 In today's video, we're going to be talking about digital dropshipping. What exactly is it? How does it compare to your traditional form of physical dropshipping? And is it worth all the hype? If digital dropshipping is something that you've been interested in and wondering if something that you should get started with, then make sure you check out this video all the way through because we're diving into it. Not only that, but towards the end of the video, I'm also going to give you a quick countdown of some of the best products for you to digitally dropship. So make sure you stick around for that. What's going on everyone? You're with AutoDS, and if you haven't done so already, please make sure you hit that subscribe button and ring that little bell notification so you don't miss out on any future videos. On this channel, we cover anything and everything dropshipping related started from some of the best products for you to start dropshipping all the way up to some of the best tips and tricks to help you start and succeed. So if dropshipping and success is something that you're interested in, then make sure you subscribe. Now, if you're interested in learning more about digital dropshipping, then I'm going to have a link to a relevant article down in the description below. But I do also want to get your opinion on a few things. First off, what exactly do you think about digital dropshipping? Have you tried it? Do you like it? Is it something that you've looked into recently? Also, how does it compare to traditional dropshipping? Let me know down in the comments below your thoughts on this. I'd love to hear them. So digital dropshipping, what exactly is it? You're obviously not shipping physical items to your customer. So what you're going to be doing instead is actually just giving them a digital product. Now, these digital products can include quite a number of different types of products themselves. So from when you have different images and from those images, you're going to have different file types of images. All these different file types of images are going to be used for pretty much different uses. But for the most part, these are the main file types that you're going to see when it comes to images. So you're going to see the two most common, which are going to be JPEGs and PNGs. Those are your basic images or photos. And then you're also going to have SVGs or AIs SVGs are these things called scalable vector images or vectors. And AI is pretty much the exact same thing, except it just works with a different program, which is Adobe Illustrator. Now these types of files can be used for images themselves, or they can also be used in the crafting world. What I mean by that is that people use these file types to be able to cut things like heat transfer vinyl to make t-shirts. These file types are also used for things like engraving on wood, glass, or whatever else you're trying to engrave. Now digital dropshipping isn't just limited to images, of course. You can also digital dropship a bunch of other products such as templates. Now templates can include a wide range of items, but some examples can include things like wedding invitations, pages for a coloring book or pages for a custom made planner. Now, one of the awesome things about digital dropshipping is the fact that you're never going to run out of stock. Since these products are digital, they're going to be received by your customer either through email or through a basic download on whatever webpage or marketplace that you're using, such as Etsy. So when it comes to your digital products, you're never going to worry about running out of anything unless you choose to make them limited. In which case, then you can run out. But if you ever choose to bring them back, you easily can. Now, digital versus physical dropshipping. What are the advantages? What are the disadvantages? Which one's better? Should you do one versus the other? Let's go over it. Now, realistically speaking, when you are dropshipping, it doesn't really matter whether you're doing physical or you're doing digital dropshipping. At the end of the day, in my personal opinion, you should be doing a little bit of both. So you can have a store with a section specific for digital products, and then you can have another section that's specific to physical products. It's really not that big of a deal to be able to make two different sections for these things. It's pretty much just like making two different product pages. Now that being said, of course, some people are going to prefer physical while others are going to prefer digital, and they're going to stick to their beliefs and they're going to just go with one or the other. That's perfectly okay. Let's go over some of the advantages as well as some of the disadvantages to both. Now, let's start off with some of the good. With digital dropshipping, one of the best things about it is the fact that to get started, you really don't need pretty much anything. It's super cheap to get started. Just like with regular dropshipping, you have some pretty low overhead costs. All you really have to pay for at the end of the day is going to be the website that you're using to be able to host your products, whether that be Shopify or whether that be on a platform like Etsy. Of course, there's going to be different price ranges for both, but we'll get into that in a little bit. Now with digital dropshipping, you also have the potential for some pretty high profit margins, but at the same time, you also have the potential for some pretty low profit margins. The reason this is is because while some products can take quite some time to create, you can sell them for a pretty high profit, maybe $5 to $10, maybe even a little bit more. Now, I know that doesn't sound like a lot. Think of it this way. At the end of the day, when somebody actually makes that purchase, you're not going to be spending any money to be able to get that product to them. So you don't have to buy that digital product and then ship it to them. You already have the product. It's already uploaded to your server or your website or whatever it may be. When the customer places the order within minutes, they get a link to download it. That's pretty much it. And at the end of the day, this can easily become a source of passive income because you don't really have to do much. Like I said, you're never going to run out of these products. You can have an unlimited supply. So as long as that's going on and people are still showing interest in it, then you can keep getting sales without really doing absolutely anything. Now, on that same note, some products can be pretty low priced. For the most part, for the easier products, like let's say JPEGs, PNGs or just basic images and even some SVGs that can take a little bit longer to create, a lot of the times on Etsy, you're going to be selling those for about $2 to $5. Subtract fees from Etsy, you're going to be looking at a profit margin of maybe $2 to $4, something along those lines. Maybe a little bit less, maybe a little bit more. It really depends on your product. So while the profit margin is there, it's going to take quite a bit of traffic and quite a bit of sales to actually start seeing a significant profit from this. Aside from that though, when it comes to digital dropshipping, the products that you get are actually fairly easy to create, especially if you're tech savvy or if you know programs like Photoshop, Adobe Illustrator, Inkscape or the free version of Photoshop, which is GIMP. If you know how to use these different softwares, then you can create your own images to sell. Now, aside from that, you can even use things like Canva, even the free version of Canva to create things like templates to be able to download and sell. So even if you're not very creative, you can use online services, again, like Canva, to help you in the design process to be able to start selling these digital products. And honestly, it's really easy to scale. You can start, let's say, making templates for weddings and continue on making templates for, I don't know, birthday party invitations, things like that. There's so many different kinds of categories that you can get into that it's really unlimited. Now, going on to a few of the disadvantages. When it comes to digital dropshipping, some of the products that you're gonna be offering, you could potentially find for free online. So that deters a lot of people from actually paying for your products. They can find a similar template to yours simply by going to Canva. But don't let that deter you because when it comes to physical dropshipping, it's about the same thing, right? You can find something cheaper on Amazon, but that's not the target audience that we're going for. We're going for the impulse buyers and the people that think, I need this right now. So at the end of the day, there's always gonna be a target market for your type of product. Does free content sometimes get in the way because people find it and they think I'd rather just download it for free? Yeah, sometimes. And sometimes people might even be able to steal your content by just taking screenshots of the photos that you upload. In this case, it's really important that you watermark your images. Make sure you put something with your brand name or your logo on top of it to make sure that nobody can simply save it and use it without your permission or without paying for it. Another extremely important thing that you need to keep in mind when you're dropshipping whether physical or digital is product restrictions. Just like with physical dropshipping, there are copyright laws in effect and you can easily break them by selling something like Disney. You're not supposed to be selling whether digital or physical, Disney replicas, Disney images, already established brand names such as Nike, Adidas, characters from different shows, whether that be reality shows, music personalities, TV shows or anime, whatever it may be. If it's branded already and if it's already copyright, don't sell it. Just completely stay away from it. Now those were the advantages to digital dropshipping. Now what about with physical dropshipping? How does it compare? Well with physical dropshipping, you have most of the same advantages that you do with digital just with a few different tweaks. So for example, with physical dropshipping, you're able to implement automation using something like AutoDS. In this case, you don't have to worry about uploading any products yourself. You can automate the entire process to bring in all of your products. So in this case, you're not gonna have to name any of your products. You're not gonna have to upload any images. You don't have to write any titles or descriptions. Although I do suggest that you optimize your titles and your descriptions whether that be for physical or digital dropshipping, you always wanna make sure that you have catchy and captivating titles and descriptions. You don't want just anything basic. If you have an image or a toy of a horse that you're trying to sell, don't just put horse toy or horse image. Make it sound catchy. Make it sound a bit more creative. Go on chat GBT and ask it for different suggestions. Just like with digital dropshipping, with physical dropshipping, you don't have to worry about having any inventory. But you do have to worry about keeping track of your supplier's inventory. But again, that's not a big deal. But that's not really a huge deal. Especially if you've already implemented automation into your store. Because using a system like AutoDS, then your entire inventory is gonna be tracked and pretty much compared to your suppliers. So whenever your supplier has a shortage in inventory, AutoDS is gonna reflect those numbers on your store. So if your supplier actually completely runs out of a particular product, then that's gonna show us AutoStock on your store as well. So you don't have to worry about having any missed sales or having to process any refunds. Now with your traditional form of physical dropshipping, you also have the advantage to sell on practically any platform. With digital dropshipping, you also have a few different options. But for the most part, you're gonna be limited to your own website, whether it be on Shopify, Wix or WooCommerce. And let me say on Shopify, it's fairly easy to do it. So from those three, I would suggest going with Shopify. But then if you're not trying to start your own website and you actually wanna sell on a platform, your other option really is only gonna be Etsy. Etsy is one of the best places for you to start digital dropshipping because there's tons of different images on there, as well as different templates and things that actually makes Etsy a very popular place to go to, to look for digital products. Now one last thing that I wanna touch on when it comes to your traditional form of dropshipping is the fact that when it comes to products, there is no shortage of variety. There is such a wide range of products that it's literally impossible to count. You're always gonna find some sort of product to fit somebody's needs. And just like trends, best sellers are gonna be constantly changing. So that's something that you always need to keep up with. Now unfortunately, just like with digital dropshipping, there's always gonna be competition in the business. But realistically speaking, there's gonna be competition in just about any business. Especially when it comes to e-commerce because the entire e-commerce field right now and going forward is gonna be oversaturated. The way I see things right now is that pretty much any business is oversaturated. Really, all you have to do is find a way to stand out. You have to find a way to think outside of the box, come up with some different ideas, start thinking about things that haven't been done before and try to approach your marketing in a different way. Whether you're dropshipping digital products or physical products, you're gonna have competition and it's up to you to stand out above the rest. Also with your traditional form of dropshipping, you are gonna have to test out your products. You don't always have to do it. You can check out the customer reviews for your supplier or for that product itself, just to make sure that the products you're using are quality. But every once in a while, there could potentially be a defective product that goes out or a product that is somehow broken or just doesn't work. So when it comes to your traditional form of dropshipping, one thing to always keep up with is gonna be your quality. So always make sure you read your emails, make sure you're checking the reviews for your products, make sure you're paying attention to what your customers are saying. Now the last thing I wanna talk about when it comes to your traditional form of dropshipping is gonna be the fulfillment times. As we all know, some suppliers can take a little bit longer than others. Well, maybe not a little bit longer. Sometimes they take a lot longer. So you always wanna make sure that you have products that can be fulfilled quickly. Try to get products that gets your customers within at least two weeks. Now I know that's kind of hard to do with certain suppliers. I know CJ Dropshipping and AliExpress have some sellers on there that can really take up to about a month or more to be able to get their products to your customers. And that in my opinion is way too long to have to wait for a product. So how do you find better products that ship fairly quick? Easy. You can find them over at adultds.com. Now, once you log into your account over at adultds.com, you simply just have to go ahead and check out the marketplace and switch over your supplier to adultds suppliers. Once you click on that, you're gonna start scrolling and you're gonna find products that actually get to your customers within two to four business days. So this shipping time isn't the time for your supplier to send out the item, it's actually the time for your customers to receive it. So as you can see, this is some pretty quick shipping from two to four days. Sometimes it ranges a little bit more, maybe four to six, four to eight, but at the end of the day, it's gonna be a lot faster than some of the sellers that you're gonna find on, let's say AliExpress. Now, what are some of the best products for you to start digitally dropshipping? Well, to start off, one of the more popular ones is definitely gonna be eBooks. Now, when it comes to eBooks, you can write an eBook on just about anything. You can make an eBook on entertainment, you can make it into a novel, or you can make an informative one that teaches people how to do certain things. EBooks are huge best sellers, and the best thing about eBooks is that, since they do typically contain a bit more content than anything else, you can sell them at a marked up price. So instead of selling them for maybe five or $6, you can probably sell them for a little bit more, maybe 10 to 15 to 20. It really depends on the content of the eBook itself. Also, make sure you do a little bit of market research and search up different eBooks that aren't the same topic or same category or similar to yours and see what they're running for. So that way, you can price your eBooks competitively. Now, when it comes to writing an eBook, I know a lot of people can be a little bit scared because you're pretty much writing a book, but it's not that hard. Really, all you have to do is go on a service like ChatGPT and ask it to do it for you. So right now, we're actually on ChatGPT, and let's just go ahead and ask it. Write me an eBook on how to start dropshipping. So as you can see, it's starting to do everything. It's writing out the different chapters, the different subchapters, I guess you can say. It's already going up to chapter eight. It's pretty big. Chapter 10. All right, so pretty much what it did is it gave me a table of contents, as well as a brief summary. Now here, if you actually know about the subject, which when it comes to writing eBooks, I suggest you do know about the subject and you're actually well versed on it. So what you can do here is you can take all of these different points and actually start expanding on them. So just write your notes, write whatever you think is important for each one of these subcategories. Aside from that, you can also tell it to elaborate on each chapter. So now it's starting to actually write the chapters for us. So chapter one, introduction to dropshipping 1.1, understanding the basics. Dropshipping is a business model where you sell products to customers without holding any inventory. 1.2, pros and cons, 1.3 is dropshipping right for you. As you can see, it's starting to write a little bit of everything, but depending on the book that you're writing, you can either keep it like this or you can ask ChatGBT to keep elaborating even more. Now my suggestion is once you have everything ready with ChatGBT is just read it over and make sure everything makes sense. That's why I mentioned you should be pretty well versed on the subject that you're writing an e-book for. So that way you can spot any mistakes. The second product we're gonna talk about is audiobooks. People love audiobooks and they love listening to them either when they're driving or when they're working, just having them playing on the side. Myself included, I love to listen to either audiobooks or audiobooks in the form of YouTube videos so that way I can get work done while listening to something either I'm interested in or something I wanna learn about. Now when it comes to audiobooks, there's a few different things that you can go about this. For one, you can create them yourself by either reading out your own e-books or reading out different types of books. For that, of course, you're gonna have to be pretty well voiced. You need to be able to speak clearly and a bit enthusiastically. You need to be able to show emotion in your speech. Aside from that, if that's not something that you're interested in, if you really don't wanna record, then you can also use things like an AI voice. There's different services online. All you have to do is simply just search up on Google AI voice generator and you're gonna get quite a few different websites where you can create an AI voice. From there, you simply have to input the text that you wanted to read out and just make sure everything is appropriate and sounds clear. Now the awesome thing about audiobooks is the fact that they can be used for pretty much anything. You can use audiobooks to read a children's novel or to read a full-on textbook. Digital templates are up next. And when it comes to digital templates, as I mentioned earlier, you have quite a few different ways to be able to create them. If you're creative and you have these ideas yourself, you can use a program like Photoshop or GIMP, but if you're not necessarily the creative type and you don't feel like coming up with these things from scratch, then you can simply log onto a website like Canva and create them on there. Now, if you're not very creative and you don't really like coming up with these ideas for yourself, kinda like me, then you can easily, once again, go to chatGPT and ask it for different ideas for templates. So I did that really quick. And as you can see, it gave me quite a few different suggestions. So for when you have social media graphics, so you can do things like Instagram post templates, Facebook cover templates, you have document templates, which could be a resume or a CV template or a cover letter template. You also have things like principles, event invitations, party flyers, calendars. Trust me, templates are an extremely hot digital item that I actually use myself. There's always something that I need to get done or some sort of image that I need to add to, I don't know, let's say a logo or a T-shirt for print on demand that I don't have the time to create myself, but I want a few different variations with. So trust me, when it comes to templates, there's a huge market out there for it. There's big demand. Artwork is another huge seller when it comes to the digital dropshipping business. Now, when it comes to artwork, you have quite a few different subcategories. So you can do things like basic images or basic graphics, you know, things that'll look pretty cool on, let's say, a T-shirt or part of a logo or logos themselves. You also have things like brand kits, PowerPoint themes, original artwork, icons, card designs, animations. When it comes to the artwork category, you have a lot of options. Now, if you have an eye for photography, you can also sell photographs. So if you take your own original images, you can easily upload those to, let's say, Etsy or your Shopify website and start selling those. People love photography. People love original images. So a lot of the times they're not shy about spending money for these kinds of products, especially since people love to print these out and actually frame them either on their wall, in their office, in their classroom, wherever it may be. And if you're not very good at photography, but you do have some ideas for products to sell, then you can simply go on over to a website like Pexels. Now, Pexels actually is completely royalty free. And here you can find pictures of just about anything for free that you have the rights to sell. So let's say I wanna sell a mountain image. So here you just simply go on pexels.com, look up mountains and look at all of these stunning images. Download it, maybe you can do a few edits to it if you want and then sell it. Or you're even able to sell it just like this. But like I said, remember that a lot of these products, as you just saw, you can find for free online. So if your customer knows about these particular resources, you might not make the sale. So this is the time that you do want to let your creativity start taking over and adjust the image a bit. Do a couple of edits. If you know Photoshop, try to edit it a little bit. You can also use a program like Adobe's Firefly to do some smart edits to it where the program itself actually does the editing for you. AI is crazy, I know. Or just figure out a way to market this product so well that people aren't even gonna think of looking for this image. There's tons of ways for you to be able to sell these kinds of products. So again, just think outside the box. Another great product to digitally dropship that can make you some pretty good money is gonna be software and apps. Now, I know when it comes to this, it can be pretty hard to get started. But if you're not tech savvy, if you don't know how to create your own software or if you don't know how to create your own apps, you can simply go onto a website like Fiverr and look for somebody to do it for you. If you look for these services, typically in different countries, you are gonna find them cheaper. So you can get an app or a software made and then simply sell it on your website. Of course, you need to make sure that the app is valuable. It provides good value. It actually gets something done depending on the niche that you're in and make sure it provides value to your customers as well as solves a problem. That's what's gonna make your app or software successful. Make sure it provides value and it solves some sort of problem. And last but not least, you can also dropship guides. So what do I mean by dropshipping guides? Well, if you're somebody that actually likes to travel, if you know a lot about a certain area, then you can start making different guides or different itineraries for people to visit whenever they're vacationing in a certain spot. So let's say you live in Las Vegas and you know all of the different hotspots for Vegas. You can start offering a guide or an itinerary for people to stay occupied or for people to visit during their trip to Vegas. Now, of course, a lot of these things you can find for free on, let's say, going to TripAdvisor. But if you make a detailed outline on something that somebody should be doing on day one, day two, day three, you can make it specific for people that are gonna be there for three days, four days, five days, an entire month. If you can get specific and get down to the nitty gritty on what people should be checking out for those particular days or the entire time that they're gonna be in a particular city, in this case, Vegas, then you can be looking at a pretty hot product, pre-designed itineraries and guides pretty much take all of the guesswork on what somebody needs to do or needs to see when they're visiting a different place. And that is digital dropshipping and how it compares to your traditional form of physical dropshipping. If you found this video helpful or if you found it informational, if you enjoyed the content, please make sure you leave a like and also make sure while you're there to hit that subscribe button and ring that little bell notification so you don't miss out on any future videos. Please also remember to let me know down in the comments below what you think about digital dropshipping. Are you still interested in it? Did this video spark an interest in it? What are your thoughts? Let me know down in the comments below. Huge thank you to everyone for watching, especially if you made it all the way to the end. It truly does mean a lot. Once again, my name is Mario with AutoDS and catch y'all next time.