After 5 years, the most frequent 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 plenty of smaller questions that I’m asked. Questions like: “How do you find the best niche?” Or “How should i get suppliers?” So to answer those questions as well as show that you can reach your goals through dropship, I’ve put together this comprehensive guide. It’s a written version of my very popular mini-course video series but with some enhancements.
My goal is to provide you with a total guide of drop shipping. This way, if you or somebody you know is curious, you will find the perfect resource. WARNING: The following information won’t offer you all you need to start your personal eCommerce business, but you will understand the typical process I personally use to be successful with drop shipping.
Before we go too deep to the details, we must answer the question, “What is drop shipping?” I know lots of people discover my full eCommerce coaching program, Drop Ship Lifestyle, by looking for the word ‘drop shipping’. And that they aren’t really sure what it is or how it operates.
Also, I understand people wonder the way you could actually drop ship profitably because there are different ways to lower ship. And the reality is, some methods work and others don’t. To start, 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 client purchases something from your eCommerce store.
You order that same exact item that the customer paid for out of your supplier.
Your drop shipping supplier ships this item right to your customer. So that your customer receives the piece that they’ve ordered on your part.
You obtain the money you sold it for then your supplier charges you the wholesale price. So that your profit is definitely the distinction between that list price you sold it for and the wholesale price that you pay to 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 show you which way is easily the most profitable.
eCommerce Business Models
Before we go further into how drop shipping works, what I really want to do is take you step-by-step through the various ways to make 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, you can profit without setting up money for inventory. You can begin because of not much money. CLICK TO TWEET
HINT: With dropshipping, it is possible to profit without placing money for inventory. It’s a business model that lets you begin for not much cash upfront. So far as internet business models go, the moydmd popular are eBay, Amazon, and build your personal eCommerce stores (Shopify).
Ebay is definitely an online auction marketplace site that allows that you should sell as being an individual or to set up a store, inside their platform.
When I first began in this business over I do believe almost a decade ago now, I had been using eBay which got saturated very fast and have become a pricing war. It just wasn’t worth the cost, and so i cut that out.
There are numerous different alternatives for building your personal store and we’ll enter into them just a little later. But basically, Shopify is really a plug and play online software that can be used to construct your very own eCommerce store.
Let’s say you understand how to market online. It may be eBay. It could be Amazon. Or if you follow my advice, it may be your very own eCommerce store. Your upcoming step is finding products to promote. There are three main options and I wish to break them down for you today.
The very first choice is to import your products or services. You can go to websites like Alibaba and you could see products to imports from, let’s just say China.
This is really the way i started in business. Before I ever drop shipped, I used to be importing products.