April 7, 2020
What Is Drop Shipping? (Video 2/10)

What Is Drop Shipping? (Video 2/10)

Hi everyone, Anton here again, and welcome to day 2 which is
module 2 of our drop shipping mini course. Today, I’m going to answer
a question that you may have or you may be even thinking of answer to. But I’m going to go
much more in depth with it and that question is:
What is Drop Shipping? So I know a lot of people find out
about this drop shipping mini course, and about my full blown
e-commerce coaching program, “Drop Ship Lifestyle.” Because they might hear
the term drop shipping going around and they’re really not sure
what it is or how it works, or which way you could
actually do it profitably, because there’s many
ways to do drop shipping. Some work, some don’t. And I’m going to answer
all those questions in this video. But to start, let’s go over
this little image right here. So as simple as possible,
this is drop shipping in 3 steps. So step 1 would be a customer
purchases something from you. You’re selling an item online. Customer buys it from you.
They pay you for it and you go ahead
and you order that same exact item from your drop shipper. So from your supplier, you order the same exact item
that someone has purchased from you. Then your supplier ships this item, they drop-ship the item
directly to your customer. So your customer receives
the item that they ordered. You receive the money you sold it for and then your supplier
charges you wholesale. So your profit is the difference
between that retail price you sold it for and the wholesale price
that you pay to your supplier. So as simple as possible,
that’s drop shipping in 3 steps. What I’m going to do now is
switch over to a presentation where I’ll explain
not only, you know, what it is but how it works and the different
ways you can use drop shipping and which way is the most profitable. So let me switch screens right now. So before I could answer
this question more in depth, what I really want to do is walk you through
the different e-commerce business models. So that way, we can eventually
get to how drop shipping is different and why I believe it’s the best way
to start an e-commerce business, and profit without putting up money for inventory or actually putting up a big investment really. It’s a business model
you can get started for not that much money upfront. So the different e-commerce business
models, the most popular ones are Ebay. So selling items on eBay. Amazon: If you’re not aware of this, you can actually go on amazon
and list your own items for sale. You could build what’s called an amazon store, and the third major option is
to build your own e-commerce store. So there’s lots of different options for this which we’ll get into in future videos
in this drop shipping mini course. But what Shopify basically is is a plug and play piece of
online software that you can use to build your own e-commerce store. They have tons of templates that you can use, very highly converting
e-commerce store templates. You sign up, you basically
upload a logo, you upload your own text and within an hour or so
you can have an e-commerce store. So those are the 3 main
e-commerce business models that I think most people are aware of and the way most people get started out. So out of all of these,
which do I like the best? I like having your own e-commerce store. I like using Shopify. I’ve tried the other
e-commerce platforms out there. When I first started in this business over I think almost 10 years ago now, I was using eBay
and that got saturated very fast and became pricing more and just wasn’t worth it. So I cut that out.
Amazon: It is a great business model. I’m not going to put it down at all, but I do prefer to have
my own e-commerce stores. Again, I use Shopify to host them and the reason I prefer this is
because you have much more control. When you’re selling
through someone else’s platform, whether that be eBay
or Amazon or any other platform, they control the whole sales process, they own the customer and their database and they basically get these customers. They could sell other products to them and get them into their own sales model. When you’ve your own store,
you control the whole sales process. And it might not make sense now
why that’s beneficial, but in future videos, I’m going to show you exactly why you want to own that customer; and how that could actually equal
all of your success in business. Once you’ve that customer,
once you’ve that lead and they’re yours, you have much more control over your fate
and over the fate of your business. So now how you find products to sell? Let’s say now you know how to sell online. It could be eBay. It could be Amazon. Or if you follow my advise,
it could be your own e-commerce store. Well, the first option is to import. You can go to website like Alibaba and you could find products
to imports from, let’s just say, China. This is actually how I started in business. Before I ever drop-shipped,
I was importing products. The next option which some people recommend and I have no idea why is what’s called arbitrage or going to local state sales or flea markets or garage sales trying to find products
that you could sell online for profit. I think this is just a waste of time and something that’s not scalable at all. Or in my opinion, the winner here, the best option would be drop shipping. So if you remember that image we reviewed in the beginning of this module, you were basically finding
companies that have products to sale and they’re looking for people
to help sale their products. So let me explain
how this works and why it works. When you go into a store,
let’s say in a shopping mall like (unintelligible) or Bloomingdale’s, they sell tons of products, right? And they’re not selling,
let’s say (unintelligible) T-shirt or they’re not selling Bloomingdale’s jeans. They’re selling for dozens of,
if not hundreds of, suppliers of brands. So in the world of retail, there are the companies
that manufacture and build brand names, and then there are the companies
that sell for them. They’re the retailers. So in order to do drop shipping
in a way that’s effective and scalable, we’re becoming retailers. So we’re not doing
what (unintelligible) or Bloomingdale’s do in the sense that
we’re holding the inventory. But we’re doing
what they’re doing in the sense that we’re providing a retail outlet
to sell these products for brands whose job
it is to create great products to find retailers like us
to distribute their products. So I hope that makes sense. If you’ve any questions,
please do just respond to the email that this video is linked from
and I could help clarify. But that’s how it works and again, I’m going to go over
this image one more time just to really hit home how this works. So the customer purchases from you. They come to your website. Again, I don’t recommend eBay. I don’t recommend Amazon. They come to your website.
The customer purchases an item from you. You then get that money.
It goes into your bank account. You then purchase that same exact item from your drop ship supplier and the way that we do this which will be
covered in the future videos is you could purchase this item
from one of many drop ship suppliers. You most likely have
over 20 drop ship suppliers per e-commerce store. Then you will purchase this item
from the drop ship supplier. They will ship this item
directly to your customer. Your customer will be happy and your profit will be that difference
between what the customer paid you and again, what you paid the drop shipper. So it really is that simple of a process. Of course, there’re still many ways
this can work and not work and those are all things
that are going to be coming to you over these next, I guess it’s 8 days now, in this 10 part mini course. So definitely, you’re
going to look out for that. But let me start to explain my process here So I’m not going to go
much into detail it–into detail with it. But I do want to give you my process for building a successful
drop shipping business. So now we’ll go through what I’m going to call
the successful drop shipping checklist. And it’s going to be an 8 step process that I use and that I recommend you use when starting a newly e-commerce store. I should know that this is
only the first introduction video, so don’t plan on mastering any of this. This will be covered
in more detail in the coming 8 days, and if you eventually decide to join
our online coaching program and community in “Drop Ship Lifestyle,” there’s tons of videos on each of this topics. But I want to break this down so you get a good understanding of what drop shipping is, how it works and what you should do,
should you chose to pursue this. So you’re not just left,
kind of, going on your own and guessing on what works, because again, I do have almost
10 years of experience with this. So let me give you the process that I use. So step one is to chose a niche, right? You need to figure out
what you’re going to sell. In future videos
that come up in this mini course, I will discuss what
meets good selection criteria and what will help you choose
a niche that you could actually profit with. The next thing you want to do
is find your future competitors. So yes, you will have competitors. There is no niche out there
that has zero competition. If you find one, it’s probably because it’s a bad niche and
people don’t buy these products. So you will be looking for people
that you will be competing with, and you’ll basically try to find them so you know who your competition is
before you even get started. Step three is to create your store. So yes, you’ll actually build an online store. prior to ever even contacting the supplier. That’s because the good
suppliers won’t approve you unless they could see that you
already have an e-commerce store. So this is something
that you will want to do even before making that first phone call or sending that first email
to a potential drop ship supplier. Step four is getting
approved with those suppliers. So once you have your store up, then you could start
making those phone calls, then you could start sending those emails, and then you can contact those suppliers to get approved with them. After that, you will want
to optimize your website for conversions. Now this is something…
This module can make all the difference. There’s so many
different things you could do once you have your e-commerce store up that can affect your conversionary. And that means how many people buy versus how many people visit your site. So something I will talk about
in future videos is, you know, you could have all the traffic in the world, but if they don’t buy
from you it doesn’t matter. You don’t need tons of traffic. You need traffic from a buying audience. You need your website
to turn those visitors into buyers. Or else all the traffic in the world
won’t solve your problem. Conversion is a no. 1 key to success. Getting people that come
to your website to buy from you. Trying to get that
highest conversion rate possible. So very important step no. 5. The next thing to do
is get traffic obviously. It’s one of the biggest questions I get asked in addition to niche selection is how do I get the traffic to my store? Now there’s tons of different ways and there’s not one of them
you should rely on. You want to have
diversified sources of traffic. So no one ever could turn
your business off overnight, if one of your traffic sources doesn’t work. So very important is
step no. 6 in this process. After that, you want
to outsource and automate. So the beauty of drop shipping stores is it’s very easy to automate them
and outsource different tasks. You don’t want to do this at first. You want to build your business,
you want to run it for a while. You want to learn how basically
every step of the process works, and after you do that,
it’s very easy to start delegating tasks and outsourcing and using apps that automate how your business works
on a day-to-day basis. So the last thing I wanted
to do in this video, in this module is just give you actual, kind of,
a peek at some of our demo stores, so you could see what they look like and try to tie this all together with what an actual Shopify drop ship
e-commerce store looks like. So you’ll see here
I’m on enlightenchandeliers.com. If you want to jump over to the site
and check it out, feel free to. Again, this is just one of our demo stores. So this would be an example of a site that had went through those 8 steps that I had just given you. You can come to it.
You can play around with it. You know, in my opinion, it looks very good, and I know this theme converts, the style of the site converts,
because we use it. If you want to just check it out,
click out on some of the product pages, and see what an actual
store that you could own someday, very soon
in the future would look like. This site to build, literally, what did it cost? $29 per month at Shopify, that’s it. So no customization, nothing special. No (unintelligible),
no web designers, very simple. So again, to cover
how this business model works, let’s say a customer lands on
this product page that cost $530. Let’s say the customer buys this product. Then $530 would get deposited
into my business bank account. I’d then purchase this exact item from the company that makes it,
from the brand that makes it. Let’s say I pay them,
I don’t know, whatever it is $330, if that’s my wholesale cost. They then ship it to the customer and my profit is the difference between what the customer paid me
and what I paid the supplier. The customer gets the item. The customer is happy.
I made my money. I did my job as a retailer and that’s basically, you know, how it works. Let me show you
another one of our demo stores, if you want to check it out. This one is razorsharpshave.com It’s a store that sells shaving razors. So if you want to check it out, go through it. You could go to the product pages again, and in my opinion,
this site looks just amazing. This is the theme that we use
for most of our stores. Again, it’s built on Shopify.
So plug and play e-commerce system. This is a (unintelligible) I think it costs less than $100. So for less than $100, you could have a gorgeous store
that looks like this. With all these tabs built in
that has all your social sharing obviously, so people could share this on social media. It has the review system built in. It has the floating menu bar. It has live chat, I mean everything. So I just wanted to give you an idea of what an actual
drop ship business looks like, and, you know, none of this stuff
where you will be selling on eBay or Amazon or China sale
$10 products or anything like that. I wanted to show you what
a real quality drop ship store looks like, and what a store that has potential
to make a lot of money looks like. So just to give you an idea of
where we’re headed and what we’ll be covering over these next 8 days now. So if you have any questions
on any of these, please do reach out to me, and if not, keep an eye
on your inbox for tomorrow. Because I’m going to be
sending you a new video then, and that one is really going to be about
the benefits of the drop shipping. So what’s the point of all this? You know, what can you
really expect as an outcome should you decide to pursue this, go ahead and follow my 8 step process and build a store and start getting
traffic and start getting sales? What are the benefits? Why do I prefer drop shipping over all these other business models? That will be covered in tomorrow’s module. So keep an eye on your inbox
and I will be sending that video. Thank you.

6 thoughts on “What Is Drop Shipping? (Video 2/10)

  1. This Mini Course is a gem. I support your business and the value you provide to people. I WILL be at the next DSL retreat. I promise you.

  2. I don't have enough money to start drop shipping business on shopify but I afford to do the same on amazon.
    So will it be worth?
    Please help :/

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