Brett Standard - Dropshipping: A Beginners Guide to Making Money Online

Dropshipping:

A Beginners Guide to Making Money Online

By Brett Standard

Copyright 2020 - All rights reserved.

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Please note the information contained within this document is for educational and entertainment purposes only. All effort has been executed to present accurate, up to date, and reliable, complete information. No warranties of any kind are declared or implied. Readers acknowledge that the author is not engaging in the rendering of legal, financial, medical or professional advice. The content within this book has been derived from various sources. Please consult a licensed professional before attempting any techniques outlined in this book.

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Introduction

C ongratulations on purchasing Dropshipping: A Beginners Guide to Making Money Online and thank you for doing so.

The following chapters will discuss the dropshipping business model, and they will give you all the information that you will need to start your first dropshipping store and to operate it successfully. From this book, you will be able to learn in detail on how dropshipping works, what the advantages of the business model are, what challenges you are likely to deal with if you venture into the dropshipping business, and what you need to do to start your own dropshipping business.

This book will take you through all the specific steps that you will have to follow as you establish your business, and it will point out all the pitfalls that you should avoid in your journey to success. You will get a lot of insider tips on how to find a niche and how to identify great products. You will also learn how to find great reliable suppliers and the best ways to set up your order fulfillment process.

Thisguide also provides a lot of practical advice on how to run your business and how to scale it to make it more profitable. It will also provide you with procedural information as well as tips and tricks with regards to running your dropshipping business on marketplaces such as Shopify, Amazon, and eBay. Finally, it will discuss how you can avoid some of the common mistakes that new drop-shippers tend to make.

There are lots of books on dropshipping in the market right now, so thank you very much for selecting this one! Every effort was made to ensure that this book is full of useful and actionable information, so please enjoy!

Chapter 1: How Does the Dropshipping Model Work?

H ow does Dropshipping work? Dropshipping is a new add-on to the e-commerce business which allow people to buy and sell goods to customer without putting out a lot of capital nor holding a large quantity of inventory. When you first hear about Dropshipping, it can be very confusing but over time its fairly simple to understand.

This business is fairly easy to grasp. Finding people who are looking for products in demand and suppliers who are selling quality products. Basically, youre buying low and selling high to customers. The best part about this business model is that you can ship the product directly to the customers.

The concept is very simple but there are much more to dropshipping hence why not everybody can be successful in it.

Difference between retail and dropshipping is that you dont have to carry any inventory or stock your own inventory. This way, you dont have to bulk up your inventory. Whenever somebody order from you, you can purchase the product from the supplier as demanded. There are a few options to choose from such as a wholesaler or from a manufacturer of the product to fulfill your order. This model is great for those who dont want to carry any inventory. Once the customer send the payment, you can begin to purchase the product and pay for shipping.

Normally, dropshipping is referred as a supply chain management method, can be used in offline and online stores. With the rise of e-commerce stores, dropshipping are mainly use online. The profit from a dropshipping business is the difference between the wholesale price and retail price of the product.

Dropshipping is a fairly new branch of e-commerce where entrepreneurs buy and sell goods directly to the customers without having to put up huge amounts of capital and without having to hold onto large amounts of inventory. Most people who hear about dropshipping for the first time find the notion a bit confusing, but in actual sense, its pretty simple to grasp.

If you are in this business, all you have to do is find people who are willing to buy certain goods, find suppliers who are selling those goods, purchase the goods from the suppliers at a lower price, sell it to the buyers at a higher price, then pocket the difference. Whats more, you can ship the product directly from your suppliers to your customers, so you dont have to hold onto inventory at any given time.

The concept itself is that simplethe execution, however, is much more complicated.

The main difference between traditional retail practice and dropshipping is that you as an entrepreneur or a merchant dont have to stock up or even to own inventory at any given time. All you have to do is buy as much inventory as you need and exactly when you need it, from someone else who sells in bulk. Once you have received an order from a customer, you can buy from a wholesaler or even directly from the manufacturer of the product in order to fulfill that order. This model allows you to stay liquid at all times because you dont ever have to invest your money on the stock. You just have to wait until you have received a payment from a customer, and then pay a certain fraction of that payment to the supplier to cover the product and shipping costs.

In e-commerce textbooks, dropshipping is referred to as a supply chain management method, and it can be used in both online and brick and mortar stores, but the concept has become more popular with the rise of e-commerce because its much more viable as a model for online stores. Just like in ordinary retail businesses, the profit margin that you have to work with as a drop-shipper is the difference between the wholesale price and the retail price of the product that you are selling.