What is Dropshipping?

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Lecture description

Dropshipping is technically a ‘fulfillment model’. Fulfillment in a business term of course means delivery, so in this sense, Drophipping is the manner in which orders are delivered to customers.

Learn more from the full course

eCommerce Website: Shopify, Dropshipping, Amazon and more.

Beginner Introduction to eCommerce through Shopify, dropshipping, Amazon, WooCommerce, AliBaba, and eBay eCommerce

10:36:15 of on-demand video • Updated September 2018

  • How to get started with eCommerce
  • Why now is the time to get started with eCommerce and position yourself for BIG profits!
  • How to find products that will sell like crazy
  • The best platform to use to setup your first eCommerce store… even if you don’t have any technical skills...
  • The fastest way to get traffic and start making money right away with your new eCommerce business
  • The insider trick to getting products to sell without having to store your own inventory
  • Plus, a whole lot more about eCommerce and dropshipping
  • Overview of Shopify, WooCommerce, Alibaba, Amazon, eBay, and more ahead
English [Auto] So exactly what is dropship. Drop shipping is technically a fulfillment model fulfillment in a business time of course means delivery. So in this sense dropship is the manner in which orders are delivered to customers normally selling a physical product means that you need to buy numerous items and then sell them at an inflated price. The way you would normally do this is as a reseller. Here you buy wholesale items inventory bought in bulk at a discounted price and you will then sell it on at an inflated cost and keep the difference. And that's your profit margin. The problem with this model is you need to make a big investment in the stock and then you have to deliver the products to your customers. This means you are taking a financial risk by ordering the stock in advance and you know if you make zero sales you're going to lose a lot of cash. You have to pay for the shipping and also handle all of the administrative tasks you'll need to constantly take stock of your inventory and you'll need to refund customers for deliveries that don't arrive. In short it's a lot to take home for an individual hoping to run a business from home in their spare time drop shipping changes all this because now the wholesaler is handling delivery and they don't require you to order Imbolc. So simple. You list the items for sale in your online store just like you normally would. And then when a customer orders them you pass that sale on directly to the wholesaler they then send out the products on your behalf and make sure it reaches the buyer and you get the money. This might sound very similar to affiliate marketing but there are a few key differences. For starters the amount of money you earn more tends to be higher than affiliate marketing. When you operate as a reseller the usual pricing method is something called Keystone pricing Keystone pricing essentially means that the amount you're selling the product for is twice the amount you pay the manufacturers. This is one of the most common conventions for this type of business and to all intents and purposes drop shipping businesses are resellers. The other big benefit of drop shipping marketing is that you don't have to mention the existence of the drop shipping business at all. In other words the Kasbah never knows that it's not you who's signed the product you're not sending them to another website where they can check out and buy the product you're just selling them the product as though it were your own and forgetting about it. This is fantastic because it means that your business looks much more professional and because you're no longer sending it as a way from your brand in order to make the sales.