Dropshipping 101 MRR Ebook

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Introduction

What is the perfect business model?

Of course that will all depend on who you ask and on your personal preferences.

But it is definitely very possible to make an especially strong argument for dropshipping. This is a business model that has huge advantages over selling your own products, over becoming an affiliate marketer and certainly over making money from adverts. It has all the strengths of each and none of the downsides of any of them.

This is a business model that allows you to work from home and earn passive income, while at the same time building a big brand for yourself and selling real physical products.

So why isn’t everyone getting involved in dropshipping already? Why do so many people still choose to make money as an affiliate marketer instead?

The answer is simple: a lot of people still don’t know what dropshipping is, or how to get involved in it. Of course this book is going to change all that and help you to understand what dropshipping is, why it’s so beneficial and how to get started with it.

By the end, you will be running your own dropshipping business – making money by selling products with your branding on and without having to spend any money upfront or take any form of financial risk.
Didn’t I say it was the perfect business model?

Chapter 1: What is Dropshipping?

Dropshipping is technically a ‘fulfilment model’. Fulfilment in a business term of course means delivery, so in this sense, drophipping 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 would buy wholesale items (inventory bought in bulk at a discounted price) and you would then sell it on at an inflated cost and keep the difference (your profit margin).

The problem with this model is that you need to make a big investment in the stock first of all and then that you have to deliver the products to your customers. This means you’re taking a financial risk by ordering the stock in advance (if you make zero sales, then you’ll have lost out on a lot of cash). At the same time, it means you need to not only pay for the shipping but also handle all 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 on for an individual hoping to run a business from home in their spare time.

Dropshipping changes this because now the wholesaler is handling delivery and they don’t require you to order in bulk.

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 product on your behalf and make sure it reaches the buyer and you get the money!

Dropshipping vs Affiliate Marketing

This might sound very similar to affiliate marketing but there are a few key differences. For starters, the amount of money you earn will tend 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 2x the amount you pay the manufacturers. This is one of the most common conventions for this type of business and to all extents and purposes, dropshipping businesses are resellers.

The other big benefit of dropshipping over affiliate marketing is that you don’t have mention the existence of the dropshipping business at all. In other words, the customer never knows that it’s not you who is selling the product. You’re not sending them to another website where they can checkout and sell 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 visitors away from your brand in order to make the sales!

Chapter 2: The Big Advantages of Dropshipping

Hopefully, you can already see some of the big advantages of dropshipping. There are many more besides though too, which we will delve into here…

The Ability to Sell Physical Products

Working as an affiliate marketer will often mean that you have to sell digital products in order to get the big profit margins. While it’s true that you can get 75% and upward from affiliate networks like JVZoo, this will normally mean that you’re limited to selling ebooks and online courses. This can be an effective way to run a business model but it is also sometimes quite restricting. While digital products have many advantages, their appeal is not as broad as it is for physical products.

For example, if you try and sell a digital product to your grandma, you’ll probably have difficulty. The same probably goes for your Mum. And most likely your Dad.

And it also goes for most of your peers in reality! In fact, the main kind of person willing to spend lots of money on an ebook or online course is going to be someone who is already quite familiar with technology. The person most likely to buy from you of all is probably other digital marketers looking for more ways to make money online. And as you’re probably aware, these are a savvy bunch who aren’t easily going to have the wool pulled over their eyes!

That, and they’ve already had people online try to sell them just about every digital product in existence. How many times have you seen ads on Facebook for ‘make money at home’ schemes?
It’s just a very crowded market with a limited potential audience.

Clothes on the other hand are something you can sell to anyone! And then there’s all the rest: stuff like technology, toys or fitness supplements. Suddenly, you can sell things that average people really need and that makes a massive difference!

• License: Master Resell Rights
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