How to Start a Drop Shipping Business

How to Start a Drop Shipping Business


Many people shy away from starting an online
store because of the initial start-up costs. But imagine if someone offered to pay your
up-front inventory costs on thousands of items and manage all your shipping and fulfillment
operations for you. It’d be much easier to get started, and you could run your business
from anywhere in the world. Sound too good to be true? Well, it’s not,
if you know about drop shipping. In this video, I’m going to explain exactly
how drop shipping works, show you how to find drop shippers for your products, and give
solutions to some common problems associated with drop shipping.
And if you stick around until the end of this video, you’ll get access to “The Ultimate
Guide to Dropshipping” a free bonus guide that shows you exactly how to start a dropshipping
business. Alright, let’s dive in. What is drop shipping? Well, drop shipping
is a retail method in which you don’t keep products in stock. Instead, you partner with
a wholesale supplier that stocks its own inventory – you transfer customer orders and shipment
details to them, and they ship the goods directly to the customer.
The biggest benefit of drop shipping is you don’t have to worry about fulfillment or inventory
issues. Also, most customers don’t know you’re drop shipping, since “private label shipping”
lets you ship from the wholesaler with a return address and invoice customized to your ecommerce
store. Let’s quickly go over a few other benefits of drop shipping.
One – You don’t need buckets of money. Drop shipping makes it amazingly easy to get started
selling online. You don’t need to invest heavily in inventory, yet you can still offer thousands
of items to your customers. Two – Convenience and efficiency. Successfully
launching and growing an ecommerce business takes a lot of work, especially if you have
limited resources. Not having to worry about fulfillment is incredibly convenient and frees
up your time to concentrate on marketing, customer service, and operations
Three – Mobility – with all the physical fulfillment issues handled, you’re free to operate your
business anywhere you can get an internet connection.
Four – It’s a trusted model. You might be thinking that this sounds like some sketchy,
fly-by-night model – but it’s not. Plenty of online stores, and even major retailers
use drop shipping to offer a wider selection of products to their customers without having
to deal with increased inventory hassles. How do I find drop shipping wholesalers? Well,
first off, in the United States, most suppliers will ask you for your business EIN number
and a copy of your state sales tax and/or resale certificate. So you may want to consider
having your legal ducks in a row before contacting suppliers. However, this isn’t always the
case and there’s no reason why you can’t start contacting drop shipping suppliers immediately.
Now, if you already know what products you’d like to drop ship, contacting the original
manufacturer is the easiest way to find qualified distributors. Not all distributors will be
willing to drop ship, but it will give you a list to follow up with.
Unfortunately, the market is littered with scams and low-quality information. If you
do decide to invest in a directory, we recommend the paid directory World Wide Brands as a
reputable source of drop shipping wholesalers – but it’s still very important to exercise
caution. Additionally, if you’re using Shopify you
can access a variety of apps in our app store that will connect you directly with reputable
dropshippers. I’ve linked to a few of these in the description of this video.
How to use Google to find wholesalers. Google can also be an effective tool for finding
drop shippers, but you need to keep a few things in mind. Here are some tips you can
use to find a wholesaler through google. The first thing you’ll want to do is Search
Extensively. Wholesalers and drop shippers are notoriously bad at SEO and marketing,
and usually aren’t going to pop up on the first page of Google for a term like “handbag
wholesaler.” Instead, you’ll need to dig deep into the search results, often going
through 10 or 20 pages of listings. Additionally, you should use lots of modifiers:
As you hunt for suppliers, don’t stop with a search for “wholesale” – make sure to
use other terms, including “distributor” , “reseller” , “bulk” , “warehouse”
and “supplier.” It’s also important to note that suppliers
also tend to have outdated, late ‘90s-era websites. So don’t be scared away by abysmal
design and layout. While a sleek, modern site could signal a great supplier, a low-quality
one doesn’t necessarily indicate a bad one. Now, despite our glowing recommendation, drop
shipping isn’t ecommerce nirvana. Like all models, it has its challenges and downsides,
which we’ll quickly go over now. One – There will be loads of competition and
weaker margins. It’s true. Products that can be drop shipped will spawn a lot of competition.
Usually this will lead to cutthroat pricing and diminishing profit margins, making it
hard to build a viable business. To be successful, you typically can’t compete
on price. Instead, you’ll need to offer value in a different way, usually through top-notch
product education, service or selection. Two – syncing inventory is difficult and leads
to out-of-stock items. The best way to mitigate this problem is to work with multiple suppliers
with overlapping product lines. It’s inherently dangerous to rely on a single supplier. Having
two suppliers doubles the likelihood that an item will be in stock and available for
shipment. Many sophisticated suppliers offer a real-time
product feed, and you can use a service like eCommHub to easily sync your Shopify website
with the warehouse. Eventually, you’ll sell a customer an out-of-stock
item. Instead of canceling the order, offer the customer an upgraded product or discount.
You might not make much – if any – money on the order, but you’ll likely build a loyal
brand advocate. Three – It’s hard to sell products that
you never see, however In today’s world, it’s possible to become an expert in just about
everything through information online. Selling products from manufacturers with detailed
websites will allow you to become intimately familiar with a product line without ever
having touched a physical item. And when you do need to answer specific question about
a product, a quick call to your supplier or manufacturer will give you the answer you
need. You can also buy your most popular items to
get acquainted with them, and then resell them as “used” or “refurbished,” often
recouping most of your investment. Four Third party errors. Involving a third
party will result in more fulfillment errors, mistakes, and logistical problems. Even the
best dropshippers make occasional mistakes, and mediocre ones make a lot of them. Suppliers
are fairly good about paying to remedy problems, but when they’re not, you need to be willing
to spend what’s necessary to resolve the issue for your customer. If you try to blame your supplier for a fulfillment
problem, you’re going to come off as amateurish and unprofessional. Similarly, if you’re unwilling
to ship out a cheap replacement part to a customer because your supplier won’t cover
the cost, your reputation is going to suffer. One of the costs of drop shipping convenience
is the expense of remedying logistical problems. If you accept it as cost of doing business
– and always make sure to put your customer first – it shouldn’t be a long-term issue.
Is drop shipping the path to overnight ecommerce success? Of course not. As with any successful
online store, you’ll need to invest over time in a quality website, marketing, and customer
service. But drop shipping does provide an easy way
to get started and the ability to leverage other people’s capital without having to invest
thousands of your own. When managed correctly, it can form the foundation of your own successful
online store. If you’re looking to learn more about drop
shipping – check out our “Ultimate Guide to Drop shipping” , a free comprehensive
guide that covers everything you need to know about building and running a successful drop
shipping business. Thanks for watching and if you found this
video helpful please be sure to let us know by clicking like or leaving a comment below.

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About the Author: Oren Garnes

100 Comments

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  11. I started a drop shipping business two days ago. I advertised on facebook and on instagram and have had about 30-35 visits to the website. But I have no sales yet, why?

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  13. Hello Vlogger, I have a short query about of drop shipping. Can you help me out? My query is if I worked in drop shipping business it is necessary to connect with the third party like Shopify, magneto, WooCommerce and another one. Should I work on my own platform? Please reply me.

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    3- THEY USE CHEAP OVERSEAS EMPLOYEES ALL AROUND ASIA AND CALL THEM "SHOPIFY GURU" BUT WHEN YOU GET SOMEONE LOGIN TO YOUR WEBSITE FROM PLACES OTHER THAN Australia, New Zealand, Canada, United Kingdom, Ireland, Hong Kong, Singapore and the United States. THEY SHUT DOWN THE PAYMENTS GATEWAY.
    4- THEIR FREE THEMES ARE REALLY PROBLEMATIC AND DEFECTIVE. WHEN YOU COMPLAIN ABOUT THEM, INSTEAD OF FIXING THEIR PROBLEMS, THEY ASK YOU TO BUY A PAID THEME.
    5- YES THE LOWEST COST SHOPIFY PLAN IS 29 USD BUT THAT WILL NOT BE ENOUGH. YOU WILL NEED LOADS OF APPS AND ADD ONS TO FUNCTION AS A GOOD WEBSITE WHICH WILL MAKE YOUR MONTHLY COSTS HUNDREDS OF DOLLARS.
    5- DON'T BELIEVE THE CRAP THAT SOME VLOGGERS TELL ABOUT HOW EASY TO MAKE MONEY FROM SHOPIFY. YOU WILL NEED HUNDREDS IF NOT THOUSANDS OF DOLLARS TO SPEND ON ADS IN ORDER TO START MAKING A LITTLE MONEY.

  16. Big businesses came up with drop shipping because its cheaper than doing their own advertising, they let the small fish go and do all the work to generate the sell. Then they still make what they expected, at the same fulfillment price to themselves if you had bough directly from them. Its a business concept for stupid people who are getting long conned.

  17. But will you tell us beginners what is the correct url or id of a product so we can copy and paste it into a drop ship program I am very new at this. Thank you.

  18. This is glorious, been searching for "dropship success stories" for a while now, and I think this has helped. Have you heard people talk about – Gonrooklyn Dropshipping Fraternity – (just google it ) ? Ive heard some awesome things about it and my work buddy got great results with it.

  19. 🔥Shopify Dropshipping Store Worth Of $16000 for SALE! 🔥

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  20. Rob <[email protected]>

    Subject: Ticket ID 9402965 & Ticket ID 9369938

    Hi Alex (Shopfiy) and Rob (Shopify)

    Subject: Ticket ID 9402965 & Ticket ID 9369938

    Alex (Shopfiy) I guess you totally misunderstood our point! Let me clarify but kindly promise to read my messages carefully to avoid confusion with unrelated answers:

    1. We opened the ticket to ask you to release our money which has been suspended (blocked) by you illegally. So I am not sure why you are talking about something else!!! It's not the matter to work with your BAD Shopify Payments Gateway, but to release our suspended payment!!!

    2. We DO NOT want to use your unreliable fishy Shopify Payments Gateway anymore. Understood??? WE WANT OUR MONEY! WE DO NOT WANT TO USE YOUR GATEWAY! UNDERSTOOD?

    3. Even you apologise for you wrong insulting behaviours and even if you approve the future payments via your gateway and even if you request and cry and beg us to work with your untrustworthy cheating Shopify Payments Gateway we NEVER accept it any more despite of all the mess you made. Clear???

    4. So please DO NOT waste our time with unrelated back and forth nonsense emails! Just release our money immediately before we do a legal action about your unprofessional confused team. We DO NOT wish to continue using your Gateway and our team or your team has to disable this disgusting feature or we totally cancel the entire shopify platform while you still have to release our money. We don't let you to cheat and steal our payment with unfair, unreasonable excuses.

    5. I – MD of UNGEX PTY LTD – opened a Ticket ID 9402965 and requested Rob and your other team members (both over the phone and chatroom) to release our payment for the products we sold to a customer in Canada (order #1013 June 10, 2018 – AUD $652.63) that have already shipped and delivered to a Canadian client successfully. So the customers order has been shipped while you hold our payments!!! Too bad and disgusting manner from your unreasonable confused team!!!

    6. The HFI which was a 3rd party product (Amazon Canada) already shipped and delivered by the customer too.

    7. My colleague (Alex at Ungex Pty Ltd) already sent you all documents and screen shots and clarified that it's several years we are doing this business with all reliable platforms such as Amazon (US,UK,JP Europe …) and eBay (US, UK …) and AliBaba as well as PayPal, AfterPay, Australian Banks banks gateways and son on and we never ever seen such a disgusting MESS and confused unprofessional party … I think Shopfiy Gateway team are so confused, unprofessional and unreliable that they will definitely spoil the name of Shopify sooner or later.

    8. Finally, as the last attempt I kindly request to release our payment AUD $652.63 immediately or before the next 24 hours otherwise we will do a legal actions against your Gateway team.

    9. Last word: please ask your CEO or senior supervisors call me for more clarification about this mess caused by your bad team.

    Our request in short:

    1- Release our money AUD $652.63

    2- Disable Shopify Payments Gateway

    "A Word For A Wise Is Enough!"

    Looking forward to receiving our money.

    Regards,

    Seyed M. Behbahani

    MD of UNGEX Pty. Ltd.

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  22. But won't the customer get to know that they just got rigged cause AliExpress will put the price on the packaging and on the box it'll be written AliExpress…. So it's like we are scamming people.

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  24. hey I wanted to know, does anyone here know is having a business EIN number and a state sales tax resale certificate in mandatory in order to dropship?

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  26. https://bit.ly/2JYWmX0
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  27. It s 100% true that you can start your dropshipping business with a small amount of money. But the point is when you plan to bring traffic to your store, you will start spending money on ads whether instagram or facebook.. and if you don't know what you are doing you might lose a huge amount of money without getting results.
    This is something that anyone who is planning to start drop shipping should consider. That 's why I think that it is better to get trained on ads and these stuffs before starting.

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  30. Yo people,

    I am 15 years old and sell replica Yeezy. I Made 4 sells in this month without adds. I buy it for €50 and sell it for €105. So 55 x 4 = €220. My friend told me that it is illegal to sell replica clothes. You can get a really high fine for it. So do I need to stop or keep going.

    Thanks

  31. Can you explain me the payment process of drop shipping? Do we have to pay to manufacturer before keeping the product in my online store?

  32. Hi!

    Have been dropshipping for over 2 years now! And I have to say that I'm so happy that I started!

    I would like to share this software with you. Extremely affordable but yet very productive thing! Forget about the product research and save money & time! This software does all the boring and hard work for you! You get a list of winning products every single day! https://dropship-spy.com?aff=egenial

    It helped me to achieve making around 2k per day in sales! Don't hesitate, save money and forget about the boring testing phase!

  33. How to start drop shipping business?
    1. Select a niche
    2. Perform competition research
    3. Secure a supplier
    4. Build your e-commerce website
    5. Create a customer acquisition plan
    6. Analyze and optimize
    https://cjdropshipping.com/2018/05/26/how-to-start-drop-shipping-business/

  34. Cheers for this, I have been researching "dropshipping articles" for a while now, and I think this has helped. You ever tried – Gonrooklyn Dropshipping Fraternity – (do a google search ) ? Ive heard some great things about it and my buddy got amazing success with it.

  35. This is glorious, I've been looking for "dropshipping companies" for a while now, and I think this has helped. You ever tried – Gonrooklyn Dropshipping Fraternity – (search on google ) ? Ive heard some unbelievable things about it and my brother in law got excellent success with it.

  36. Drop Shipping is very convenient, you just sell, no need to make stock, and your supplier will ship for you. If you are new, I recommend you to use Shopify and CJ Drop shipping, really useful.

  37. Check out this well-researched article on how to start your own dropshipping business:

    https://www.psdcenter.com/how-to-start-dropshipping-business-online-auto-parts-business/

  38. dont listen to this douche! dropshipping is not that simple. and the bulk of your cash is gonna go straight to marketing. So DO NOT LISTEN TO THIS DOUCHE!

  39. Im a 16 year old entrepreneur looking to start my own drop ship business, please help me out by donating to my GoFundMe. Thanks!

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  40. Just a must-have video for anyone who makes a drop, the most important thing is to use experts who have already done this before you.
    As a salesman, it was very hard for me to find customers in Instagram (although I knew they were there). But with the falls, you also find solutions.
    Today I am blessed that I started with this and helped other people along the way:
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  41. Hello! I just registered a shopify partnership account just a few second ago. Is there anybody looking for a creative partner? I'm a 4+ years experienced graphic designer worked closely with shopify related blogs and stores.

    My partnership account is "DesignerRiyad"

    -Thank you 🙂

    [Ps: I'm posting this message to bunch of videos to get a partner and I'm apologies because it seems Spam. Admin please delete if this not allowed]

  42. Never buy from a drop-shipper. Never be a drop-shipper. Instead, design and create your own products and sell THEM. Or, at least, invest in stock and ship it yourself after you sell it. Jaysus, talk about lazy people.

  43. Tostart dropshipping, you need a good app. It is recommended to use the eprolo APP, which has AliExpress top 100 products, and will add your company info and logo on the scotch tape, invoice, label, and box! and Your client will never receive many packages from one order.You can also import product from Aliexpress, Amazon, Dhgate, eBay, Alibaba, etc. It Forever free to use, you can try it out.

  44. you ready for start your online dropshipping business

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  45. I read a book recently that helped me with importing goods, so I can add into my inventory outside of drop shipping

    Here is a link if you want to get 15% off,

    https://payhip.co/fa71

  46. hey, guys, I'm selling my dropshipping store on Shopify that did almost 1000$ last month! if you're interested in buying, check out https://exchangemarketplace.com/shops/neil-sareen
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  47. I have a question: I understand the whole model, but I'm curious about the shipping time. If it takes a month to get the product from China, then why would people buy from you?

  48. If you need a Readymade dropshipping store with 50+ products Ready to start with Payment Gateway (Paypal & accepts Credit/Debit card) everything done contact me – https://www.instagram.com/call_me_mags_/

  49. Want to stop your 9-5 job and become financial free? WARNING! Sent me a message ONLY if your are motivated to change! Want to learn Shopify and FBA? I have all courses from the greats for faaaaar less! GoodLuck my friend!

  50. Hmmmm…
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  51. Hey guys, we have a brand new discord server based on helping each other out with dropshipping that we are trying to grow, would mean a lotus you checked it out! Thanks
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  53. I think no matter what this will take a lot of hard work. I have just started on a similar journey. It would be great to share the experience and some ideas. I have uploaded my first video on my Chanel. Drop by and say hello 🙂

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