What is Dropshipping?
Drop shipping is when a company stocks the items, and sends them directly to your customers.
Usually when you have an online store, you need to purchase stock. You then need to send individual items to your customers and you also need to buy stock in advance.
Drop shipping lets you skip this step. When a customer buys an item from you, you contact the drop shipping company (otherwise known as a drop shipper) and purchase the item from them. They will then send this item directly to your customer, the item will even be shipped so it does not even look like its been shipped by someone else.
This removes the risk from buying and selling online.
Its that simple, its not rocket science. So how do you get started
How do I make money from Dropshipping?
You need to open up an online store and sell items you can drop ship this can be a simple wordpress site with woocommerce installed.
You then find the products you want to sell and you put a mark up on the prices, lets say about 10 to 50% – that is a normal markup. It is rare to be able to go higher than that.
If you do not want to start a wordpress site there are other options such as selling items on an auction site such as Ebay or a great option is to pick a company like Salehoo where you can build a store and avoid ebay’s rather expensive fees
How do I find good and reliable drop shippers?
There are several websites which are usually based in China which have many dropshippers or should I say supposed dropshippers. The problem is that a lot of these are not vetted and will either not send your items, have no intention of sending your items or send you incorrect and defective items.
Thats why you need a trusted directory and name where they do all the work, they will filter out the dodgy ones and leave you with legitmate dropshippers.
The best and easiest methods of finding reliable sources, other than trawling through countless pages and lets face it your time is money and precious is to use a company like Salehoo.
SaleHoo is an online directory that has over 8,000+ drop shippers, wholesalers and liquidators.
How to Figure Out What Profitable Products to Sell
SAlehoo has a Market Research Lab taht is updated every few days to provide the latest trending products online.
Using the Lab allows you to focus on high-profit products by setting the Sell Rate to at least 40%, and Competition set to “Low”.
You can also find bigger ticket items under High Competition. Filter the results by Product Type and you’ll find accessories and other related items that can equally bring in higher profit margins.
The Market Research Lab is a free tool however, paid subscribers can get complete access to some supplier suggestions of featured products.
Lets look at one product – you can see that its high competition and various companies who dropship the item
Here are 3 different products that you can sell online – they all have different competition and sell rates
We have a couple of videos that detail more information about Salehoo
How SaleHoo Labs works
How SaleHoo Directory works
I found after trying lord knows how many damn dropshippers in the UK that it felt like I was wasting my time but then I gave salehoo a try and that all changed.
I tried Shopify with oberlo and found that the costs quickly rocketed and the product selection was a bit limited, that coupled with a lot of add-ons that seemed to be required for the store put me off.
Salehoo changed that for me – try it out here