How To Get Into Dropshipping as a Beginner
How To Get Into Dropshipping as a Beginner
Hi guys, Neil Waterhouse. In this week’s video, I’ll explain how to get into dropshipping as a beginner. As you can see from this Google graph, since 2016 drop shipping’s beenrapidly growing, but a lot of people don’t understandwhy drop shipping took off in 2016.
I’ll explain why inthis video and also why after 30 years ofimporting, we also decide to move the drop ship model foranybody new to this channel. My name’s Neil Waterhouse and I’ve been selling onlinefull-time for 24 years and I’m the author of amillion dollar eBay business from home and creator of Job Ship Formula. So let’s launch straightinto it, first of all so we’re both on the same page. The term drop shippingmeans selling an item on a marketplace like eBay,Amazon, Shopify, etc.
Getting paid for the item, and then after the customer’s paid forthe item, ordering the item from your supplier and yoursupplier ships the item direct to your buyer in the industry. Drop shipping is alsoknown as virtual inventory as you’re simply usingyour supplier’s inventory and not your own first. For the newbies, let mepoint out the advantages of drop shipping using yoursupplier’s inventory compared to the traditional method of purchasing theinventory before it’s sold. The first big advantageof drop shipping is that you cash flow positivebecause buyers paper items before you order them from your supplier. The number one biggest thingthat’s held people back in the past from growing withtraditional businesses is lack of cash flow to purchase more inventory with a traditional businessmodel of purchasing inventory before it’s sold and then warehousing it.
You need enough space and cash to fund theinventory until it’s sold. With drop shipping you paid up front and your suppliers finance and warehouse the inventorythat you list and sell. Another big advantagewith drop shipping is that your suppliers do allthe hard work of picking and packing and shippingdirect to your customers. This is also why it’s notjust the online sellers that have been moving to thedrop ship model, but also why more and more traditional bricksand mortar stores are also moving to a drop ship model. A bricks and mortar storecan also take orders from their customers andthen have their suppliers ship the items direct to their customers.
This not only massivelyimproves their cash flow but it also creates hugesavings for the bricks and mortar stores as theydon’t need to lease a bigger warehouse, pay for warehouse staff pay all the expenses forstaff, I, workers’ compensation superannuation, inventoryinsurance, third party insurance purchase or leasecomputer equipment, furniture pay electricity, utilities, etcetera, et cetera, et cetera. The next big huge advantageof drop shipping is it’s all online. You never ever need to leavethe comfort your own home or have anyone coming to your house. All you need is acomputer and the internet. You build the business from your favorite chairanywhere in the world. You can literally Be anywhere in the planet. You can literally run a drop ship business from a cruise ship in the middle of an ocean or from the comfortor safety of your own home.
You literally never needto leave the comfort of your own home or have any staff in your own house or haveany imagery in your house. The other huge advantage ofdrop shipping is automation. You can fully automatea drop ship business so they run and grow completelyby themselves using software and or low cost overseas virtualassistance that you can get from $1 per hour, and I’ll put a link at the end of the videoto where you can get them from. Now, speaking of automation at the beginning of this video I mentioned about why job shipping took off in 2016. Here’s why. The biggest problemwith drop shipping prior to 2016 and why I haveordered drop shipping prior to 2016 was the risk of overselling items.
What I mean by oversellingis you can sell an item on eBay, Amazon, or a Shopify store and then you go to order itfrom your supplier only to find out that your supplierssold out in the industry. This is called Overselling,and this is what kept me and many others away from drop shipping. So what changed? What was the game changer? Back in 2016, technology moved forward and allowed suppliersto be able to show live on their websites, theirstock availability. This was called Dynamic Websites. In other words websites that continually updateshowing stock availability.
This was a game changer. Now we have the ability to check suppliers inventory levels 24 7 365. At first, we said manuallycheck the suppliers and then again, technologymoved forward again and then programs likescarcity Measure came out that fully automate the process of continually checking thesuppliers inventory levels. And if the supplier runs out of stock scarcity Manager automaticallymakes your eBay, Amazon and Shopify listings show zero available for any item that’s out ofstock with your suppliers. This was the game changerfor me and many other people. Building a drop ship businessis a step-by-step process one baby step at a time.
So if you’re starting a drop ship journey the next step is decidingwhich marketplace to first sell on. The three most popularmarketplaces to drop ship on are eBay, Amazon,and or a Shopify store which is essentially yourown independent website. Now, there’s pros andcons of each marketplace but the biggest differencebetween eBay and Amazon it’s with eBay and Amazon,you get tons of free traffic whereas with a Shopify store, you don’t. As many people have found out the hard way unless you have some methodology in place to get peopleto your Shopify store 99% of the time nobody willfind your new Shopify store.
A new Shopify store is the needle in the haystack or the dropof water in the big ocean. With the other 1.3 billionwebsites worldwide. With a Shopify store The most popular way to get traffic is to spend money buying traffic from places like Google PBC or PaperClick, Facebook ppc, Instagram or one of the many otherpaid advertising mediums. But with eBay and Amazon you don’t need to spend anymoney advertising With eBay and Amazon, there’s an abundantamount of free traffic. For this reason, I alwaysrecommend beginners start with eBay or Amazon, andbetween eBay and Amazon I recommend eBay as productresearch is much quicker and easier with eBaythan Amazon and Shopify.
The big advantage of this is when you find hotselling drop ship products with eBay, you can sellthe same hot selling drop ship products oneBay, Amazon, and Shopify. So to save your time andnot waste your time learning about a strategy that doesn’t suit you the next step in yourdrop ship journey is you need to choose whichmarketplace that you want to learn to drop ship on first ie. eBay, Amazon, or Shopify. I highly recommend though you only start with one marketplace at a time. Just like the old saying of life does not reward us forbeing a jack of all trades. Life rewards us for what we master. So choose one marketplace to start on from the three links that I’llput on the screen and below and I’ll see you on the next video.
✅Here is a free list of 934 popular dropship suppliers
https://www.neilwaterhouse.com/ds-suppliers
✅ How to increase eBay Sales Fast!
https://www.neilwaterhouse.com/ebay-opt
✅ How and where to get low-cost overseas staff from $1 per hour for your eBay, Amazon or Shopify business
https://www.neilwaterhouse.com/va1
✅ How to quickly find eBay Best-Selling items – To sell yourself
https://www.neilwaterhouse.com/ebay-best-sell
✅How to AUTOMATICALLY reduce eBay defects
https://www.neilwaterhouse.com/defect
✅Here is a free list of 934 popular dropship suppliers
https://www.neilwaterhouse.com/ds-suppliers
✅ How To Find Profitable Products To Sell on Amazon
https://www.neilwaterhouse.com/amazon-products
✅ How to setup Scarcity Manager
Click Here
✅ Download – Dropship Suppliers Top Selling Items Spreadsheet
https://www.neilwaterhouse.com/dss
✅ How To Quickly Find eBay Best Selling Items.
https://www.neilwaterhouse.com/ebay-best-selling-items-01
✅ How to Increase eBay Sale By 16x. The 16 Times Rule
https://www.neilwaterhouse.com/ebay-16
✅ Understanding eBay Cassini Search Engine to Increase Sales
https://www.neilwaterhouse.com/how-does-ebays-cassini-search-engine-work-01/
✅Automatic Supplier Inventory Management for eBay, Amazon, Shopify
https://www.scarcitymanager.com
✅ How to enable eBay’s out-of-stock function
https://www.neilwaterhouse.com/out-stock
✅ How To Make $1,000 Profit Per Week Dropshipping On eBay
https://www.neilwaterhouse.com/1000-week/
✅ How to increase eBay Sales Fast
https://www.neilwaterhouse.com/ebay-opt
🚀 Beginners Guide To Starting an eBay Business.
https://www.neilwaterhouse.com/beginners-guide-to-starting-an-ebay-business/
✅ How to find eBay Best Sellers in 5 Steps https://www.neilwaterhouse.com/find-ebay-best-sellers
✅Overseas Virtual Assistants From $1 Per Hour
https://www.neilwaterhouse.com/va1
✅Beginner’s Guide to Starting an eBay Business
https://www.neilwaterhouse.com/start
✅Beginner’s Guide to Starting an Amazon Business
https://www.neilwaterhouse.com/amz-start
✅eBay Dropshipping | Top 8 Secrets | 23 Years Selling On eBay https://www.neilwaterhouse.com/ebay-sec-1/
🎬 My Free- Step By Step – Dropshipping Course – Dropship Formula™ https://www.neilwaterhouse.com/drop
✅Check the ebay dropshipping secrets. eBay Dropshipping – Secret 1
https://www.neilwaterhouse.com/ebay-sec-1/
✅How To Build a 7 Digit Dropship Business – Step By Step
✅How and where to find overseas staff from $1 per hour Click here
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