How to Make Money Dropshipping Online in 2017

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hey guys justin bryant here from self-made success.com in this video I’m going to show you how to make money drop shipping online and 2017 I’m going to show you how to separate yourself from your competition different places you want to sell different places to find the best suppliers how to maximize your revenue and just the process you need to go through to decide how to put this together and to start things off I think everybody needs to know of course exactly what the step-by-step process of drop shipping is and have a full understanding before getting into it and this is exactly how it works is a great little visual I found and it shows it perfectly you have the customer who places an order on wherever you’re selling the product whether it’s your website whether it’s Shopify whether it’s Walmart and then you get paid so as the seller you get paid but you’re not done yet you need to make sure the shipper of the product the supplier gets paid their wholesale price after they get paid you get to keep the profit so all you’re doing is selling products that are already being created by these suppliers or by other websites and then you’re selling them for a higher price elsewhere getting the product shipped to the customer everybody’s happy you don’t have to create a product yourself you don’t have to handle the product or ship it yourself at all so that is the appeal of drop shipping that’s the process of basically how it works so the first step you need to look at before you actually start doing this is you might want to set up a business entity which basically means you’re doing business as and you get an actual number you’re actually registered with your country as a business the reason you want to do this as an LLC or corporation for instance is it protects your assets so if you get a lawsuit on you you see your business becomes really popular and you have one very unsatisfied customer out of thousands who wants to come after you well they can’t come after your personal assets and things like that or your separate corporations or LLC’s from the one they’re trying to spoil a lawsuit against you it helps protect your assets it helps separate them and helps you minimize your losses if somehow you end up losing the lawsuit but most likely you’re not going to have to deal with that but when it happens it’s very devastating if you are operating as a sole proprietorship basically meaning you have no protection so you might want to set one of those up before you do this now to the actual book that I recommend for doing this I recommend you look into the tax and legal playbook by Mark J Kohler it’s a great book I’ve read it and I took a lot of notes let me tell you because it really explains the tax structure very well it really explains it for the u.s. specifically you want to read it based on your country that you’re doing business but it explains everything extremely well and it helps you figure out how to structure your assets how to structure different businesses and how to get as much back from taxes as possible and save as much money as possible so I recommend that book just to get all that set up now to the actual process of dropshipping number two you want to find a good supplier of course you need to find a supplier that has a lot of different types of products that you could use that sells them very cheap that has free shipping options and things like this that’s easy to communicate with and there’s a few places I recommend that you go to so one would be Aliexpress which is a very big wholesale company they have all kinds of different products that you can find the thing about them is many of them shipped from China so you need to look into that that might make if you’re in the US for instance it might make shipping take a very long time or might make shipping prices go up so it could cause some unhappy customers you might want to go for something that’s closer to your country or within the same country that most of your customers will be in but they have very good prices and they have lots to work with the Aliexpress also salehoo is an entire directory of wholesale suppliers this is much better than trying to search for one at a time on Google because many of these wholesale suppliers don’t spend much time on their websites and therefore can be hard to find because of a lack of search engine optimization so salehoo kind of makes this easier by having an entire directory of wholesalers to look at all so there is doba doba basically makes it to where you have an all-in-one solution for finding suppliers and dealing with them it’s all up with a free trial for 30 days you can use them and deal with your suppliers on all on one platform and it’s about $29 a month so it’s very affordable and you might want to look into them to just make the process of dealing with suppliers more efficient they have partnerships with these suppliers and they make it to where you can communicate with them and get things shipped and things like that done much faster and research products better things like that so there’s also a few more well-known suppliers that you might look at and they have all kinds of people selling so you have Walmart of course basically one of the biggest retail giant’s the world and their top competitor which is Amazon of course Amazon is all online based and they have all kinds of opportunities for people who want to sell as well so they have a lot of very competitively priced items so those are some places you want to look at as far as supplying your products number three research products extensively okay so a few tricks that you might look into doing is when you’re constantly putting new products up which is what you want to do to keep your money growing and drop shipping you want to look at the season that you’re posting the product you want to look at the tendencies of your country where most of your buyers will be you want to look at of course the wholesale cost versus the average retail cost of where you want to sell it those are the types of things you have to keep in mind when looking into products and brainstorming which ones you might sell so for instance you can use a few tools to research different products Google Trends is one of my favorites they allow you to look into the latest topics based on the day based on the last seven days the last 30 days etc and you can go based on your country based on categories whether it’s business entertainment etc and you can find what’s trending up so you want to look for things that are always going to be trending up like for instance I mentioned seasons it’s the beginning of March as I’m doing this video as you can see March 1st 2017 and the thing about that is it’s the beginning of a new season that’s going into spring now weather’s going to get warmer people are going to start being outside more people are going to want to go to the beach more and swim in pools and go play sports and do things like that and they’re going to want to be outside they’re going to want to look good they’re going to dress a little differently in spring than they would in winter and just those types of trends you can need to look into let’s say it’s late summer if it’s late summer a lot of people tend to get married around that time it seems like every wedding I’ve ever been to is then in the late summer or early fall so another thing people spend a lot of money on weddings outrageous amounts of money without really you know sticking to a budget as well as they might for just about anything else that’s another thing you might if it’s that time of year you might post some new things related to weddings or big events that typically happen at that time let’s say you go into late fall so then you have Halloween you start getting to the holidays you have Halloween stuff that you could sell you could sell stuff related to Thanksgiving things related to Christmas or Hanukkah or some of these other holidays around that type of season maybe the new year still some stuff for the new year there’s always holidays going on there’s always events like birthdays weddings going on people are going to dress differently at different times of the year so you can use those things to figure out which products you might want to look at and Google Trends will tell you what’s trending so that you can double-check now you can search for a lot of different things and I could spend hours just searching stuff on Google Trends but instead of doing that and to save us some time I’ve already done a bit of a search for things that would help you as far as e-commerce which is the whole point of drop shipping is selling actual products not just talking about the latest news and stuff so I did a search in Google Trends basically I narrowed it down by United States because I figure most of my people buy from the United States the past 30 days which will give me a good indicator of whether something is trending or not or how where it is right now the category that it falls under right now it’s under arts and entertainment I can change that if I want and then I go to Google shopping with Google Shopping of course being one of the biggest indicators of what products people are searching for you don’t want to be news you don’t want to be anything like image searches or news search you want to be shopping these are going to be the products people are buying or looking to buy so if you look right now our Center tainment Google Shopping you have things like guitars cameras watches people are looking for Star Wars stuff people are looking for music movies different brands like Nikon the Apple watch pianos different things like hoverboards keyboards posters let’s look over here now you have some other options over here that you can look at and another thing you can do you can look into other categories of course let’s say Beauty is Fitness I think this is going to be really turning upwards going into spring so you have things like a certain bag certain clothing lines you have different books that are on the rise you have let’s say you just want to look at the top results maybe there’s not a lot of results in the rising area right now look at cosmetics get perfume you have shampoo you have different types of makeup you have brands like Louie Vuitton you have Michael Kors another brand my hair dye different things like that can tell you what people are really searching for it treadmill those are going to get more and more popular this time of year people want to get in get in shape for the summer so people are going to show you by just searching for stuff on Google and then you just use Google Trends which is completely free and using Google shopping different categories and things like that you can figure out what people are really looking or and how you can use that to find the best things to sell and research for your drop shipping business another thing that you can do is use the Google Keyword planner which is also free to use you just need a free Google AdWords account then it takes you to a page like this where you can search different products or services like I said going into spring I figure right now is a good time for say protein powder people looking to build some muscle people looking to lose some weight get in better shape for the summer coming up and as you can see right now is a very popular topic it’s 10,000 to 100,000 monthly searches high competition you can look into things that may have a little less competition like whey it which is a more specific type of protein powder you can go downwards you can search and filter over here in the customize your search area under keyword filters you can be low and medium competition and click Save if you want to have a little less competition with the products you have egg protein that’d be an interesting niche product you could look into there’s different things that you could even do for like blog post ideas and you could use those protein isolate might be another thing you could do PhD supplements so there’s all kinds of products that you can search for you can look at ad groups keyword ideas you can go based on a actual website instead of searching for keywords it gives you a lot of options just with Google Trends and the keyword planner for researching your products figuring out how popular they are if they’re rising if they’re really worth going after so definitely look into those if you want to get a better idea of what product to go after number four go after the right potential buyers so you also want to go after hobbyist businesses and repeat buyers those are the types of groups that will get you some of the most profitable dropshipping products the thing about hobbyists if you have somebody who plays a lot of golf you have somebody who plays or who does a lot of bodybuilding somebody who is into collecting things they will spend more money on their hobbies than they would for other stuff they’re not as interested in businesses businesses tend to invest to make more money so they’ll buy expensive products that they think it’ll make them more money plus businesses can write off a lot of expenses so they get some money back from the government after they buy some things that are business-related so business items are great repeat buyers so if you’re selling something that runs out after a month or so let’s say it’s hair gel or shampoo or makeup you can find a lot of repeat buyers and if they like their experience with you they’ll keep buying from the same source over and over again making you a lot of income so those are the type of people you want to go after and that can really take you to a new level if you target the right type of people and if you brainstorm in categories that apply to those three groups number five self stuff that ships free from the supplier so when it comes to saving yourself money on the expenses to the supplier so that you can maximize your profit you want to sell stuff from places that have free shipping so a couple places that come to mind of course that have deals for free shipping specifically even free two-day shipping which can really make your customers happy Amazon and Walmart so Amazon of course if you have Amazon Prime which is about ten or 10 or $11 a month this allows you to get free two-day shipping on anything Prime eligible so you can do that you can offer free two-day shipping or cheap two-day shipping to people who are buying your product if you are so if you are drop shipping a product and promoting it somewhere else and you can have it shipped from Amazon to them if you do it with Walmart they have a new program now free two-day shipping without a membership which means you don’t have to pay the 10 or $11 a month to do it all has to do is be over about $35 or so and this really can save you on money and you can focus on selling items that are over $35 or whatever the price point is so that you can offer cheap 2-day shipping it doesn’t even have to be free two-day shipping if you want to maximize your profit even more so you can make money not only on the product but also on the shipping if you do this and there are other things you can do as well like just using a salehoo to find the ones that will do free shipping it might not be free two-day shipping but free standard shipping is usually just as good as long as it is it doesn’t take too long Amazon I mentioned Amazon a minute ago they do free shipping on items that tend to cost over about $35 and it’s free standard shipping so doing things like that avoiding the cost of shipping can save you a lot of money on your drop shipping business and it can allow you to even charge a little bit for shipping and make it to where you can make even more profit not only from the product sale but the shipping difference as well so you might want to look into the cost of shipping and things like that before you pick a supplier number 6 find the best place to sell online for your situation patient so when you’re doing this there’s a few ways to look at it you can pay more in certain situations and leverage the traffic that marketplace might have like if you’re selling on Amazon if you’re selling on like if you want to sell on Amazon there’s a page right here you can go start selling there you can sell on Walmart Walmart allows you to sell products here you can sell on places like this that already have a lot of traffic that won’t need much marketing the only problem is it’s going to cost you as much as ten or fifteen percent of the profit or the cost of what the customer pays for your product and so that really cuts into your bottom line so as far as maximizing your your profit it could really cut into that and you’re not going to have huge profit margins with drop shipping anyway because you’re dealing with the supplier you’re not actually creating the product yourself so by having a supplier getting it at wholesale you can only mark it up so much to stay competitive with other sellers on top of that if you’re selling on a marketplace like Walmart Amazon or even eBay then it cuts into another ten percent or more of your cost so therefore you’re not going to make very much profit you’re going to have to do a ton of volume to make a decent profit so of course that depends on how much you can markup based on who else is selling on the website you’re selling so the thing is you can do that you can do a marketplace like Amazon Walmart or eBay or you can do your own website now there also is something in between which is defy Shopify is basically where you create your own website based on the templates and the platform that they have created specifically for e-commerce and specifically for things like drop shipping and it cost you $29 a month plus they charge another 2.9 percent or so for transactions now if you also do external payment gateways outside of what Shopify offers for payments to another two percent but it’s still a heck of a lot less than 10 or 15 percent that will be charged from eBay and Amazon depending on what you’re selling so Shopify might be cheaper the problem with Shopify is you’re not going to have that huge flow of traffic that you already would have with the other marketplaces so you have to weigh the benefits and the cons of doing those things another thing you can do of course by cutting as many costs as possible is just starting your own website and selling there now the problem with that is it has the most liability so you definitely want to have an LLC or a corporation if you’re doing this you’re going to have to deal with customer support yourself you’re going to have to deal with a lot of different things like marketing and building your website and structuring your website but you also get the biggest margins if you can keep your website cost down so you can go with a pre-built website like Shopify or even sell on Facebook Shopify now offers something where you can do Shopify light where you can sell for $9 a month using Facebook then they’ll take maybe two to five percent from that but it allows you to sell products directly on Facebook that’s another thing you can look into or you may even start a Facebook page and ship and sell directly from there without Shopify but it will be harder so your options are you can sell on a place like Amazon eBay Walmart get a lot of traffic have a lot less margins a lot less profit you can sell on say Shopify where everything is easier to build but you still take a hit on say 5% or so and you have to get your own traffic or you can do your own website pay no percentages for that type of stuff but you have to get all your own marketing and build everything yourself or hire somebody to do it so those are your options as far as selling it really just depends on what you want to do another thing you should look at is a really cool Chrome extension called shop to mate this allows you to automatically price comparisons so it can tell you if say you’re looking at buying something on Amazon it’ll tell you the prices on other sites as well not only does this help you with selling stuff and figuring out where you can find things cheap to sell from so if you’re trying to buy a book like the 4-hour workweek for instance you can see that the cost is different across across different book stores Amazon Newegg eBay and different retailers and you can compare how much it costs on different sites whereas you can also compare how much people are selling it for so it goes both ways you can see how cheap you can get it if you don’t want to use a normal supplier if you want you say Amazon as a supplier you can say take a product from Amazon like this go and sell it on ebay sell the product on eBay and then when they buy it on eBay you would buy it on Amazon and when you buy it on Amazon you just change the shipping address to the address of the buyer on eBay so then it ships from Amazon to that person on eBay and then you never have to deal with an actual supplier it just goes straight from amazon to ebay but that’s just one way to do it and if you’re going to do something like that you don’t want to deal with a regular supplier you might look into using shop to mate because it’ll help you compare prices it’s completely free and it shows you how you can see who is selling where for how much and where you can get deals and where you can up the price a little bit what you’re actually selling the product so those can help you kind of determine where you should sell whether it’s a marketplace whether it’s your own website or whether it’s a Shopify or Facebook page number seven you can use cash back rewards cards etc to maximize your profit as much as possible so when it comes to actually getting more out of your profit margins not only are you dealing with the differences in shipping costs and the differences in wholesale and retail costs you’re also dealing with rewards programs that can really help you so if you want to say like I said take an Amazon product like this book for instance and sell it on eBay for a cheaper cost then uh or for it more money then let’s say you know you make a few dollars for each sale but you can get even more from that by using rewards programs like Ebates Ebates gives you a certain amount of cash back for shopping at different retailers you can get up to like 40 percent cashback so if you’re on Amazon and you’re wanting to buy a product here let’s say you’re back here on Amazon if you look at eBay two three percent cashback on top of that once you get a percentage of cash back from eBay so as you can see kind of some examples of how much cashback they do you get that cash back and then on top of that you can have an Amazon card so you can have it Amazon rewards cards and it can pay you about 5% back on on Amazon orders so if you’re a Prime member and you have an Amazon Rewards Visa card you can get five percent cashback or so from just about anything and then you can get one percent back on all other purchases two percent back at restaurants gas stations drugstores so it gives you cash back for just using at and then that’s how you would pay for the order when you have somebody buy that product on eBay so you get the five percent cashback plus let’s say you get two or three percent cash back from Ebates you might be getting eight percent maybe even ten percent or so back from the actual profit so on top of the profit you’re getting the other five to ten percent cashback increasing your margins even more another one that you can look at what’s well for example if you’re looking at Ebates if you’re in the search engine and you have the Ebates extension for Chrome it’ll show you how much cashback you get for each store so that might factor into your decision of where to sell from as well just getting cash back from those stores and one other one that I want to show you is called ibotta and ibotta is an app that pays you cash back for groceries and other retail purchases and when you sell products that are on ibotta you can make like $10 for your first one for getting the iPod app and then you can get a bunch of cash back from selling these products so if you sell the same product that’s on I bought it multiple times you can get a lot of cash back from that and so you get cash back from these credit cards like the Amazon rewards card and you get cash back from these apps that I showed you that are completely free to use like Ebates and ibotta so then that factors in as well to getting you more money overall and of course you want to make your offer better than the competition by far so you’re going to have people competing with you for pretty much any product now if you are lucky enough to sell something that no one else selling and it’s actually getting you some sales then you won’t have to worry too much about this but if you have other people selling that product wherever you’re selling it especially if you’re on a market place then you’re going to need to make yourself better than the competition you need to make your titles better you need to make your descriptions better you need to have more pictures you need to have a better seller rating you need to do anything you can to separate yourself from these people whatever the product may be so what you can do for instance is instead of getting into a bidding war which never works out too well for whatever product is being sold instead of dropping your price and in making your margins even worse than they were before and then having the competitor drop their price for the lawyers so then you just go back and forth dropping your prices and then eventually no one makes any money you don’t want to do that instead you want offered about the same price and then just offer information or courses or guides that go with so you want to offer a better experience and more versatility for the product so let’s say you buy let’s say you buy some kind of a you know electronic or something or let’s say you buy this lamp we say you buy a lamp so if you buy this lamp you can give people all kinds of different uses for it you know obviously this isn’t a very great example but I’m just trying to use something on this page and what you could do is give them a a bonus on your website that has bonus material that no one else offers so instead of dropping your price you have just more content that goes with the physical product one thing you can do is use YouTube videos so you can have a YouTube course on how to do this different stuff if you use the product before yourself you can talk about okay these are the best 10 uses for the product and how to do them how to get the most out of this product and different uses you never would have thought of for this product then you can make videos about it and to make sure that only the buyers get to see those videos you would make it instead of public you would make it an unlisted video right here as you can see here highlighted if it’s unlisted people won’t find it on YouTube unless they have a link to the video which you would provide for them only if they bought the product so that’s another thing sharing bonus material can help you get more sales and another thing you can do of course is do free ebooks you can put together a sheet of the best websites that are best guides around the internet that tell people different uses for the product that way you wouldn’t have to create your own content you just put a compilation of a lot of different content that helps with it so things like that just an add-on some kind of bonus material can make people want to buy from you as opposed to other and last but not least automate as much as possible and supply good support so you want to work as little as possible and you want to streamline your process as much as possible see if through some of these suppliers you can just have an email or just automatically have the product shipped once it’s bought instead of having to call each time and tell the supplier to ship it to the customer that’s not very efficient another thing you can do use Google Voice Google Voice allows you to create a free phone number through the internet and that allows you to take customer support calls if you need to or use as your business number you can also use grasshopper which is another great service that will help you with your online office and taking calls forwarding calls and things like that and if you dictate cup support calls this will make it much more efficient and on top of that there’s also Zendesk if you have to have a full customer support platform and you don’t want to do it all yourself then this is a great software for customer support that can really go a long way with your own website so all that can really help you with drop shipping use those tools that I showed you use the process understand how it works and you can make a lot of money if you just follow those tips and tools so if you got something from this video feel like you’ve learned a little bit about drop shipping please like and subscribe so create more videos like this for you if you want to let me know about some other things that helped you and drop shipping or let me know what you thought about the video in general let me know in the comments I’d love to hear from you I’m always looking for feedback to improve these videos for you and all of the resources links examples tips video notes and and related content to this video will be on one page for you at self-made success.com you can go in the first couple of sentences of the description of this video to find that link or you can just go to the website and look for the video title other than that I hope you enjoyed the video and I hope you have a great day