and play online software which you can use to build your very own eCommerce store.
Let’s say you understand how to market online. It may be eBay. It can be Amazon. Or if perhaps you follow my advice, it could be your personal eCommerce store. Your next step is finding products to sell. There are three main options and I wish to break them down to suit your needs today.
The very first choice is to import your products or services. It is possible to visit websites like Alibaba and you could see products to imports from, let’s just say China.
This is certainly how I were only available in business. Before I ever drop shipped, I used to be importing products.