Dropshipping is basically helping suppliers fulfill orders for customers by setting up an online storefront in a specific niche. As a store, you act as the middle man between supplier and customer by processing orders and handling inquiries. Most big retailers like Amazon and Wal-Mart are using this model too!
So how does it work exactly? When a customer orders a product from your store and gives you payment in full, you forward the order to the supplier who then sends the product directly to the customer. Simple as that.
Advantages are low barrier to entry, no physical stock upkeep, working location independent, easy to scale up, and freedom to decide what you want to sell.
Disadvantages are the competitive nature of the industry, low profits, having no control over packaging and shipping, and inventory issues.
How are you actually making money?
The 3 ways you are leveraging dropshipping to make money include marking up the prices on the item, much like a brick-and-mortar store would, but doing so more on your terms. Second, targeting a specific niche helps to bring the RIGHT product in front of the RIGHT customer so market research would be prudent. The last technique would be selling it to the global economy where big vendors generally do not ship to, hence opening a vast new market for you. That’s is one of the modern miracles as I see it much like compound interest!
What is my experience with it so far?
I learned about dropshipping from listening to Travel Like a Boss Podcast from one of the interviews that Johnny FD recorded with a guest. The course was not all that much money and it seemed like a viable model. So I decided to sign up for the course and give it a whirl.
I purchased the course on April 11th and proceeded to go through all the modules to get a better understanding. Being completely new to this concept, it took some time to go through the videos and readings to really grasp the dropshipping concept. However, I finally posted my first item on April 23rd.
As of right now, I have 8 different items on my store available for purchase. The reason is that I am limited by the amount of items/money amount I can listed initally. As I make more sales, I would be able to raise this ceiling of course. It really didn’t take me too much time to set up my store as it is already built upon platforms I’m familiar with and have previous accounts already.
I’m patiently waiting for my first sale. As I’ve heard from other podcasts and readings, it would take generally 2 to 3 weeks for the first sale. I’m simply persevering and if it doesn’t sell in 3 or 4 weeks, I will most likely roll a new set of inventory to see if I have better luck. I’m very excited for my first sale!
Some Cool Tips Just for You
If you want a nice read on dropshipping, I checked out The Ultimate Guide to Dropshipping by Shopify. It’s a nice read especially if you’re new to the idea. Though the technicals of how to start are not mentioned, it will help you formulate ideas and questions to ask so you can start your own biz.
Something I picked up from the dropshipping course is a money back rewards from shopping online. These online websites make money from sending customers like us to stores and making purchases. In return, that referral money is trickled back to us so you make a few bucks! Good deal right?
I’m hoping to make a purchase from REI gift card I got from a friend. Simply Best Coupons is going to give me 4% back from REI! Super cool. You can use it on a lot of different vendors too, check it out!
That’s my affiliate link that helps me get some money when you buy items. There’s no extra cost to you at all for you.
Here’s the sign up link if you want to help me out: My Simply Best Coupons Link
If you want some details about making an account, look at: Details about this referral reward
My progress towards lifestyle nomadism:
As of late, I’ve been focusing a lot of time on the dropshipping course and going through all the modules. I’m happy to say I’ve gotten through them all and will be making a second pass in the coming weeks to pick up any details I didn’t catch the first time.
I also had a mastermind meet with one of my good friends, Alana. We talked about accountability, time managment, dropshipping, building other streams of income, freelance work flow, opposition from others who don’t understand digital nomadism. We also came up with action plans of course for the next meet. If you’d like to see the document, check it out here: Digital Nomad Business Mastermind Meets Google Doc.
As I am waiting for items to sell, I have also made more efforts to sell more off more of my possessions. I’m selling a George Foreman grill, a sound mixer, bluetooth heaphones on LetGo and OfferUp apps on Android too. Hoping to pocket some quick change from that.
Hopefully, I’d like to jump back into learning some coding. I’ve been neglecting it because my eyes really deserve a break after my 9-5 job. I’ll certainly do what I can but a lot of screen time can really be a detriment to sleep patterns.
Some cool things I’ve seen this past week:
Sasiwan Mokkhasen writes about the wireless workforce in Thailand. One of the interesting points brought up was how the government feels about Americans in their countries without deep pockets.