After five years, the most frequent question I get in the comments of my blog, videos, and webinars continues to be “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 very good niche?” Or “How do I get suppliers?” In order to answer those questions and to show that you can reach your goals through wholesaler dropshippers, I’ve come up with this comprehensive guide. It’s a written version of my quite popular mini-course video series however with some enhancements.
My goal is to offer you an entire guide of drop shipping. This way, should you or somebody you know is curious, you will find the perfect resource. WARNING: This informative guide won’t offer you all that you should start your own eCommerce business, but you will understand the typical process I use to achieve success with drop shipping.
Before we go too deep into the details, we need to answer the question, “What is drop shipping?” I understand lots of people find out about my full eCommerce coaching program, Drop Ship Lifestyle, by trying to find the term ‘drop shipping’. And that they aren’t really sure what exactly it is or the way it works.
Also, I understand people wonder how you could actually drop ship profitably as there are different ways to lower ship. And the simple truth is, some methods work yet others don’t. To start, let’s look at this diagram: So as basic as possible, this can be drop shipping in 4 steps.
You list the supplier’s product on your store for customers to get.
The customer purchases something from the eCommerce store.
You order that same exact item that the customer bought from your supplier.
Your drop shipping supplier ships this item straight to your customer. So your customer receives the piece that they’ve ordered by you.
You receive the money you sold it for then your supplier charges the wholesale price. Which means that your profit is definitely the distinction between that list price you sold it for as well as the wholesale price that you simply pay for your supplier.
That’s drop shipping in 4 steps. What I’m going to do now could be further explain what drop shipping is. I’m also planning to show how it works and the different methods for you to use drop shipping. Lastly, I’ll demonstrate which way is the most profitable.
eCommerce Business Models
Before we go any more into how drop shipping works, a few things i really want to do is take you step-by-step through the various ways to earn money online. Like that, we could eventually be able to how drop shipping is different and why In my opinion it’s the best way to make money online.
With dropshipping, it is possible to profit without putting up money for inventory. You can start because of not much cash. CLICK TO TWEET
HINT: With dropshipping, you can profit without setting up money for inventory. It’s a company model that permits you to get started because of not much money upfront. In terms of web business models go, the moydmd popular are eBay, Amazon, and build your personal eCommerce stores (Shopify).
Ebay is an online auction site that allows that you should sell being an individual or to set up a store, inside their platform.
Initially when i first started in this business over I believe almost 10 years ago now, I used to be using eBay and this got saturated extremely fast and have become a pricing war. It just wasn’t worthwhile, therefore i cut that out.
There are lots of different choices for building your very own store and we’ll go into them a little later. But basically, Shopify is actually a plug and play online software which you can use to construct your very own eCommerce store.
Let’s say you know how to market online. It may be eBay. It could be Amazon. Or maybe you follow my advice, it may be your own eCommerce store. Your next step is finding products to market. There are three main options and I wish to break them down for you right now.
The very first option is to import your products. You are able to head to websites like Alibaba and you could discover products to imports from, let’s just say China.
This is certainly how I started in business. Before I ever drop shipped, I used to be importing products.