Learn Drop Shipping

What Is Drop Shipping?


These days, almost everyone seeking to find information does so by performing a quick Google search. But if you are new to the drop shipping business model for example you will likely have a lot of questions on you mind right now. Questions like how do I learn how to do drop shipping business or better still what is drop shipping all about?

I would be careful as there is a lot of misinformation flowing around the internet on this topic. If you are reading this post right now, then you are lucky to have come to a page that will provide you with a detailed explanation of the process.

Drop shipping otherwise known as “closed eye shipping” or “Blind shipping” if you like; is an approach or technique used when selling items online that enables you to sell tangible physical products without actually touching or seeing them.

Firstly my one piece of advice for any newbie is to start from scratch and learn the basics of drop shipping business model before jumping into it.

For intermediates and professionals I would say continue to brush up on your skills to keep updated with current trends within the drop shipping business model because things changes as today’s economy reflects.

 

How Does Drop Shipping Works


There are a few ways out there one can employ to follow but so far and from my findings, the best strategy can be seen below:-

  1. Look for a reputable drop shipping supplier online or near you.
  2. Apply for approval and get approved to sell for a”drop ship supplier”.
  3. Make sure this supplier has at least one or two warehouses located near you. In my case, the UK for example where they keep inventories.
  4. Create an e-Commerce website
  5. Once approved for an account by a drop ship supplier, they will send you their products list via email and you can list  these products on your website.
  6. When people buy these products from your website, you can then buy them from your “drop ship supplier” and have them ship this item/s direct from their warehouse to your customer.
  7. The different between what your customer pays you (the retail price) and what you pay your drop ship supplier (the wholesale price) is you profit.

Drop Ship Suppliers, Who Are They?


Basically there are two types of drop ship suppliers you will come across when starting out.

  • Private brands
  • Paid membership types of suppliers with no price control

As a new entrant into the drop shipping business model, you are far better off working with the private brand suppliers than the paid membership types that has no price control. The latter you will want to avoid where possible for many reasons which you will soon find out as you read on.

 

Private Brand Drop Ship Suppliers


Private brand suppliers are those you will want to work with because:

  • They do not sell directly to the publicprivate brand suppliers
  • They sell to high street retailers and online merchants like yours potentially.
  • They care about their product and they value their brand a lot.
  • They show case excellent customer services, high quality products image and price protection

These kind of suppliers do not want their value to be debased so therefore will not work with any online retailer who will do so by offering cheap pricing.

For Example;

If you are selling a $1,500 ladies hand bag for the price of $700 simply because you are OK with a small profit margin.

In doing this you are reducing the value of that particular brand and these private suppliers do not like this. Therefore to curb such from happening and enforce price protection on their branded items, they have set up what is called MAP policy (Minimum Advertised Price).

This means that there is a minimum price that you the retailer can advertise items to sale for. A good example is if the MAP for an item or product is set for lets say $800, then you are not allowed to list such items for sale under $800. No one is allowed to do so. You can raise the price and it’s OK if you have to cover your margin and make profit but you cannot sell below the MAP price of $800 or you will risk having your account suspended or banned in extreme cases.

These policies were set by brand owners to protect their image of not supplying cheap products and also to protect you the retailer’s profit meaning no one can undercut you. Working with drop ship suppliers that do not enforce these pricing policies may be problematic as you will find out below.

Problems Associated With Suppliers Who Do Not Enforce MAP Policies


bad suppliers

These suppliers also knew that the paid membership type has no price control mechanism and are easier to be found by newbies. If for example you do a Google search on any niche plus drop shippers, you will notice that they appear high on top of Google search results.

The following reasons are why I will not sell for these suppliers and so should you:-

  • First they do not enforce MAP policy hence there is no price protection
  • They make drop shipping known as their business model hence they do not focus on their brand value, instead seem to push items into their retailers hands. In this case you.
  • They are commonly know to push as much product as possible out the door to you because they do not enforce pricing protection policies. (MAP)
  • They charge you for been a member of their retailers. (Never pay to be approved by any supplier. If you don’t know how to avoid this, then please read on).
  • They basically just send you one price list. Which can be confusing and quit hard to determine where your PROFIT margin should be.
  • The price list they send you will only be made up of wholesale cost with no MAP (Minimum Advertised Price).
  • Giving you the impression that you can sell the goods at any price you like and make as much profit as you want right? Well think again because it is not. It is a bad business model.

Conclusion


Why these other supplies are thriving are because a lot of newbies are OK to be making lets say 5% profit as margin or even less in most cases. Because these suppliers are eager to push more product to them as their main goal, they are fast to approve any newbie that applies and pays.

This is a bad business model and one that will never make you grow financially with drop shipping. And I definitely would not want to be caught up selling for these companies if I were you.

Want To Properly Learn How To Drop Ship Profitably?


I happened to come across Anton, the creator of the Drop Ship Lifestyle course himself and he has designed a very productive mini 10 days course that will help you get a grip on all you need to know about Drop Shipping.

Or you can jump right in and get started with setting up your Drop Shipping business Right Here

These includes the fundamentals too and I highly recommend you get started and learn how to drop ship profitably.

There is no limit to what you can learn. And there is no better way than learning from someone who really knows how to drop ship profitably with lots of proof and willingness to share his strategy with you.

If you have any questions or comments please do not hesitate to  drop me a line or two in the box provided below and I will get back to you immediately. I hope after this training you will have learned how to drop ship profitably.

 

20 thoughts on “Learn Drop Shipping

  1. Nick

    I did Dropshipping a few years back. Theres a lot to know about the topic and i feel like you did a very good job about hitting all the major points on the subject. I would however like to have seen maybe a few more images. Other then that very good job!

    Reply
    1. Richard U. Post author

      Thanks for commenting and good to know you have had your own share of experience within the indsutry. Always good to know. Thanks also for the construct i have taken that in for future references.

      I am glad too that you found the article useful and valuable that mean a lot too.

      Reply
  2. Kams

    Hi Richard, I’ve been considering drop-shipping for while now, but I still feel I have to learn a lot before I embark on this journey. How do you find reliable private brand drop ship suppliers online? And If I want to sell a particular product, how do I find a drop ship supplier that sells it? Paid membership suppliers offer margins that are lower than most affiliate programs, so it doesn’t make sense. What sort of margins do you get with private brand drop ship suppliers?

    Reply
    1. Richard U. Post author

      Hi Kams good questions.

      First what product are you looking into and what type of market are you looking at. If you already know then second is to look around your location because they must have a site or warehouse near by and contact them.

      Paid membership pays peanuts and it is not worth your time and money just as you already knew. Look for private brand suppliers who has reputation to maintain and also has a MAP policy in place to protect you from anyone undercutting your margin.

      Any supplier that advertises drop shipping as their main business model is not the real deal. You should stay far away from them.

      Go for private brands and top well known names. You will be surprised how welcoming most of them will be, after all its business we are talking about.

      If you really want to know how to milk the proverbial cow in drop shipping i will recommend you learn from Anton

      Thanks for commenting and well on your already acquired knowledge in the business.

      Reply
  3. Anh Nguyen

    I’ve never heard of this model of drop shipping before, it’s a bit affiliate marketing in that you are promoting their product while they do everything else for you… but you have to be in contact with the shipper?

    In fact, I don’t see a lot of difference between the two, can you explains?

    Thanks in advance!

    Reply
    1. Richard U. Post author

      There are quit a lot of differences actually and mostly for the fact that you will need to know this suppliers and develop a business relation with them which can only be done by contacting them. Then the rest is automated and you don’t have to see physical product every time some one buys from you.

      It is pure-eCommerce and it works effectively when you have good business relationship with your supplier.

      In affiliate marketing you don’t have to lift a finger most times. You just pick a product you like from ClickBank for example and start promoting using a provided link from the vendor.

      With drop shipping, you have to know the basics and you will need to find a reputable supplier nearest to your location and first develop working business relationship with them.

      You can watch this video HERE and may be it ‘ll help you gain more understanding.

      I hope this helps answer your questions today.

      Cheers

      Reply
  4. Pitin

    Hi,

    Dropshipping feels very complicated in my opinion. Aside from managing inventories, you have to take responsibility for any shipment mistakes that happens. Of course you have to own the mistake because it was bought from your e-commerce store and it was your name plastered in your website. How do you advice newbies to be at least be at grips with dropshipping headaches like this?

    Reply
    1. Richard U. Post author

      Hi Pitin,

      Thanks for commenting.

      This will be the case if you are selling for one those suppliers that does not have any price protection policy or MAP (Minimum Advertised Price) as it is well known. Because they push all these product to you their hands are off their by leaving you to deal with such responsibilities as you enumerated.

      But if you are able to find good private brand supplier that has top integrity and value their reputation, you will not have to worry about all that because they will handle such customers complaints and so on. That is what they do best to maintain face and improve value.

      My advice to newbies is to start from the beginning. Learn from the best and do not dabble into many things at same time. Or find a professional like Anton who has made it and is willing to share his tricks and learn to drop ship very profitably.

      Reply
  5. Hannah

    Funnily enough I was talking to my boyfriend about getting into drop shipping some time in the future. You know, once my business takes off a bit more. I need a bit more money to get started drop shipping.

    Great tips. I will return to your site some day in the future. I know this will come in real handy.

    Keep up the good work!
    Hannah.

    Reply
    1. Richard U. Post author

      Thanks Hannah for the comment and yes you should more tips and tricks laid out here for you when you ready. I am glad to be of help and contributed to your success journey.

      If you don’t mind coming back here to let folks know how it is doing and how progressive you are when you get started that would really be great and helpful.

      Am glad that you found value on this page today.

      Again thanks and i wish you all the best !

      Reply
  6. Mr Pianoforte

    Hey! Thanks for the information, greatly appreciated. I was looking information about paid membership suppliers, because I wanted to know how useful and reliable they were, but due to your article, I have been able to learn more about the business. The information here has definitely helped me with my decision-making. Keep up the good work 🙂

    Reply
    1. Richard U. Post author

      Thanks for the comment and i am very glad to be of help. Great to hear that you found value here on your visit and i wish you all the best going forward.

      Indeed there are lots of places one can gain such knowledge and succeed but the question remains, who is ready to give you all the information you will need, without you emptying your bank balance.

      But on this page you will find link to the right help and great that you did.

      Thanks again and all the best.

      Reply
  7. Alyssa

    Hi Richard,
    Great article – I learned a lot about dropshipping that changed my opinion about it. I didn’t realize that there are private brands that don’t sell to the public and that set and establish a minimum advertised price. Now that makes sense! Otherwise, you are just engaged in a downward spiral to the lowest price and lowest acceptable profit margin and that’s a waste of time. Question for you: are dropshippers responsible for handling returns, for answering questions about their product? How does a dropshipper know if the supplier is almost out of product?
    Thanks.
    Alyssa

    Reply
    1. Richard U. Post author

      Thanks for commenting and sorry for bit late reply here.

      Yes it makes sense a lot to stick with those who has good definition of what is on the table.

      To your question, no most especially if your are working with those private brands who has MAP policy in place and also has good reputation to maintain. It should be clearly stated and all customer inquires and returns should be handled by them not you. It is their product and brand image so yes they will.

      Secondly, with MAP policy in place if your are accepted to drop ship with them, then there should be a medium to help you know when stocks are running out. Otherwise it defeats the purpose.

      I hope this helps today? Thanks again for dropping by and best of luck. If you have any more question please do not hestate to ask.

      Cheers!

      Richard U.

      Reply
  8. Neil

    I’ve heard a lot about dropshipping and how people are building successful businesses online from it! 🙂

    It’s quite simple to understand how dropshipping works but it’s not so great to learn about suppliers that try to pull the wool over your eyes, so to speak!

    The Drop Ship Lifestyle course sounds like a great option for newbie dropshippers, so I’ll look into this one. 😉

    Neil

    Reply
    1. Richard U. Post author

      Thanks Neil for the comment and yes indeed it is the best to get started. Ofcos there are many courses out there to jump into but finding the right one that actually delivers within reasonable time plus cost effective is always hard. That is why i am sharing Drop Ship Life course and you grab a sit for This Webiner in advance for a free eye opener.

      I am glad you found value here and please let me know how the course is helping you progress.

      Reply
  9. Gil

    Hi,

    Thanks for the interesting article.
    Why should you like for supplier with warehouses located near you?
    Does it mean that you cannot sell worldwide or sell products manufactured in other countries?
    Do you publish on your site that these are not products taht you manufacture yourself?
    Regarding return policies, how do you handle the cost of shipping back a product?

    Reply
    1. Richard U. Post author

      Hi sorry for the late reply.

      This is the reason why it is good to get the deal that includes everything from the product owners especially the branded one, Yes it may cost a little to main but for peace of mind and worries of all the troubles you have mentioned will be handled by the products owners.

      My article on how to start FBA Amazon will help clarify this more.

      Thanks.

      Reply
  10. Adyns68

    Hi sea
    I wanted to do drop shipping business some few times later but I didn’t really understand it. After reading your post I got more knowledge , thank you.
    Though I still have one concern, how to get a reliable supplier? Every time I think I got one trustworthy supplier, after some investigation I will find lot of complain and get discourage

    Reply
    1. Richard U. Post author

      Thanks for commenting and i am glad to be of help.

      For reliable suppliers you go here and get signed up for vetted and trusted suppliers all over the world. Most of the services are free but you may have to pay a little premium to get the maximum use.

      I hope this helps.

      Reply

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