Coaching Session 20 – Dropshipping

Video Lesson

Lesson Notes

• What is Dropshipping?
• What is Amazon Dropshipping?
• Role of Dropshipper
• Ways to operate a dropshipping business
• Examples of best-selling dropshipping items:
• How to research great dropshipping products?
• What is Niche Scraper?
• High-ticket and low-ticket items
• What are the helpful tools, software, and websites for Dropshipping?
• Some products to avoid in Dropshipping
• What Are The Benefits Enjoyed By Amazon Dropshippers?
• 8-Step Checklist on How to Dropship on Amazon?

  

What is Dropshipping?

 Dropshipping is the process of selling a product without the responsibility of carrying inventory or shipping the goods.  The product manufacturer is responsible for manufacturing the product, maintaining inventory, and shipping the goods to the customer.

What is Amazon Dropshipping?

Amazon dropshipping enables you to launch a new eCommerce business or introduce a new product line without investing thousands in stock upfront. You’ll have the freedom to test the market, changing your product selections if they’re not performing well without having to worry about unsold stock languishing in storage. You’ll also be able to jump off retail trends as they happen without worrying about surplus items once demand cools off

Role of Dropshipper

 Maintain an online store where you handle everything customer-related, from taking their orders, placing those orders with your supplier, and managing customer service.

• Be the seller on record of your products.
• Identify yourself as the seller of your products on all packing slips and other information included or provided in connection with them.
• Be responsible for accepting and processing customer returns of your products.
• Comply with all other terms of your seller agreement and applicable Amazon policies.

Two major ways to operate a dropshipping business:

 Operating within the Fulfillment program of a major eCommerce site like Amazon

1. Working with a trusted supplier who ships out individual items direct from their stock and sold through your own eCommerce website or social media.

Dropshipping products that sell well fall into two categories:

1.  Colourful, eye-catching, fun items like pocket money toys, slime and squishies
2. Useful items that solve an everyday problem for the consumer.

Examples of Best-Selling Dropshipping Items:

1. Play slime
2. Mobile phone neck holder
3. Magnetic / wireless phone chargers
4. Waterproof mobile phone cases
5. Car phone holder
6. Posture corrector
7. Portable blender
8. Spider nail gel (for customizing nail designs at home)
9. Eyeshadow stamp
10. Inflatable pet collar

How to Research Great Dropshipping Products?

1.  You can do your research by browsing top-selling products on popular eCommerce sites like Shopify and AliExpress for inspiration and helpful information
2. You can use a product research tool like Niche Scraper that analyses thousands of products each day to show which have the most dropshipping potential.

What is a Niche Scraper?

The Niche type of software uses a simple search function to analyze millions of products in different marketplaces across the web. It looks at current order volumes along with a product’s sales history to predict future sales potential. This type of tool can help sellers to jump on dropshipping products that are about to trend rather than already trending. It also provides insight on when to drop a certain product or range that is starting to drop in popularity.

High-ticket and Low-ticket Items

A Low-ticket item is simply a low-priced product, like a pen or a mug, that won’t yield a huge profit margin for the seller.  Low ticket items carry a much lower risk for dropshippers are a more sensible choice, especially for a new seller.

High Ticket items like furniture sell at more expensive prices and have bigger returns (but bigger risks) for the retailer. Customers also need to build trust with a retailer before spending large amounts of hard-earned cash, you’ll spend more time handling customer inquiries which may not necessarily result in sales.

What Are The Helpful Tools, Software, and Websites for Dropshipping?

1. Niche scraper is a powerful dropshipping and product research bot. It replaces the need to do hours of manual research into products with hit-and-miss results. Instead, you are provided with concrete sales data to help you make decisions and even spy on your competition.
2. Google trends is a free service provided by Google that shows you the latest trending search topics. The total global search volumes for chosen terms and can reveal a lot of interesting dropshipping niches.
3. Camel Camel Camel is an Amazon price tracking website that alerts you to price drops for millions of products listed on the site. It was voted as the most popular price tracking tool amongst Lifehacker readers in 2019 and allows you to follow price changes in real-time by using an RSS feed.
4. DS Comparison is a site that allows you to compare dropshipping software to decide which tools will best suit your individual needs.

Some Products to Avoid in Dropshipping:

1. Products that could be difficult to advertise.  Facebook, for instance, prohibits ads that feature adult toys and e-cigarettes.
2. Products that require approval before you can list them. Amazon also has certain restrictions on products you can sell and categories.
3. Items that are expensive to buy wholesale, will require you to add a huge mark-up to make a decent profit.
4. Avoid large, heavy, or bulky items when dropshipping. Many dropshipping programs (including FBA) charge a fee based on shipping cost, meaning that larger items incur a heftier charge.
5. Make sure that the items you sell within this market aren’t too unusual.

What Are The Benefits Enjoyed By Amazon Dropshippers?

1. No warehouse cost
2. Amazon Suppliers
3. Large audience to sell to
4. Multiple categories to target

8 Step Checklist on How to Dropship on Amazon:

1. Choose an E-Commerce platform – Shopify allows users to add Amazon as a sales channel to simplify managing orders on both platforms.
2. Sell the Right Products – There are several requirements and restrictions for store owners who want to sell their products on Amazon.
3. Create an Amazon Seller Account – If you plan on selling a high volume of products, it’s best to have a professional account. With a professional seller account, you pay a subscription each month, as well as a few additional fees.
4. Get Approved in Your Product Category – Certain niches and product types require Amazon approval. Fashion, beauty, and jewelry are some of the popular niches that require approval before starting up your Amazon store.
5. Set Up your Amazon Account on Shopify – Once you’ve been approved and your account is created, connect your Amazon account to your Shopify store. On the left panel in your Shopify account, scroll down to ‘Sales Channels’ and click the + button beside it.
6. Start Dropshipping from Amazon to Shopify – Click on the Amazon sales channel link, see Shopify’s left panel. Click ‘Create Listing.’
7. Have Shopify Track Inventory – Make sure that Shopify tracks inventory levels. This ensures that when a customer orders on Amazon, the product is still in stock.
8. Start Promoting your Amazon Store – You won’t get any sales if nobody knows about your store, right? The next step is to send traffic to it.

Portfolio

1. What is Amazon Dropshipping?
2. What are the key rules that Amazon allow their merchants to dropship on their platforms?
3. What are the benefits enjoyed by Amazon Dropshippers?

Email Subject: C20 -Batch #

 

Note: You can start watching the lessons in advance, but the submission of portfolios can only be done after joining the LIVE sessions/Orientation and during your scheduled batch only.

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