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so to understand how dropshipping works all you really have to understand is how any major retail store works so let’s take a look at the offline world and picture a store like a target or a Walmart or a Dick’s Sporting Goods or probably 95 percent of the stores that you would see if you went to a local strip mall or shopping mall now guys my name is Anton I’m coming to you from my company dropship lifestyle and as you could probably imagine I get a lot of questions from people who are interested in drop shipping but that don’t even have a you know a foundational level yet which is why I wanted to put together this video which is going to be all about drop shipping for beginners what I’m gonna do is take you through all the steps that cutting you will have to go through if you want to get into this business or maybe you’re just interested you want to know more about it and understand how it works so let’s get started now I’m gonna use the comparisons to things that again everyone understands which would be a traditional retail store and I’m gonna write that down okay drop shipping is basically especially the way we do it equivalent to retail now picture when you go into any of those retail stores right let’s just say you go to a local strip mall and you go into a pet store okay when you go into that pet store and you’re looking around on the shelves you might see different brands of dog foods you might see different brands of dog toys you might see rain jackets for your pets whatever the thing that you’ll have to realize is that all of these products most likely are not made by that store you simply walked into the store the niche right that’s that this translates to our niche in drop shipping but you walked into a store based on the type of thing you wanted and then you saw products for sale but those products were not produced by that company now this is the same thing this is the easiest way for anyone to understand how dropshipping works when you build your online store it could be the same thing it could be a pet store okay so I’m just gonna write pet store and I’m gonna write online now what’s the difference here honestly not much you’re still selling the same type of products you’re still selling other people’s products because you build your brand as your name pet store com whatever it is and you’re still selling probably the same products or very similar ones to what’s being sold in the pet store and I’m going to here offline so what’s the actual difference well the positive part is that this person that opened the offline one right that’s not drop shipping they had to invest all of the money and time into finding the perfect retail location into building out their storefront into hiring employees into buying cash registers and shelving and everything you need to build an actual retail store where with the online version you still need to put in the research you still need to put in the work but you basically have access to the same products to the same things that you could sell except you could spend twenty nine dollars a month to build a website now dropshipping doesn’t have to be online but most people when they’re using this as a method of fulfillment they’re doing it through online stores and they’re using a program called Shopify now Shopify maybe you’ve heard of maybe you haven’t they’ve exploded in the past few years in a good way as becoming the leader in e-commerce store builders so what this person would do is again pick their niche which in this case is Pet Supplies they would then build an online store using a program called Shopify and then they would establish relationships with all of the manufacturers and all of the brands and all of the companies that make these products and they would sell them on their store now a couple things that you also might have heard of and if not that’s fine I’ll introduce you to them there’s different ways to build relationships with these companies whose products you want to sell now one that’s very popular right now is using a website called Aliexpress Aliexpress is owned by Alibaba and they basically are a way to connect you to suppliers and manufacturers all around the world mostly in China and if you wanted to sell random unbranded products okay one method of drop shipping is selling unbranded products you could use a website like Aliexpress you could drop ship from China on your Shopify store to your pet store customers now the other way which is what we like to do is working with the actual established manufacturers already so the same ones and plus more huge benefit we’ll talk about in a minute that are sold in your traditional pet stores we would want to be able to sell all of those products on our website now one of those benefits to doing it online rather than off besides saving you know the 100 to 200 K it cost to open and off lines or besides saving that money we also can have a bigger product line whereas the offline store space is limited right so when someone’s doing traditional retail they can’t have 20,000 different products in a strip mall in two thousand square feet but the person online you can have every pet product ever made if you wanted to you could have 50,000 different products for sale on your website because you have no overhead expense because again your website’s online so what’s your overhead twenty nine dollars a month and your products are coming from people that you are not actually having to buy them from until you sell them so next huge benefit whereas the offline store right again using this for for contrast because everyone knows how how retail works or most people know how retail works whereas this store if they want to carry a hundred new products they have to buy a hundred new products if this store your online store wants to do that on the drop ship model then guess what you get to list all of those products on your website so basically put them on your virtual shelves on your virtual storefront and then once someone buys from you you ship to the customer so with traditional offline retail or if you had a warehouse with this model you buy product next step is you sell the product to your customers next step is you keep the difference whatever is left over right between what you sold it for what you bought it for in traditional retail that’s how you make money and then of course subtract all your overhead expenses the cost to build at your store the cost of employees the cost of everything it takes to build one of these businesses now with this model if you’re leveraging drop shipping it’s it flips so with this we actually start by selling the products step one is we sell the product after the customer buys it the money is transferred through Shopify payments goes into our bank account then we buy the product from those brands that we have relationships with the supplier ships that item direct to our customer and guess what we keep the money so while it looks very close and it’s just one little thing flipped it makes all the difference that’s why another reason drop shipping is so popular right now for beginners because it doesn’t take a ton of capital to get started I have other videos on how much it actually does cost and I’ll link to that above if you’re curious what the start-up costs are for dropshipping but it’s very very low in comparison to the way it used to be the old way now let’s talk about a few other things that will help you kind of understand drop shipping you know moving forward now that you understand just the foundation you really are a retailer again if you do it the way we do it you’re working with actual manufacturers and brands that produce products you’re selling their products on your Shopify store after you sell them you’re buying them then you’re keeping the money ok well what happens after these relationships are built right what happens when the offline retail store gets a whole bunch of products in there or what happens when you build your pet store online and load it up with products well that’s not a moneymaker yet right you have to get people to your store so with drop shipping you have to actually run ads online meaning you do paid advertisements traditionally that’s the way we like to do it to put your pet store in front of people that are interested in Pet Supplies when you do that they go to your website they buy online now if you want some other comparison that would be like if you open this offline store in your local town maybe you would run ads in you know the the local paper that goes out every week or maybe you’d get a billboard or maybe you would even do online ads the people locally but with the online store it’s no different you still need to get people to find you except with this it’s 99% online advertising that drives people to our website now I want to we’re not gonna get too deep into anything in this video because again this is kind of a beginner introductory level thing but what I do want to like clarify and stress is that drop shipping especially now in 2018 the way a lot of people are talking about it is like it’s just it’s so easy because it is a website and you don’t need you know all this stuff as with the traditional offline business and while that’s totally true like it’s night and day comparison as to which is easier to do I don’t want anyone that’s thinking about drop shipping or thinking of starting it to think that it’s just something that you know spend a few hours click a few buttons and become rich because think about all this work right that the traditional business owner had to do the traditional small business owner between again finding that perfect space between building it out between dealing with the local town or city to get all your permits in place between building all these relationships hiring employees again all of that that is what it used to take now you can do it online which happens faster it could be outsourced now you can establish these relationships without putting up money now you can drive traffic from all around your country or all around the world to buy from you so this is there’s much more potential than ever before to build a business for less money and to get more buyers because this is a hundred percent more profitable than than this you know now I wouldn’t recommend anyone do this anymore so we know that right drop shipping is is clearly a great starting point and a way to make a lot of money doing a lot less work than the traditional retail path but understand please understand this if you get one takeaway from this video that dropshipping still is a real business you’re not just a drop shipper you are a retailer okay if you do this you are a retailer and if you want to succeed and if you want it to work and if you actually want to profit off this business model just always think back if you think it’s hard right if make all this is too much work think what this guy or girl had to do when they opened their pet store if that’s your niche and then think about how easy you have it and keep working keep pushing because I promise you right now in 2018 there’s more opportunity there’s more possibility there’s more upside than ever before but it doesn’t mean it’s ever gonna just be handed to you or happen after you build a Shopify store and upload some products it takes real work but a lot less work than these people had to do so I feel like everyone that is interested in drop shipping and ready to commit you know should be grateful because this is something that wasn’t available to anyone even ten years ago so massive opportunity guys that’s kind of the easiest way that I can explain this if you’re interested in more information if you want to go deeper into this definitely subscribe to our YouTube channel it’s youtube.com slash dropship lifestyle check out my website dropship lifestyle com and yeah we have posted on we have been posting videos on on YouTube for years now so lots of stuff for you to go through click around enjoy it and when you’re ready click over to dropship lifestyle com you’ll find a bunch of free resources there as well so thank you I hope you enjoyed this video if you did please give it a thumbs up if you loved it please give it a sub and I’ll see you guys in the next one bye [Music] you
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