many people shy away from starting an onlinestore because of the initial start-up costs. but imagine if someone offered to pay yourup-front inventory costs on thousands of items and manage all your shipping and fulfillmentoperations for you. it’d be much easier to get started, and you could run your businessfrom 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 exactlyhow drop shipping works, show you how to find drop shippers for your products, and givesolutions to some common problems associated with drop shipping.and if you stick around until the end of this video, youâ€™ll get access to â€œthe ultimateguide to dropshippingâ€ a free bonus guide
that shows you exactly how to start a dropshippingbusiness. alright, letâ€™s dive in. what is drop shipping? well, drop shippingis a retail method in which you don’t keep products in stock. instead, you partner witha wholesale supplier that stocks its own inventory – you transfer customer orders and shipmentdetails 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 inventoryissues. 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 ecommercestore. letâ€™s quickly go over a few other benefits of drop shipping.one – you donâ€™t need buckets of money. drop
shipping makes it amazingly easy to get startedselling online. you don’t need to invest heavily in inventory, yet you can still offer thousandsof items to your customers. two – convenience and efficiency. successfullylaunching and growing an ecommerce business takes a lot of work, especially if you havelimited resources. not having to worry about fulfillment is incredibly convenient and freesup your time to concentrate on marketing, customer service, and operationsthree – mobility – with all the physical fulfillment issues handled, you’re free to operate yourbusiness anywhere you can get an internet connection.four – itâ€™s a trusted model. you might be thinking that this sounds like some sketchy,fly-by-night model â€“ but it’s not. plenty
of online stores, and even major retailersuse drop shipping to offer a wider selection of products to their customers without havingto 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 numberand a copy of your state sales tax and/or resale certificate. so you may want to considerhaving your legal ducks in a row before contacting suppliers. however, this isnâ€™t always thecase and thereâ€™s no reason why you canâ€™t start contacting drop shipping suppliers immediately.now, if you already know what products you’d like to drop ship, contacting the originalmanufacturer is the easiest way to find qualified distributors. not all distributors will bewilling 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 youdo decide to invest in a directory, we recommend the paid directory world wide brands as areputable source of drop shipping wholesalers – but it’s still very important to exercisecaution. additionally, if youâ€™re using shopify youcan access a variety of apps in our app store that will connect you directly with reputabledropshippers. iâ€™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 findingdrop shippers, but you need to keep a few things in mind. here are some tips you canuse to find a wholesaler through google.
the first thing youâ€™ll want to do is searchextensively. 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 â€œhandbagwholesaler.â€ instead, you’ll need to dig deep into the search results, often goingthrough 10 or 20 pages of listings. additionally, you should use lots of modifiers:as you hunt for suppliers, donâ€™t stop with a search for â€œwholesaleâ€ – make sure touse other terms, including â€œdistributorâ€ , â€œresellerâ€ , â€œbulkâ€ , â€œwarehouseâ€and â€œsupplier.â€ itâ€™s also important to note that suppliersalso tend to have outdated, late â€˜90s-era websites. so don’t be scared away by abysmaldesign and layout. while a sleek, modern site
could signal a great supplier, a low-qualityone doesn’t necessarily indicate a bad one. now, despite our glowing recommendation, dropshipping isn’t ecommerce nirvana. like all models, it has its challenges and downsides,which weâ€™ll quickly go over now. one – there will be loads of competition andweaker 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 ithard to build a viable business. to be successful, you typically can’t competeon price. instead, you’ll need to offer value in a different way, usually through top-notchproduct education, service or selection. two – syncing inventory is difficult and leadsto out-of-stock items. the best way to mitigate
this problem is to work with multiple supplierswith overlapping product lines. it’s inherently dangerous to rely on a single supplier. havingtwo suppliers doubles the likelihood that an item will be in stock and available forshipment. many sophisticated suppliers offer a real-timeproduct feed, and you can use a service like ecommhub to easily sync your shopify websitewith the warehouse. eventually, youâ€™ll sell a customer an out-of-stockitem. instead of canceling the order, offer the customer an upgraded product or discount.you might not make much â€“ if any â€“ money on the order, but you’ll likely build a loyalbrand advocate. three – itâ€™s hard to sell products thatyou never see, however in today’s world, it’s
possible to become an expert in just abouteverything through information online. selling products from manufacturers with detailedwebsites will allow you to become intimately familiar with a product line without everhaving touched a physical item. and when you do need to answer specific question abouta product, a quick call to your supplier or manufacturer will give you the answer youneed. you can also buy your most popular items toget acquainted with them, and then resell them as â€œusedâ€ or â€œrefurbished,â€ oftenrecouping most of your investment. four third party errors. involving a thirdparty will result in more fulfillment errors, mistakes, and logistical problems. even thebest dropshippers make occasional mistakes,
and mediocre ones make a lot of them. suppliersare fairly good about paying to remedy problems, but when they’re not, you need to be willingto spend what’s necessary to resolve the issue for your customer. if you try to blame your supplier for a fulfillmentproblem, you’re going to come off as amateurish and unprofessional. similarly, if you’re unwillingto ship out a cheap replacement part to a customer because your supplier won’t coverthe cost, your reputation is going to suffer. one of the costs of drop shipping convenienceis the expense of remedying logistical problems. if you accept it as cost of doing businessâ€“ and always make sure to put your customer first â€“ it shouldn’t be a long-term issue.is drop shipping the path to overnight ecommerce
success? of course not. as with any successfulonline store, you’ll need to invest over time in a quality website, marketing, and customerservice. but drop shipping does provide an easy wayto get started and the ability to leverage other people’s capital without having to investthousands of your own. when managed correctly, it can form the foundation of your own successfulonline store. if youâ€™re looking to learn more about dropshipping – check out our â€œultimate guide to drop shippingâ€ , a free comprehensiveguide that covers everything you need to know about building and running a successful dropshipping business. thanks for watching and if you found thisvideo helpful please be sure to let us know
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