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Ultimate Guide to Dropshipping

THE ULTIMATE GUIDE TO DROPSHIPPING A FULFILLMENT METHOD WHERE A STORE DOESNT KEEP THE PRODUCTS IT SELLS IN STOCK. Instead, when a store sells a product, it purchases the item from a third party and has it shipped directly to the customer. O PhoneOutlet FoneCase R $14.99 FoneCase WHOLESALE ACCESSORI 1a $7.99 Total $799 3 Customer places order with shop. WHOLESALE ACCESSOBIES IN Your FoneCase has shipped! O Phoneute Shop places order with supplier. Supplier ships order to customer (invisibly). Shop alerts customer item has shipped. PROS e Easy to scale o Low overhead O Flexible location CONS • Low margins © Easy to get started O Less capital required o Wide selection of products Supplier errors e Inventory issues Shipping complexities HOW TO SPOT FAKE SUPPLIERS Keep these points in mind. FAKE LEGITIMATE 11 3+ Membership fees Sold to the public Pre-order fees Minimum order size Usually to get genuine wholesale pricing you'll need to apply Dropshippers do this to filter out window-shop- ping merchants that will Real wholesalers don't charge monthly fees. It's important to differentiate between suppliers and Many dropshippers charge a pre-order dropshipping fee that can range from $2 - $5 or more. This is normal, for a wholesale waste their time with account, prove you're a legitimate business and be approved before placing your directories. Directories questions and small (like Doba) are simply a list of wholesale suppli- as the costs of packag- ing and shipping orders that will never translate into meaningful ers, and they often do charge one-time or ongoing fees. individual orders are business. first order. much higher than shipping a bulk order. FINDING GREAT SUPPLIERS $ $$ Great suppliers tend to have many of the following 6 attributes: 1. Expert staff and industry focus. 4 6. 2. Dedicated support representatives. 3. Invested in technology. 4. Can take orders via email. 5. Centrally located. 6. Organized and efficient. TIP: Picking the perfect product to sell is the biggest decision you'll make and has long-term consequences on the success or failure of the business. Don't pick based on personal interest, conduct market research to determine what you're going to sel. PICKING PRODUCTS TO DROPSHIP Considerations when selecting products. Marketing Potential Think about how you'll market before you launch. Don't know? Reconsider launching. Accessories Selling a product with many accessories is a great way to improve your overall margin. Turnover Try to find products that aren't updated with new models every year. Hard to Find Locally Selling a product that's hard to find locally will increase your chances of success. Size and Weight The smaller the items, the easier they are to ship cheaply to your customers. CHERRY PICK THE BEST CUSTOMERS All customers aren't created equally. Hobbyists Businesses Repeat Buyers People spend a mind-boggling These customers might be more Recurring revenue is a beautiful thing. Sell items that are dispos- amount on their hobbies. Many serious moutain bikers spend more on their bikes than they do on their cars. Target the right hobbyist niche and you can do price-sensitive, but they will usually order in large quantities. Once you establish a relationship with them, you open the door to a long-term, high-volume relationship. able and/or need to be reordered frequently and you can grow rapidly as you build a loyal customer base that frequently returns to purchase. very well for yourself. DON'T INVEST A LOT OF MONEY INVEST A LOT OF TIME Just get it launched. Bootstrapping & sweat equity. WHY YOU SHOULD START YOUR OWN ONLINE STORE FOR DROPSHIPPING More control, strong branding, less fees. 2$ * More Control Customize the look to complement your products; create custom product pages. X Easy Design O Mobile Ready Building your own ecommerce store is easy, especially with platforms like Shopify. Many themes on hosted ecommerce platforms are responsive to most devices. $ No Third-Party Fees You won't have to pay 10% to 15% of every sale to eBay or Amazon. AI Build a Real Business much ier to sell a business built around an independently vned Less Free Traffic You'll be responsible for generating traffic through marketing, SEO and advertising. A Increased Complexity You're responsible for configuring the design, layout and structure of your store. RUNNING A DROPSHIPPING COMPANY Live by these top ten things. "The most important step the one that most people never take, is to actually get started building Accept that things ean get messy. your business!" Adopt a KISS mentality. nfographic = Good start! Oun up to a botehed order. O Consider multiple suppliers. O Manage out -of stock situations. O Route orders intelligently. stay vigilant with fraudsters. shopify does this! O Nail doun a fair return policy. Wory more about shipping as you grow. O Be constantly invested in support. THE ULTIMATE GUIDE TO DROPSHIPPING Check out the free 100-page guide on dropshipping here: Thanks for reading. S Design by @warren PROS SNO)

Ultimate Guide to Dropshipping

shared by warren on Apr 05
Dropshipping is a popular method of selling online, but it's often associated with scams, ripoffs and get rich quick schemes. To shed some light on dropshipping, we wrote a free beginners guide to dro...






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