 What you need to know to do dropshipping in 2020 now dropshipping has been around for a long long time But it's changed a lot in the past few years And if you don't know those changes it could cost you a lot of money or even cost your business in this particular video I'm going to go through all the things you need to know to do dropshipping in 2020 and we're starting right now Hey, I'm JR Fisher. Welcome. Welcome to my channel. In this particular channel What I do is I teach you how to start running grow online businesses I've been selling online since 2009 and I've actually sold millions of dollars of both digital and physical products And I've learned a few things along the way And what I do is I take those things and actually put them into this channel hand them to you So that you can get good results to heck I've got my branded products on thousands of websites including Walmart. So I've learned a few things now I also want to give you a free gift I have a 97 dollar e-commerce course that I want to hand you absolutely free All you gotta do is go down into the description there click on the link You don't need a credit card or anything like that and you can start learning Also, don't forget if you're brand new to this channel You got to subscribe hit that subscribe button down there and turn on All notifications hit that bell down there and once you do a little menu is going to pop up and you want to click on the one that says Get all notifications if you do that every time I upload a video every time I go live We will be able to tell you about it. You won't miss out on stuff. You don't want to miss out Okay, let's hit it. Let's talk about dropshipping. But first let's talk about what dropshipping is Now it kind of got a bad rap dropshipping did because people thought it was some type of you know Overnight scam type thing or you know some type of pyramid thing and nothing could be further from the truth Some of the biggest companies in America actually use dropshipping now we own a survival food company and we manufacture that food and 90 I'd say 90 over 90% of the food that we actually sell we drop ship for people who sell it on their sites People like Walmart sell this product on their site and when they get an order their order comes over to us And we actually ship it out That's all drop shipping really is is that you're selling something that you don't actually own the inventory of it Doesn't make it scammy or anything like that It just allows me to put my products on a whole lot of sites and let those sites sell my product without having to buy inventory So everybody makes out some of the other biggest drop shippers in the country are Costco and Target and Home Depot and you've probably heard of some of those they do a lot of drop shipping They don't you know, I it's so funny when you go to the Home Depot site They have all kinds of furniture there. You know, they don't have furniture at Home Depot They're drop shipping that from a manufacturer now I'm gonna show you a little visual so you can kind of visualize what's happening with drop shipping here. Check this out The consumer places an order, okay? And then the online store passes the order to the drop shipper now This would be us at survival cake food right here. The supplier ships the order directly to the customer so there's only a couple people involved in this and It's it's great for me as a manufacturer because I can sell products to people that I didn't even sell right somebody else Is out there doing it for me It's great for the seller because they don't have to spend any money on image Or all you gotta do is list it and sell the product and they collect their money before they have to pay me So everybody makes out Now here's the cool thing you don't have to have a lot of money to start drop shipping You don't have to buy anything matter of fact you can figure out if things are gonna sell You know beforehand by just listing them on your site if they sell great You go ahead and have it shipped out and if they don't you can always take it back off your site again Now this will probably blow your mind But during the period of 2016 17 23% of all online sales which amounts to eighty five point one billion dollars Were made via drop shipping so it's out there and it's out there in a big way and the big guy out there Amazon 34% of their total sales was drop shipping in 2011 And since then the numbers keep increasing and increasing and increasing So as you can see it's the way to go if you're not doing drop shipping actually you're missing out Now you may be thinking well if I'm doing drop shipping I'm not going to make as much but nothing could be further from the truth because you don't have the cost of warehousing You don't have the cost of inventory You don't have any of that cost as a matter of fact It's been proven that people who are drop shipping on their sites on average earn 18.33% More profit than people who sell products the conventional way now All this sounds good. It's great. You know no no investment in inventory and I can sell all these products But there is certain steps you need to go through and if you don't go through these steps And if you don't do these things You're not going to be profitable and you'll probably go out of business now The first thing we want to look at is the minimal start-up cost if you were to have a brick-and-mortar store You got brick-and-mortar right you're gonna have to pay for rent You're gonna have to pay for utilities you're gonna have to pay for the building you're gonna have to pay for employees But if you're doing drop shipping online, you could just pop a website up and you can be in business of no time and number two Don't forget. It's minimal order fulfillment cost So when a product gets fulfilled you essentially don't have any cost. That's the good thing about it I know when we had a warehouse and we use a drop shipping warehouse right now to do all this for us So we pay per order, but when we had our own warehouse and did this, you know, we had to pay the rent We had to pay the utilities We had to pay full-time employees and it didn't matter sales were up or if they were down we still had to pay So that that kind of you know ate up a lot of money for us because in good times that was great But when sales were down a little bit, we still had to pay all these people So we weren't making near as much profit and number three that brings me to a big one It's low risk and it's flexible so you can adjust Whatever you're doing to your sales and what those sales are because those drop shipping cost the cost of shipping that product Out is never going to change for you. It's going to be the same every time that package goes out Now you may get some quantity discounts along those lines, but you don't have to worry about fixed costs eating up all your profits Number four, it's easier to pivot. What do I mean by that? You can change your niche You can move to other products You can upsell to other products by just changing your pages and changing your funnels You don't have to worry about all this inventory that you got to get rid of for things that you have to do with Inventories or storing the inventory or being stuck in that niche. You could be selling, you know Pet supplies one day and camping supplies the next day. It's really that easy now I don't want to tell you everything's rosy because it's not as a matter of fact That's what this video was about is the things to avoid so that you are profitable. There are cons to Dropshipping and it's not con like scam. I mean, it's kind of like bad things that can go wrong number one is the big one Okay, it's overreliance on your partners You want to make sure if you're doing dropshipping that you don't you know hang your hat on one product You wouldn't have a lot of different products out there because if that one manufacturer if that one distributor goes away So does all your business so you want to make sure that you have several different products out there you're selling and If you can you can get several different suppliers for the same product in case one of them has a price increase in case One of them runs out of inventory you can automatically switch over to one of the other ones Number two is you don't have much control over your order delivery So once you collect the money and you give the money to that supplier that manufacturer that drop shipper You know they have total control so you don't know if they're shipping it fast enough. It's doing a good job I would highly recommend you checking them out first looking at how many people have dealt with them checking the references checking Reviews before you start listing their products on your site number three is I guess impaired customer service Because you're not going to really be Handling how that product is going to get replaced if it's broken or damaged or if it doesn't show up or something like that So you want to make sure that you're hooked into a drop shipper that is aware of that and cares about your reputation also Number four is a lack of branding since you are doing drop shipping of products in many cases You're not really building your brand because you're selling a product now some products You can actually have your logo put on I know we did some credit card knives and they had our name on it And that was kind of cool because everybody thought they were ours But there were a lot of people selling those credit card knives out there and the same thing with your product If you are drop shipping that manufacturer that drop shippers probably selling to a whole lot of other people So it makes that market a little bit more competitive number five You're going to have lower profit margins if you were to buy a product in quantity in a hundred of them or a thousand of them You could get those quantity discounts, but since you're doing one-off sales your profit margins are going to be a little bit less Which is a trade-off for doing drop shipping. Okay, so if you look at the graphic on screen right now You kind of see the pros and cons Now the pros being your lower startup costs eliminate inventory expense Minimize fulfillment expense and permits more risk-taking However, the cons are lower margins very competitive reliant on other companies and it's challenging to build brand Loyalty so when it comes down to it who is drop shipping for you know is drop shipping for you That's what you have to decide does this fit your business model now this drop shipping for you I don't know you've got to make that decision I will tell you that most people don't have a lot of money when they started business So this is a really good business model even Jeff Bezos who started Amazon He actually borrowed money from his parents to get his business going so that worked out pretty well for him Okay, so I'm not saying it's gonna work out the same way for you But the point is you don't have to have a lot of money to start off You just have to want to put forth that effort and work hard now the good thing is you know years ago If you wanted to start a business, I mean you had to have sizable capital investment So what it's done is it's lowered the barrier of entry to a lot of people out there There's a lot of people that can do drop shipping now and sell products without having that big investment that you would need If you had a storefront so it was a good for you know See if you follow it into one of these categories if you're an entry-level entrepreneur drop shipping is a great business model for you Because of the low barrier to entry because of the low need for cash for inventory So it's really good business model for somebody who is an entry-level entrepreneur Also, it's a great business if you have multiple niches, you know Maybe you're interested in cooking and you would have to cooking supplies And maybe you're interested in camping and you want to do camping supplies And you don't want to blend those two niches together so you can have separate sites You can have as many niches as you want You can try out different ones and figure out which ones work best for you So it's perfect for those people who have multiple product lines Number three if you're a budget entrepreneur, I know I was when I started off I started off with a hundred bucks. If you don't have that money to invest Dropshipping is probably the best way to go for you because if you don't have capital This is like a no risk thing because basically your only risk is your time And listing these products. If they don't sell you don't have to worry about getting rid of inventory Or anything along those lines Number four, if you're a retailer and you're looking for validation In other words, you want to make sure the product sells first Maybe you do want to buy in quantity. Maybe you do have a warehouse Maybe you do have space for inventory But you're not sure yet if that product is going to sell well The thing you can do is you can test 10, 12, 14 products Figure out which ones sell which ones you have some volume on And then you can actually go to Alibaba and you can buy in quantity That product that you were selling from Aliexpress and you have tested out the product You validate the product without having to invest all your money in inventory to figure out what works Number five, maybe you're a side hustler Okay, maybe you want to sell something on the side Maybe you've got a day job and maybe you don't have a whole lot of time to spend on this And you want to try out some products You want some little extra income Maybe you want to work in the evenings or on the weekends to earn some extra income Drop shipping is great for that Okay, so you're sold on drop shipping You want to do drop shipping The problem becomes where do you find products from Now one of the number one spots to find product for new entrepreneurs is Aliexpress Aliexpress is a site where you can actually integrate it with your store Let's say you have a Shopify store So that you can list those products on your Shopify store And there's a couple different add-ons You can add your Shopify store where you can just import those products over to Shopify And have them listed on your site without you physically having to upload each product Now you'll want to go in there and change product descriptions And you want to change some images and stuff like that But that's a great way to get it in your Shopify store When you go to Aliexpress You want to check out the ratings on any of the people that are going to be shipping out your products You want to make sure they got good reviews You want to go through and read those reviews And make sure they're up to your standards You want to look at shipping times All those things are super important Now that is if you want to use Aliexpress I'm also a drop shipper And people who sell camping supplies People who sell survival products They sell my products And I'm a U.S. drop shipper We make everything in the U.S. We ship it out from the U.S. And there are thousands of companies like ours out there Not necessarily that sell survival food But that sell all kinds of products out there That would be happy to drop ship for you So you're going to have to do your research Okay And you can Google drop shippers Be careful for these sites That sell every kind of product in the world And they say they're drop shippers Because they probably not You want to get as close to the manufacturer as possible You don't want to join some drop shipping club That type of thing Most of those are just rip offs You don't want to do that What you want to do is find an actual company That's willing to ship out their products That's the best way to do it That's what we do We manufacture and ship out the products For all of our retailers So I hope you enjoyed this video guys Whatever you have tried I want to hear in the comments below Let me know what you've tried If you've tried drop shipping If you've had some successes If you've had some problems And you have questions Put those in the comments below Don't forget to subscribe to this channel If you haven't done so already Hit that subscribe button down there Don't forget ring the bell Gotta ring the bell Turn on notifications And set it to see all notifications Super important that you do that Also don't forget I have a course down there It's a $97 course Free course Go down there and grab it It's just a link You just gotta click it and learn It's really super easy You can do that Not hard to do I really appreciate you listening If you have an idea about a video That you want me to do Put that in the comments below too I'll be happy to listen to that If I have enough interest I'll also do a video On what you want to learn about Thank you so much for listening And I will see you in the next video Don't forget to subscribe to my channel And click that little bell right here So you can be notified every time I do a new video Also click on one of those videos there Keep watching on my channel