Ecommerce Drop Shipping
ECommerce drop-shopping is the topic we’re going to talk about today.
Hi and welcome. My name is Harold F. Rich, and today we talking about drop shipping for ECommerce. So, if we have ECommerce store, how can you get started quite fast. It’s recommended, if you want to get started, that you, first of all, I would say, use a drop shipper. This is because you don’t have to spend a lot of money in the beginning. So, you don’t have to go out and spend thousands and thousands of dollars on a product, to buy it, to get it to your place, and then to ship it out again.
The problem is, in the beginning, if you’re getting started you don’t know what’s going to sell. So you could end you ordering hundreds of products, and then you just sell like five or maybe you just buy a particular color or certain size and so on. So, it’s a lot of advantages if you chose to start with the drop shipping business and then see, if you see there is a certain product that people buy a lot, then you can go out and buy that product directly and maybe even from the same supplier. Get it to your place, and then you ship it out, because then you know it’s working, before you don’t know it’s working, it’s not a clever idea basically, to spend a lot of money on a product that you do not even know if you’re gonna sell it.
So, the system behind it, or how you can set up a drop shipping business, I recommend you just go and get a Shopify store and just install Shopify, you pick a Shopify domain, install a Shopify store, and then there are some plug-ins that you can use. I will put some links below the video where you can find the plug-ins. There’s are always changing, at the moment we are using two different plug-ins to import products from Ali Express, but there are also plug-ins where it can pull in products from Amazon and Ebay. So basically what the plug-in allows you, it gives you the opportunity just to let’s say, Ali Express and you see a product there that’s just $2, and you pay $1.50 shipping, so you end up paying 3.50 or $4 for a product.
So, you see, you think your customers want to buy that product, you just click on a button, you import the product into your Shopify store, so these drop shipping plug-ins allow you to do that. It will import the product in your Shopify store, and from that point on, it will also make a connection between the plug-in and the Ali Express link the Ali Express product, and then if a customer buys from you, you will see the order in the backend. Then you can, in one click, order the product on Ali Express and the plug-ins will allow you that, they will fill out all the form data, so the name, and the shipping address and also all the other stuff from your customers already. So basically, it’s a one-click order, so that customer orders in your store and you order from Ali Express, but your customer doesn’t see that, or he doesn’t know that you’re not shipping out that, and mainly, then this supplier is shipping it out for you. So, you don’t have to touch the product, you don’t have to do the shipping and actually, you make a lot of money, because if you imagine they just spend, I don’t know $4, $5, $10 on a product, you can easily double that and sell it for double.
Of course, you also have to look at how much money you need to spend on advertising, so you have to calculate it before, and there are also other business models, like Free Plus Shipping models you should look into. So what that means is, if you have a very cheap product, if you find a cheap product, I would usually say you shouldn’t spend more than $4 for the product, and for the shipping. Then you could easily advertise on Facebook saying, “this product is actually free today for a limited time, and you just pay for shipping”, and a lot of people will do that, and you can make a lot of money with that, but actually, we are using that to build up our list, because a lot of people want to get stuff for free and we just offer it, if you buy a product for $4, we just sell it for $5.99 or whatever, because we do that to get email addresses from the people, and then we are putting in our automation tools, our marketing automatization to market to them, and this is the key behind the free plus shipping business model.
So, think about that, if you go into any niche that you don’t know that well, I would recommend going for drop shipping because you don’t want to order a lot of products, you just want to have somebody fulfilling it for you and you don’t have to buy the stuff. Keep in mind that you will have a lot of complains, especially if you use Ali Express, it will take up to a month or longer to get the product sometime, so there’s nothing you can do, you can’t really control it. If you are at the certain level, if you’re selling a lot of products, then you can buy it yourself and then you can control all the other metrics, so the shipping time and all the other stuff yourself. You could then go and find a fulfillment center in your location or in the location that most of your customers are and then control it much better and have a much better customer satisfaction.
I hope that was useful, don’t forget to subscribe to my YouTube channel and leave a comment below. I am giving away one of my new books, Scale Up, every week for the best comment, and I hope to see you tomorrow. Bye, bye, see you.