In drop shipping trading, your success depends on the sale of goods, which are then shipped directly from the manufacturer or wholesaler to the buyer. Your profit depends on the difference between wholesale and retail prices (for what you sell it). You can start your business in various ways (real store, catalog, website), but this article will focus on actions through the eBay online auction.
What is dropshipping in simple words
Ship is a ship. Another meaning is cargo transportation, delivery. Hence the "dropshipping" in translation from English - "direct delivery".
This is a common way in the west to sell goods without buying them..
You sell a product as if you had one. Bring potential customers to your selling site, where the properties of the product are beautifully painted. The client makes an order and pays for it (abroad, buyers are accustomed to the scheme “morning money - evening chairs”).
After receiving the order and money, you go to the website of the dropshipping company and buy the goods you ordered, while indicating the address of your client as the delivery address.
And the company sends the goods directly to your customer (direct delivery).
As a result, everyone is happy, everyone is laughing.
- Your client receives the purchase he needs and does not even realize that the product is not yours. Dropshipping company sends goods “blindly” - without specifying the address from which it sends. Or indicate your address if you want to. As a result, the client thinks he has received the order from you.
- The company makes a profit from the sale and shipping services.
- You get profit from the difference in prices - because you sell much more than you buy.
- The payment system receives its percentage from the transfer of money from the client to you and from you to the dropshipping company.
- The postal service receives revenue from order delivery fees.
In Russia, drop shipping did not receive such a distribution as in the USA and Europe.
Partly because our client is not used to paying in advance. This is due to the increased level of fraud, when the buyer is not sent the goods that he ordered.
Mail does not work as well as we would like and does not always deliver orders - the country is large, the roads are long and much is lost on the way.
“Our people” are accustomed to cash on delivery, when the order is sent to them without any financial guarantee, and then they think about whether to go to the post office to pay for the order or to send it to the bathhouse ...
And wholesale companies prefer not to get involved with the “invoice”, but first get paid for the goods, and then send them in bulk.
For many of our “entrepreneurs,” the organization of the entire drop-in sales system is advertising, landing pages, receiving orders, receiving money from the customer, informing about the order’s movement, accounting and processing returns, etc. - becomes an impossible task.
This is why affiliate programs and CPA networks are more common.
How affiliate programs differ from dropshipping
Affiliate programs (affiliate programs) - a very common way to increase sales of a variety of online stores and various services.
The owner of the resource gives partners the right to direct traffic to his pages and pays either a percentage or a fixed fee for each payment for a product or service.
As a rule, the owner of an affiliate program provides the partner with their pages (landing pages) where traffic can be directed.
The partner does not have to independently develop landing pages, take care of their placement on the Internet (hosting).
He does not need to monitor the relevance of prices and the availability of goods. No need to accept payment, reorder the goods at the drop shipping company, track delivery, deal with returns, etc.
It only directs traffic.
In most affiliate affiliates, they cannot influence the price, nor add gifts or recommend additional products (Upsell - upsell or upsale and Cross-sell or cross-sales).
As a rule, remuneration is paid once or twice a month after payment for orders has been received by the seller.
How CPA networks differ from dropshipping
CPA (Cost per action) is translated as the cost (price) of the action (cost to the advertiser of one action committed by the visitor of the page containing the advertisement.
Initially, CPA networks were aggregators of affiliate programs. So that the affiliate does not have to register in hundreds of affiliate programs.
Having registered in one CPA network, he got access to thousands of goods, to unified statistics and could receive earnings from one account. Of course, the network took a commission from each sale made by partners.
Then the networks developed and began to provide ready-made landing pages and pre-landing pages (the so-called “laying”). And payment for the completed order was gradually replaced payment for a confirmed order.
It turned out to be very beneficial for partners who used purchased traffic - they could immediately put money into circulation.
This is how traffic arbitrage developed. Arbitration (from French Arbitrage - a fair decision, a mutually beneficial solution).
Arbitrators buy traffic from various ad networks - teaser, contextual, targeted, etc. and direct it to the landing pages of the CPA network.
If the client decides to purchase what he liked, he leaves his phone number. Then the Call Center of the seller of the goods or the CPA network itself calls the customer to confirm his intention to receive the order and inform his delivery address.
Immediately after confirmation, the arbitrator receives a fee for the confirmed order and he can withdraw it, often on the same day. Thanks to this efficiency, a high turnover of funds is ensured and the arbitrator can make hundreds or even thousands of orders per day.
Arbitration of traffic through CPA networks can be arbitrarily called a kind of dropshipping, because the goods are also sent directly to the client. That's just the network has taken on almost all the functions of a participant in drop sales - landing pages, receiving payments, accounting, etc.
The arbiter can only "pour traffic" - to deal exclusively with advertising.
Perhaps this was the reason why traffic arbitrage is more popular than dropshipping.
Same as affiliate programs. But remuneration payments are made for trusted partners faster, often on the same day.
Often there is the opportunity to use your own landing pages, so experienced arbitrageurs stand out "from the crowd" and can make more sales.
Same as affiliate programs.
But sometimes the partner has the opportunity to change the price of the goods due to his own reward.
How to start dropshipping without attachments
As shown above, in order to sell a product, it is not at all necessary to buy it. So, you can sell it without initial investments.
To accomplish this, you will need:
- A certain platform where you can show the goods sold and to which you can bring potential buyers.
- Payment system with which you can receive payment for goods remotely.
- Dropshipping company in which there is a product you sell and which is ready to send it to your customers.
Options to get started without attachments
Do you have a group or page on Vkontakte, Facebook, Instagram, etc. You inform subscribers about the product and collect orders and money.
Then order the goods in the company that sends them to your customers.
The difference in the sale and purchase price is your profit. That's how you can make money without investing.
I don’t say anything about investments in promoting your public.
You have a website with traffic. You post on it an article about a product and ... further as the previous version.
I’m keeping silent about investments in the creation and promotion of the site.
You have an account in a service specifically designed for sales. It has all the necessary functionality and “hot” traffic, ready to buy.
You place goods there, receive orders and money. Further - according to the worked out scheme.
The difference from the two previous options is that you do not have to spend time and money on getting traffic. And you pay interest on sales automatically from the money you receive from customers.
How I Dropshipped on eBay and What came of It
Everything described below took place 2-3 years ago and could have changed somewhat.
First of all, I registered an account in a payment system Paypal.com - This is the main way to accept payments and payments on eBay.
To register, you need a reliable e-mail, preferably in the .com zone (for example, gmail.com) and a Visa or Masterkard card. As far as I remember, the card should have a balance of at least $ 1. To check the performance of the card, Paypal takes a dollar from it and immediately returns it.
Then registered an account on eBay.com. Everything is quite confusing there, because you simultaneously become both a seller and a buyer. I had to switch to Russian and read what and where.
Initially, I focused on the US market - the most extensive, but also the most spoiled.
Americans are used to receiving orders from Amazon the next day, and for remote areas in 2-3 days.
Chinese goods are neglected, and there are very few who want to wait a month for delivery from China.
Therefore, in order to meet at least a week, I had to look for drop suppliers in the United States. At the same time, it made it possible to hide that the goods were Chinese.
Why you should not buy dropshipping bases
Widespread business on the verge of fraud - the sale of databases of wholesale companies. This is usually done by subscribing to access the database, which is quite expensive.
To find among them those that work on dropshipping, you need to call up, agree, etc.
But they still do not work with non-residents.
I had to stay at the Chinese store Bangood, which has a dropshipping program and a warehouse in California. True, the discount on drop is small and the prices were very high, and the assortment in the American warehouse was significantly less than in China.
First steps on eBay
First, eBay makes it possible to place only 10 products with a total price not exceeding a certain amount.
I chose products priced under $ 5 - simple ones that can't break. The selling price was 1.5 times higher than the purchase price. To pay the percentage of eBay, the percentage of Paypal and something left. Sometimes you had to pay extra for the track number, and in some states there was still some kind of tax, etc.
I copied the pictures of the goods, if they are without a logo, from Banguda. And if the logo - took from other eBay accounts.
The product description was also borrowed, but changed the name of the product and added the terms of delivery, that the goods are from a warehouse in the USA and delivery by states is free.
My first sale was a set of heat shrink tubing that electricians use.
After receiving the order from eBay, I copied it to Bangood. When I received a message that the goods were sent, I copied the track number to Paypal and sent it by letter to the customer.
Goods for which there were no orders were replaced by others. Gradually, eBay raised my sales limit and I increased the number of simultaneously sold goods to 100.
Not without returns. Most often because of the quality of the goods. There is a system of returns to Bangud, but it is impossible to use it. After all, the Americans receive an order from a warehouse in California and all that they agree to send it there.
And according to the rules of Bangood, the goods must be sent to the main warehouse in China, where they will allegedly make its examination and, possibly, return the money or another sample.
Of course, none of America will send to China, so you just had to apologize and return the cost of the goods in full.
Why I left eBay and dropshipping
With each month, orders became less and less. The reason is simple - the dominance of the Chinese on eBay. Often they sold the same goods as I did, but their prices were 2-3 times lower than the prices at which I could order the goods.
And since eBay first shows products from accounts with a higher rating, which depends on the number of sales and positive reviews, buyers first see the lowest prices, and then, if they go too far, they can also see mine.
It didn’t even help that my goods were sent from the USA and delivery was about a week. Buyers did not see this because they did not open my goods because of the price.
So I had to curtail dropshipping.
Why you should not sell Chinese goods to Americans today
Today it does not make sense to sell Chinese goods on the US on eBay due to the trade war declared by China Trump.
As a result, the cost of delivering goods to the United States grew by a factor of 2–3, and they were also planning to take about 25% tax on goods from China in shats.
So Chinese goods have lost their main competitive advantage - low prices. And they cannot compete in quality with American ones.
Is it possible to start dropshipping with eBay
Yes, you can, if you sell where American sanctions do not apply, for example, in the UK.
Yes, there is a smaller market, but there is a Bangood warehouse and delivery throughout the kingdom takes a week. You can sell in Germany, but you have to translate the descriptions of the goods.
There are many more countries where they are ready to buy Chinese goods from warehouses in China, wait a month or two for delivery. It is worth paying attention to the Spanish-speaking countries and use https://www.ebay.es
Yes, you have to translate product descriptions, but the market is not so picky and you can start dropshipping without investments.
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DROPSHIPPING ON EBAY
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