Today I want to show you how to make money drop shipping.
And yes, it is a thing.
Some of you might have heard that this is not real or even unethical but trust me, this is a legitimate business model.
As a matter of fact, there are so many companies and stores online that would love for you to drop ship for them.
This is just like any other business, from which you buy low and sell high so you can earn a profit.
Very much a business model I took on as a young adult that consisted of buying used cars and selling them for a higher price.
I targeted military personnel that were changing duty stations and could not ship their vehicles.
So what did they end up doing?
Selling their cars for a price that was beyond affordable to people like me who knew exactly what to do with them.
Drop shipping is very similar but with a bunch of pros that pretty much makes the whole idea genius.
But First, What is Drop Shipping?
Before we get into any kind of making money, let's see what it is really about.
As per Wikipedia,
Drop shipping is a supply chain management method in which the retailer does not keep goods in stock but instead transfers the customer orders and shipment details to either the manufacturer, another retailer, or a wholesaler, who then ships the goods directly to the customer.
If that wasn't simple enough for you, maybe this might be better.
Drop shipping is the process from which you sell products through a website or another retail outlet.
The difference is that you will not be stocking any inventory (no need to purchase anything) and you will not be shipping anything either.
By placing products on your website, eBay, or any other means, you will then promote them to try and make a sale.
Why Drop Shipping?
There are many, many reasons as to why you should do drop shipping and it is also why it is one of my top recommendations when it comes to making money online.
Biggest Market in the World (or just the world)
This is the same reason I do affiliate marketing and it is also the same reason I would recommend any type of online business.
With the world at your fingertips, the internet is really the place for anyone to do business.
Why limit yourself to your small town when you can target, well, the world?
That advantage alone is what pushed me to pursue a legit opportunity making money on the internet.
This is awesome.
As an ex bar owner, I know how it feels to have to purchase inventory at least once a week.
On top of that, it costs a lot of money just for you to try and make a profit.
With drop shipping, you don't need to purchase a single product.
On top of not having to purchase anything, you don't need to ship anything.
As a drop shipper, your customers will place that order, typically from your site, and then you will place that same order on the drop shipper's site.
From there, they will ship that product directly to YOUR customer and the transaction is complete.
Overhead Costs Are Ridiculously Low
Remember that bar I mentioned a little while ago?
That bar had me spending almost $5,000 just on overhead alone.
Rent, power, water, and everything else needed to maintain my spot was beyond high.
With drop shipping, you can forget about paying that much money.
To run a website and/or Shopify store is beyond affordable and one that you won't find with any other business.
Profits are Higher
Buying products to try and resell them is already stressful enough.
Then having them make you a few bucks is almost not worth the work.
Drop shipping takes away everything mentioned above along with having you turn a higher profit.
Find a product for $10 and sell it for $30.
If $20 is not a nice profit, then you might be in the wrong business.
The Downside to Drop Shipping
Just like everything good out there comes the bad.
Not to say that this is really a bad thing but it is something you need to be aware of.
First, you should know that drop shipping requires a decent budget to get started.
Not to purchase products but to advertise them on your site.
Learning how to advertise efficiently is what you need to master and that is why we have Oberlo to help you in that department.
Secondly, there is no guarantees.
You might not make any profits and you might even lose money if you aren't careful.
Lastly, drop shipping requires a lot of patience.
One ad and product might not work the first time, so you will need to tweak and fine tune things.
Or, you might just need to find another product.
It happens and you can't look at it as a failure but rather a lesson that you need to move on from.
With that out of the way, let's get into the good stuff.
How to Become a Drop Shipper
Becoming a drop shipper is fairly easy but does require you to do some research on the different products you wish to promote. Whether you want to promote some kind of clothing brand to household goods, there is a company for you. Here is exactly what drop shippers need to do in order to make money.
- Find the product you want to sell
- List the product on E-bay or a website of your own.
- Make the sale (collecting the payment through Paypal)
- Go back to the company you found the product on and order it with the same Paypal account using the same address the customer put.
* This means the product will go from the company you found the product with, straight to the customer on E-bay
- Drop shipping complete
Shipping is Done for You
When drop shipping, you will not need to worry about shipping anything out because that is done for you. Just like I said above, the product will go directly from the merchant site to the customer that purchased the product from you on E-bay.
Remember that your goal is to make a PROFIT so please don’t forget that. Your main goal is to get as much profit as you can to make the drop shipping worth it.
Once you have completed your first drop ship, you just repeat the process. Once you get the hang of things you can then start listing multiple products and learn how to scale your business so that you make more. Drop shipping can be really complicated and the competition can be very competitive as well.
What Return Policy
There are a bunch of reasons why drop shipping is something that is so easy to do. Along with all the shipping done for you, you don’t have to worry if the customer wants a refund or is not satisfied with the product. Once you pay the drop shipper (company you bought the product from) there is no work for you from there on.
Take your profits and do whatever you want with it. I do suggest you invest back into your business if you plan to use drop shipping as one of your main sources of income.
Alternative to Drop Shipping
Although drop shipping is a great way to make extra money online, there are other ways that you can make money online and will make you some good money.
The way I make my money is through affiliate marketing and is something you should actually look into.
It is my main source of income and it will work great for those of you on a budget.
I hope you found out everything you need to know about drop shipping and hopefully you find success with it.
If you have any questions about this or any other method, feel free to leave them in the comments section below.
I will get back go you as soon as I can, so don't be afraid to ask.
Thanks for reading and good luck!