how do dropshipping businesses work
Published on: February 3 2023 by pipiads
Table of Contents About how do dropshipping businesses work
- How Shopify Dropshipping Works
- I Tried Dropshipping With $0 For 30 days
- How To Actually Start A Dropshipping Business (FREE Guide)
- How To Start Dropshipping With $0 | STEP BY STEP | NO SHOPIFY & NO ADS! (FREE COURSE)
- What is Dropshipping for Beginners? How to Make Money Online in 2021
- 👀 What You NEED To Know Before Dropshipping
How Shopify Dropshipping Works
There's a trendy e-commerce fad. behind those obscure, eye-catching products that fill our feeds on Facebook, Instagram, TikTok and YouTube: It's called dropshipping. It's definitely an industry that is growing. You're seeing companies going public now just based on this premise of dropshipping. The model relies on targeted ads designed to stop consumers from scrolling long enough to make an impulse purchase, usually from a Shopify store set up solely for that product. Many of those same younger consumers. they are also looking for creative ways to make money, And this really is the rise of the young merchant. It's like salesmen. Salesmen are like the old school version of marketing. If you're a good salesman, you can sell anything to anybody At age 21,. Ka mil Sattar's dropshipping sales topped 1.7 million dollars in 2020.. You basically only buy the product when you get the payment, And then you get the product from a supplier in the US or China. Then they send the product directly to the consumer and you never see it or never touch it. Some sellers say dropshipping is a get-rich-quick scheme to make easy millions without ever leaving your couch. Others call it a serious business that takes major hustle to pull off properly. There are more nefarious actors in this industry, and there are legitimate ones. We toked to some big name dropshippers about how they made millions with viral products and asked e-commerce experts how copycats and cutting corners could tarnish the industry for everyone. Dropshipping in its simplest form is when the seller acts as a middleman without ever touching the merchandise. Nick Peroni does dropshipping full-time, sourcing sites like AliExpress for low-cost products available directly from suppliers, usually in China. If you have a supplier you can trust, you can do the quality control with the supplier. They can send me pictures of it- 3D video of it, so that I can see exactly how it looks. After a customer places an order on Peroni's Shopify store, he purchases the product from the supplier and has it shipped directly to the customer, which can take some time. If you find products that are unique enough, then people are generally willing to wait. Take this laptop sleeve that I ordered on June 30th last year. It shipped directly from China and took two months to get to California Products, where it takes 30 days, 60 days, even 90 days to even get to you. Now that is what I call poor dropshipping. Where people really tend to get annoyed with dropshipping is if they waited for two weeks and then they get their product and it sucks anyway. I ordered these boots on October 28th last year and they arrived December 7th. I never got a shipping or a tracking notification And when they did finally get here, they came in this ripped bag from China Post and they were stuffed loosely inside. They smelled pretty awful and they were the wrong size. I thought about returning them, but returns with dropshipped items from overseas can be pretty complicated. I looked for a customer service number on the store where I bought these and I couldn't find one, and I opted not to return them because I would have had to pay for my own return. p ostage- False advertising is definitely a big problem in the dropshipping world. The product is aligned with you, aligned with your interests, and you want to buy it. So you buy it And it does not match up at all to the product you're getting. Dropshipping is also what's responsible. if you order something from Amazon but it arrives in a box from Walmart or any other major retailer, The customer is confused. they're like: I ordered something from Amazon t. his is not my product. I got so many messages like: why did you send me this? Bradley Sutton provides software for Amazon sellers and he test ed out dropshipping in the 2020 holiday season. He sold things like RC cars on his Amazon page, dropshipped from cheaper listings on Walmart and elsewhere. Part of Amazon's dropshipping policy is that you do not deliver with packaging. t hat is from another retailer, But my account didn't get shut down. I grossed over $500,000 dollars, but I've kind of stopped that test because it's just not a sustainable model for me. Amazon has a long-standing policy against dropshipping from other retailers, And a spokesperson told CNBC: "If a seller violates our policy, we will no longer allow them to directly fulfill customer orders". So you have Shopify, you have BigC ommerce, you have WooCommerce, you have Amazon, you have eBay And if you get banned on one platform, you can move up to the next one. The dropshipping that fills social media feeds isn't happening on Amazon. It thrives on Shopify. They made this one-stop shop for you to set up a store. It's just super easy for you to start selling online And a lot of these dropshippers know it. On Shopify's Help Center, there's an entire section devoted to tips and strategies for dropshi? pping. The main advantage of dropshipping is that you don't have to worry about storing, packaging or shipping your products. In an analysis of more than 120,000 Shopify stores, online consumer protection company Fakespot found more than 25,000 that engaged in some form of fraudulent activity, like counterfeits, privacy leaks and buying fake reviews. Of those, almost 72 percent showed evidence of dropshipping tactiks being used in their business. Fakespot has a Chrome plugin that alerts shoppers if a seller on Amazon, Walmart, eBay, Best Buy or Sephora can't be trusted. It recently added capabilities to detect untrustworthy stores on Shopify, too. Fakespot says most of the fraudulent stores appear to be China-based merchants posing as US small businesses. You want to support the local mom and pop store, but these s? ellers are not from the United States. They're from around the world and they're just utilizing this to make a buck. Still, Shopify is home to the online stores of major brands like Heinz, Staples, Jenny Craig and Gymshark, With more sellers than ever before signing up for a Shopify storefront in Q3 last year. Shopify shares more than doubled in 2020, and its market cap recently surpassed 150 billion. Thirty five percent of young Americans started a side hustle during the pandemic. Most of them are doing it on Shopify, which is why you saw more signups in Q3 than ever before, But the way they're doing it is totally different. They're using avenues like TikTok. In a survey of more than 10,000 consumers, Shopify found that 54 percent of shoppers age 18 to 35 discover brands on social media and 28 percent made a purchase there. These young consumers are going to be the shopkeepers of 2021, and the way they buy is going to be the way they're going to sell. We're going for impulse buys with people that are not necessarily intending to buy something when they log onto Facebook or Instagram. Marketing is probably 60 percent of the game. Sattar sells 80 to 90 percent of his products through Facebook ads and the rest largely through ads on YouTube. T ikTok ads can now play directly within Shopify stores, following a TikTok-Shopify partnership announced in October. We have a video editor on our team, And so when we have a product, we can put together a 30 to 40 second video that tells a story of what the product does, why it's valuable. Choosing the right product takes a lot of legwork. I always say to people: you're going to test around about five to ten products until you find something that actually does something. This pineapple slicer and these dog grooming gloves are examples of products that flopped for Sattar. It's all about finding things that people haven't tried before. We have softwares that we use where they do AI tiknology and they tell us what are the best products at the moment what's trending? Sattar's breakthrough product was this iPhone privacy screen protector. Soon after another one of his items did a million dollars of sales in one quarter. Many dropshippers find pr.
I Tried Dropshipping With $0 For 30 days
have you ever wondered if it's possible to become a millionaire with Drop Shipping, for a million dollars, millions of dollars from Drop Shipping? well, I know for a fact it's possible, because I went from a high school dropout to making over 1.5 million dollars in a year. by the time I was age 21.. and to show you that it's still possible today, I created a brand new Drop Shipping Store using zero dollars and I'm sharing the entire process transparently now. we just officially ended our first full month in business and we had a lot of ups and we had a lot of downs and, honestly, this reminded me of how hard it is to get your first business off the ground. so while a lot of people are going to be watching this video and impressed with the sales that I've gotten, just realize that this isn't an overnight success. this has been the last five years of me dedicating myself to this craft and I don't want this video to come across showing off. I know there's a lot of gurus out there who try to highlight how easy Drop Shipping is, and we both know these guys are not Drop Shipping, so just know that I'm gonna always keep 100 with you guys. now, any good Drop Shipping Store starts with a good product. I don't care how good your website is or how good your ads are, so I couldn't just find any product. to be successful in this challenge, I needed to find a product that matched the criteria of a winning product. usually when I am picking a product to sell, there's a few things that I look at. obviously, profit margin- if we don't have a good profit margin, then there's no way we're gonna ever be successful. and another piece of criteria that I think is important is that the product actually makes people's lives easier. so to locate this problem-solving product, I ended up going on tiktok and looked up hashtag. tiktok made me buy it and, honestly, I had to browse sometime to find something decent. but I knew we had found a winner when I found a tik tok post with literally hundreds of people asking where they could find the product and the video only had about a thousand likes at this point. now, honestly, this was kind of suspicious- a post with only about a thousand likes to have this many comments of people wanting to know where to buy the product- and I thought this was a great opportunity. hundreds of people were looking to buy this product and they didn't have someone to fulfill that demand. so I built a website on Shopify and I started my journey trying to get this brand sales using zero dollars Capital. now, I only really had one opportunity to become successful with this store, since our budget was zero dollars in order for us to create a profitable business. it meant attracting customers to our website without spending any money. now, this meant that the standard avenues for advertising, like Facebook ads, were completely out of the question, but what was possible was for us to create tiktok and Instagram real content completely organically and try to get the post viral so customers can see our product. so for the last 30 days, I spent a ton of time creating content and it actually went pretty well. so I want to go over the results and how much money we're able to make. so this challenge started on August 16th. this was our first day in business and I ended up posting up only one single tik tok on this day and, yes, I did not get any sales. this was definitely a stressful day for me. I was creating a brand new business from scratch again and, honestly, day two felt pretty similar. we made zero dollars in sales and I spent hours of our time and we weren't able to even manage to get one single sale, so I was feeling pretty disappointed around this time. but day three, things started to pick up. day three, on August 18th, I managed to get our very first sale, and this was when I realized that we were on to something. so I got super stoked and excited about creating this brand. so I ended up doubling down. on the 19th, I created two pieces of content, but unfortunately we were only able to get one sale for 56 dollars. and then the day after that, on the 20th, we were only able to get one sale again, even though I was posting more content now. up into this point, we had gotten zero sales from tiktok. our tiktoks were doing terrible, but our Instagram reels were actually getting to push out, so this was a good sign. we're getting a few thousand views on our Instagram reels, but for some reason we weren't able to crack into tiktok yet. now, day six was a super exciting day. we managed to get three sails for a total of 270 dollars, and this made me feel like we could really take this brand to whatever height we wanted to grow it to, and this brought me down a path of switching our content up. I started to focus on More Story based content, and this started to work really well. we were able to wrap the first week up at a total of 785.93, which personally I thought was a really good start to this challenge. I was feeling super excited and optimistik that this store could grow to a store that does six figures a month. so I really wanted to double down to get the best results we could in this Challenge, and that's also when I set a goal of trying to to make one thousand dollars in a single day throughout this Challenge, and this brought us into week two. on day one of week two, we ended up doing 159 dollars, and day two ended up being another Super solid day. we did 299 dollars in sales this day, which got me feeling really good. we were able to hit some consistent results at this point, and at this point we had generated over one thousand dollars in sales. and the best part about this is, since we weren't spending money on ads, almost 75 percent of the revenue was profit. day three of week two, we had a pretty similar day, and then, day four of week two, I started ramping up the content. I realized that our posts were doing well, but maybe we needed more volume. so on day four of week two, we managed to hit our best day yet at 364 dollars, which was a really good sign. we're almost 40 percent to our 1K a day goal. and then, day five, we managed to smash that record at 399 overall. during week two, we managed to get over two thousand dollars in sales, which meant for this two-week period we had done over two thousand and seven hundred dollars, and I already created a video covering up to this point. if all this sounds familiar. but what I'm about to get into is week three and week four, which ended up being a total twist, and I think it's gonna be something really exciting for everyone. going into week three, I was definitely nervous because we hadn't hit the goal that we set out for this challenge yet and while we were getting results, I wanted to show people that this business is really possible and that we can hit some big numbers. so I was seriously stressed to continue to create the best content that I could, and it ended up being a pretty stressful week. but here's how it ended up. going as far as sales, on day three of week one- such a disappointing day- we managed to get zero sales, but honestly, it felt like it was about time we stopped getting great holds. it seemed like everything was going pretty easy in the beginning of this challenge, so the fact that we weren't facing turbulence just meant that we weren't pushing hard enough. so the fact that I didn't get any sales today, I kind of just dismissed it and decided I'm just gonna keep pushing on. now, on day two of week three, we actually did end up getting a sale, but unfortunately we also did have a refund. so that's why we only made 14.99 on this day, which is just pretty natural. sometimes customers will end up ordering something and they'll want their money back, so we just gave them their money back. we're not going to worry about that and we're just gonna hold. day three is more successful. unfortunately, it wasn't and we managed to do zero dollars in sales yet again. so for this three day period, we had literally only made about 14.99 and I was feeling really bummed out at this point. I thought that maybe the store was over, maybe the product wasn't workin.
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How To Actually Start A Dropshipping Business (FREE Guide)
many of you guys watching have probably heard of Shopify dropshipping, but are just wondering: how the heck do you actually do it? and I completely understand you. drop shipping is one of those business models. we have tons of people online toking about how profitable it is and how you can make thousands of dollars every single month while living at home just on a laptop, and it's true. but, to be honest, there's an overwhelming amount of new people coming into the space having a little bit of success, who really have no business sharing information on Drop Shipping and Shopify as a whole, and, in turn, it leaves a lot of you guys clueless and unsure as to exactly where to start with the business model, and I completely understand the frustration. so, since I'm such a nice and generous guy, I'm going to show you exactly how to actually start your very own Shopify business right here, right now, and the best part is, it's completely free. I've been Drop Shipping since 2017. I've generated millions of dollars with the business model, and so I know a thing or two about it. it's not like I just had my first hundred dollar day and I'm coming on here to make videos. it's not like that by any means. now there's also going to be a huge announcement at the end of the video. so make sure you stik around. it's going to be in an insane opportunity where you could potentially win thousands and thousands and even tens of thousands of dollars for simply just starting Drop Shipping and having a successful store. but I'll wait to explain that till the end of the video. so just stik around, take notes and then, by the end of the video, you're gonna have an insane opportunity on your hands that I think, is like one of its kind. so just sit tight and hang on, get a notepad ready, because we honestly have a ton of work to do, so let's get into it. first things first, we need to make a Shopify store, so I will have a link below. but this is essentially the backbone of your business and this is exactly where you'll be housing your website. so once you put an email in- I created a simple one that sounds very clever: subscribe to seb's channel. if you're watching this, subscribe might as well. I'm showing you, guys, how to start a Shopify business. so then, once you do that, just click Start your free trial, and then this will essentially take you through a ton of stuff that you don't honestly even need to do so. just click Skip, Skip and Skip. you don't even need to put a store name in. you can change it at any time, so it does not really matter. you will need to select your country, so select that I'm currently in us, and then for create a shopping ID. I just continue with Google and then select my email and then that's kind of it. your Shopify store is now being built and it's not like it's going to be completed, but you'll have the account now. so now you can actually lay the framework and start building out the store. I'll quickly go over, though how to actually set all this stuff up and how to use your Shopify store. so this is the home page. this is where you're going to start seeing all your orders and stuff. essentially, like, it's not going to show up right now because we haven't picked a plan and done anything, so it's going to try and like force us to do tons of stuff like add some apps, make products, do a name, customize the theme domain, all that stuff and tons of other good stuff. so that is the home page, but once you have this all set up, it will show you the orders you have today, the visits and stuff like that, and then orders. this is essentially once people place an order. this is where the info will go. and then, for the products tab, this is, if you guys want to guess, this is where all the products show up. so I'll show you guys exactly how to add products to your store and how to fulfill them, even like when you get orders in and your customers actually place an order and they show up here- how to Auto fulfill them. so you guys don't need to use AliExpress- ditch that old stuff, it doesn't work anymore. there's other, better ways to fulfill your orders with Shopify- and so I'll show you how to do all that stuff: how to add products. and then customers: finances analytiks is actually very important. this is going to show you sales sessions, returning customer rate, your conversion rate. so if 100 people land on your site and only one person buys, it will be a one percent conversion rate. it even breaks it down further and just tons of good stuff. so this is the backbone of your business. but, more importantly, what we need to do is go to apps. so what we're going to do is just type in what's called Zen drop. so type that in and this is going to be where you actually fulfill your orders and once customers Place orders, they are going to be the company that is helping you out with getting the product from their warehouse into the customer's hands automated. so there's a way to do it completely automated, where you literally don't even have to click, place order or fulfill order. they handle everything. we've done thousands of orders per day with zendrop. they are an amazing supplier and Company. I want have an affiliate link. I don't want to scare you guys off and think like Zen drops a scam and I'm just doing this video to help them out. I'm not at all. but for password, we will just put in, uh, something random and then let's do this. let's hope I remembered it. I think that's it for phone number. I'm gonna do a basic one. hopefully that works. we'll see a text message and then let's see if that works. yeah, cool, that works. so we're good to go. the accounts made. I didn't put my real phone number in, so don't try calling me. but once you get into the account, this is where the fun begins. so now you can just kind of surf around four cool products and see essentially what you want to sell. you can do this. there are tons of other ways to find products. now I kind of already know products that sell well, but if you guys want more in-depth details on product research and stuff, I will have a link below for a free Drop Shipping course. it's completely free. it took me a few weeks to film and I released it for free with one of my business partners, Sebastian Georgia. so again, the course is free. we're like giving you everything I do on a daily basis for the Drop Shipping business for free. so again, all the link below for that. like I did mention, I already know some products that are working well, so we can just do like. there are a few I'm seeing right now that do well. we can just kind of pick one of them. I always like to sell problem solving products, so we can just say: like this hot and cold gel therapy mask, it's a good product. I've seen it on tiktok a little bit, so we'll just click it and then essentially all you have to do to get the product from zendrop onto your website. you don't need to go on here and then go to products and create a product. it's nothing like that and this is completely ditching AliExpress. all you do is again add that app, click add to import list, go to import list and then right here, all you'll need to do is edit your description if you want to edit the variants. so one of the things you'll need to do is edit the sale price. for myself, I would want to have at least like a 3X markup, so we'll just say: nine dollars plus six dollars is going to be 15.. so we can sell this for 39.99. that's a decent enough margin- and then just plug that in for every single color- and I'm just copy and pasting it just to make my life easy- and then from there we're profiting to twenty five dollars per sale. so if we get 10 sales, we will be profiting 250 dollars. next, you need to select the photos. so make sure you are not selecting photos that look like they came from AliExpress or came from somewhere bad, because if you guys do that, it's gonna look scammy. I saw other videos where people were trying to show you guys how to make a website and the photos all look like this and like this and like this and like this and like this. that's not what actually works, and take this from someone who actually knows what they're.
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How To Start Dropshipping With $0 | STEP BY STEP | NO SHOPIFY & NO ADS! (FREE COURSE)
my name is isabella. i am the owner of two six figure earning online businesses, and today i'm gonna be showing you how to build a successful drop shipping store with zero dollars, without shopify and with zero ads. so that means zero dollars that you guys can start this store with, and you will not have to worry about dumping any money to start this project. i actually care about your pockets. a lot of gurus on youtube recommend using shopify, which i do not recommend, since they do have monthly fees. i don't recommend getting shopify or using shopify unless your business is already a six figure earning business. there are so many free website hosts out there that you guys can use for free, which i'm gonna be showing you guys how to utilize one of those today. so people do charge over thousands of dollars for courses, just like this one. so in exchange for this information today, i just ask that you hit that like button and subscribe to my channel so i can continue to make videos like this for you guys. so why should you start a drop shipping store? is this the right business model for you? i recommend drop shipping for those that are just starting out selling online, that don't want to invest any money up front that you want to start a side hustle. and the great thing about drop shipping is that you can do it from anywhere in the world. you can target the united states and be in a completely different country, and then you don't have to worry about inventory or shipping products yourself. in this video, you will learn how to find winning products to sell, to find your niche. you're going to learn how to create a free logo and name. i'm also going to show you guys how to set up a free online store- zero dollars monthly- that you guys can use. i'm also going to show you guys how to add the products to your online store, how to fulfill your drop shipping orders once an order is placed, how to market your online store for free- never buy ads, guys- and i'm also going to go over this one thing that a lot of people don't go over, which is kind of just the legal side of drop shipping and the tax basics of drop shipping, which it's not going to be advice. with that point, i'm just going to tell you guys what i personally did. nothing in this video is actual legal advice. this is just what i personally did. so let's find a product to sell and let's figure out what your niche is going to be. so i utilize a couple different ways and you guys can do this either on your cell phone, on your smartphone, or you guys can do this on your computer- it doesn't really matter- and when i'm researching products to sell, i use tik tok, i use aliexpress and alibaba to research, i use amazon just to see trending products and then i also use google. so you're gonna be using these four things today that you guys can all do from your laptop or phone. so what is drop shipping? i'm gonna tok about this quickly, just for beginners that are unsure about the drop shipping model. so a customer will place an order on your website, on your online store, in order for 200. obviously we don't work with these big numbers. typically they're smaller products, but this is just an example. so the customer places an order on your store for 200 and then you're going to go to your supplier. you're going to find this product online for cheaper, so you're going to charge 200 in your store for this product, but you found a supplier that has it for 150.. so you're going to place the order for your customer for 150. you're going to take their 200.. instead of you shipping the product, the supplier is going to ship the product and then the supplier ships the product directly to your customer. so your store is just the middle man between the customer and the supplier and for doing this, you get to keep 50 profit of this sale. so if you guys are familiar with my channel, i always say it's 25 the product and 75 how you market it. so the questions to ask yourself is: how entertaining is this product? can you relate this product to your own life? what content can you actually create with this product and how much content can you create with this product? because the marketing side of it is more important than the product itself. so the top niche categories for 2022 and probably beyond 2022 is beauty, pets, tiknology, kids, gifts, photography and fitness. i'm going to show you guys a couple of examples and let's dive right into this tutorial and i'm going to show you guys how you guys can find products to sell in 2022. so i want you guys to go on to google and type in tiktok- trend discovery. we're going to search for that right now. so it's this one right here: trend discovery, hot content on tiktok. click on this. tiktok is definitely the most popular social media right now, meaning that there are people that are running ads on it. although we are not going to run ads on it because we don't have to, tiktok shows your videos without you having to pay for ads. that's the beauty of tiktok. so, but we're still going to use what people are running ads as, just as a reference to see. so i'm just going to click select, all here. i'm gonna select united states, because i personally target the united states when i was drop shipping, and then go ahead and just scroll down and we're gonna try to see and look for products and you guys can see a lot of these um, people, i think they're selling mostly digital products or apps. so you guys can get a lot of different ideas of things that people are selling on tik tok and what people are actually buying ads for, even though you're not going to buy ads. what's crazy is that all of these things- the people that they bought these ads- they didn't have to do this, because tiktok pushes out your content. if you have good content, it'll push it out. this is actually the type of product i recommended in one of my previous videos on my youtube channel. people really love anything that you can create content-wise, that's something satisfying and that also adds value, which is why i love this person's content, how they're promoting this product again. they could have did this without buying ads and could have made their business viral without buying ads, which is how i grew my business on tik tok. but you guys know that if you've watched my other videos, i don't recommend buying ads because it does harm your profit margin, and i tok about this more on my youtube channel if you guys want to get a reasoning of why i don't agree with buying ads. so i found this smart hula hoop on tiktok. it was a trending item, so i decided to look into this product and because this stuck out to me as a drop shipping product, i decided to base this video on this product today, just as an example to show you guys. now, obviously, with this kind of product, you do have to show your face because you're showing off a fitness type product. as you guys can see, there's so many products across tiktok that you guys can still sell without showing your face. if you guys are unfamiliar with my business, this is my e-commerce story body fold that i grew just from tiktok without paying for any ads, as you guys can see- the link is in my bio right here and you guys can see how i did my bio and everything. but you guys can see that i sell and i make sales. this one got one million views and i don't even show my face. now i do sell products that i ship myself, which i explain why i do that on my youtube channel. but i just want to show you guys an example that you guys can sell products online without showing your face. i hardly ever show mine- very rarely do i show mine like right here, but that's a very rare occurrence and my most viral videos don't include my face, and one niche that might work good for one person might be different for another. so the first thing that i do when i find a product that might be a potential product to sell is i google it. so i typed in hula hoop exercise to see what would come up, so you guys can see right away. this dh gate listing came up and if you guys are unfamiliar with dhgate, dhgate is very similar to aliexpress, so obviously
What is Dropshipping for Beginners? How to Make Money Online in 2021
What is Dropshipping? Hey, what’s up world? I’m Tommy Walker with Oberlo, and today we’re going to tok about Dropshipping, what it is and how you can get started. I’ll also give you four actionable steps to start your own dropshipping business today. And stik around until the end of the video, because I’ll give you a few personal suggestions and things to keep in mind as you’re getting started. Alright, welcome to the Oberlo Youtube channel where, every week, we’ll be discussing the various elements of what goes into starting, operating and growing your own dropshipping business. If you have any questions or want to share your experiences with dropshipping, drop them in the comments below and I'll be sure to answer them. Like I said before, I’m Tommy Walker and if you like what we’re toking about here, consider subscribing so you can get new videos every week. Let’s say, you’ve been thinking of opening up your own online business, but you don’t know where to start. You don’t know what you should sell, you don’t have the money to invest in products and, looking around, you don’t have any place to store inventory. That’s what dropshipping is all about. You see, with dropshipping, you can sell stuff online without the products ever being in your hands. All you need is a computer, an online store and a basic understanding on how to market and sell online. Here’s how it works. First, you find what you want to sell from a supplier, then list that product on your own website at a price you set. Next, when someone places an order for that product, your customer pays you the retail price you’ve set and you make a profit. Then you’ll place the order with your supplier at their wholesale price and have it shipped directly to the customer. So let’s say you’ve found this watch on a supplier’s website for $10. You would then list it on your own website for $30. When the order comes in through your website, you then place your order with your supplier using your customer’s shipping information, keep the $20 profit and have the product shipped directly to your customer. That’s it. Now I know what you’re thinking. why wouldn’t somebody just order the watch directly from the supplier’s website? Well, a couple of reasons. First, it’s a very big internet and customers may not know about the supplier to buy from them directly. Second, when people buy things, they’re not just buying products. They’re buying into the marketing, positioning, trust, brand and lifestyle those products represent. With dropshipping, you can focus on marketing your products and saying the right things at the right time and on providing real value to the right people, because you’re not warehousing any inventory or dealing with most of the other challenges that come with running an ecommerce business. Now, a couple of big challenges that need to be considered with dropshipping are finding credible suppliers with good quality products and making sure you have visibility into your customer’s fulfillment process. Honestly, you can find suppliers on your own - However, when you’re dropshipping completely on your own, you can end up spending a lot of time researching and negotiating with suppliers to guarantee your customers’ satisfaction. Another option is a tool like Oberlo, which, with a few clicks, gives you access to millions of products to sell and has dozens of other features to make your life easier, like monitoring inventory levels, automatikally calculating profit margins, fulfilling and tracking orders, monitoring shipping status, measuring delivery performance and more. Oberlo Supply is also a part ofthe product which helps you partner with vetted, trustworthy suppliers of great quality products, faster shipping times and awesome customer service, with thousands of different products available for you to choose from. Want to get started? All you have to do is start a Shopify store, install the Oberlo app, find products and start selling online. So why do people get into dropshipping? First off, it’s really fast and easy to get started, and you can dropship with incredibly low investment costs. You also don’t need to have an established business entity when you start, though it’s smart to have one once you grow. You don’t have to worry about managing inventory, packing or tracking, which means you can focus almost exclusively on marketing, promotion and merchandising. You have access to millions of products instantly that suppliers are constantly researching to determine what’s trendy and what will sell. You set the retail price so you control the margins, And dropshipping is really easy to scale because you can hire virtual assistants as your order volume increases. Of course, there can be some challenges with dropshipping too. First off, because it’s really easy to get started, there’s a higher potential for competition. That is why you’ll find a lot of advice out there recommends you start off finding a niche audience - like cat lovers or gamers - so you can operate with less competition. Next, there are supplier errors. Though uncommon, it is inevitable that a supplier will mistakenly ship the wrong item to your customer. If this happens, don’t take it personally and handle the return like a professional - either order a brand new product from the supplier or offer a complete refund. Also, since many dropshipping suppliers are based on China, shipping times are generally longer, turning some consumers off. ePacket makes it easier, delivering some orders in as little as two weeks, but generally speaking, if you make your shipping times clear throughout the buying process, many visitors appreciate the clarity - especially if you’re selling an item or in a niche where delivery times are less crucial. Ok, so how do I get started? Step 1. Start a free 14 day trial on Shopifycom. Step 2. Go to Shopifycom/app-store and install the oberlo app. Step 3. Find products from the app you’d like to sell and add them to your store. Step 4. Enable a payment gateway so you can start accepting money. Shopify Payments is a great default option if you’re in one of the supported countries, though you may want to enable a few other gateways, like Paypal, Apple Pay, Amazon Payments or any of the 100+ payment gateways that Shopify is integrated with. Once you have all that, you’ll need to create a plan for sending traffic to your store. I won’t go into great detail about that here, but you can find a great resource for building traffic by clicking on the card above or in the description down below. Finally, try to produce quality content for your store, From eye-catching photography to engaging product videos, to great posts for your blog. your audience loves to know more about your products, how they can be used and the story behind them. Now that we’ve covered all of the things you need to get started, here are a few additional things to keep in mind. Dropshipping is pretty easy to learn, but there is a learning curve and you will experience challenges along the way. However, mistakes can become learning opportunities and, if you can develop resilience along the way, there are plenty of people out there finding a lot of success dropshipping products. While there is a significant advantage in terms of capital investment over traditional ecommerce, dropshipping isn’t free. You’ll likely have to spend money to drive traffic, market your products and handle returns. There is no overnight success and this isn’t a get rich quick scheme. Dropshipping still requires you to work consistently for your store. True, you will need to dedicate less time compared to a traditional ecommerce businesses, but it’s not going to succeed without your hard work. You’ll always need to invest time improving your business. Don’t source copyrighted items. This is illegal all around the world and can cause you some serious trouble. My advice: choose products from Oberlo Supply - a network of trusted suppliers who make
👀 What You NEED To Know Before Dropshipping
you know what, despite the several successful dropshipping case studies on this channel, i still occasionally get people leaving comments like drop shipping is dead, if it was ever properly alive to begin with. increasing e packet rate- it literally kills drop shipping. it's too late for this business. most businesses fail. i will never waste my time and money trying to start a business ever again, and if you're smart, you'll do the same thing. hmm, yeah, well, okay, obviously, i strongly disagree with those comments, because here's the thing: a lot of people will say things like drop shipping is dead or it's too late, or businesses don't work, and the reason why they're saying these things is because they are making several assumptions that are all wrong, and so, if you are looking to start a store, it's crucial, then, that you understand what these assumptions are before you start drop shipping so that, unlike these people, your store can be successful, because, no, it is not too late. one people won't buy from you. they'll just buy from amazon instead. but wait, sarah, you ask: why would anyone buy products from me if they can buy products directly from amazon themselves? now, it is absolutely true that if you head on over to amazon, that you will find lots of products that can be purchased directly from aliexpress, sitting on amazon's digital shelf as well. and, of course, if customers were to purchase your products on amazon, they would then get to take advantage of their prime two-day shipping. so how on earth could drop shippers successfully dropship these guitar coffee spoons with two to three week shipping via china's cheapest, fastest shipping option- a packet, when a customer could come and buy them on amazon with two-day shipping? i mean, come on, sarah, just think about it. amazon is only growing. in q3 2019, their product sales were up over 17 from the same time in 2018.. won't amazon steal away all of our sales? no, no, they will not. you see, here's the thing. there is some truth to these comments. amazon is arguably the better deal for usa citizens. it is better for the consumer to purchase the products on amazon. so if they figure out that the product that you are selling them is indeed on amazon for purchase, you can bet that amazon will take that sale away from you. but you know what? we literally don't care. and you know what? drop shippers never have the sorts of people who see a product and decide that they're going to research the absolute best deal, for it were never our customers in the first place. nope, it's the 44 of people that impulsively purchase products online that we are targeting and, of course, as shown by how millennials are even more prone to impulsive purchases, with 80 of them impulsively buying products, the overall percentage of impulse e-commerce purchases for us to target as drop shippers is only growing and growing. you see, successful drop shipping stores are built around that target customer, the type of customer that enjoys impulsively purchasing products. it also means that the successful drop shipping stores are usually built around selling products that spike an emotion in a customer that makes them think: i need to buy this right now. it's why this aliexpress dog caller has made hundreds of thousands of dollars. the advertising dropshippers used spike fear and dog owners pointing out how many dogs dying in car accidents each year from not being seen. that is why, when recently, i saw this comment from this viewer asking why their online store wasn't successful, i pretty much instantly knew that the store would be selling extremely boring products. and lo and behold, i was right. now, of course, this is actually a print on demand store, not a drop shipping store, but the exact same principle applies. why would somebody want to buy this hoodie when they can go to amazon and find cheaper hoodies and shirts with inspirational messages on there, because here is the reality. typing vision in a plain white circle is not exciting. so let's compare this hoodie to this hoodie. what is the difference between the two? well, the difference is that one hoodie is very boring and the other is extremely interesting, unique and unlike anything people are likely to have seen before, which is why this hoodie's facebook advertising campaign made so much money for the successful aliexpress dropshipping store. freaky pet. and, of course, if you're ever wondering, this exact same answer applies to the people that ask the question: why would customers not go directly to aliexpress themselves? well, again, it's because good aliexpress drop shippers sell products that trigger emotions on people and get them to impulsively buy their products, so that they never even think to go check if a product is on aliexpress, because they see and go. that's so amazing. i must buy one now. and, by the way, if you've learned something from this video and you would like to learn even more about starting a successful drop shipping store, then be sure to subscribe and click that little notification bell next to it so that you don't miss out on any of our videos. two, dropshipping is a scam. i just want to quickly address this because these comments are really dumb. you know, you might have notiked that earlier in this video i freely admitted that it would be a fast, superior financial choice for a customer to buy this hoodie on amazon with two day shipping for a fraction of the price compared to what they would pay for it on freaky pet. and so what do people say to that? oh, the customer can get it cheaper, elsewhere, quicker. that makes your store a scam. nope, it does not. number one: if it weren't for your facebook ad, the customer would never have known about that product that they really enjoyed getting in the first place. people really love this hoodie and we're really grateful that it was advertised to them and they bought it. you had to pay for that advertising to do that, which you pass on to the customer. amazon doesn't advertise products. customers have to find them themselves. and number two, as an entrepreneur, you are in no way obligated to offer your product for the lowest price. here are two coffee shops around the corner from my apartment. they are across the road from each other. i walked into coffee shop a and bought my favorite coffee, a long black, for three dollars- and yes, i know that overseas the phrase long black might conjure up some different thoughts, but here in new zealand, and over in australia too, a long black simply refers to pouring an espresso shot over 100 to 120 mls of boiling water to create a stronger version of an americano with creamer. next i went into coffee shop b and again order long black, but this time it cost four dollars- completely different prices for an extremely similar product. and you know what? coffee shop a's three dollar coffee was the best. would you say that coffee shop b is a scam for charging a higher price for a worse version of this coffee? no, you would not. pricing is entirely subjective and is actually determined by the customer, not you. you present the customer with the price and it is up to them to decide if that price is worth it or not. and at the end of the day, if freaky pet are able to create a marketing campaign that gets people to purchase their hoodie for a higher price while being entirely upfront about the shipping times, then they 100 deserve that sale. 3. drop shipping is saturated. perhaps the most bizarre of all the claims is that drop shipping is dead and it's over since. well, it's saturated. and the truth is when i see comments like this, it blows my mind, because this comment literally makes no sense. here is what market saturation literally is. it's when a product has been maximized in a market, in other words, when all of the people who would want that product have bought it already. and here is what drop shipping is. drop shipping is when a customer buys a product that you've listed in your store for a markup price. when they do, you go to the manufacturer and you purchase that one product for the wholesale price and then have the