MEGATHREAD:
18 Dropshipping Facts To Make You Your First 5 Figures Online
Use this thread to start your own profitable store in the next 30 days
//THREAD//
18 Dropshipping Facts To Make You Your First 5 Figures Online
Use this thread to start your own profitable store in the next 30 days
//THREAD//
The misconception about dropshipping is it’s an easy get rich quick scam
You don’t need:
>To store inventory
>To ship or fulfil orders
>Much money to get started
But dropshipping has pros and cons and is not easy
Read on to learn how to start a successful dropshipping store
You don’t need:
>To store inventory
>To ship or fulfil orders
>Much money to get started
But dropshipping has pros and cons and is not easy
Read on to learn how to start a successful dropshipping store
What is Dropshipping?
It’s an e-com business model that does not carry the products it sells
So the products are shipped from the wholesaler to the customer and you don’t have to deal with inventory
There is no upfront cost to start.
It’s an e-com business model that does not carry the products it sells
So the products are shipped from the wholesaler to the customer and you don’t have to deal with inventory
There is no upfront cost to start.
1 Is Dropshipping Legal?
As long as you use a legit dropshipping supplier, it’s 100% legal
If you were selling Disney merch & the supplier shipped fake merch, you could be liable for fraud
But if you’re using a licensed distributor for your brand,, dropshipping is legal & safe
As long as you use a legit dropshipping supplier, it’s 100% legal
If you were selling Disney merch & the supplier shipped fake merch, you could be liable for fraud
But if you’re using a licensed distributor for your brand,, dropshipping is legal & safe
2. Do You Need A Seller Permit?
If you’re living in the US, you will need a sellers permit to sell online
And you need to get a business license as well
So Dropshipping is a real business and must be registered.
If you’re living in the US, you will need a sellers permit to sell online
And you need to get a business license as well
So Dropshipping is a real business and must be registered.
3. How Profitable Is Dropshipping?
The margins are low as your supplier does the heavy lifting with fulfilment
Margins range between 10-30% which is less profitable than other e-com models
But the key is to Dropship higher ticket items to yield more revenue per sale.
The margins are low as your supplier does the heavy lifting with fulfilment
Margins range between 10-30% which is less profitable than other e-com models
But the key is to Dropship higher ticket items to yield more revenue per sale.
4) Is Dropshipping Worth It?
Why it works:
> You learn about product research
> You set yourself up to move to private label
> You start an e-com business that carries hundreds of products
Dropshipping is a low-risk model to get experience with online business.
Why it works:
> You learn about product research
> You set yourself up to move to private label
> You start an e-com business that carries hundreds of products
Dropshipping is a low-risk model to get experience with online business.
5 Can It Be Automated?
Everything can be automated with Dropshipping except customer service
You can set up EDI that lets your Website and Supplier inventory stay in sync
And fulfilment can be 100% automated
But customer service can’t & you still need to answer questions
Everything can be automated with Dropshipping except customer service
You can set up EDI that lets your Website and Supplier inventory stay in sync
And fulfilment can be 100% automated
But customer service can’t & you still need to answer questions
6. How To Dropship From Your Own Website
Use Shopify, BigCommerce and WooCommerce
This is the setup:
> The customer payment order passed to your supplier
> Your supplier ships the order to the customer
> You pocket the difference in the cost as profit
Use Shopify, BigCommerce and WooCommerce
This is the setup:
> The customer payment order passed to your supplier
> Your supplier ships the order to the customer
> You pocket the difference in the cost as profit
7) How To Dropship On Amazon
An alternative to dropshipping on your website is to use Amazon:
> You list your products on Amazon's Marketplace
> You Send the order to your supplier who ships the product
But Amazon dropshipping is riskier as you have to follow their guidelines.
An alternative to dropshipping on your website is to use Amazon:
> You list your products on Amazon's Marketplace
> You Send the order to your supplier who ships the product
But Amazon dropshipping is riskier as you have to follow their guidelines.
8) How To Dropship On eBay
You list your products on eBay as an auction
And when an order is placed, you notify your supplier who fulfils the order
You must use a legit supplier that is not Amazon or Walmart.
You list your products on eBay as an auction
And when an order is placed, you notify your supplier who fulfils the order
You must use a legit supplier that is not Amazon or Walmart.
9) How Dropshipping Payments Work
When you sign up with a supplier, you’ll be asked for a payment form...
> Credit Card
> ACH or direct transfer
> Payment terms
2 payment transactions happen...
1 You get paid by your customer
2 You pay your supplier for shipping the goods
When you sign up with a supplier, you’ll be asked for a payment form...
> Credit Card
> ACH or direct transfer
> Payment terms
2 payment transactions happen...
1 You get paid by your customer
2 You pay your supplier for shipping the goods
10) Where To Find Suppliers
Depending on your budget and type of product, there are many options:
> Supplier Directory
> Dropshipping Companies
> Dropshipping Tradeshows
> Print on Demand Companies
One of these suppliers will be what you’re looking for.
Depending on your budget and type of product, there are many options:
> Supplier Directory
> Dropshipping Companies
> Dropshipping Tradeshows
> Print on Demand Companies
One of these suppliers will be what you’re looking for.
11) Finding Wholesalers Who Dropship
Use Google to search for a wholesaler
They may want to know you can move products before dropshipping for you
So this means you should purchase their products and sell wholesale to start
Once you’ve shown you can sell, they'll accept you
Use Google to search for a wholesaler
They may want to know you can move products before dropshipping for you
So this means you should purchase their products and sell wholesale to start
Once you’ve shown you can sell, they'll accept you
12) Finding Products To Dropship
Picking products to sell online is challenging
Amazon owns 50% of the eCommerce market so you can get an accurate view of what products are selling successfully
Use Jungle scout to find out how much revenue products are generating on Amazon.
Picking products to sell online is challenging
Amazon owns 50% of the eCommerce market so you can get an accurate view of what products are selling successfully
Use Jungle scout to find out how much revenue products are generating on Amazon.
13) When To Use Dropshipping
Dropshipping margins are low so it’s not a good long term business model
Use it as your stepping stone to
> Test products
> Find out what sells well
> Private label your winners
You'll set up nicely to make profits with a sustainable business model
Dropshipping margins are low so it’s not a good long term business model
Use it as your stepping stone to
> Test products
> Find out what sells well
> Private label your winners
You'll set up nicely to make profits with a sustainable business model
14) What Are The Best Dropshipping Companies?
The dropshipping companies are the middlemen in listing products and selling them on the eCommerce space
They give you access to millions of products without negotiating prices
Here are my favourite dropshipping companies👇
The dropshipping companies are the middlemen in listing products and selling them on the eCommerce space
They give you access to millions of products without negotiating prices
Here are my favourite dropshipping companies👇
15) Who Pays For Shipping?
Dropshipping suppliers charge their own shipping rate
When a customer places an order on your website, you can cover the cost or give the shipping to the customer
For our online store, we charge $5 for all our orders under $75.
Dropshipping suppliers charge their own shipping rate
When a customer places an order on your website, you can cover the cost or give the shipping to the customer
For our online store, we charge $5 for all our orders under $75.
16) Do Dropshippers Ship Internationally?
Dropshippers ship packages internationally at extra cost
And it can get expensive to get shipping quotes that match VAT fees
So it will take longer to ship internationally.
Dropshippers ship packages internationally at extra cost
And it can get expensive to get shipping quotes that match VAT fees
So it will take longer to ship internationally.
17) How Do Returns Work With Dropshipping?
You are responsible for processing returns
Here’s how you handle it:
> Customer contacts for a refund
> You ask your supplier for a return number
> The supplier refunds the cost back to your account
> You refund the customer
You are responsible for processing returns
Here’s how you handle it:
> Customer contacts for a refund
> You ask your supplier for a return number
> The supplier refunds the cost back to your account
> You refund the customer
18) Using Multiple Suppliers
You can use as many suppliers as you want
Let’s say you fulfil 3 products from different suppliers:
> Your cart will route to dropshipper 1, etc
> Your customer will receive 3 packages in the mail
And you notify your customer to expect 3 packages.
You can use as many suppliers as you want
Let’s say you fulfil 3 products from different suppliers:
> Your cart will route to dropshipper 1, etc
> Your customer will receive 3 packages in the mail
And you notify your customer to expect 3 packages.
Pros Of Dropshipping...
> Risk-free way to sell products
> Run your business from anywhere in the world
> Little upfront investment
> You get experience in researching products
> Risk-free way to sell products
> Run your business from anywhere in the world
> Little upfront investment
> You get experience in researching products
Cons Of Dropshipping...
> Margins are low at 10-30%
> You generate a large amount of revenue to make a good profit
> There is no brand recognition with dropshipping
> Margins are low at 10-30%
> You generate a large amount of revenue to make a good profit
> There is no brand recognition with dropshipping
Thank you for reading this thread!
If you want to support a fellow entrepreneur, follow me for more eCommerce content
Steve
If you want to support a fellow entrepreneur, follow me for more eCommerce content
Steve
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