Facts About DROPSHIPPING
If your ambition is to become your boss and work from your laptop at home, or exotic locations around the world, then drop shipping as an option. Essentially, it means running your online store without actually having any stock. You forward your customer orders to a supplier who has the inventory and handles the delivery.
For any of you considering this or if you're just curious to hear what drop shipping is and how it works, we've put together this article just for you. You can make some good money by this method, but if you're expecting an easy get rich quick then there's no such thing. And so-called dropshipping gurus may sell it as a zero investment business model, but if that sounds too good to be true. That's because it is, as we'll see, some dropshippers have lost money by doing it poorly.
In dropshipping, you set the price and pocket the difference. Let's begin with a few basics about how dropshipping works as a drop shipper, you're the retailer and you have a business that you market online through your website, without having to spend money on inventory, then you take orders from customers and transfer those orders straight to manufacturer wholesaler or another retailer who owns the goods, and then they ship them directly to the customer. You set the price you choose and pocket the difference between your price and the price charged by the supplier. To put it simply, you're taking care of the suppliers marketing for them.
Dropshipping is older than the internet. Nowadays it's hard to imagine dropshipping without the internet. But it does have a history that goes back a lot farther than the World Wide Web. The business models started in the USA in the 1950s with catalog mail-order companies. Large retailers would have warehouses full of products they were ready to deliver to customers. Mail-order companies had the bright idea of distributing catalogs with a selection of these products at prices they set. This made them dropshippers, although back then nobody called it dropshipping as the term it only caught on in the early 2000s.
Other early dropshippers found their customers by knocking on their doors as the door to door salesmen. Of course, nowadays dropshippers put ads on Facebook rather than sending out catalogs. Instead of knocking on doors, they can work from the comfort of their own home, or a beach in Bali.
Startup costs are low, but not zero. This is a business model with low barriers to entry, and your internet marketing skills will far outweigh the amount of capital, you have to invest marketing campaigns on Facebook and Instagram cost money, as does maintain your website, and one of the most important skills you'll need is to successfully balance the cost of your ads with your revenue. Experienced dropshippers say that $300 to $400 is a realistic starting price. And if you don't have that much to spare, save up before you start.
Dropshipping wouldn't be where it is today without aliexpress. Ask dropshippers around the world and most of the goods they sell come from China, but until 2010 getting products shipped from there wasn't so easy. That year, things changed when Alibaba released their online buying and selling platform AliExpress. From then on dropshippers could order from these Chinese manufacturers through a process as easy as checking out at a supermarket. That also got rid of language and cultural barriers. And while it's probably the most important AliExpress isn't the only online service that dropshippers rely on others include Shopify, which helps you set up your online store and bear low, an app that's now owned by Shopify which turns your online store into a semi-automated AliExpress dropshipping store.
Dropshippers target impulse buyers. So if you're new to this, you're probably thinking, why would anyone buy from a drop shipper when they can go straight to AliExpress, and you'd have a point but you'd also be forgetting a couple of key facts. Firstly, the kind of people who see a product and decide to shop around for the best deal will rarely buy from drop shipping sites at all. Dropshippers don't target those people, but according to market research, 44% of Americans made an impulse buy on the internet over the last three months. Those are the ones they're targeting, and it's a pretty high percentage.
The world's most successful dropshippers make over a million dollars a year. Yes, if you work at this and have an innate talent for it, there are chances to make some serious bucks.
Perhaps the most successful is Irwin Dominguez who went from zero to a million in eight months. He quit his career as a marketing consultant learned everything he could about e-commerce from Google, and set up accounts on Shopify and bear low. It took him just eight months to make his first million. Keep in mind that most dropshippers aren't millionaires but there are plenty of them who earned very nicely.
Most dropshippers fail in the first month in case the drop shipping picture was starting to look all rosy We're sorry to burst your bubble, according to some estimates 90% or more fail in their first month. Usually, because they're frustrated their business isn't making money, but if they're serious about putting in the hours to make dropshipping work for you. Don't let this put you off. Remember, most people who get into dropshipping see it as a get rich quick scheme, they don't have the patience to get properly educated about it, or to accept they won't be making money early on. You need to do a lot of testing of which product types and marketing strategies work and which don't. It's common to lose money on Facebook ads that don't bring in any sales, many dropshippers say it's necessary to lose money. Early on, just to see what works. Remember, just like any way of making money dropshipping needs patience skills you need to learn along the way.
Dropshipping is all about finding your market niche ships. If you're about to get into dropshipping you're probably about to ask, what kind of products should I sell. Well, all kinds of products can work. Expert dropshippers say the way forward is to set up a store on Shopify with a particular niche trendy home decor works. Something more specific works even better, like trendy home decor with an exotic theme or whatever theme you decide to go for quirky kitchen utensils or eccentric pet products. A niche that specifically makes your website, give the impression that you're an expert in that niche. To make sure the website looks good feels good and is easy to navigate.
Novelty goods work best. It's not just about the niche it's about finding goods within that niche that you won't usually find so you found a hoodie or home decor item that looks nice enough, but it's not different from any other ones you can buy at 20 other stores at the mall. That's not going to work, people will just buy it at the mall without having to pay your markup, slightly wacky home decor items that look like musical instruments that musicians will just love. That's more like it. Matching hoodies for pet dogs and their owners that make the grade two. We're talking about novelty items that stand out even the kind of things that a lot of people will just think to look ridiculous. The people who love them are going to love them and will jump at the chance to buy them.
Use search engines to find your niche. The ideal niche doesn't need to be one you have loads of knowledge about let's say you're selling cute animal themed stationery, how much do you need to know about it? Expert dropshippers find niches that have high internet search volumes but low competition. In other words, something that the public is looking for but not many dropshippers have caught on to yet. How do you do this, get some help from good old Google by using their Keyword Planner? This gives you the information you need about how many hits a specific search term gets, and how many sites include these keywords. Use this approach effectively and you'll be more likely to have a site that will have high traffic numbers and sales figures.
That's right. In most businesses having a passion for what you're selling is a big plus. But because of the nature of dropshipping the types of niches that are going to work best are quite specific, so if you go in wanting to market products that you have a specific interest in, chances are it's not going to be a viable option. Instead, do your research and find out what products will sell best, and whatever your niche Research tells you to go with that regardless of whether or not it's of any interest to you. Thank you for spending some time with us.
For any of you considering this or if you're just curious to hear what drop shipping is and how it works, we've put together this article just for you. You can make some good money by this method, but if you're expecting an easy get rich quick then there's no such thing. And so-called dropshipping gurus may sell it as a zero investment business model, but if that sounds too good to be true. That's because it is, as we'll see, some dropshippers have lost money by doing it poorly.
In dropshipping, you set the price and pocket the difference. Let's begin with a few basics about how dropshipping works as a drop shipper, you're the retailer and you have a business that you market online through your website, without having to spend money on inventory, then you take orders from customers and transfer those orders straight to manufacturer wholesaler or another retailer who owns the goods, and then they ship them directly to the customer. You set the price you choose and pocket the difference between your price and the price charged by the supplier. To put it simply, you're taking care of the suppliers marketing for them.
Dropshipping is older than the internet. Nowadays it's hard to imagine dropshipping without the internet. But it does have a history that goes back a lot farther than the World Wide Web. The business models started in the USA in the 1950s with catalog mail-order companies. Large retailers would have warehouses full of products they were ready to deliver to customers. Mail-order companies had the bright idea of distributing catalogs with a selection of these products at prices they set. This made them dropshippers, although back then nobody called it dropshipping as the term it only caught on in the early 2000s.
Other early dropshippers found their customers by knocking on their doors as the door to door salesmen. Of course, nowadays dropshippers put ads on Facebook rather than sending out catalogs. Instead of knocking on doors, they can work from the comfort of their own home, or a beach in Bali.
Startup costs are low, but not zero. This is a business model with low barriers to entry, and your internet marketing skills will far outweigh the amount of capital, you have to invest marketing campaigns on Facebook and Instagram cost money, as does maintain your website, and one of the most important skills you'll need is to successfully balance the cost of your ads with your revenue. Experienced dropshippers say that $300 to $400 is a realistic starting price. And if you don't have that much to spare, save up before you start.
Dropshipping wouldn't be where it is today without aliexpress. Ask dropshippers around the world and most of the goods they sell come from China, but until 2010 getting products shipped from there wasn't so easy. That year, things changed when Alibaba released their online buying and selling platform AliExpress. From then on dropshippers could order from these Chinese manufacturers through a process as easy as checking out at a supermarket. That also got rid of language and cultural barriers. And while it's probably the most important AliExpress isn't the only online service that dropshippers rely on others include Shopify, which helps you set up your online store and bear low, an app that's now owned by Shopify which turns your online store into a semi-automated AliExpress dropshipping store.
Dropshippers target impulse buyers. So if you're new to this, you're probably thinking, why would anyone buy from a drop shipper when they can go straight to AliExpress, and you'd have a point but you'd also be forgetting a couple of key facts. Firstly, the kind of people who see a product and decide to shop around for the best deal will rarely buy from drop shipping sites at all. Dropshippers don't target those people, but according to market research, 44% of Americans made an impulse buy on the internet over the last three months. Those are the ones they're targeting, and it's a pretty high percentage.
The world's most successful dropshippers make over a million dollars a year. Yes, if you work at this and have an innate talent for it, there are chances to make some serious bucks.
Perhaps the most successful is Irwin Dominguez who went from zero to a million in eight months. He quit his career as a marketing consultant learned everything he could about e-commerce from Google, and set up accounts on Shopify and bear low. It took him just eight months to make his first million. Keep in mind that most dropshippers aren't millionaires but there are plenty of them who earned very nicely.
Most dropshippers fail in the first month in case the drop shipping picture was starting to look all rosy We're sorry to burst your bubble, according to some estimates 90% or more fail in their first month. Usually, because they're frustrated their business isn't making money, but if they're serious about putting in the hours to make dropshipping work for you. Don't let this put you off. Remember, most people who get into dropshipping see it as a get rich quick scheme, they don't have the patience to get properly educated about it, or to accept they won't be making money early on. You need to do a lot of testing of which product types and marketing strategies work and which don't. It's common to lose money on Facebook ads that don't bring in any sales, many dropshippers say it's necessary to lose money. Early on, just to see what works. Remember, just like any way of making money dropshipping needs patience skills you need to learn along the way.
Dropshipping is all about finding your market niche ships. If you're about to get into dropshipping you're probably about to ask, what kind of products should I sell. Well, all kinds of products can work. Expert dropshippers say the way forward is to set up a store on Shopify with a particular niche trendy home decor works. Something more specific works even better, like trendy home decor with an exotic theme or whatever theme you decide to go for quirky kitchen utensils or eccentric pet products. A niche that specifically makes your website, give the impression that you're an expert in that niche. To make sure the website looks good feels good and is easy to navigate.
Novelty goods work best. It's not just about the niche it's about finding goods within that niche that you won't usually find so you found a hoodie or home decor item that looks nice enough, but it's not different from any other ones you can buy at 20 other stores at the mall. That's not going to work, people will just buy it at the mall without having to pay your markup, slightly wacky home decor items that look like musical instruments that musicians will just love. That's more like it. Matching hoodies for pet dogs and their owners that make the grade two. We're talking about novelty items that stand out even the kind of things that a lot of people will just think to look ridiculous. The people who love them are going to love them and will jump at the chance to buy them.
Use search engines to find your niche. The ideal niche doesn't need to be one you have loads of knowledge about let's say you're selling cute animal themed stationery, how much do you need to know about it? Expert dropshippers find niches that have high internet search volumes but low competition. In other words, something that the public is looking for but not many dropshippers have caught on to yet. How do you do this, get some help from good old Google by using their Keyword Planner? This gives you the information you need about how many hits a specific search term gets, and how many sites include these keywords. Use this approach effectively and you'll be more likely to have a site that will have high traffic numbers and sales figures.
That's right. In most businesses having a passion for what you're selling is a big plus. But because of the nature of dropshipping the types of niches that are going to work best are quite specific, so if you go in wanting to market products that you have a specific interest in, chances are it's not going to be a viable option. Instead, do your research and find out what products will sell best, and whatever your niche Research tells you to go with that regardless of whether or not it's of any interest to you. Thank you for spending some time with us.
