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Make Money with Dropshipping

Make money with dropshipping

If you’re not willing to put in work, stop reading. Contrary to what the “gurus” will tell you, being successful with dropshipping takes time and effort. It’s not something you throw together in an hour and start watching the sales roll in. Just like any busy, if you want to make money with dropshipping, you have to put in the time and effort to grow it. Don’t be discouraged though, you can build a nice side income or full-time business with dropshipping.

What is dropshipping?

You may be asking yourself, what the heck is dropshipping? Good question. Dropshipping is a form of commerce where you sell products without actually keeping inventory on hand. You list the items, market, and do everything to get a sale but after that, you don’t actually ship or handle the goods. You place an order with the distributor or manufacturer and they ship them directly to the customer.

Advantages

Easy to get started – When you don’t have to deal with physical inventory, it is a lot easier to get started. All you need to do is figure out what you’re going to sell, set up a store, and start marketing. No need to find a warehouse to store inventory. Or build out a nice retail store. You just sit at your computer and start selling.

Low overhead – Since you don’t have to deal with inventory or commercial building space, you really just have hosting and supporting software costs. You can get going for as little as $50 per month.

Flexible location – You can literally do this from anywhere in the world. As long as you have a computer and internet connection, you can dropship. Once you get things set up, there isn’t a lot of work that is required unless you plan to really scale the business.

Huge selection of products – You can sell anything you want. There are millions of things you can sell, anything and everything you can think of. You’re not going to just want to sell anything, you want to put some thought and research in to find the right product or niche.

Scalability – Once you figure things out, it’s pretty easy to scale. It takes a bit of work to figure out things but with Facebook and Google ads, scaling becomes easier than ever.

Disadvantages

Inventory issues – it is hard to keep track of inventory with dropshipping. When you own the inventory, you can use one of many systems to manage it and as long as you keep on top of it, you’ll know what you have. With dropshipping, it is a little harder because you don’t control the inventory. Someone else does and they could sell out and unless you use some sort of software for updates, you won’t know.

Shipping headaches – Dealing with shipping when dropshipping can be a bit of a headache. For one, most likely your items will be coming from China which can be slow and expensive. There is an option for what is called ePackets which is a shipping method from China that is cheap and relatively fast (for coming from China). Also, if you use multiple suppliers and someone orders multiple items, there is a high chance they will have to get multiple shipments. For most, this isn’t a problem but some won’t be happy.

Low margins – This isn’t always the case but most items will have lower margins. You don’t get as good of pricing on the products as if you were buying in bulk and stocking your own inventory. This disadvantage is balanced out by the advantage of low overhead and ease of getting started. You can test things out pretty cheap and figure out if it’s scalable.

Getting started

After all that, are you ready to get started making money with dropshipping? It is probably going to take you a couple of days to get everything figured out and set up. Get your coffee ready because its time to take action and it’s going to take some time.

Picking a niche

Picking a niche can take a bit of time. You can start with things you know, put together a list of things you are knowledgeable about and would like to maybe sell. These might not work but it’s a starting point. Also, check out Google Trends, see what is trending and popular. Add these items to your list. Jump on Amazon and see what are popular items and niches, add them to your list. Hop on social media and start seeing what people are looking at or for, add these items to your list.

Now that you have a list put together, it’s time to see if there are profitable items to sell. The popular place to source products is AliExpress. Start searching for products and see how much they cost. Then compare them on sites like eBay or Amazon to see what they are selling for. You need to get an idea of what your potential profits could be, see if there is demand for them. See if there are enough products to support the niche. Sometimes you can get away with selling one or two items but it’s harder to scale that way.

Ideally, you want to avoid common niches. There is going to be a lot of competition and obviously, that is going to make everything harder going forward. Try thinking outside the box to find a niche, it might take a little longer to find it but it will pay off in a huge way in the long run when you make money with dropshipping.

Your store

Shopify is my preferred method of making money with dropshipping. It takes a little while to set up the store but you have full customization of it, lower fees, and less competition. You can also sell on eBay and Amazon but you have to be careful and follow their policies exact. Due to the strictness, competition, and potentially lower margins I have typically avoided selling on those platforms.

You want to start with a new theme, make your store look good and be simple to navigate. Now you need to start populating your site with products. Personally, I love using Dropified to do this. They have a Chrome plugin I use so when I am on AliExpress, all I have to do is click a button, change the price, description, title, etc. and then it pushes it to my site automatically. You can add products very quickly with this tool.

Additionally, you are going to want to set things within Shopify and add nice plugins. I could, and will, write a completely separate article on all of that. For now, I am just going to give you a quick rundown of what to do to set up your Shopify store and start making money with dropshipping.

Marketing

So now you have your pretty store set up and you have tons of products ready to sell. It’s time to market. Yes, you could just sit back and hope people magically find your site and buy but the chances of that happening are slim to nill. The most popular methods to market dropship e-commerce stores are with Facebook and Google ads. They are such powerful tools that allow you to really target the correct people. It takes a bit of trial and error to learn what works and what doesn’t so I suggest starting with low budgets. I am going to write more on Google ads and Facebook ads in a later post.

Also, you can leverage social media posts as a tool to market. Instagram is a great tool where you can build a nice profile and drive lots of sales for little to no costs. Another popular social media site to use is Pinterest. Pinterest doesn’t typically get the attention of some of the other networks but it is a great marketing channel where users like to spend money.

You’ll always want to make sure you create an email list and use it later for remarketing. This is really important because, at the end of the day, you list is always your best marketing tool to make money with dropshipping.

How to Make Money with Dropshipping Final Thoughts

That is a brief summary of how to make money with dropshipping. As long as you go into it with a good work ethic and willingness to learn, you’ll make it work. Whether you are looking for a side income of $1,000 to $1,500 or whatever, you’re looking to build a 6 figure business out of it, you can do it with dropshipping. I will do more posts to dig deeper into some of the tips, tricks, plugins, ads, etc. that help build successful dropshipping stores. Get started today and go make money with dropshipping.