Drop shipping is one of the buzz words going around at the moment. And every time you search online for a way to make money, drop shipping seems to always be somewhere at the top of your google search. So, in this blog post, I’m going to be explaining what drop shipping is.
If you want the short answer, drop shipping is one of the fastest ways to make easy, risk-free income. Okay, you may be saying, but how do I make that easy, risk-free income? Don’t worry, I got you covered. I will also be teaching you how you can make money from drop shipping too.
Plus, because I love to give value, I’m also going to be showing you how to find drop shippers.
What is Drop Shipping?
I’m going to try and keep this simple so that even someone like me can understand it reasonably easily. Drop shipping is when you sell something to someone, but instead of you stocking the item yourself, the company you found to supply the item, stocks it as well. That company then sends it directly to your customers, without you having to do anything.
Let’s break that down a bit. Typically, when you have an online store, you need to purchase stock. Then, when you sell something, you have to parcel everything up and send the individual items to your customers. In other words, you need to buy stock in advance.
What makes drop shipping so cool is that instead of you stocking the items you sell and sending them out to your customers, drop shipping lets you skip this step. When you find new customers, and they buy your goods, all you have to do is contact the drop shipping company (from now on known as a drop shipper) and purchase from them whatever your customers have bought from you. The drop shipper will then send this item directly to your customer.
The best thing about this whole process is that the traditional risk of buying stock and then having it sitting around gathering dust because you can’t find anyone to buy it has been eliminated. Putting it simply, drop shipping removes the risk of buying and selling online.
How Do I Make Money from Drop Shipping?
The first thing you need to do is to open up an online store and sell items you can drop ship. What sort of online store you set up and what you sell is really up to you. However, you probably want to sell things that other people want to buy if you want to make decent money.
Next, you want to mark-up the prices to make a profit. This is up to you and you’ll probably need to experiment with your prices to get them right. You want to mark up your products so that you get the maximum profit but you don’t want to mark them up so much that no one will buy from you. Conversely, you don’t want to mark up your goods so little that your profit is not worth the work you’re putting in to make the sales.
One of the most popular places to open an online store is eBay. However, the problem with eBay is the horror stories of eBay turning around one day and blocking your account. Sure, eBay is a good way to start but you really don’t want to base your entire business model on the whims of a company run by algorithms and bots.
At some point, you’ll also want to set up your own online store. An easy way to do this is to create one with SaleHoo Stores. This means you are no longer at the mercy of the bots at eBay. Additionally, if you use SaleHoo Stores, you don’t have to pay eBay fees, which you will end up hating, trust me.
How Do I Find Drop Shippers?
I know for a fact that if you have considered drop shipping and have any research, you will have found out that there are a lot of dodgy companies out there ready to scam you out of your hard earned money. And no doubt you also saw that there are a lot of drop shippers in China that can’t be trusted. They will take your money and either they will not send you what you paid for, or they will send you irregular items that are at best unsafe and at the worst, completely illegal.
So, the easiest way for you to find drop shippers that you can trust is through SaleHoo. SaleHoo is an online directory that has over 8,000+ drop shippers, wholesalers, and liquidators. The reason why using a directory like SaleHoo is such a great idea is because you can be sure that you’ll be dealing with suppliers, who have been verified by SaleHoo themselves, so you know you can trust them.
Wrapping It All Up
And there you have it. It is possible to do drop shipping without help, but I can tell you now from experience, that it is much better to get the help you need than trying to do it all by yourself. Check out my review of SaleHoo for more information.
I hope you found that useful. If you did, then there is more. This is the first part in a series all about drop shipping. Here is Part 2. Go check it out now if you have time.
If you enjoyed the above, leave a comment. And if you think I’ve left anything out, please feel free to add that below too. Thanks and speak again soon.