After five-years, the most common question I get in the comments of my blog, videos, and webinars is still “What is drop shipping?” Additionally huge question, there are tons of smaller questions that I’m asked. Questions like: “How do I find the best niche?” Or “How do you get suppliers?” So to answer those questions as well as show that you could reach your goals through drop ship wholesalers, I’ve assembled this comprehensive guide. It’s a written version of my quite popular mini-course video series though with some enhancements.
My goal is to give you an entire guide of drop shipping. This way, in the event you or a friend or acquaintance is curious, you will have the perfect resource. WARNING: This informative guide won’t provide you with everything you need to start your personal eCommerce business, but you will know the overall process I prefer to achieve success with drop shipping.
Before we go too deep in to the details, we need to answer the question, “What is drop shipping?” I know many people learn about my full eCommerce coaching program, Drop Ship Lifestyle, by searching for the term ‘drop shipping’. And that 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 as there are different ways to lower ship. And the reality is, some methods work yet others don’t. To start out, let’s go over this diagram: So as simple as possible, this can be drop shipping in 4 steps.
You list the supplier’s product on the store for customers to purchase.
The customer purchases something from the eCommerce store.
You order that same exact item that this customer paid for from your supplier.
Your drop shipping supplier ships this item directly to your customer. So your customer receives the product that they’ve ordered by you.
You get the amount of money you sold it for then your supplier charges the wholesale price. Which means that your profit will be the difference between that retail price you sold it for and also the wholesale price that you pay in 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 planning to show how it operates as well as the different ways for you to use drop shipping. Lastly, I’ll demonstrate which way is the most profitable.
eCommerce Business Models
Before we go further into how drop shipping works, a few things i actually want to do is take you step-by-step through the different ways to earn money online. This way, we can eventually reach how drop shipping is unique and why In my opinion it’s the best way to make money online.
With dropshipping, it is possible to profit without placing money for inventory. You could start because of not much cash. CLICK TO TWEET
HINT: With dropshipping, you can profit without putting up money for inventory. It’s a company model that lets you begin because of not much money upfront. In terms of online business models go, the moydmd popular are eBay, Amazon, and make your own eCommerce stores (Shopify).
Ebay is definitely an online auction marketplace site that allows that you should sell as an individual or to put together a store, in their platform.
When I first started in this business over I think almost 10 years ago now, I was using eBay and that got saturated very fast and have become a pricing war. It merely wasn’t worth it, therefore i cut that out.
There are several different options for building your personal store and we’ll get into them a bit later. But basically, Shopify is really a plug and play online software that can be used to develop your own eCommerce store.
Let’s say you know how to market online. It may be eBay. It may be Amazon. Or if perhaps you follow my advice, it can be your personal eCommerce store. The next step is finding products to promote. You will find three main options and I want to break them down for you today.
The first option is to import your products. You are able to go to websites like Alibaba and you could find products to imports from, let’s just say China.
This is really how I began in business. Before I ever drop shipped, I was importing products.