After five-years, the most common 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 tons of smaller questions that I’m asked. Questions like: “How do I find a very good niche?” Or “How do you get suppliers?” In order to answer those questions and to show that you could reach your goals through dropship wholesalers, 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 offer you a complete guide of drop shipping. That way, if you or someone you know is curious, you will find the perfect resource. WARNING: This informative guide won’t provide you with everything you need to start your own eCommerce business, but you will know the typical process I personally use to achieve success with drop shipping.
Before we go too deep into the details, we must answer the question, “What is drop shipping?” I know lots of people find out about my full eCommerce coaching program, Drop Ship Lifestyle, by looking for the term ‘drop shipping’. And that they aren’t really sure what exactly it is or how it operates.
Also, I am aware people wonder how you could actually drop ship profitably as there are many different ways to decrease ship. And the reality is, some methods work and others don’t. To start out, let’s look at this diagram: So as simple as possible, this is drop shipping in 4 steps.
You list the supplier’s product on the 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 directly to your customer. So that your customer receives the product that they’ve ordered from you.
You obtain the cash you sold it for and after that your supplier charges you the wholesale price. So your profit is the distinction between that list price you sold it for and also the wholesale price that you simply pay for 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 going to show how it works as well as the different ways you can 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, the 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 reach how drop shipping differs and why I believe it’s the easiest method to make money online.
With dropshipping, it is possible to profit without putting up money for inventory. You can begin because of not much cash. CLICK TO TWEET
HINT: With dropshipping, you can profit without setting up money for inventory. It’s a business model that lets you begin because of not much money upfront. As far as internet business models go, the moydmd popular are eBay, Amazon, and make your own eCommerce stores (Shopify).
Ebay is an online auction marketplace site which allows that you should sell as being an individual or to set up a store, in their platform.
When I first started in this business over I do believe almost ten years ago now, I had been using eBay and this got saturated really quick and became a pricing war. It just wasn’t worthwhile, and so i cut that out.
There are numerous different choices for building your personal store and we’ll go into them just a little later. But basically, Shopify is really a plug and play online software which you can use to build your personal eCommerce store.
Let’s say you know how to promote online. It can be eBay. It could be Amazon. Or maybe you follow my advice, it may be your very own eCommerce store. The next step is finding products to promote. There are three main options and I want to break them down to suit your needs right now.
The initial option is to import your products or services. It is possible to go to websites like Alibaba and you could see products to imports from, let’s just say China.
This is certainly the way i began in business. Before I ever drop shipped, I had been importing products.