Yes, you can make money with drop shipping. There is a BUT! Through either traditional or online methods. There are so many different ways you can make a little extra money. Drop shipping is just one of those methods. The question now more then ever is can you make money with drop hipping.
The simple answer is YES, but its not that easy.
I want to take a look at what drop shipping is, how it works, ways to make money doing it. Most important is what problems will you find drop shipping.
What is drop shipping ?
Drop shipping is a form of retail business where in the seller accepts customer orders but does not keep goods sold in stock. This means little to no capital outlay.
How it works
In a form of supply chain management, it transfers the orders and their shipment details to either the manufacturer, a wholesaler, another retailer, or a fulfillment house. Which then ships the goods directly to the customer.
What are you responsible for
As such, the retailer is responsible for marketing and selling a product, but has little or no control over product quality, storage, inventory management, or shipping.
Benefits to this method of retail
This eliminates the costs of maintaining a warehouse – or even a brick-and-mortar storefront, purchasing and storing inventory, and employing necessary staff for such functions.
How do you make money with drop shipping?
As in any other form of retail, the seller makes their profit on the difference between an item’s wholesale and retail price, less any pertinent selling, merchant, or shipping fees accruing to them.
The above seems pretty simple doesn’t it. Well maybe at face value, and before you believe the “used car sales men” on Facebook selling you the latest greatest course of drop shipping. Take some time and research it further.
One thing you need to be successful drop shipping.
Consistency
If you want to achieve anything of real value in drop shipping. Then you need to be consistent in your approach.
Being haphazard in your approach will not help. Start by working out a plan on what, when, how then consistently apply action to the plan. By being consistent you are bettering your odds on being successful.
Drop shipping is a marathon
Get the notion of getting rich quick out of your head right now. Drop shipping is a marathon that will take time and effort.
However, in saying that I think it is one of the simplest and cleanest ways I know to make money online.
You could open an eBay account tomorrow and start drop shipping product through it.
With Ebay being free, only paying fees when you sell something. You have a cost from your supplier, and they send direct to your buyer.
You pocket the profit. Yes, its that simple.
If you want to start your own online shop and drop ship product, well that’s a different story.
What products can I drop ship
Everything from Mobile Theater Glasses, to Barbeques. The real limitation here is what deal you can strike with the manufacture.
If you have made the decision to go down the full online commerce store and drop shipping products, then we can’t stress this enough.
Whatever you’re doing online stick to what you know and have a passion for.
Where do you find drop ship suppliers
It use to be China. But with recent events (that’s Covid-19). The worlds appetite for china produced products have diminished someone. You throw in some good old Trump Tariffs. You are looking for new lands to pillage.
We’ve spent a lot of time looking around for drop shippers, there is plenty on line. After a little while I found Saleshoo.
Saleshoo is a membership site, that is a directory listing of over 8000 vetted drop shipping suppliers. With some amazing, helpful content. With over 1.5 million goods to choose from brand name suppliers.
There are plenty of suppliers that will sell in smaller quantities (yes you might not make a fortune every sale)
What you really need to know
Now something’s to consider with selling drop shipping products. You’re not going to make a fortune with every sale.
If I sell on Bbay I generally target a 30 – 40 % margin. – keep in mind that you will pay eBay – transaction fees so I generally expect to loose 15% on each sale, so I am down to 15% – 25%.
You might have to answer a few questions about the products you’ve listed, so make sure you’ve got easy contact details for your supplier. You want to be able to ask questions and get decent informative answers.
Depending on how many products you list, you might need to make sure your supplier has the items in stock.
Can you mix your own products with drop ship products
Of course. I recently worked with someone that started a WordPress – woo commerce, drop shipping site.
The first 6 months was all about drop ship products. Which was great for very little outlay. But as it then progressed and started to get more sales. They were about to get their own branded products and sell them.
Shopify or Word press
I am a WordPress all the way type of guy. Its just so easy to work with. There are so many amazing freelancers out there that can help you along the way.
I go for Woo Commerce for online shops. Again, so simple and easy to work with. You can add a lot of functionality to it. With no problems.
Build it for you plugins
The great thing about the WordPress is there are a lot of plugins you can add to do just about anything with your site.
I am a huge fan of the AliDropship plugin for building Drop ship sites.
What is AliDropship
AliDropship is a plugin that you can add to your Woo Commerce WordPress site. That will allow you to import products direct to your store from Ali Express.
With a range of automated business processes built into it. For the grand total of $89 USD. Its one of the simplest ways to get into drop shipping.
Its backed by a team of developers and support personal, that will help you every step of the way.
You can also buy plenty of extra add-ons that will make life lots easier. Think automated social postings. That’s a time saver just there.
Now let’s be real
Yes, drop shipping is hard work, yes it takes time to establish an e-commerce site. Start with planning. The more time you put into planning your site out the more chance you are giving it of succeeding. When you do, set your targets and go for it. Just remember yes you can make money with drop shipping. How much you want to make is up to you.
