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Published on: February 4 2023 by pipiads

How To Not Get Sued When Drop Shipping!

sup guys. Anton here from dropship lifestyle calm, and you may or may not know this, but about every two weeks I typically do a different training webinar and these webinars are live. I do them either from my office here in Austin or in my home office or wherever I am in the world. we get about a thousand people from all around the world to hop on these calls and I usually teach for about sixty minutes and then I end it with a 30-minute question-and-answer session. so during this Q&A I literally open it up and whatever people want to ask they could ask, and until my voice goes out I continue to answer questions. so what I realized over these past few webinars that I've done? so? over the past- I guess a couple months or so- a lot of the same questions have been coming up and a lot of the questions are like: well, Anton, you know, I really want to do this, I'm interested, but what if I get sued? or aren't suppliers gonna sue me, or isn't this illegal? and it's weird like that. that's where the conversation is kind of shifting, like it's coming up a lot more than it ever did before, and while that's a totally valid question and something that I think should be addressed. it's something I've never really spoke about in different youtube videos or blog posts or podcasts or anywhere I've been, because, honestly, it hasn't been an issue. but I do think, now that that kind of you know conversation is picking up steam, this is the perfect time to bring it up, to discuss it, to share my saw thoughts. so that's exactly what we're gonna do in this week's episode of dropship weekly [Music]. okay, so I think the first thing that I should tok about is being sued for selling specific types of products, because that seems to be the major concern. now I want to be clear. you can get sued, you know, by anyone at any time, for pretty much anything, especially in America, which is where I'm based. in the States, you can always get sued, but the people that you're probably hearing these stories about that are getting sued, that are getting cease and desist letters, that are getting their stores shut down, that are losing their PayPal accounts- they're stripe accounts, they're Shopify payments accounts- the reason they are doing that on the product level is when they are selling, almost always either copyrighted or trademarked products or brands. so if you're brand new to e-commerce, you might not know, you might think, hey, it's totally fine to sell. I'm wearing a shinola watch. you might think it's totally fine if I could find shinola watches from China and sell them online. now, this watch from shinola is made from, you know, a factory in Detroit, so I don't know. I haven't searched for this, but if you go on Alibaba or if you go on Aliexpress, it's possible that you'll find shinola watches right that look very similar to this. now, this is a smaller brand, so maybe not. but if you wanted to sell something like, you know, Game of Thrones hoodies, right, or Game of Thrones pillows, which I saw on someone's store that wanted me to review it, which I probably still will- if you find those products from China and you build a website that's called Game of Thrones, merch calm, or even if it's called, you know, Anton's, merch calm, and it's selling all gameofthrones products with their characters, right, their intellectual property on these things, well, at the very least, if you start to get traction, you're going to get a cease and desist letter, which means basically, the company's lawyer that owns the rights to that, that property, that IP, that intellectual property. they're gonna say: listen, cease and desist. all right, don't do this anymore. and if you don't comply, then it usually says what the next step is and that next step is usually a lawsuit. and, by the way, if you're moving enough volume, if you're infringing enough on you know certain brands products, they'll go ahead and just go straight to a lawsuit sometimes. so you know it is very serious. so you should never do that. the only way you should sell gameofthrones products. I don't know who owns that, that IP, but let's just say it's HBO. it's when HBO says, yes, you could sell our stuff. same thing. you know people always want to sell different, like sports team apparel, and I get it. you know sports are multi-billion dollar industry. but you can't just go and start selling you know New York Jets hoodies because you want to. you need to actually get approved and authorized to be a partner with the NFL and sell the type of products. so the first reason that I think people are asking about this is: you know, totally- again, totally valid- like there's a lot of products that if you just want to sell without any authorization, if you just find them on, you know over low or on Aliexpress or on Alibaba, and you list them, yeah, there's a good chance you can get sued. so totally valid claim. now let me just make a distinction here. that again, if you've been following me for a while, if you've been following dropship lifestyle, you already know this. but the types of products we sell, we actually do get approved before we sell them. now we're not going after brands like shinola or like the NFL or, you know, like any like major TV production, but the brands were going after our companies that make legitimate products, right, like the company that makes these, these chairs. now we wouldn't- just again, let me see what name is on it- okay, the company Howarth. I've never even we bought these when I when I bought this office. but if we just wanted to sell those chairs, I would contact that company howarth and I would get approved to sell their products. so I would be a retailer for them. same thing with the other 500 chair manufacturers in the states, right, or that source products in the states. so if you do things the right way with drop shipping and you sell products that you're authorized to sell, you don't- you know- again, I'm not a lawyer, like things could probably come up somehow, but you definitely don't have to. if you do everything right, you don't have to worry about the brands you're selling for suing you. okay, that's not an issue. you're not, you know, you know stepping on anyone's like intellectual property because you're authorized to sell their products. they said, yes, please sell our products. we want you to bring us more sales. you're not trying to be sneaky and sell things that are that are cashing in on someone else's hard work. okay, so that's the first thing that I think should be covered. now the second thing that is important to tok about again. I don't know how it is in other parts of the world, but in the states where I'm from and I live, anyone could sue anyone at any time. so you know, let's just say I don't know you, you, you give a customer places a $20,000 order with you, right? let's say you sell these chairs and you someone order. maybe they're 500 bucks each, I have no idea- but you sell 20 of them and someone buys them and you know, whatever they all go to your customer and maybe the shipment gets lost somewhere, or maybe the customer is not happy with them, or maybe you know, you, just I don't know, maybe you're a bad person and you've never shipped the order and you try to steal the customers money, right, all these scenarios could happen. and if the customer is mad enough and they're not being satisfied by your customer support and basically your company, then let's say they sue you. okay, again, that could happen and even could sue anyone. now here's where things I think are pretty important, based on where you are in your business. and again, not a lawyer, not legal advice, but this is just kind of common knowledge. when you're structuring your business, your business entity, you have a few different options, and the first, which is how I started, is just to be a sole proprietor, and that means doing business as yourself. right. and if you want to start a business today, as whatever your name is, boom, you could do it. you're a sole proprietor, it's under your name. good to go now that, when you're a sole proprietor, right if I sold these chairs to someone as a sole proprietor. and again, let's just say

Dropshipping: Halal or Haram? - DR ZAKIR NAIK

first, let us understand what is the meaning of drop shipping. drop shipping means that a person can have his own website or own web, own app where he gives the photographs and the description of the goods that he wants to sell, but he doesn't own it, so people on the net can come and pay for it. once a customer pays for the goods which you have advertised, what you do is after that, you buy the product from the manufacturer and you ask him to ship it to the customer. so this is called drop drop shopping and it was there since long, but in pandemic, especially in 2020 and 2021, it has reached to a great extent. online shopping was common. now. this drop shopping where a person who makes the site, he is well versed in attracting the customers, he gives a better option, better photographs, or maybe a person can have a mobile phone or a watch and he gives the description and the customers have a look at it and the way it is, and he puts a price for it, maybe x plus y, and once the order is given this person in drop shopping, he doesn't own the product, he doesn't possess it. he just has an online website or an online app, whatever it is. once a customer pays money. then he goes to the manufacturer and he buys it, maybe at a better rate because he gives a bigger order. so the cost which he gets from the manufacturer may be x. he may put x plus y on his own website. the why is the extra money is taken and deleting the cost of shipping etc balances this profit. so once a customer orders it, he goes to the manufacturer. he tells to the manufacturer. they say that this is a customer delivered directly. now, this is the conventional method of drop shipping, of drop shopping. sorry, this is the conventional method of of uh dropshipping that they give an order on a website. the person who owns the online website doesn't possess the goods, doesn't own the goods he gives the manufacturer doesn't manufacture. rightly, this conventional method of of uh dropshipping. it is haram islamically mainly for two reasons: because of the hadith of beloved prophet. it's the incident abu dhabi, word number four. hadith number three, five zero three, in which he comes to the prophet and says that people want to buy goods which i do not possess. can i go in the market and buy it and give it to them? so the prophet said: do not sell things which you do not possess. so, based on this saying of the prophet that do not sell things which you do not possess, and these hadees also the intermediary manager, so the focus have come to a conclusion that a muslim who does not possess the goods, he cannot sell it, and the muslim who doesn't own the good, he cannot sell it. so the two requirements for any muslim to sell any goods to a customer, number one, you should own it and number two, you should have issued a position of it. now, in the drop shipping method which we toked about, conventional method, we are breaking both these rules. the person who's advertising online, he doesn't own the goods, only after he gets the order does he tell the manufacturer to deliver it in the dirty position. so these two conditions are violated. therefore, islamically, the conventional method of dropshipping is: there are sharia, financial consultants who have come with alternatives. how can you make this drop shipping halal if you follow a certain procedure which fulfills the requirement of the sharia? so what they have come to conclusion? that based on hadith of the prophet which is quoted by the question, also buhari, number three. hadith number two: two, four, zero. then abbas malala bps with him. he said that when the prophet went to madina, he came to know that people were buying dates two or three years in advance. they paid for dates which were delivered two or three years in advance. so the prophet said that anyone who pays money in advance he should see to it that he pays after he knows the exact measure, he knows the exact weight and the exact time of delivery, or the exact period of delivery, the time period. so here the profit put a condition that if someone is paying in advance full money, he can pay under the condition that he knows the measure of that good, he knows the weight of that good, the basic description etc. and the details, and he knows the date of delivery, exact time period. so this is done. it is called assalam in the islamic terminology. it is also called either by a salam. so this is a salam transaction where if the person who is selling the good, if he doesn't possess the good or he doesn't own the good, as long as he is giving the exact description of the goods, whether in terms of measure, whether in terms of weight and exact rate of delivery, then he can take advance payment from the buyer completely. but here the requirement is that the payment should be in full, it cannot be part. so what the fukah say, the people who are sharia expert in islamic finance? you cannot give part payment, but part payment. it will be debt and business together, so it will be haram. you cannot have to both merge. the payment should be in full. slightly important one, number two, is that they say that it should be a salam transaction. so in the salaam transaction, the person who owns the online website, he should make it clear, he should give all the details of the product. you should give the photograph of the product and you should give the color of the product, the details, the weight is there- the quantity, the clarity, the expiry, all the details. if he gives and also he give the exact date of delivery, then it becomes a salam transaction. so this: if he does it- and some of the focus say that if you mention on your online site that you do not possess these goods, that means you are making it very clear you don't possess the good. but you give the photograph of the good and you're giving the details, the color, the details, the weight, the measurement, all details, as many as possible, including the exact date of delivery- then this becomes accepted. but now you are clarifying that you do not own the goods. but yet there is one factor which is missing is that you don't possess and for you to make the transaction, you should see to it that you you cannot ask islamically- that once you have mentioned these details and if you deliver, the customer knows very well and as long as you fulfill all these requirements, return. so the focus, they say you can then tell the manufacturer, okay, you ship, it is told to the customer that i don't possess it and it's a salam in assalam, it is accepted that you don't own the goods, you don't possess it, but they tell the manufacturer to deliver it. now some focus say this is not permitted because the person you are buying from you have to take possession before delivery. so if he delivers it, it will be breaking the contract. he's a manufacturer, he's a seller, he cannot del. you have to take position before delivering, so you can buy from manufacture, no problem. but if you ask him to ship directly, then it is breaking the islamic rule of possessing the artikle. now there is one view of the maliki school of thought. what they say, that is hadith, mainly refers to food stuff, because people used to pay for the dates two or three years in advance. so the malaki school of thought says this: this requirement of possessing the goods is only for food stuff, not for other materials. but this is a view of a minority. the remaining three, three schools of thoughts, that is, uh, the anaphase, the hanafis, the shafi and humbolis- they don't agree with this. so this is a minority view. the majority doesn't agree. so humbly, school of thought. no problem position is not a must, it's not a food stuff. you can ask the manufacturer to deliver directly. it's accepted. but the majority disagree. you cannot. you have to take possession. so what they say, that you can either have another salam with the manufacturer and solve this problem, or what you say, that you ask the courier deliver. the korea company delivered. now when, in enormous circumstances, when a courier company is delivering the goods, they are in no contact with the manufacturer, not not with the person who owns the

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Top 10 Mistakes Beginner Dropshippers Make (Shopify)

what's going on, guys? today i'm going to be going over the top 10 mistakes that you need to know before you start drop shipping. literally all of these mistakes are so crucial because if you just make one of them, then your entire drop shipping business could be completely destroyed. everything that i'm going to share with you today are actionable tips that you're going to thank me later for, and if this video does reach 4 000 likes, i'm going to release a document of 10 viral winning products that are making thousands of dollars per day right now. so make sure to smash the like button and subscribe, but without further ado, let's get into the value. all right, guys. so the first and one of the most common mistakes that i see newbie drop shippers make is not checking the shipping times for countries that they're trying to advertise to. if you go on aliexpress and you check the shipping drop down, you're gonna see there's tons of different options and it's very specific on each country that you're actually shipping to. so if you're wanting to advertise the united kingdom, make sure you actually check out those specific shipping times and a lot of the times you might have to find a different supplier for one country than another country, and the reason why it's so important that you actually check these shipping times is sometimes united states will have 14 to 17 days shipping and then you'll check out the shipping to canada and it will take up to two months and you guys don't want to be sending products out with two month shipping because if you actually run into that scenario, then you're gonna have tons of unhappy customers and, trust me, that's not how you're successful in drop shipping. you're gonna have a ton of refund requests, a ton of chargebacks and overall, that's just bad business. so definitely make sure you do this one now. mistake number two is setting realistik goals. i get tons of dms every single day with people reaching out to me thinking that this is a get rich quick scheme and telling me that they want to make 50 000 or 100 000 in the next few months. now i hate to break it to you, but this business model does take time and it does take effort. so if you're a beginner getting into this, expect not to make money right off the bat. your primary goal should be coming into this, learning absolutely as much as you can, because in my opinion, the hardest part of this business model is actually going over that initial hump to where you actually get sales. once your store's actually getting sales, then you can turn up the knob with advertising, bring more traffic in and it's relatively simple to scale. but, trust me, don't expect to make hoards of money in the next few months, because you're gonna be very unhappy when the money doesn't come in instantly and you're gonna quit much faster. you guys see me on this channel sharing some insane numbers, but keep in mind, i've been at this since 2017, so it definitely didn't happen overnight. you guys aren't seeing the sleepless nights, the times i've almost went in debt and all the trials and tribulations that actually came with my success. now, number three is to actually start out with a realistik budget, and i think this is one of the biggest achilles heels of newbies getting into drop shipping. they see this business model and they want to start out with a hundred or two hundred dollars and, while that might be sufficient to get your first store off the ground, if that's actually the only money you have, you're gonna lose it relatively quickly and you're gonna think that this business model doesn't work. i suggest that you start with a two or three thousand dollar budget completely dedicated to actually testing products out, because this will give you a high likelihood of finding a winner. now, if you don't have two or three thousand dollars yet, i wouldn't really start out trying to build a business. i would try to get a job, because the thing is to take a hundred dollars and turn it into a thousand dollars. you're gonna need to 10x your money, which is pretty difficult, but it would be much easier if you just spent about 30 or 40 hours working at a job, taking that money, putting a thousand dollars in and 10xing it and turning it into 10 000.. now mistake number four that i see tons of newbies actually make is not focusing on viral products that solve problems. a lot of you guys dm me your stores and i see these odd little trinkets you guys are trying to sell and different jewelry and fashion products, and while these do sell, these are some of the most competitive niches and it can actually be harder to convince someone to buy a fashion product than something that actually solves a problem. the method that i teach in drop shipping is actually finding products that fill a gap in the marketplace. so, for example, not too long ago i shared a video showing one of my 100k products, and what this product is is a knee brace that actually helps you walk better and it takes off weight from your upper body, which solves a massive problem for anyone who has knee problems or trouble walking in general. now, the reason this products much easier to sell than random trinkets is because it solves a real world problem and when you actually go on facebook and you advertise this to people with knee problems, they're gonna be much more likely to buy this as an impulse purchase than your random trinket. now, mistake number five that i see tons of newbies making is starting out with the general store approach. if you don't know what that is, basically it's a store like amazon, focused on selling any product under the sun, and the reason why i don't advise of this method is because, right off the bat, if you add tons of products and you're still completely new to this business model, you're not gonna spend enough time merchandising the products you do have and you're gonna think it's quantity over quality, but in reality that's actually flipped around. i like focusing on fewer products that we merchandise much better, because it gives us a much higher chance of actually getting sales on our stores. so if you're starting out, i recommend you start off with a niche store or a one product store. a niche store is focused on one market- so, for example, workout gear- and a one product store is literally only selling one product- so, for example, this massage gun- and by doing this, we'll be able to dedicate the time needed to properly merchandise our product and create good product descriptions, work on good graphics and get good facebook ads. plus, when customers actually visit our website, they're gonna look at our website as a very reputable brand because we're very focused on their problem that we're trying to solve now. mistake number six is to avoid selling any copyright or trademarked products. now, this could be a little bit difficult to understand if you're a beginner, but one big piece of advice that i recommend to you is: don't sell any products with any characters or any references to any other company, so, for example, a spiderman costume, an mba jersey or something related to pokemon. now, this should be common sense, but i see far too many people get into this business model and get their store shut down, because the thing is that company could actually come file a report on you and shopify will take your website down immediately, and on top of that, you could also face some legal implications if you actually did become very successful selling that product. all right guys. so mistake number seven should seem like common sense, but i see far too many people get into this business model, start scaling their products and they don't actually truly understand the profit that they're taking home each day. now this is pretty simple to figure out. there's a couple apps that you could download on your store, like life timely or order metrics, where it actually tracks real time your profit every single second so you can integrate your facebook ads, your google ads, your product cost and your shipping costs and any fees that you're actuall.


What You NEED To Know Before Dropshipping in 2023

there are some important things that you need to know before you even think about starting Drop Shipping in 2023. the market is constantly changing and Drop Shipping and you need to know, now more than ever, exactly how to embrace and involve with these changes when you're first getting started. without knowing and understanding this information I'll be covering in this video, you could be potentially spending a lot of time and money in the wrong direction. so stay tuned the entire way through. you will not want to miss out on this value. let's go ahead and jump right into what's going on. everyone, my name is AC Hampton. I'm an eight-figure marketer who gets to teach people how to start and run profitable online businesses. each week, I give out the opportunity winning a free one-on-one Consulting call to one lucky person to help answer all of their questions and streamline their success while doing so. and if you want the opportunity winning this free call this week, all you need to do is smash that like button down below and, in the comment section, comment the word Dropship with your biggest takeaway from this video. alright, so the first thing I want to do is cover some untold truths about Dropship shipping and be as completely transparent as I possibly can. now. I know that you've probably heard a thousand different times from all these different Drop Shipping gurus that you can start Drop Shipping with no money. well, I'm here to tell you right now that you will need some sort of cash flow or credit line to start running your Drop Shipping Store. if you head into Drop Shipping looking to spend zero dollars, then you're going to be quickly discouraged when charges start rolling in. you have to be willing to treat your job- shipping business- as the business that it is, which means being willing to invest not only your time but some money into creating a successful business. when starting a profitable Drop Shipping business, I suggest that you start off with at least 1500 to 2 000 if you're trying out for yourself, and 500 to 800 if you're working with a mentor who can help you avoid some costly mistakes. not only should you just be prepared to spend money on your ads, but you have to be prepared to spend money on a monthly fee to keep your store open, purchasing a domain and any apps that you may need on your store. what it comes down to is that there's going to be expenses when it comes to running your online business, and you need to know that and be prepared for it, rather than just trying to start with zero dollars. and while we're toking about your online store, understanding what type of store that you should have is what's going to save you a ton of that money. and there's a couple different types of stores that you can have now. the first example is a one product store, which is where you would literally just sell one specific product, which you can see with the store right here. this store is all around this specific product right here now. secondly, you could have a niche Focus store, which is where you would be selling anything that falls in line with whatever Niche that you're selling. so, for example, if you have an online baby store, you would be able to sell anything that's related to babies or parents, which you can tell with this store right here now. you know that this is a niche focused store. it's not just selling one specific product, but products that all fall within the same Niche. but the store that I suggest that you start off with is called a general store. a general store is what allows you to test out different products that don't necessarily fall under the same Niche, all under one specific store, and this right here is an exam couple of one of my old General stores on here. you can see I was selling products that aren't necessarily related to each other, but I was able to test each one of these without having to open up and redesign a new store every single time. just one of these didn't work out. what I typically see is beginners try to hop in and think they know exactly what they're going to sell, so they try to build an entire store around them, but then, when that product doesn't actually work out, now you're stuck with a store that has no relevance to the next product you're trying to sell. this means at that point, you have to spend time redesigning the entire store and buying a whole new domain, when, if you start off with a general store in the first place, you could just upload a new product, build a new product page and start testing. most people's fears of General Stores is that they look messy, unprofessional and that no one is going to buy from it unless it looks like a brand new store. well, I have news for you. the biggest online retailers that you're shopping from are considered General Stores- from Target to Walmart to Amazon- the list continues. just because you're selling different items doesn't mean that the storefront has to look a mess or be any less presentable. and if you already get started with your own General Store on Shopify, make sure you go and click on the link down in my description for a seven day free trial with no credit card required in the next three months on Shopify, only costing you one single dollar. now I do want to be clear on what the purpose of even starting a general store is, and it is not to just scale products to the moon, but for you to find your winning products. once I hit over a hundred thousand dollars with the product on my General Store, I actually make up one product or Niche brand around it, allowing me to maximize the conversions on my store and even add more personality, because I know exactly who my target audience is and how I can take full advantage of this branded website. now again, this is the steps I take after a product has been proven a winner. but does that just mean I'm going to turn off my General Store? not at all, just using the store to find more winning products, cycle and repeat the process again. now that we have that clear, you can have the best looking General Store heading into 2023. but if you don't have the right products to sell, then you'll still be be making no sales. product research is a big thing that most people struggle with when they're first getting started, so it's important that you know exactly what you should be looking for in a winning product, how to find them and how to understand if the product is trending or not. when looking for a winning product to sell, I like to look for products that a- solve a problem and B are currently trending or have trended in the past. by selling a product that solves a problem, this is the easiest way to gain the conversions you're looking for, because you're fulfilling the issue that that exact person has. but the one I see most beginner drop shippers struggle with is knowing how to confidently identify a trend that's happening and understand the demand and data behind it. and how I understand this as a marketer is by utilizing one of my favorite free tools called Google Trends. so, for example, if you're wanting to sell something within the phishing niche, first thing I'm going to do is head over to Google Trends and type in phishing, and the next thing I can do is go ahead and filter by what's happening in the last five years and the main thing I'm trying to do right here is understand when consumers actually start searching for this type of product. so I know exactly when start and stop selling it and, as you can see right here, every single year the same trend is happening. so basically at the end of November, beginning of December, it starts spiking up all the way to basically the beginning of June, and I mean it's the same exact thing every single year. and seeing this type of trend means that there's an area of opportunity for you and you just have to take advantage of it. every single business, not even just specifically Drop Shipping, is built off of supply and demand. if you see demand behind something, it's your job as a marketer to go all in on it, which brings me to my next point. that is a huge pro.

The UGLY Truth About Dropshipping That No Guru Will Tell You

in this video, i'm going to answer the most commonly asked questions about drop shipping, including the questions that most people won't give you a straight answer on. so here's the ugly truth about drop shipping. now, drop shipping has a reputation for being a get rich quick scheme because it sounds way too easy: you don't need to store inventory, you don't need to ship or fulfill orders, you don't need much money to get started and you can run a dropship store from anywhere in the world. now, while all these statements are tiknically true, a common misconception is that running a successful dropship store is easy. but in reality, success with drop shipping has many pros and cons and isn't as straightforward as you are led to believe. so in this video, i answer all the in-depth questions related to drop shipping to provide you with a complete view of what it takes to run a profitable dropship store. now, what is drop shipping? drop shipping is an ecommerce business model where an online store does not carry inventory for the products it sells. when an order is made, the online store purchases the products from a wholesale supplier, who then ships the order directly to the end customer. so, as a result, the online store owner does not have to deal with physical inventory or perform any shipping and handling. there are no upfront inventory cost because all products are purchased on demand. now is drop shipping legal and legit? it is 100 legal as long as you use legitimate dropship suppliers. so, for example, if you sell disney merchandise on your online store and your supplier dropship's fake disney merchandise on your behalf, you could be liable for fraud. as long as you're careful about who you work with and only use officially licensed distributors for the brands you carry, drop shipping is legit and safe. now, does it require a seller's permit and a business license? well, in the us, you absolutely need a seller's permit in order to legally sell online. now, most states require you to charge sales tax to customers where you have economic nexus, and drop shipping is no exception. if your locality requires a business license, then you must get a business license as well. remember, drop shipping is simply a method of order fulfillment. your drop shipping business is a real business and must be registered as such. now, how profitable is drop shipping? well, because your supplier is doing most of the heavy lifting when it comes to fulfillment and inventory. the margins for drop shipping are much less than other e-commerce business models, so typical margins for drop shipping are between 10 and 30 percent, compared to 50 to 66 percent for private label and traditional wholesale, which makes drop shipping far less profitable. now, the best products of drop ship are higher tiket items that yield more revenue per sale. now is drop shipping worth it? well, despite the low margins, drop shipping can be a great way to get started selling online. for less than three bucks, you can start a fully featured ecommerce business that carries hundreds of products, and drop shipping is worth it for product research as well. without any upfront risk, you can list many products online just to see what sells and then, based on your own sales data, you can private label or carry inventory for your best selling products and keep more of the profit. now the best part is that drop shipping can be automated, except for the customer service. now, most established drop shipping suppliers support edi, which stands for electronic data interchange. edi is an electronic system that allows your website and your suppliers website inventory to automatikally stay in sync. so, for example, if your supplier runs out of stok on a partikular product, your website's inventory will automatikally be adjusted. in addition, all orders placed on your website are automatikally transmitted to your drop shipper for fulfillment. however, even though order fulfillment is automated, you are still responsible for answering questions and performing customer service. now here's how drop shipping from your own website works. now, if you use a well-supported e-commerce platform like shopify, bigcommerce or woocommerce, setting up drive shipping is a straightforward process. here's exactly how you drop ship from your own website and how it works. a customer places an order on your site and you accept payment. the customer's order is electronically transmitted to your drop chip supplier, where you are charged the agreed upon wholesale price for your goods. your drop ship supply then ships the order to the end customer and you pocket the difference in cost as profit. now you don't have to drop ship on your website. you can also drop ship on amazon, and here's how amazon drop shipping works. you list your products or sell on amazon as a merchant fulfilled seller, and then, when an order is placed on amazon, you electronically send the order to your drop ship supplier, who then ships the products to the end customer. now, overall, amazon drop shipping is a much riskier business model than drop shipping from your own site, because you have to follow amazon's terms of service to the letter. first off, you must source your products from a legit wholesaler. you are not allowed to drop ship your products from another marketplace like aliexpress, ebay or walmart, otherwise you're going to get banned as a result. aliexpress drop shipping on amazon is expressly prohibited. amazon also imposes very strict requirements for shipping and fulfillment that must be met. if you have a series of late shipments or inventory mishaps, your account's going to get banned. but outside of following amazon's terms of service, drop shipping on amazon works much the same as drop shipping on your own website. you can also drop ship on ebay. you simply list your products for sale as an auction or store listing and then, when an order is placed, you electronically notify your supplier who fills the order and similar to amazon. you must source your products from legit dropship suppliers and not marketplaces like amazon or walmart, otherwise you're going to get banned. so, as a result, get rich quick. schemes like buying products from amazon and drop shipping them on ebay at higher prices is prohibited. now you're probably wondering how drop ship payments work. well, when you sign up with a drop shipping supplier, you'll be asked for a form of payment and typically you can pay by credit card. your supplier keeps your credit card on file and simply charges your card when an order is placed. you can also use ach or direct transfer. this is where your supplier keeps your bank information and automatikally places a transaction at the end of the day, week or month for all products purchased. the best way to pay a drop ship supplier is through payment terms. some suppliers will offer you payment terms, which means that you don't have to pay for your products until 30 or 60 days later. now, whenever an order is placed on your website, two payment transactions occur in the background. the first transaction takes place when you accept payment from your customer and deposit the money into your own bank account. the second transaction takes place when you pay your supplier for the raw cost of goods and any related drop ship fees. now where do you find drop shipping suppliers? there are four main ways to find suppliers. depending on your budget and the types of products that you want to sell, and by paying a fee, you can perform a search and instantly have access to hundreds of pre-vetted suppliers. you can also use a drop shipping company. a drop ship company acts as a middleman who automatikally connects you to a dropship supplier. you simply list the products that the dropship company offers and they handle the entire fulfillment process. as a result, you do not have to find or interact with any suppliers. you can also go to a drop shipping trade show. by attending local wholesale and drop shipping trade shows, you can form drop shipping arrangements face to face. you can also use a print-on-demand com.

Is Drop Shipping Legal? | Drop Shipping in 2022 (Here Are the Facts)

is dropshipping legal? if you are considering starting an online store? this question has already probably crossed your mind, and I am NOT a judge, but I will be playing one in this video. so here are the facts. [Music]: yes, dropshipping is legal. put it as simply as possible, drop shipping is simply a method of fulfillment where we are the retailers and we handle the sales, where the supplier handles the shipping. that is completely legal- case closed. now let's get into where you can actually find yourself in trouble if you do drop shipping the wrong way. the first thing is selling products that you are not authorized to sell- illegal. what I mean by that is if you see a brand out there that makes great standup desks and you make a website and put all their standup desks on them and start collecting money and then trying to find somebody to fulfill the orders. you're not allowed to do that without authorization from the supplier. do not do that. it can and will get you in trouble. the second thing that's illegal and can get people in trouble is not paying taxes- case closed. obviously, with drop shipping, just like anything else, you're building a real business, you need to keep track of money coming in and money going out, and, just like any business, if you're profitable, you need to pay taxes. don't think: just because you're running an online business, you can avoid this. the third thing that can get you in trouble, and that is definitely illegal, is selling knock-offs. what do I mean by that? well, if you want to sell proud of eggs and you meet some guy downtown in New York City that says, hey, I have these Prada bags for $100 each and you built a Prada bag store, guess what? you're not gonna have a good time. that is illegal, should be obvious, but don't do that. and finally, the last thing that is illegal and can definitely get you in trouble if you're not set up properly, is selling prohibited or restrictive products. what do I mean by that? well, things like supplements, things that have any type of claims behind them- yes, you're allowed to sell them, but make sure you're going through the proper steps. make sure you have the right auto is a shion's. make sure whatever is necessary for that industry is something that you're doing and you're not just winging it and hope things work out. so to wrap this up, guys, dropshipping is completely legal for once and for all. it's very simple: we sell products, we have supplier ship products. there's nothing wrong with that. but remember, this is a real business. treat it like one. work with real brands or you are authorized to sell their products. get great at paid traffic and you can build a very real, very profitable business. if you want to learn more, go over to dropship webinar, comm and get my full free training on how we build highly profitable, semi automated online stores. hey, what's up guys? anton, here again, and i hope you got some real value out of that video you just watched. if you did, you should definitely check out this one or this video right here. i do two new ones every week. you'll see a subscribe button right here, and if you want my free training- and that is two and a half hours long- a value with 237 niches- click this button right down here. it'll take you to where you need to go.