How to make a lot of money on Dropshipping transhipment distribution with very little money?
The Dropshipping e-commerce business model has been operating on Amazon Amazon sellers and eBay, the world’s largest auction platform, for several years.
Recently, a number of foreign Internet money- makers have used this model to carry it forward. Monthly income can reach tens or even hundreds of thousands of dollars. What are the shortcuts for these net profit masters?
Many of them use the Shopify platform to open stores, use AliExpress (aliexpress) as a source of supply, and spend a lot of money buying Facebook Facebook ads for merchandising.
Shopify is currently the world’s most user-oriented electricity supplier website platform. You can refer to Affi’s previous introductory article “ Cross-Border E-Commerce Super Victory Group – Amazon + Shopify ” to learn more.
AliExpress (AliExpress) is an e-commerce trading platform under the Alibaba Group. Established in 2010. Customers are mainly targeting overseas markets such as Europe and the United States. Therefore, some people dubbed it as an international version of Taobao. Currently, it is the third largest in the world. A large English shopping site. Many foreign distributors ship through this platform.
As for paid advertisements that cost money to buy FB Facebook. Because Facebook has a very large user base. Its advertising platform can also be accurately put into advertising according to age and personal interests. Therefore, it can attract many potential customers to visit the Online Store. In order to significantly increase sales. The operation of FB paid to advertise is a university. Afu will find another time to write a special article.
Dropshipping simply means that after receiving the customer’s order, the supplier is notified to ship directly to the customer. Because the operation is simple, it is a fast and convenient electricity supplier business model.
Its operation method is very similar to the general people are familiar with the purchasing. Use sales to make money to make money. When the customer orders the delivery supplier to notify the delivery. You are through these transactions to earn the middle difference.
Drop Shipping does not need to be responsible for cumbersome incoming and outgoing jobs. You can save time and effort by focusing on merchandising and finding customers.
This kind of business model is due to a few funds needed. It is built quickly, without inventory, without location restrictions (can be operated at home), low overhead, and easy to operate. It can sell many different products to potential customers. It is also very profitable when starting to profit. It’s easy to get bigger by buying ads. So it’s very suitable for internet veterans and novices to try.
Affi’s special Dropshipping and traditional electricity supplier comparison table is as follows for your reference:
|DROPSHIPPING (TRANSSHIPMENT)||TRADITIONAL ELECTRICITY SUPPLIER|
|Open shop funds||small||Big|
|Commodity stocks||no||Continuous stocking and replenishment|
|Commodity packing, transportation||Delivery supplier is responsible||To handle it yourself|
|Merchandise sales profit||Low. But the amount is easy to make||high|
|Product shelf type||Selective||Limited by inventory, less elastic|
|Shop operating difficulty||simple||complex|
|Extensibility||Big||Limited by inventory and funds|
|Location restrictions||no||Storage location, etc.|
Afford talks about the advantages of Dropshipping. Now let’s talk about its shortcomings.
- The profit is generally not high – because the cost of the purchase of the goods is higher than the wholesale price, so the profit is not high
- Because of the low demand for funds and the ease of operation, there are many people involved in the competition.
- To cope with many shipment providers at the same time – you may have multiple sources of supply. Management becomes complicated
- Return is not easy to deal with. The average return rate of typical online stores is about 6~8 %. There are many reasons for the return. For example, the buyer is not satisfied with the product, the goods are defective, the parcel is lost, etc. The general supplier accepts the cross. The willingness to return from the environment is very low. Therefore, it is more complicated and time-consuming to handle.
So for a newcomer to Dropshipping, the first problem to be faced with is to sell something on the shop.
The directions that can be considered in this regard are actually quite numerous.
- You can use the Google Keyword Tool or use Google Trends to do research on the Niche Market. Find a few competitive and potential customers.
- The purchase price of the merchandise is preferably less than $20. Assume that the $5 item can be sold for $19. Then you have enough profit to cover the advertising marketing expenses and return loss. At the same time, it also brings a considerable amount of wealth to you.
- In order to reduce cross-border overseas airmail postage, the smaller the volume and weight of the goods, the less money they save.
- Also, consider that goods are often out of stock. Are there any other alternatives?
- It is not necessary to put too many items in store at the beginning of the opening of the store. It is recommended that it be about 25 or so. After the business is on track, it will slowly expand.
- For brand-name merchandise, we must also keep a respectful distance. The chance of exposure to counterfeit goods is quite large.
How do you find a good shipping provider?
You can use the AliExpress (aliexpress) built-in merchant evaluation system to select good sellers. The general criteria are that there are probably more than 2000 feedbacks. And the positive rating is over 95%.
In addition to the suppliers above AliExpress, you can also use Google search or search through the merchant directory platform.
Recall that Afro had already tried Dropshipping in 2009. At that time, he also spent money to buy a permanent member of the SaleHoo Business Directory Platform. After researching for a while, he still decided to rent someone else directly in a lazy manner. The product record was sold on its own website. Unfortunately, it did not know how to advertise at that time. The traffic on the website was sparse. Finally, it was sloppy and closed.
SaleHoo was founded in 2005. It has collected about 8000 suppliers. Currently, it can be said that it is one of the best channels for finding shipping suppliers. Its annual membership fee is US$69.
Another old search platform is Worldwide Brands. Founded in 1999. Word of mouth is very good. The membership fee for a lifetime member is US$299.
If your pocketbook is limited, you can also try to use the free Wholesale Central platform. The disadvantage is that the business screening in the directory is not very rigorous. You must be extra cautious when searching.
Of course, using the combination of Shopify + Aliexpress + FB to do Dropshipping business model is not immutable. You can also use WooCommerce software to install online shop instead of Shopify. Or directly use Amazon Amazon eBay or other e-commerce platforms to operate.
You may have better pipeline than Aliexpress on the supply of the goods. You can even ask the supplier to help you with your private label (Private Label) to avoid unnecessary commodity price wars among your peers.
As for marketing, you can also use other social platform channels such as FB Facebook fan page, Youtube, Pinterest, Instagram, Twitter, etc. to promote and import website traffic. In addition, traditional SEO search engine optimization also It’s worthwhile to do it at the same time. It’s only that its effectiveness will appear more slowly.
Dropshipping (transhipment delivery) is different from the supplier is you provide additional value-added services. You strive to help customers find good products, make appropriate product description catalogue. Let customers stay in your online shop better The shopping experience. This win-win mode is what makes Dropshipping attractive.