Sunday, July 19, 2020

Dropshipping - the new ecommerce market


Shopify is the new way to make money. Drop Shipping is where a manufacturer ships a product directly to the buyer. You have to drive traffic to your website and make money on the markup.

How Drop Shipping Works

Drop Shipping is especially useful for Kickstarter campaigns. Your product needs to be durable and in stock before you get an order. Once you have sold enough units, you'll have an initial order with a cost of around $200. Every time the campaign reaches that $200 mark, you'll have an additional shipment that you'll charge the customer for. This process makes sense if you know how much your customers will spend on your products. For example, if you sell cleaning solutions, it's likely that the price per product will stay fairly steady throughout the campaign.

 As long as the customer stays happy, they'll be unlikely to spend more than $50 on a single product.

How it works with your product?

Supplies are tricky. When I looked into drop shipping for my eCommerce business, I learned that your product also has to be physically able to be shipped by air. If the products aren't shipping with tracking, you'd have to check every box on the way to the customer to make sure they got the product they ordered.

My friends on Etsy seem to have the most success with this. Since Etsy is a drop shipping store, the customer has the ability to check shipping by phone. Just reach out to them and they'll do the math for you. To maximize customer satisfaction, send them the tracking number before you ship. You should also see that only about one third of those orders ever finish shipping.

Speaking of shipping, if you're not already shipping your products to all 50 states, try doing that. You'd only be paying for postage on those that didn't make it.