Drop shipping Explained by A 6 Figure Drop Shipper

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what is up everybody damndest over here and welcome 2017 finally it’s your year your year to get started right so again my name is Dan de Silva welcome for those of you that are new here the to thousands of you that are brand spanking new welcome to this awesome channel will recover literally everything that involves the e-commerce we literally talk about it all and in today’s video for your new covers I’m going to outline what the drop shipping model is and why it’s really important that you follow it now again if you haven’t yet what I suggest to do is subscribe to this channel because we put out a lot of tricks tips and techniques and make sure you head over to our blog EECOM dude calm and check out everything that we have but today is all about what the drop shipping model is and how you can get involved with it more most importantly now listen okay everybody knows pretty much everybody knows what the drop shipping model is if you’ve been here already but there’s different things that are coming along in 2017 that is going to help change the way everything works in drop shipping so without any further ado i’m louise is going extremely extremely crazy with the amount of videos that i’m going to be releasing during the next i say directly this month in january because I actually took a break from creating a bunch of content creating a bunch of videos and going out there and kind of like creating stuff because I want to focus on my stores and we got them to the point where this month alone just was 15 days we’re going to clear over a million dollars in the very first month which I’m super excited about I think we’re out like 400 thousand dollars now with still decent amount of time to go and and again really excited about that but again I’m here creating more content now since I have everything back on track automated we’ve scaled up etc so again what is drop shipping what is the model how can you do it take a look at it right now all right welcome everybody to the drop shipping explain from myself personally Dan to Silva the CEO of EECOM dudes now we’re actually going to outline a lot of stuff in here so make sure you’re paying very close attention because this right here that you see on your screen is the exact outline so what my favorite pictures and I ran it a quick Google search and ever since I ran a quick Google search for an outline of how dropshipping works to explain it to you I found this image and it’s absolutely one of the best images out there but we’re going to start off from the very top so everybody understand what’s going on over here we’re going to start off with the supplier chain so essentially what’s happening here is we’re going to go out there and find a supplier who has products that we can sell for decent margin so let me go ahead and kind of show you an example of what suppliers that you can find and where you can go out and find them now before I do that let me just explain to you what the suppliers job is the supplier their job is to just go out there and have the product in stock that you can sell to your customer so the supplier is going to have a product maybe for a dollar two dollars it can be anything be trinkets t-shirts shoes it’s literally anything you can possibly imagine I’ll show you in just a few moments what I mean but the supplier is going to have the item for pennies on a dollar perhaps even a dollar or two and what you can do is you can go out there and you can sell it once we hit the customer you can actually sell it to them via Facebook ads and other means to go out there and advertise and sell for them for ten dollars so say you buy it for two dollars from the supplier and then you go to the customer and sell to the customer for ten dollars the in between the eight dollars would be your profit before ad spend all right so just keep that in mind now I actually want to go ahead and show you just one of the main sources that everybody knows about for actually going out there and pretty much fulfilling and finding suppliers so everybody may or may not know about right here what you see on your screen which is Aliexpress not only express is pretty pretty big we also have companies like DHgate as well that are literally wholesalers from China so again it really depends which route and what you feel most comfortable using all the Express is the biggest without a doubt and they’re the most well-known as well but again they also have a massive selection so if we go and just search dog harness okay we just give you an example over here so you can grab this let’s see this harness right I’m going to grab you up just a quick one all right so an example so over here alright so right here you have a dog harness for five dollars if you want a small extra small whatever it is extra small in blue or you want too small in blue or green it becomes six dollars now you can sell this for 15 $20 etc on your site so just keep that in mind that you actually have some very very good margins in here as well so if I were to go ahead and cross-reference this and I’m just going to give you a little inside scoop of how this sort of work now I’m just going over here and searching dog harness inside of Amazon to see what people are selling dog harnesses for so we have twenty-one dollars over here 20 dollars over here we have 13 over here this one looks very very simple so I mean literally it’s super super simple something you can find for literally two three bucks on all the expresses well over here okay this seems to be kind of the one that we’re going out there and looking to sell as well so as you can tell there’s different there’s different sizes over here so if we went to like a large it’d be 14 bucks whatever it is so let me just go over back over here and kind of look at kind of look at what we have over here so this is pretty much the same exact honest that we have now what they’re doing they’re models completely different their model isn’t drop shipping but I just want to see what price they’re selling it for now the reason I’m doing that is because they’re actually not getting this product over here for seven dollars they might be getting it for I would say anywhere from two to three dollars per unit because they’re buying in bulk with Amazon the only reason we’re using Amazon or I’m showing you what I’m doing over here is that just to see what they’re selling it at so they’re going out there and selling this for $12 and if there are Prime members they get free shipping as well but you can go ahead and charge to $3 on shipping on here as well and if you’re very very close friends with the supplier what you can do is literally go out there connect with this supplier chat them up as well there’s a chat feature on here when you log in as well that you can go ahead and use and what you’re going to be able to do is really work your way down so this piece could probably be four dollars and you can sell it for twelve so just make sure you’re going out there and building up a relationship with the supplier but all the Express is exactly where you want to start this was just a quick pretty much just a quick overview of what you can be doing with all the express as a supplier now I’m not saying go out there and sell dog harnesses it’s not at all what I’m saying I’m just showing you is pretty much an example of what you can and can do so health and beauty if we go into health and beauty we dive using deeper let’s see over here beauty essentials okay so we go to beauty essentials and they have a bunch of different stuff that you can go ahead and sell as well so again that’s the whole point of a supplier but let’s go back right now so I can show you step number two step number two is all about the traffic now in order to make sales you need customers you need people on your website you need traffic period so what I’m going to want you to do is realize that going after and generating traffic is actually very very easy there’s tons of different ways you can go out there you can use Pinterest you can use Instagram you can use Facebook Ads as well so again traffic there’s a never-ending supply of traffic you just need to know how to exactly go out there and get it and that is a completely different series as well in the description if you want to know how we’re generating traffic I’m going to link you back to other videos that we have on how to go out there and use Instagram and Facebook Ads to generate traffic it’s very very simple so what happens here is if you go out and find a supplier who has a product for $2 and it takes you around another $2 to make the sale and the sale each sale you generate is $10 that means $2 for the supplier $2 for Facebook Ads Instagram whatever whatever platform you’re using to advertise if it cost you $2 to make every sale that means it’s $4 total on a $10 sale you keep the $6 difference okay that’s your profit in the end so when it comes down to it traffic is very very important now I’m going to show you three platforms that I suggest you tap into and learn how to use as well and they’re going to be in order from the best to the least greatest but I just want to go ahead and say that each and every one has their pros and their cons a lot of people use Facebook a lot of people use Instagram it really depends on what you feel most comfortable with so let me go ahead right now and show you what I suggest in the top three listed out right now so starting off at number one Facebook everybody knows Facebook but however I just want to go ahead and make this very clear my number one is tied between Facebook and Instagram influencers so if we go ahead and kind of take a look at the Facebook model where you’re paying around depending on what your CPM is which stands for cost per Mille which is essentially the cost for every 1,000 impressions that you generate so if you’re getting anywhere from 7 to 11 dollars p.m. which stands for you know seven dollars for every thousand impressions your ad has so that’s a decent amount but it all depends on the ROI as well so Facebook that’s how you’re going to be paying is you’re going to be paying for every thousand impressions now for Instagram it comes it becomes completely different you’ll be you actually go ahead and use influencers so you use actual people so let me go ahead and see right here I’m going to type in somebody that might there we go so she’s an influencer everybody knows who Kim Kardashian is so it’s just quick and easy for me to go ahead and show you what I’m trying to talk about over here so somebody like Kim Kardashian she has masses pulse so what we would do in our company is we would reach out to people with a hundred thousand two hundred thousand three hundred thousand followers and we would contact them and ask them to promote our items now the way they would actually want to be paid is just by a set amount whether it’s $100 $250 etc and you can tap into hundreds and thousands of people for cheaper than Facebook however Facebook definitely has some of the best traffic out there as well so it’s a catch-22 on what you want to learn and what you feel most comfortable with and then finally Pinterest add now Pinterest is a great source Pinterest is definitely something you want to tap into if you’re going and trying to really dominate a woman filled niche as well so again that’s part two which is traffic again I’m just outlining every single little crevice when it comes down to the drop shipping model and how it works now I want to go back and head in and kind of show you the rest which is part number three which is the platform so now it’s about your platform now listen I’m going to be very very honest with you you can do fulfillment by Amazon which is a little bit different you’re actually gonna have to buy bulk and shift to Amazon that can be your store now the pros is they provide you the traffic they handle everything for you but your margins are a little bit lower now number two the option that I can give you is using a platform like WooCommerce or Shopify now those platforms are the most well known those the easiest to tap into and there’s something that anybody can do so I’m going to show you right now the difference of all three of them and what you can actually do to tap into each and every one of them shops bio move commerce same thing the only difference is Shopify cost $29 a month WooCommerce is free you just have to pay $10 a month your own hosting however for an extra $19 a month you’ll be able to have Shopify and they have the entire uptime which means that you will never experience server crashes and if they do they’re instantly picked back up and if your server crashes you’re going to need to hire more people to help you out with your server and everything else and then you have your last option which is fulfillment by Amazon also known as FBA now FBA is completely different and outside the drop shipping model however Amazon is very very very good to tap into because they provide you the traffic they handle the fulfillment for you they do every single little thing for you and all you have to do is put up a few thousand up front to buy the products in bulk and do your research at first so I’m going to show you the three different options right now so starting off number one we have Shopify now you can get started with a 14-day free trial and if you want to go ahead and get a discount we actually have something set up with Shopify where you’re going to be able to get a pretty nice discount as well and that’s going to be in the description down below but then you have WooCommerce over here WooCommerce is free but like I said it does require you to know a little bit more about what’s going on with your server and how to install it as well it’s very hands-on technical and it’s not really as good as Shopify in my opinion but then we have Amazon over here and Amazon is a completely different monster it’s a completely different segment but I’m just showing you exactly different type of levels that you have so you have self-hosted right which is perfect with drop shipping and then you have the bulk ordering which is Amazon but again because we’re sticking with drop shipping only in this video Amazon becomes irrelevant and out of these two WooCommerce and Shopify Shopify is the best bet so now let’s go back to step number four so step number four is all about the fulfillment now the fulfillment is actually pretty dang easy so when somebody comes to your site your customer comes to your site from Facebook Instagram Pinterest they purchase what happens is the sale right here goes right back to the supplier and then the supplier ships out for you so you never have to touch a product or anything but how does that work exactly well simple you would actually get the orders inside of your back-office inside of your Shopify account and then once they’re inside it’s very very easy well there’s literally a tab that says orders and you can check everybody orders now the other thing that you have to realize is once you click on those orders and you click somebody’s name you get all their information all you have to do is give your that information your information that you have in your system to your supplier and they do the rest for you they’ll give you the tracking numbers that you can provide to your customer they’re going to go ahead and handle the shipping for you they’re going to do everything and you never have to touch a product in your life so when it boils back down to it this is the model you want to follow this right here is by far the easiest system to follow to help you kind of kickstart your entrepreneurialship journey as well into the e-commerce space if you’re brand new however for those of you that are a little bit more curious you’re seasoned and veterans out there you already knew about all this now we’re really going to be talking about is also SBA and we’re really going to start hyper targeting SBA and really expanding just to show you what more that you can do because of the fact and I just want to go ahead and say this right from the start is not only did Shopify recently broker a deal with Amazon where they directly integrate now you can have your products on Amazon on the actual Amazon store but we’re going to show you exactly how that works and that’s one of the biggest reasons why we talked about Amazon today otherwise we don’t really like to talk about Amazon because it’s a completely different realm to tap into so again this is by far the easiest model for you to tap into and if you want to learn a lot more and you want to see a bunch of case studies you want to know exactly how we turn three hundred dollars into $27,000 you can take a look at the blog at EECOM dudes calm and take a look at every single little thing that we have outlined there for you the blog post the case studies that we have the free downloads the cheat sheets that we’re going to give you and everything that you need so it’s not any further ado I hope you enjoyed this video give me a thumbs up if this really helps you out and clarified a lot of things for you my name is Dan de Silva I’ll see you in just a few seconds all right so I hope you learned a lot there’s a ton of stuff that we actually covered here in this video about what drop shipping is and how you can go ahead and get started with it right away now we have other videos on the channel that I suggest you go and watch if you want to further your education with the drop shipping model so without any further ado take a look at the channel subscribe most importantly but aside from subscribing going to go look at econ news.com it’ll be linked in the description down below on pretty much well blog posts that we suggest you go and read that are on econ dudes and exactly how you can get started right away so again thank you so much take a look at all the other videos that we’re going to be releasing this week alone there’s a ton of stuff that we’re going to be releasing so I’m excited about this again my name is Dan de Soto I’m a CEO of econ dudes I look forward to seeing you very very soon