how to make $3000 a month in dropshipping with aliexpress, amazon, ebay...: -step by step guide-

in this video you'll learn the pros and,cons of dropshipping why drop shipping,isn't as simple as easy as you think and,the best way to succeed with a dropship,to online store,before we get started make sure you,subscribe to this channel that way as I,release more content like this you will,get notified and if you are on YouTube,click on the alert notification button,now let's start at the beginning,what exactly is dropshipping well drop,shipping as an e-commerce business,bottle where you can sell physical,products online without having to deal,with any inventory without having to own,a warehouse to store your products and,without having to deal with any shipping,and handling,basically your supplier handles all of,your product fulfillment needs and when,order comes in all you got to do is you,notify your drop shipper and they ship,your products directly to your customer,on your behalf,now as a result there's practically zero,upfront cost our drop shipped online,store because you don't have to invest,any money in inventory and you can,literally start drop shipping for under,three bucks with an open source shopping,cart all you need is a website free,credit card processing and you can start,taking orders immediately now if you've,been following me for a while recently,my nine and 11 year old kids launch,their own dropship to ecommerce store,selling entrepreneurship t-shirts for,only two dollars and ninety five cents a,month and you can actually check out,their shop over at kid in charge calm,now how much money can you make drop,shipping well drop shipping first and,foremost carries a much lower margin,than a traditional e-commerce store and,in my experience drop shipping margins,range anywhere between 10 and 30% but,this number can obviously vary depending,on what products you have to sell online,for example I have friends who achieve,fifty to sixty percent margins drop,shipping perfume jewelry and large,oversized items like stoves and outdoor,grills I also know a colleague who,dropships personalized funeral urns and,caskets of all things that command,really high margins because his niche is,not price sensitive but overall your,margins are going to depend on how,crowded your market is and the level of,competition before a typical dropship,store you should assume a 10 to 30,percent margin on average now the best,part about drop shipping is that your,ecommerce businesses infinitely scalable,once you gain traction and without the,need to carry inventory or physically,ship orders out you can focus all your,efforts on marketing and sales now how,do you get started drop shipping if drop,shipping sounds like an attractive,business model for you here's what you,need to know to get started first off,you need to set up a website or a,platform to take orders from then you,have to partner up with a dropship,wholesaler or distributor that is,willing to ship products directly to the,customer now as part of your partnership,you and the dropship supplier will,decide on a wholesale price for the,products that you want to sell and once,you have an agreement in place with your,supplier here's exactly how dropshipping,works first the customer places an order,for a product on your online store and,then you collect the money then you,forward the order and the shipping,details directly to your dropship,supplier and pay the agreed-upon,wholesale price for the product your,drop shipper supplier then packages and,ships the order directly to the end,customer as if it were shipped from your,own e-commerce store and then you,basically get to pocket the difference,between your selling price and the,wholesale price so does that sound good,to you well here's how you can get,started in a couple of easy steps so,first things first you got to setup your,website and this is actually the easy,part of the entire process because,there's so many easy-to-use options,available today and over all your,ecommerce platform decision will be,based on your budget what features you,need and how tech-savvy you are and the,three carts I typically recommend are,shopify bigcommerce and WooCommerce now,for my kids store over at kid in charge,com we opted for WooCommerce because,launching an online store and,WooCommerce is practically free now the,hardest part I guess of the whole,process is to find dropship suppliers,and because drop shipping is so popular,and the Internet is ripe with scammers,you got to learn how to spot a fake,wholesaler so first off a real dropship,wholesaler will never charge you a,monthly fee just for the privilege of,accessing their catalog of goods real,dropship wholesalers are merely,distributors and their goal is to,actually sell their product in bulk and,not run a monthly membership site second,of all a real dropship supplier will,never sell their own products to the end,consumer at wholesale prices either and,the key thing to realize here is that a,wholesalers primary customer is a retail,shop and in general it would go against,their best interest to compete with,their own customers so once you know,what to look for you can actually begin,starting to look for real suppliers,using the strategies that I'm about to,talk about now the easiest way and the,most reliable way to find a dropship,wholesaler is to simply contact a,manufacturer,simply call the manufacturer and then,ask them for a list of wholesale,distributors and then once you have this,list you can contact a distributor,directly and ask them if they are,willing to dropship now what's nice is,that most distributors will,carry a wide variety of products from a,number of different manufacturers,and as a result if you can land a big,distributor you can almost always gain,access to a large catalog of items to,carry in your shop but establishing a,partnership with a distributor can be,hit or miss and you need to be prepared,after all most legit suppliers only want,to deal with legit retailers so you got,to make sure you have all of your ducks,in a row before you reach out to them,and as part of running bumblebee linens,we actually get asked to drop ship our,products all the time and in order for a,distributor to want to invest their time,in you they need to know that you're,legit so you definitely need to have a,mock website up and running to show them,you're serious and you need to prove to,your suppliers that you're the real deal,and that you can actually move product,now the other way to find a dropship,wholesaler is if you know that one of,your competitors runs a dropship to,online store then you can find out who,their suppliers are by simply placing an,order on the website and then once you,receive the package all you got to do is,you got to look at the shipping label,for a return address and while the,shipping label might not have the,suppliers name on it you can actually,easily Google the address and find out,the name of the distributor now if you,don't want to do all that legwork,another way to find wholesale,distributors is by going to a trade show,and oftentimes with the trade show,because all the vendors are all Congre,in the same place and can be much more,efficient to find your suppliers that,way and not only does meeting face to,face make it easier to develop a,personal relationship but you can also,touch and handle the vendors entire,product catalog as well now what's nice,is that most trade shows at least in the,US are a hundred percent free as long as,you have a business license as the,result you have nothing to lose for,attending and most major cities actually,have a wholesale trade show many times,Revere in a variety of niches and the,final way to find dropship suppliers is,to use a directory it drops your,directory is a database of suppliers,that are organized by niche and it can,be a convenient way to quickly find,products to sell for dropshipping so,there's a couple companies out there,like worldwide brands and what they do,is they prevent every company in their,directory to make sure that they're,legit but of course it's a downside of,using whole directory is that the,distributors and the products are easily,accessible to other members who sign up,for the directory as well and as a,result the products you find in a,directory are probably going to be a lot,more convincing,however that being said wholesale,directories can be a great way to,brainstorm and find vendors immediately,I've actually had a worldwide brands,membership for 10 years now and while I,don't use them at all anymore,but the time it was a convenient way to,find a list of wholesale suppliers but,there weren't that many in my niche now,once you find a couple of dropship,wholesalers that you want to work with,you got a vet them because your business,hinges on the quality of your,dropshippers and here's some attributes,that you want to look for when you're,evaluating your suppliers because,remember successful drop shipping,requires a partnership between you and,your distributor and Trust is absolutely,essential and as a result before you,rely on any sort of dropship vendor you,should always place a test order to see,how your order is gonna be handled and,specifically this is what I look for I,look for how fast the order ships and,after all shipping time is extremely,important for an ecommerce store and,it's essential that orders are shipped,between 1 to 2 business days the other,thing you want to pay attention to is,how the order is packed is it just,shoved in a crappy box with some packing,peanuts and it's the Box unmarked with,the suppliers business name how is the,customer service do they respond in a,timely manner do they provide tracking,information and invoice do they give,refunds for defective merchandise and,returns these are all things that you,got to check before you go with a,dropship vendor now here are some other,questions that you might want to ask,depending on what you want to sell but,you might want to ask if they can,customize their products meaning if you,can insert inserts and your own,marketing paraphernalia into the box,what are your pricing terms and are,there quantity discounts oftentimes when,it comes to price breaks you actually,want to negotiate quantity discounts up,front so you know what the pricing to,expect as your store grows after all if,you decide to negotiate after you've,already hit a certain milestone guess,what the dropship vendor is gonna know,that you need them and they're gonna be,less likely to negotiate you also want,to ask what their dropship fee is most,dropshippers charge a per order dropship,fee just for a kind of like the,privilege of packing up the order for,shipment you also want to ask about the,return policy even though dropshippers,ship on your behalf all returns will,actually be sent back to you as a result,you need to understand the return policy,to get your money back and finally you,also want to ask if you can actually,purchase all these items wholesale at,lower,prices after all you might want to carry,inventory for your most popular products,to make a higher profit margin now in,general the price for buying wholesale,inventories should be less than your,dropship price,now here's an advanced question they,might want to ask you might want to ask,if the wholesale vendor uses EDI EDI,stands for electronic data interchange,and it's an automated way for a dropship,supplier to transmit their inventory,stock to your website in real time,basically EDI allows your store and your,supplier to stay in sync,which makes customer support that much,easier now addition to all these,questions that are just outlined it's,also important to ask for a single point,of contact at your wholesale vendor to,deal with customer support and product,issues as they arise when you start,selling your product after all there are,a bunch of things that can go wrong so,for example what happens when a product,goes out of stock what happens if you,sell a product that's been discontinued,what happens if shipping is late or,misses a deadline you're going to want,someone there that you can talk to you,now when it comes to problems and,running a dropship store it should in,theory be more hands-off than a,traditional online store but there's,actually specific aspects of drop,shipping that you need to be aware of so,as I mentioned before handling returns,and refunds even though you're not in,charge of product fulfillment you are,still responsible for accepting returns,and providing customer support for,defective merchandise after all the key,thing to realize with drop shipping is,that you are the face of your business,and the customer is not even aware of,any of this they don't know about your,drop shipping arrangement that you have,with your supplier as far as the,customer is concerned you are the,supplier and as a result you have to,deal with returns yourself and you,actually can't depend on your supplier,for customer support here's how returns,are typically handled for a dropship,store first off the customer asks for a,refund by contacting your customer,support phone or email,then you contact your supplier for an,RMA number your customer sends the,product back to your supplier with the,RMA number clearly indicated on the,packaging and then the supplier refunds,the wholesale cost back to your account,when the package is received and then,finally you provide the refund to your,customer now this product sounds like,there's a lot of moving parts to it and,in addition to this sometimes your,supplier may charge a restocking fee,which you can either pass along to your,customer or you can actually choose to,eat the cost,either way returns are a part of doing,business now when a customer orders a,product that is at a stock it is also,you,responsibility to communicate this to,the customer and typically you should,give the customer three options one you,can wait for the product to come back in,stock and provide an estimated time of,arrival you can provide an exchange or,you can just refund their money out,right now here is actually where things,get really complicated oftentimes you'll,deal with multiple drop shippers in your,store and if you work with multiple drop,shippers your customer may purchase,multiple products that span multiple,suppliers and when this happens the,customer will actually receive their,order broken apart into multiple,shipments in addition you'll be charged,separate shipping costs from each,dropship supplier and when situations,like this arrived you must inform the,customer so that they're not confused,when they receive multiple packages for,their order furthermore because it cost,you a lot more money to ship across,different drop shippers you can either,charge an additional shipping cost or,eat the cost altogether all right so now,I've gone over some of the complications,let's just talk about straight pros and,cons of drop shipping now if you're able,to find a quality dropship supplier then,drop shipping is really attractive,because you can run your business from,anywhere all you need is a computer and,an internet connection and you are good,to go as a result if you are brand-new,to e-commerce with a very small budget,you can actually use drop shipping as a,stepping stone to get started and then,transition to a more lucrative business,model when you are ready and in addition,to convenience there are a number of,pros for dropshipping number one the,setup costs are practically zero there's,no upfront inventory costs there's no,warehouse cost there's no overhead I,can't think of any business model that,is less expensive to start and my kids,store over a kid in charge what's pretty,much free the next advantage is at the,risks of starting a dropship store a,much lower and the beauty of drop,shipping is that there's no upfront cost,and because you're investing so little,money upfront,there's very little to lose and because,your business is inventory lists there's,no pressure to make sales because you,don't have to bear the overhead of,storage or shipping in addition you can,carry a huge variety of items in your,store because you don't have to store,any of it and if you browse dropship,directories you'll go to trade shows,you'll find drop shipping suppliers for,practically every single niche that you,can think of you can choose to carry,just a single product or thousands of,products online it doesn't matter once,you figure out what you want to sell you,can usually find a vendor that will,supply you the other thing that's great,about drop shipping,location-independent a drop shipping,business can be run from anywhere you,don't need an office you don't need a,warehouse or any employees at all and as,a result of this freedom you can focus,your efforts on growing your business,instead of taking care of inventory and,overhead so overall drop shipping is,actually one of the most scalable,ecommerce business models out there,because your overhead does not grow,linearly with your sales and in fact I,have several colleagues who run good,sized dropship businesses with just a,handful of employees that is this sound,too good to be true to you if your gut,is telling you that drop shipping sounds,too good to be true then your instincts,are correct as with everything in life,there are always downsides to every,single business model and most people,stumble into dropshipping with the,expectation of quick riches only to,realize that making money with a,dropship store is actually much harder,than you anticipate so here are some,cons first off you're not going to be,getting the lowest price most people,open up a dropship online store with the,misconception that they'll be receiving,the same wholesale pricing as everyone,else for their products but in reality,dropship distributors often charge extra,fees and tack these fees onto the quoted,wholesale price after I'll put yourself,in the distributor's shoes for a moment,would you prefer to sell a large bulk,quantity of products all at once to a,store would you rather sell onesie,twosie amounts to individual customers,and be forced to individually ship and,pack each item the distributor is doing,all the work here and this will,certainly be reflected in your wholesale,price so just to throw out some numbers,here most dropship stores get between,ten to thirty percent gross margins,whereas most traditional shops that,carry inventory have 50% gross margins,which is a huge difference and because,your wholesale prices are higher than a,traditional store you will not be able,to compete as effectively on price,unless you take a good-sized profit hit,but more importantly lower margins will,inhibit your ability to advertise on,sites like Facebook and Google not only,that but less profit per sale also makes,customer service more problematic so for,example with our online store our,margins are between 70 and 90 percent,and as a result whenever we get an angry,customer we just give them a refund and,tell them to keep the product no harm no,loss because our margins are so high we,can actually afford to take the hit,but with drop shipping the convenience,of not having to fulfill orders comes at,a cost,the next disadvantages is that you,have to charge more for shipping,sometimes when you run a dropship store,you're gonna have to use more than one,drop shipper and using two or more,different drop shippers means that two,or more companies will be making,separate shipments to your customer,which means that two or more companies,are going to be charging you their own,separate shipping costs now if I'm a,customer and I buy products from your,store across three different,distributors for example you will have,to charge me a much higher shipping cost,just so you can break even and the only,way around this is to use one dropship,distributor which may not carry the,breadth of products that you want in,your store and the result is that you,will have to pass these extra costs on,to the consumer which reduces your price,competitiveness running a dropship store,can also be a logistical nightmare now,you might think that since your dropship,distributor is doing all the work they,can just sit back and relax but,unfortunately you actually have to deal,with your customer base you got to be,the one to answer all the questions you,got to be the one to apologize when an,order doesn't arrive on time even if,it's not your fault and the main problem,here is that when you use several,different dropship distributors getting,the entire order to the end customer can,be a logistical nightmare all,distributors will have different,shipping times and will be shipping from,completely different locations and if a,customer orders products across three,different distributors,they'll end up receiving three different,packages at varying times and if an,order is particularly time-sensitive and,needs to be rest you will have to make,sure that all of your distributors can,actually deliver their products on time,so bottom line you are actually staking,the reputation of your online store and,linking yourself to all of your dropship,distributors in a single chain if even a,single distributor is unreliable then it,will reflect negatively on your online,store now most importantly this is,probably the biggest disadvantage of,drop shipping is that customer service,and your online reputation can make or,break your business and all this,customer service is basically out of,your hands with the world wide web,social media and Twitter news of a,botched transaction can spread extremely,fast so it is absolutely crucial that,you maintain a great image for your,online store so for example whenever I,receive a call for our wedding linens,store I actually always take the time to,ask how they found us and the majority,of the time the people will find this do,so because they were referred to us by,one of their friends word travels fast,and our customer service is one of the,main reasons why we've grown three,X in the past three years now with,dropshipping you unfortunately have very,little control over your customer,service since you are not in charge of,product fulfillment you can't actually,control when a customer will receive,their product and if a customer wants to,make a return it's actually a major pain,because you have to make sure that you,get your money back before you can,actually provide a refund sure there are,many ways to mitigate these problems but,the solution always involves either,raising prices or taking a profit hit at,the expense of customer satisfaction and,finally these days with Amazon Amazon,actually makes drop shipping a lot less,attractive because prior to Amazon it,was much harder for companies to sell,their goods to the masses and as a,result distributors had to rely on,traditional retailers and drop shippers,to help to move product but today Amazon,controls such a large piece of the,e-commerce pie that most companies can,get by with just selling on Amazon as a,third party seller Amazon handles our,sales your product fulfillment your,customer service basically everything,that a traditional retailer would,typically take care of but the,difference is that the distributor gets,to keep all the extra product and if you,are a dropship store selling the exact,same products that can be found on,Amazon it will be impossible for you to,compete on price and as a result you,have very little leverage as a consumer,would you rather buy from Amazon at a,lower price or would you pay more to buy,from an unknown shop chances are they're,gonna go with Amazon now thus far I've,been talking about drop shipping in the,traditional sense where you have your,own website and you actually find a real,distributor to dropship on your behalf,but there's actually other drop shipping,business models that I kinda want to,mention here now keep in mind the drop,shipping methods that I'm going to talk,about right now are not recommended and,you should not pursue these business,models so you may have heard about drop,shipping from amazon to ebay and drop,shipping from amazon to ebay became,popular because it literally requires,zero upfront costs you don't need a,website and all of your sales come,directly from ebay here's how it works,you put up a listing on ebay for a,product that you want to sell at a,higher price than amazon then when a,customer places that order on ebay you,make an identical purchase on Amazon and,have it shipped directly to the ebay,customer and you pocket the difference,in price now a couple things about this,business model this form of eBay,dropshipping is no longer allowed,and eBay reserves the right to ban your,account if you are ever caught,and while drop shipping is technically,legal on eBay they only allow drop,shipping when orders are fulfilled,directly from a wholesale supplier so,you are not allowed to fulfill your,goods from Amazon Walmart or any other,marketplace bottom line do not do this,the other drop shipping model is drop,shipping to Amazon from Aliexpress now,drop shipping is technically allowed on,Amazon as well but the order must be,fulfilled from a legit wholesale bull,supplier and like eBay Amazon reserves,the right to ban your account if you try,to fulfill your order from a third-party,marketplace now for the past couple of,years get-rich-quick business owners,started drop shipping cheap junk from,Aliexpress on Amazon and pocketing the,difference in cost and this process was,called Aliexpress drop shipping here's,how it works,you put up a listing on Amazon for an,Aliexpress product that you want to sell,and then when a customer places their,order you make a purchase on Aliexpress,for the identical product and have it,shipped to the Amazon customer and then,you pocket the difference in price,please do not try this business model as,it relies in a shipping loophole called,a packet that will soon be obsolete now,here's one drop shipping makes sense,while I would never personally start a,pure dropship store today there's,actually many ways to use drop shipping,to your advantage because you don't have,to carry inventory you can instantly,throw up an online store with hundreds,of products in a short period of time,and then you can use this shop to,conduct market research and based on,which products sell well you can pick,and choose the most successful products,to buy inventory for and enjoy higher,margins,now drop shipping in my opinion is best,used as a vehicle for product validation,or for fleshing out an online store that,is sparse in certain categories so,overall it's best to use drop shipping,when you need product validation when,you are on a major budget you are new to,e-commerce or if you want to carry a,large variety of products without,putting forth the money upfront for,inventory now here's one to avoid drop,shipping unless you are a brand new,entrepreneur on a budget or an online,store owner who is exploring new,products drop shipping is generally not,a good choice for seasoned shop owners,because you are selling other people's,products it is difficult to build your,own brand after all there's so many,aspects of your supply chain and your,customer that are beyond your control,for example you have no control over the,customer,unboxing experience if an order ship,late or never arrives the blame is on,you and you have no control over,inventory if you have a hot selling,product but the supplier is out of stock,then you won't make any money so in a,nutshell your dropship business lives,and dies with your suppliers and if,they're not reliable then you're not,going to succeed so therefore if your,goal is to build a brand then drop,shipping is not the way to go so overall,if any of the below describes your,situation then I would avoid drop,shipping if you're trying to build a,brand if you want high margins if you,want exclusivity all those things are,not part of drop shipping and if you're,trying to build a brand especially don't,do drop shipping so the million-dollar,question is is drop shipping really less,work and it really depends arguably the,time that you save and not having to,deal with inventory fulfillment will be,spent dealing with customers unless you,have a reliable core of dropship,distributors and one thing I forgot to,mention is that most vendors that you'll,encounter do not use EDI which means,that if an item is out of stock you'll,actually have to interface with the,customer to let them know when they can,have their items and unless your,shopping cart is closely tied to your,drop shippers database it's gonna be,difficult to maintain an accurate,inventory account so bottom line with,drop shipping you're basically trading,off not having to deal with fulfillment,logistics with having to deal with more,customer service headaches and depending,on your personality this may or may not,be a wise trade-off but don't get me,wrong,many people have been successful with,drop shipping as it works very well with,small niche stores but my personal,opinion is to avoid it if you can,alright so if you've been asking me lots,of questions via email about drop,shipping hopefully this episode covers,every single aspect,hope you enjoyed this video now if you,like what you saw there's actually a lot,more where that came from,if you subscribe to my channel below and,if you are interested in learning how to,sell physical products online then click,over here and take my free six day mini,course where I'll walk you through,everything that you need to know to get,started in e-commerce thanks for,watching

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