Dropshipping is an online monetization strategy that isn’t as well-known as other options. It has nothing to do with airdropping soldiers in the way that a videogame does. Unless the product you are shipping is GI Joes.
Dropshipping allows you to monetize products that are not owned by the store selling them. Dropshippers act just like any other retail storefront. Dropshippers are able to build and maintain a storefront that sells products. They also support customers who purchase those products.
You don’t have stock in a warehouse like a storefront. Instead, you have suppliers. A supplier might sell Product X to you for $5. It is possible to sell it online for $15. You take $15 from the user who buys it on your website and then turn around to buy it from your supplier for $5. The $10 remaining is split between shipping the item to your customer and profit that you make in order to maintain your business.
Dropship from Random Website
It is a way to open a retail storefront without having to rely on affiliate marketing, or finding storage space for tons of products that you may not be able sell immediately. It’s similar to print-on-demand companies, where the product is not available until the order has been placed and paid for.
- Dropshipping does not require a lot of capital to begin. Dropshipping can be started if you are able to afford a website and a Shopify storefront, as well as a little capital to cover shipping.
- Dropshipping can be easy to set up. It can be difficult to find suppliers. But, thankfully, you don’t have to go far to get them. Many businesses already offer dropshipping programs. It is just as simple to sign up as for an affiliate marketing program.
- Dropshipping is a low-cost way to manage your business. Dropshipping is a low-cost way to manage your business. You don’t need to rent a warehouse, manage it, pay for packing and shipping, track inventory, handle returns, and keep products in stock. Dropshipping can be run for as little as $100 per month.
- Dropshipping is an entirely digital business that can be operated from anywhere with an internet connection. As long as you have the ability to communicate with suppliers and customers, you can work anywhere in the world.
- Dropshipping can be scaled easily because you are merely a middleman marketing to make money. Dropshipping is a great way to expand your product line or reach new customers without spending a lot of time or money.
Dropshipping, however, is not without its pitfalls. Competition is the number one problem. Dropshipping has been embraced by many people, which has helped to lower prices. Why would someone buy from your website if there are five sites selling the same product? They can all be purchased from the supplier for $5, and then sold on these sites for $6. It takes a lot to build your customer service and reputation.
Dropshipping also has low margins. Dropshipping is not a good option if you don’t want to charge more than $6 for a $5 product. This will cause you to lose customers and make you unprofitable.
Dropshipping has its own complexities that are not common with other businesses. Dropshipping can be very costly if a supplier runs out and you don’t mark the item out of stock. You might need to find another supplier or pay a premium. You’re potentially letting your customers down, which can lead to more damage than just a loss of profit. It’s your responsibility to correct any shipping errors made by the supplier.
Dropshipping is all about being invisible. People won’t realize that you are a middleman. They will want to bypass you and go directly to your supplier. Your role is to act as a middleman between them, making sales and marketing. All fulfillment, all support, it comes down to how well you and your supplier work together to make things right. This usually means that you work with the supplier and pass their support on to yourself.
Finding Suppliers
Dropshippers often face the biggest problem of finding wholesalers or suppliers to supply the product they need. You will need to contact a wholesaler if you plan to sell tablets. It can be difficult to find wholesalers because they have problems with marketing. They rely on you to sell their products.
There are also people who see this as an opportunity. They act as intermediaries between you and the wholesaler. Although they pretend to be wholesalers, they actually work with wholesalers to make their sales. There are some warning signs that you can use before you start building a business around these fake wholesalers.
- They sell to the general public. Wholesalers want to only deal with businesses and not do the selling themselves. Wholesalers who sell directly to the public are not wholesalers.
- To keep you in their program, they charge you a monthly fee. Fake wholesalers are aware that they will be discovered eventually and charge monthly fees to make more money from them before they drop you. Real wholesalers will not charge you because they already make money selling products to customers.
- They have a flashy and well-produced website. Wholesalers tend to have websites that are minimally functional. They don’t focus on SEO or advertising. Websites designed by wholesalers look as if they were created in 1994 and last updated in 1998. Flashy websites are a sign that you’re a marketer and not a wholesaler.
- They list their prices. Wholesalers do not list prices because they don’t sell to customers. Wholesalers only share pricing information to incorporated businesses who open dropshipping accounts.
- They do not have a minimum price. Wholesalers who are genuine will have a minimum price advertised. This is a floor price that you can’t lower. This allows for price competition and prevents price wars.
Although it is not difficult to find a wholesaler but requires some research, you can look up the manufacturer of the product that you are looking to sell. In order to increase sales, manufacturers will often provide a list of wholesalers. These wholesalers can be reached to inquire if dropshipping is available.
You won’t find wholesalers on Google’s first page if you search manually for them. These people are likely to have poor content penalties or other issues with their websites, driving them 30-40, 40, and 50 pages back. Do not trust any “wholesaler”, even if they appear on the first few pages.
Locating a competitor is another trick. Find out what product is being sold and who it is. You can then order directly from the competitors. You will likely receive a package with the return address of the wholesaler. This can be used to track them down and create your own contract.
Trade shows can be a great place to meet wholesaler representatives if you are able to travel and have the credentials to enter. It’s possible to make great connections, both with wholesalers as well as within other sales niches. However, it is not an option for everyone.
You can also use directories. This article, and the rest of it, will be a small directory of directories that list wholesalers with dropshipper programs. A few directories will also be included. Remember that directories can often be hidden behind paywalls and you only get what you pay. Directories that are free can quickly become out of date, and wholesalers may be sold or stopped doing what they do. Paid directories have stronger lists that are regularly updated and tend to be more reliable. However, some paid directories can be scammed by people who want to take advantage of novice dropshippers. Be cautious.
Directory of Wholesalers
Worldwide Brands This directory has been around for 17 years and lists literally thousands of wholesalers with over 10,000,000 products. With this kind of power, you can still be an Amazon regular. Although it isn’t 100% complete, it’s very useful. Access costs $300. Although it is a one-time membership, it is still quite expensive.
SaleHoo is an 11-year-old directory that has more than 8,000 suppliers. Although they are primarily for dropshippers via Amazon and eBay, they can be used by anyone. They can be expensive, at $67 per annum. You do have a 2-month money-back guarantee so it is worth registering and scraping data. Then cancel when you are satisfied.
Doba is a site that has been around for 14 years, but only 165 suppliers. Their suppliers are specifically chosen to have overlapping inventories. There are a variety of integrations and tools that allow dropshippers to create product listings and get them to eBay right away. Redundancy is also available to ensure product fulfillment is as high-quality as possible. But there are downsides. They cost $60 per calendar month. It’s a month, not a year. It is also very difficult to cancel after you sign up. You will need to call and go through the cancellation process.
Wholesale Central This directory is the oldest I have listed. They list approximately 1,400 suppliers, but it has been around since 2000. This directory charges wholesalers to list on it, unlike other directories that charge dropshippers for access to the list. Although it’s free to browse the directory, you will need to be careful about dealing with wholesalers. Fake wholesalers will exploit the largest free list to get the listings.
Lemonade Stand’s Google Doc This document contains 50 wholesalers and just enough information to get you going. Access to the directory will cost $20. You can find more details and a list of 100 other wholesalers. Although it is a good directory, it won’t last forever, especially if you are in a niche that’s not covered.
Watchman Advisors List This is another list that you can get for free and gives you enough information to start your search. You will receive a list with 86 suppliers at the time of writing. However, to get more information about these suppliers, you must complete a survey and contact their sales department. You can also bypass some of the restrictions by listing full URLs.
Drop Shipping List This is another list that’s free, but it’s not always up-to-date. At least one of the wholesalers on their homepage has changed since last time they updated. Be careful when looking through this list.
