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6 Ways to Make More Money Dropshipping

Published on: December 1 2022 by Bryan Guerra

6 Ways to Make More Money Dropshipping

6 Ways to Make More Money Dropshipping

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00:00:00 00:00:02 in this video we're going to cover
00:00:01 00:00:04 several ways that you can increase your
00:00:02 00:00:06 profit margins when drop shipping now
00:00:04 00:00:08 this video was primarily created with
00:00:06 00:00:10 facebook drop shipping in mind however
00:00:08 00:00:12 you'll notike that a lot of the tips in
00:00:10 00:00:14 this video also apply to drop shipping
00:00:12 00:00:16 on other websites as well so the first
00:00:14 00:00:18 tip that you might want to test don't
00:00:16 00:00:19 just fully on jump in and start listing
00:00:18 00:00:21 every single product like this but you
00:00:19 00:00:23 certainly might want to test it is
00:00:21 00:00:25 something that used to work on ebay a
00:00:23 00:00:26 while back and that's dollar price plus
00:00:25 00:00:28 shipping and then raise the shipping
00:00:26 00:00:30 cost the reason that this works to
00:00:28 00:00:32 increase your profit margins is twofold
00:00:30 00:00:34 first you're not paying the fee on on
00:00:32 00:00:36 facebook because your price is so low so
00:00:34 00:00:38 you're only paying the minimal fee on
00:00:36 00:00:40 your product and then you're charging
00:00:38 00:00:42 the shipping at a higher rate so your
00:00:40 00:00:43 profit margin and what you get paid out
00:00:42 00:00:45 is going to be a lot higher so for
00:00:43 00:00:46 example if your product is twenty five
00:00:45 00:00:48 dollars with five dollar shipping or
00:00:46 00:00:50 thirty dollars with free shipping and
00:00:48 00:00:52 you mark it down to a dollar with twenty
00:00:50 00:00:54 nine dollar shipping or a dollar with
00:00:52 00:00:56 twenty six dollar shipping you're gonna
00:00:54 00:00:57 make more money just by simply doing
00:00:56 00:00:59 that because of the fees that's a
00:00:57 00:01:01 no-brainer the second reason that this
00:00:59 00:01:02 works is because on facebook marketplace
00:01:01 00:01:04 you're kind of competing against other
00:01:02 00:01:06 products that are very very similar and
00:01:04 00:01:08 then a lot of in a lot of ways if it's
00:01:06 00:01:10 saturated you start competing on price
00:01:08 00:01:12 with a lot of other sellers and what
00:01:10 00:01:14 suggested to them so you can increase
00:01:12 00:01:16 your clicks and increase what facebook
00:01:14 00:01:18 starts to think algorithm wise is you
00:01:16 00:01:19 know popular with people because they're
00:01:18 00:01:21 getting a lot of clicks and a lot of
00:01:19 00:01:23 views by simply lowering your price to a
00:01:21 00:01:24 dollar and then that's gonna result in a
00:01:23 00:01:26 lot more interest on your listing which
00:01:24 00:01:28 ideally if you're getting more interest
00:01:26 00:01:29 more clicks on your listing a few of
00:01:28 00:01:31 those will translate into more sales
00:01:29 00:01:32 because there's just simply more numbers
00:01:31 00:01:34 of people checking out your listing the
00:01:32 00:01:36 second tip is to use cash back credit
00:01:34 00:01:38 cards now if you're drop shipping using
00:01:36 00:01:39 retail sites that are common like amazon
00:01:38 00:01:40 ebay
00:01:39 00:01:41 walmart or home depot and there's a
00:01:40 00:01:43 number of other ones out there with
00:01:41 00:01:44 store cards and you are not using that
00:01:43 00:01:46 store card that gives you back five
00:01:44 00:01:48 percent you're missing out on a
00:01:46 00:01:51 ridiculous amount of profit margin for
00:01:48 00:01:52 example if you only spent ten like ten
00:01:51 00:01:55 let's make it easy let's say ten
00:01:52 00:01:57 thousand dollars a month uh on amazon
00:01:55 00:01:58 for example well that's five hundred
00:01:57 00:02:00 dollars you're missing out on simply by
00:01:58 00:02:02 not using the amazon store card that
00:02:00 00:02:03 gives you five percent cash back the
00:02:02 00:02:05 same would apply to walmart the same
00:02:03 00:02:06 would apply to ebay the same would apply
00:02:05 00:02:08 to home depot or any of the other ones
00:02:06 00:02:10 and obviously as you scale and you start
00:02:08 00:02:12 spending more and more money that's only
00:02:10 00:02:13 going to come back more and more into
00:02:12 00:02:15 your profit margins by using cashback
00:02:13 00:02:17 credit cards now if you're not on those
00:02:15 00:02:18 websites at the very least you should
00:02:17 00:02:20 look into other cashback credit cards
00:02:18 00:02:22 i've seen good ones that give up to two
00:02:20 00:02:24 percent but even a one percent one will
00:02:22 00:02:26 make a slight difference the next tip is
00:02:24 00:02:27 very related to that and that's to use
00:02:26 00:02:29 cash back portals so just like cash back
00:02:27 00:02:30 credit cards cash back portals are
00:02:29 00:02:32 little chrome extensions that you link
00:02:30 00:02:34 up in the right hand corner and you
00:02:32 00:02:35 click on them and you activate the cash
00:02:34 00:02:37 back on those specific websites that it
00:02:35 00:02:39 integrates with to give you extra cash
00:02:37 00:02:41 back now that cash back differs from
00:02:39 00:02:42 website to website but typically it's
00:02:41 00:02:45 anywhere from like one percent all the
00:02:42 00:02:47 way up to like 10 or i've even seen 15
00:02:45 00:02:48 sometimes on certain websites so you do
00:02:47 00:02:50 the math on that that's going to make a
00:02:48 00:02:52 massive difference now i personally love
00:02:50 00:02:54 uh rakuten that's my favorite i've also
00:02:52 00:02:56 recommended honey and the capital one
00:02:54 00:02:58 one in the past i like raccoon i think
00:02:56 00:03:00 it's the best in my opinion however any
00:02:58 00:03:02 one of them will increase your profit
00:03:00 00:03:03 margins just by simply checking to see
00:03:02 00:03:05 if you can get extra cash back using
00:03:03 00:03:07 that uh on the specific sites that
00:03:05 00:03:09 you're buying on so always use a cash
00:03:07 00:03:11 back credit card always use a cashback
00:03:09 00:03:12 portal they're no brainers the next one
00:03:11 00:03:14 is one that you should certainly be
00:03:12 00:03:16 careful with and that's to use
00:03:14 00:03:17 discounted gift cards now this is not
00:03:16 00:03:19 something full disclosure that i really
00:03:17 00:03:21 play around with too much but it is
00:03:19 00:03:23 something that you can explore if you do
00:03:21 00:03:25 it correctly with reputable sites so
00:03:23 00:03:27 what happens is if people get for
00:03:25 00:03:29 example credit cards that they they
00:03:27 00:03:31 maybe for a birthday or for christmas or
00:03:29 00:03:32 something like that and then they want
00:03:31 00:03:34 to you know redeem that money but they
00:03:32 00:03:35 don't necessarily want something in that
00:03:34 00:03:37 store what they can do is sell it back
00:03:35 00:03:39 to a website that buys those gift cards
00:03:37 00:03:40 and you can be the beneficiary of that
00:03:39 00:03:43 because then you can buy that gift card
00:03:40 00:03:44 heavily discounted on the website and
00:03:43 00:03:46 make more money because your money's
00:03:44 00:03:47 gonna go farther because you are going
00:03:46 00:03:49 to actually use that gift card on that
00:03:47 00:03:50 website the next one is simple but for
00:03:49 00:03:52 whatever reason a lot of people don't do
00:03:50 00:03:55 it and that's to just list higher priced
00:03:52 00:03:57 products now yes the profit margin on a
00:03:55 00:04:00 200 sale if you're marking it up 40
00:03:57 00:04:02 or 30 or 25 or whatever it is is going
00:04:00 00:04:05 to be the same profit margin as if you
00:04:02 00:04:07 market like a 10 product up the same
00:04:05 00:04:09 amount but the profit number is going to
00:04:07 00:04:11 be different even if the margin is the
00:04:09 00:04:14 same right so if you make a 200 sale 40
00:04:11 00:04:16 of that is a lot more than 40 of a 10
00:04:14 00:04:18 sale it's basic math and finally the
00:04:16 00:04:19 last tip is to get tax exempt so if
00:04:18 00:04:21 you're using a wholesale supplier you
00:04:19 00:04:23 should automatikally be tax exempt
00:04:21 00:04:24 because chances are if it's a reputable
00:04:23 00:04:26 wholesale supplier you would have had to
00:04:24 00:04:29 give them your retail certificate or
00:04:26 00:04:30 your your resale permit to get on the
00:04:29 00:04:32 website in the first place so you should
00:04:30 00:04:34 be tax exempt and not be charged for
00:04:32 00:04:38 taxes if you're using a retail site like
00:04:34 00:04:39 home depot or amazon or ebay or walmart
00:04:38 00:04:41 again there's another way that you can
00:04:39 00:04:43 obviously file for tax exemption because
00:04:41 00:04:45 you are not the end buyer and end
00:04:43 00:04:47 consumer of that product so you don't
00:04:45 00:04:48 have to pay the sales tax on the product
00:04:47 00:04:50 when you actually buy it on the website
00:04:48 00:04:51 none of these tips to increase your
00:04:50 00:04:53 profit margins are going to matter at
00:04:51 00:04:55 all if you're listing the wrong products
00:04:53 00:04:56 though so i highly recommend that if
00:04:55 00:04:58 that's you you check out the video up in
00:04:56 00:05:00 the right hand corner right now that
00:04:58 00:05:01 will cover how to find hot selling
00:05:00 00:05:03 products to drop ship on facebook
00:05:01 00:05:04 marketplace i really hope you enjoyed
00:05:03 00:05:06 the video and got a lot of value out of
00:05:04 00:05:08 it if you got any value from the video
00:05:06 00:05:12 whatsoever please give it a like i
00:05:08 00:05:12 genuinely appreciate it until next time