Drop shipping creating ad sets pdf download

Basically, you will learn how to work from home and earn yourself passive income , while selling real physical products on your own website or any marketplace of your choice such as Amazon or eBay.

Starting ecommerce store simply has two core processes, and that is buy product inventory and resell the products at your set prices. Some of the major challenges with this process is that you definitely need to raise capital that you will invest in buying your product inventories and the cost of renting a storage space.

Dropshipping allows you to start your own ecommerce store with ZERO investment on product inventory! Plus, you would not have to invest on renting storages. But with dropshipping; if a product does not sell, all you need to do is to find another products to sell and start selling, without you having to lose any of your own money! Beginners Guide. Because any of the three — manufacturer, wholesaler or retailer — can act as a drop shipper!

Similarly, a retail merchant can offer to dropship, although its pricing won't be as competitive as a wholesaler's because it isn't buying directly from the manufacturer. It simply means the company will ship products on your behalf. To get the best pricing, you want to make sure you're working directly with a legitimate wholesaler or manufacturer, a topic we'll be covering in- depth in the next chapter.

Dropshippin Dropshipping g in Action: The Order Process Now that you understand the players involved, let's take a look at how a drop shipped order gets processed. To illustrate, we'll follow an order placed with our theoretical store, Phone Outlet, an online merchant that specializes in accessories for smart phones. Phone Outlet dropships all of its products directly from a wholesaler we'll call Wholesale Accessories. Allen needs a case for his new smartphone and places an order via Phone Outlet's online store.

Allen get an email confirmation likely identical of the new order that is automatically generated by the store software. Allen's payment is captured during the checkout process and will be automatically deposited into Phone Outlet's bank account. Wholesale Accessories has Phone Outlet's credit card on file and will bill it for the wholesale price of the goods, including any shipping or processing fees. NO NOTE: TE: Some sophisticated dropshippers will support automatic XML a common format for inventory files order uploading or the ability to place the order manually online, but email is the most common way to place orders with dropshipping suppliers because it's universal and easy to use.

Step 3 — Wholesale Accessories Ships the Order Assuming the item is in stock and the wholesaler was able to successfully charge Phone Outlet's card, Wholesale Accessories will box up the order and ship it directly to the customer. Though the shipment comes from Wholesale Accessories, Phone Outlet's name and address will appear on the return address label and its logo will appear on the invoice and packing slip.

Once the shipment has been finalized, Wholesale Accessories will email an invoice and a tracking number to Phone Outlet. Most quality suppliers will be able to get an order out the door in a few hours, allowing merchants to advertise same-day shipping even when they are using a dropshipping supplier. Step 4 — Phone Outlet Alerts the Customer of Shipment Once the tracking number is received, Phone Outlet will send the tracking information to the customer, likely using an email interface that's built in to the online store interface.

With the order shipped, the payment collected and the customer notified, the order and fulfillment process is complete. Phone Outlet's profit or loss is the difference between what it charged Mr. Allen and what it paid Wholesale Accessories. Dropshippers Are In Invisible visible Despite its critical role in the ordering and fulfillment process, the dropshipper is completely invisible to the end customer. When the package is received, only Phone Outlet's return address and logo will be on the shipment.

If Mr. Allen's receives the wrong case, he would contact Phone Outlet, which would then coordinate behind the scenes with Wholesale Accessories to get the right item sent out. The dropshipping wholesaler doesn't exist to the end customer. Its sole responsibility is to stock and ship products.

Everything else — marketing, website development, customer service, etc. A true wholesaler buys directly from the manufacturer and will usually be able to offer you significantly better pricing. Unfortunately legitimate wholesalers are traditionally poor at marketing and tend to be harder to find.

This results in the non-genuine wholesalers — usually just middle men — appearing more frequently in your searches, so you'll want to be cautious.

If a supplier asks for a monthly membership or service fee, it's likely not legitimate. It's important to differentiate here between suppliers and supplier directories. Supplier directories which we'll discuss shortly are directories of wholesale suppliers organized by product types or market and screened to ensure the suppliers are legitimate.

Most directories will charge a fee — either one time or ongoing — so you shouldn't take this as a sign the directory itself is illegitimate. This is standard in the industry, as the costs of packing and shipping individual orders are much higher than shipping a bulk order.

They do this in order to filter out window- shopping merchants that will waste their time with questions and small orders but won't translate into meaningful business. If you're dropshipping, this could cause some complications. You can use a number of different strategies, some more effective than others. The methods below are listed in order of effectiveness and preference, with our favorite methods listed first: Contact the Manufacturer This is our favorite way to easily locate legitimate wholesale suppliers.

If you know the product s you want to sell, call the manufacturer and ask for a list of its wholesale distributors. You can then contact these wholesalers to see if they dropship and inquire about setting up an account. Since most wholesalers carry products from a variety of manufacturers, this strategy will allow you to quickly source a selection of products within the niche you're exploring. After making a couple of calls to the leading manufacturers in a niche, you'll quickly be able to identify the leading wholesalers in that market.

Search Using Google Using Google to find high-quality suppliers may seem obvious, but there are a few rules to keep in mind: 1. So while a quality site may indicate a good supplier in some cases, many legitimate wholesalers have cringe-worthy homepages. Don't let the poor design scare you off.

Here's how it works: Find a competitor you think is dropshipping and place a small order with that company. When you receive the package, Google the return address to find out who the original shipper was. In some cases, it will be a supplier you can contact. This is a tactic we've heard discussed by others but haven't used ourselves.

And if you haven't been able to find a supplier using the other techniques discussed above, there might be a good reason i. So keep this technique in mind, but don't rely too heavily on it. Attend a Trade Show A trade show allows you to connect with all the major manufacturers and wholesalers in a niche. It's a great way to make contacts and research your products and suppliers all in one spot. But if you have the time and money to attend, it's a great way to get to know the manufactures and suppliers in a market.

Directories One of the most common questions aspiring ecommerce entrepreneurs ask is: Should I pay for a supplier directory? A supplier directory is a database of suppliers that's organized by market, niche or product. Many directories employ some sort of screening process to ensure the suppliers listed are genuine wholesalers. Most are run by for-profit companies who charge a fee for access to their directory. While membership directories can be helpful, especially for brainstorming ideas, they are by no means necessary.

If you already know the product or niche you want to sell, you should be able to find the major suppliers in your market with a bit of digging and the techniques discussed above.

Plus, once you start your business you likely won't need to revisit the directory unless you need to find suppliers for other products.

If you're short on time and are willing to spend the money, they can be a helpful tool. There are a number of different supplier directories, and a comprehensive review of all of them is beyond the scope of this guide.

Instead, we've highlighted some of the most well-known supplier directories online. It advertises that it only includes suppliers that meet a set of guidelines to ensure legitimate, quality wholesalers.

We've used the directory in the past to find legitimate wholesalers and to brainstorm niche ideas — and found it useful. Though the directory is missing some suppliers we've worked with, it does include a large collection of legitimate wholesalers. If you want lifetime access to a quality directory and are comfortable with a larger one-time payment, Worldwide Brands is a safe bet. If you're comfortable paying an annual membership — or only need to use a directory temporarily - SaleHoo might be worth a look.

Membership also includes a Push-to-Marketplace tool that automates the process of listing items on eBay. If you place a high value on convenience and can find the products you want among their suppliers, Doba's interface may be worth the cost. If there are only a few key suppliers in your niche — reducing the number of parties you have to coordinate with — this may be the way to go.

They also claim to review and screen all suppliers to ensure they are legitimate and trustworthy. So while we're sure there are genuine wholesale opportunities listed, you may want to be a little more thorough with your due diligence. Before You Contact Suppliers Alright, so you've found a number of solid suppliers and are ready to move forward — great!

But before you start contacting companies, you'll want to have all your ducks in a row. Most wholesalers only reveal their pricing to approved customers, so you'll need to be legally incorporated before you'll get to see the kind of pricing you'll receive.

Bottom line? Make sure you're legally incorporated before contacting suppliers! But don't expect to launch without having your business properly set up. We'll talk more about setting up your business in Chapter 5. So if you're launching a new business, be aware that many suppliers aren't going to go out of their way to help you get started.

Most will be happy to set you up with a dropshipping account if they offer it. But don't ask for discount pricing or spend hours tying up their sales representatives on the phone before you've made a single sale. It will quickly earn you a bad reputation and hurt your relationship with the supplier. If you do need to make special requests say, trying to convince a supplier to dropship when it normally doesn't , you need to build credibility.

And be sure to communicate any professional successes you've had in the past — especially with sales and marketing — that will help you with your new venture.

You need to convince suppliers that the inconvenience of accommodating your special request s will pay off down the road when you become successful and start bringing them a ton of business. For many, this is a paralyzing prospect.

You might be able to send emails for some issues, but more often than not you'll need to pick up the phone to get the information you need. The good news is that it's not as scary as you might think. Suppliers are accustomed to having people call them, including newbie entrepreneurs. You're likely to get someone who's friendly and more than happy to answer your questions.

It's amazing how much easier it is to make the call when you've got a list of pre-written questions to ask. Being able to call a representative with questions is invaluable, especially if you're launching a store in a niche you're not overly familiar with.

We've dealt with wholesalers that don't assign specific representatives and we hate it. Problems take a lot longer to resolve, and we usually have to nag people to take care of an issue. Having a single supplier contact who's responsible for solving your issues is really important. Features such as real-time inventory, a comprehensive online catalog, customizable data feeds and an online searchable order history are pure luxury for online merchants and can help you streamline your operations.

When a supplier is located on one of the coasts, it can take more than a week for orders to be shipped across the country. Centrally located suppliers allow you to consistently promise faster delivery times, potentially saving you money on shipping fees.

Others will botch every fourth order and make you want to tear your hair out. The trouble is, it's difficult to know how competent a supplier is without actually using it. Although it won't give you a complete picture, placing a few small test orders can give you a great sense of how a supplier operates. Once you've established a thriving business, paying with credit cards is often still the best option. Because you're buying a product for a customer who has already paid for it on your website, you can rack up a high volume of purchases through your credit card without having to incur any actual out-of-pocket expenses.

This simply means that you have a certain number of days to pay the supplier for the goods you've purchased. Usually, a supplier will make you provide credit references before offering net payment terms because it's effectively lending you money. And it's understandable — it's likely the biggest decision you'll make and has long-term consequences on the success or failure of the business. The most common mistake at this stage is picking a product based on personal interest or passion.

This is an acceptable strategy if being interested in the product is your primary objective, not necessarily business success. But if your 1 goal is to build a profitable dropshipping site, you'll want to consider setting your personal passions aside1 when doing market research, or at least making sure they meet with the criteria discussed below.

This limits competition and allows you to charge a premium price. If you intend to dropship products, you'll be selling existing products manufactured by someone else, so this isn't an option. These arrangements can be difficult to arrange, 1. The only problem?

It's a business model doomed to failure. If the only thing of value you have to offer is a low price, you'll be caught in a pricing war that will strip virtually all your profits. Trying to compete against Amazon2 and other established online giants on price is generally a poor strategy.

Entrepreneurs set out to solve people's problems, and that's no different in the world of ecommerce and dropshipping.

Offering expert advice and guidance within your niche is the best way to build a profitable dropshipping business. Simple enough, right? Well, that's easier said than done. Some products and niches lend themselves to this strategy more than others. You should look for a few key characteristics that make adding value with educational content much easier. Which purchase is more confusing: buying a new office chair or buying a home security camera system that requires multiple cameras, complex wiring and a recorder?

The more components a product needs — and the more variety among those components — the greater your opportunity to add value by advising customers on which products are compatible. Would you inherently know how to select the best hot water solar panel configuration for your climate or which type of wireless dog collar system is right for your yard? Being able to offer specific guidance on what types of products are best suited for specific environments and customers is a great way to add value.

Take the security camera system from before. Let's say the camera site had a detailed page installation guide that also covered the most common mistakes people make installing their own systems.

If you thought the guide could save you time and hassle, there's a good chance you'd buy it from that website even if it was available for a few dollars less elsewhere. For store owners, the guides add tremendous value to customers and don't cost anything to provide once they're created. It's strange how some customers buying small items feel entitled to demand the moon while other big spenders rarely ask for anything.

Targeting the right demographic can be a big boon for your business. Many serious mountain bikers have bikes that cost more than their cars, and folks who love to fish might spend a fortune outfitting their boats. If you can target the right hobbyist niche and successfully connect with enthusiasts and their needs, you can do very well. Once you've established a rapport and earned their trust, you open the door to a long-term, high-volume profitable relationship.

If at all possible, try to sell products that appeal to both individual customers and businesses. Chances are, most would want to chat directly with a sales representative before making such a large purchase, both to ensure the item is a good fit and to make sure the store is legitimate.

If you plan to sell high-priced items, make sure you're able to offer personalized phone support. You'll also want to ensure that the margins are rich enough to justify the pre-sale support you'll need to offer. This pricing floor prevents the price wars that often break out — especially for products that are easily drop shipped — and helps ensure that merchants can make a reasonable profit by carrying a manufacturer's products.

With prices the same across all competitors, you can compete on the strength of your website and won't have to worry about losing business to less reputable but cheaper competition.

Can you brainstorm a number of ways you could promote your store by, for example, writing articles, giving away products or reaching out to active online communities that use the products you're selling? If not, you may want to reconsider. As customers, we're also much more sensitive about the price on a big-ticket item and care less about the price of smaller accessories. To use the previous example, you'd likely shop around for the best price on an expensive smartphone.

Probably not. You'll likely purchase it from the same store where you bought the phone. But if the products you sell change every year, maintaining that site is quickly going to turn into a mountain of work. Try to find products that aren't updated with new models every year. That way, the time and money you invest in a superb site will last longer. But where would you buy a medieval knight's costume or falcon training equipment?

You'd probably head to Google and start searching. The smaller the items, the easier they are to ship cheaply to your customers. Picking a profitable niche isn't easy and requires you to consider numerous factors. These guidelines should give you a good idea of the types of drop shipped products that work well.

For more on these attributes, please see this extended article on picking a profitable dropshipping niche3. If nobody wants your product, you'll have a hard time making any money! As the old saying goes, it's much easier to fill existing demand than to try to create it. Fortunately, a number of online tools allow you to measure demand for a product or market. The most well-known and popular is the Google Keyword Tool. Fortunately, Google makes this search volume publicly available via its keyword tool.

Simply type in a word or phrase, and the tool tells you how many people are searching for it every month. There are entire training modules dedicated to using the keyword tool, and we're not able to cover the tool exhaustively in this resource.

Unless you have a good reason to do otherwise, you should use the exact match option. This will give you a much more accurate picture of the applicable search volume for the keyword. For a more detailed explanation, see this article on understanding match types4. If you'll be selling primarily in the U. In reality, it's the longer, more specific and lower volume search queries that will make up most of your traffic from the search engines. Keep this in mind when you're looking at potential markets and niches to enter.

If a search term has many variations that are actively searched for, that's a good sign that the market is fairly deep with lots of variety and interest. But if search queries and related volume drop off precipitously after the first few high-level words, there's probably less related long-tail traffic.

Google Tren Trends ds The keyword tool is great for raw search figures, but for more detailed insights you'll want to use Google Trends. For any given search query, you can see the growth or decline in search volume over time. Focusing on these popular and quickly growing terms can be helpful when planning your marketing and SEO efforts. This can help you identify where your customer base for a niche is most heavily concentrated.

For example, if you're selling canoes the charts below can help you determine that the majority of your customers will likely come from the Northern U. Because the keyword tool provides data on a monthly basis, you can draw some misleading conclusions if you measure search volumes during the wrong time of year. If you measured demand in the summer expecting that it would be constant throughout the year, you'd grossly overestimate the size of demand: For any product you're seriously considering, you'll want to spend time understanding the intricacies of the niche's search volume.

Using the Google Trend tool to understand search volumes, geographic concentration, high-level search trends and seasonality will offer insights that can help you avoid costly mistakes and optimize your marketing efforts. Measuring Competition Conducting competitive analysis on a potential market can be tricky.

Too much competition and you'll have difficulty building traffic and competing with established players. Too little competition can indicate a tiny market that will drastically limit how big you'll be able to grow. With this in mind, the best way to measure the overall competition in a market is to examine the organically listed i.

In order to generate a decent level of traffic, you'll need to successfully compete with i. The world of search engine optimization SEO is one we can't do justice in this dropshipping guide. But for the sake of evaluating competition, these four metrics will help you quickly gauge how strong the field is — and how hard it will be to outrank your competitors and generate traffic.

All else equal, the more links a site receives the higher it will rank in the search results. Knowing how many links are pointing to a site will give you an idea of how much work you'll need to do in terms of earning and building links to your own site to outrank your competitor.

There are dozens of different SEO metrics that are commonly used, but one in particularly is useful when evaluating the ranking strength of a site: the number of unique domains that link to it.

To best understand this concept it's helpful to think of links like personal recommendations. If your best friend comes to you and recommends a restaurant, you may remember it. And if he raves about it every day for a week a total of seven recommendations you'll likely be moved to eat there.

But even his fanaticism wouldn't be nearly as powerful as if seven unique, unrelated friends highly recommended the restaurant. Because they're independent sources, their recommendations hold much more authority. Instead, looking at the number of unique linking domains will give you a much better idea of how difficult it will be to compete with a site in the search results. Google places a high emphasis on unique linking domains, so you should, too. The best way to get this figure is to use a tool called Open Site Explorer9.

When examining Google's search results, you'll want to look most carefully at the link metrics for the top few sites 1 and 2 in Google as well as the link metrics for the last site on the front page 10 in Google. This will give you a rough idea of how much work is needed to not only rank 1, but also to simply make it on the first page of search results.

The vast majority of searchers ends up clicking on one of the top ten results in Google, so you want to understand how difficult it will be to get your site ranked there. Here's a quick cheat sheet for interpreting the number of unique linking domains.

These are only rough guidelines but should help you make sense of the numbers. Most sites with quality content and some focused marketing and SEO effort should be able to get 50 linking domains within a year. It may take a multi-year approach to build a backlink profile in this range, but it's feasible. A competitive landscape with this profile often offers the best work-to-reward ratio, especially for individual dropshipping entrepreneurs or very small teams.

It's not always a deal killer — just make sure you're ready to face some entrenched competition. Authority of Competin Competing g Sites When determining a site's rank, Google doesn't just look at the number of links a site has. It also considers the quality of those links. The metric Google uses to measure a page's authority is called PageRank It's not the end-all-be-all of SEO metrics, but it's a quick way to get an idea of how important Google thinks a page is.

As with unique linking sites, you can get a sense for how competitive a market is by looking at the PageRank for the homepages of top-ranked sites.

You can also check sites manually using sites like this one PageRank in this range for the top homepages likely indicates a relatively small market. It's not necessarily easy to reach this level of authority — but not impossible, either. Markets in this range usually offer the best work-to-reward range for individual drop shippers. To reach this level, you'll need to get numerous links from respected, authoritative sites, in addition to a fair number of other links.

Because you'll need them to compete in a market with sites like this. Do they appear inviting and welcoming or old and outdated? Are the sites well-organized and easy to navigate or is it a struggle to even find the search box? Do they provide high-quality information and detailed product listings or do you have to squint to make out the grainy product images?

In short, how likely would you be to purchase from those sites? If you're blown away by the top sites in a market, it will be difficult to differentiate yourself and you may want to consider a different market. But if there's a lot of room for improvement — or, as we see it, opportunity to add value — that's a great sign.

Alternatively, the most beautifully designed site might have a widespread reputation for awful customer service. It can be difficult to judge a book by its cover. Check with the Better Business Bureau14 to see if a company has a history of customer complaints. You'll also want to do a web search to see what people are saying on social media and in online forums and communities.

If the top competitors are slacking in the service and satisfaction department, there might be an opening for a store with superior service.

An Importan Importantt N Note ote on Search Results When you perform a search, it's important to realize that Google personalizes the results you see based on your geographic location, your browsing history and other factors.

When we're analyzing a market, we need to see unbiased results so we can understand the real competitive landscape. Also, if you're living outside the states but plan on selling to US customers you need access to In this mode, any personalized settings or browsing history will discarded so you can get an unbiased idea of how sites actually rank.

For a more detailed explanation of how to implement this, please see this guide to tweaking geo-targeting with Google15 and this list of country codes used by Google One Final Thin Thing g Aspiring dropshipping entrepreneurs commonly want to know, How can I be sure that my niche will work out? The answer is, you can't! While the tips and guidance in this chapter will dramatically increase your chances and help you make an informed decision, there's no way to know for sure if you'll succeed in a market without diving in.

We've started numerous businesses — some of which succeeded and some of which flopped — and we've always had doubts at the beginning. That's part of the uncertainty that comes with starting a business and venturing into the unknown. What separates entrepreneurs from mere dreamers is a willingness to move forward despite the uncertainty and give it their best. But then make the best decision you can and move forward despite your hesitations and fears. Before you get started, you'll want to consider taking the following business and financial steps if you're serious about your new venture.

Some are mandatory from the outset while others are just a good idea, but dealing with them up front will save you time and headaches down the road. The Commitmen Commitmentt Req Required uired As with any other business, building a successful dropshipping business takes significant commitment and a long-term perspective. If you're hoping for a six- figure income from six weeks of part-time work, you're going to be sadly disappointed.

By approaching your business with realistic expectations about the investment required and your profitability, you'll be much less likely to get discouraged and quit. When starting a dropshipping business, you'll need to invest heavily using one of the following two currencies: time or money.

Investing Time Bootstrapping and investing sweat equity to build your business is our recommended approach, especially for first-time dropshipping entrepreneurs. It may be a bit more challenging, but it's definitely possible to get started with dropshipping even if you're still working a 9-to-5 position assuming you set appropriate expectations regarding customer service and fulfillment times for your customers.

As you start to grow, you can then transition into working full-time on your business as cash flow and profitability allows. If you have the option to work on your business full-time, it's the best choice to improve your profit potential and chance of success.

Focusing all your efforts on marketing is especially helpful in the early days when building momentum is crucial. Much of your investment pays off in terms of the efficiency and scalability offered by the dropshipping model. Investing Money It's possible to create and grow a dropshipping business by investing a bunch of money, but we advise against it. We've tried both approaches to growing a business bootstrapping it ourselves versus outsourcing the process and have had the most success when we've been in the trenches doing most of the work.

In the early stages, it's crucial to have someone who is deeply invested in the success of the business building it from the ground up. Without understanding how your business works at every level, you'll be at the mercy of expensive programmers, developers and marketers who will quickly eat up any profits you're generating.

You don't need to do absolutely everything yourself, but we strongly recommend being the primary driving force at the outset of your venture. You'll need this for minor operating expenses such as web hosting and suppliers and to pay any incorporation fees, which we'll discuss below. For information on incorporating a U. If you happen to be Canadian, this guide to Canadian incorporation17 should be helpful. So if your business is sued, your personal assets also may be in jeopardy.

Filing requirements are minimal, and you simply report your business's earnings on your personal taxes. No other state or federal business filings are required. While the liability protection isn't foolproof, it does offer more protection than a sole proprietorship. You may need to comply with additional filing requirements and will need to pay both incorporation and ongoing fees.

They are likely to be more expensive to incorporate and are subject to double taxation, as income doesn't pass directly to the shareholders. So which structure to choose? Again, we're not lawyers and would advise you to consult with one before making any incorporation decisions. Most small entrepreneurs tend to go with either a sole proprietorship or an LLC. Personally, we've used an LLC for all of our dropshipping businesses because we feel it offers the best trade-off regarding liability protection, autonomy from personal finances and costs.

You'll need this number to file your taxes, apply for wholesale dropshipping accounts, open a bank account and pretty much do anything related to your business. You can easily apply for an EIN number online Gettin Getting gYYour our Finances in Order One common mistake entrepreneurs make when starting a business is blending their personal and business finances. This causes confusion, makes accounting more difficult, can lead to personal assumption of business liabilities and is a big red flag for the IRS if you're ever audited.

You'll want to keep your business and personal finances separate as much as possible. The best way to do that is by opening up new accounts in your business's name. All business revenue should be deposited into it and all expenses should be withdrawn from it. This will make accounting much easier and cleaner. Because you'll be buying a lot of merchandise from suppliers, you can rack up some serious rewards with the right rewards travel cards. There's a good chance If your state does charge sales tax, be prepared to collect it on the limited number of orders from customers in your home state.

You'll want to contact your state's Department of Commerce to register as a retailer and find out how frequently you need to submit the tax you collect. Local Business Licenses Most cities and towns require businesses to get a business license that needs to be renewed on a regular basis. However, this requirement may differ for dropshipping businesses, many of which will likely be operated from home offices. You'll want to look into your local laws and regulations to see what, if anything, is required.

Incorpora Incorporatin ting g Outside the U U. It can be complex, but it's possible for international merchants to incorporate a business in the United States, giving them access to U. The merchant will need to come to the U. Next, you need to decide how to get your products in front of prospective customers. Several sales options are available, but you'll most likely choose one or a combination of selling on your own online store, eBay, or Amazon. Dropshippin Dropshipping g on eBa eBay y As the world's largest auction site for physical goods online, eBay is a site most people know well.

Create an account, add a listing and you're in business. Millions of people will see your listings, and the fairly robust and active market will help ensure you get a decent price for your products. This saves you time, as marketing is one of the biggest challenges associated with launching a dropshipping business. In the dropshipping market, where margins are already fairly thin, this will cut into a large portion of your profits.

Some tools help automate this process, but it's still not as straightforward as listing a static product for sale on your own ecommerce website.

Any goodwill you bank up through excellent service will likely be lost. The marketplace structure is created to serve itself. You will be significantly restricted in how you communicate with customers, how you brand yourself, the design of your store, and so on. When you sell on eBay, you're not building a lasting brand or web property with any tangible value that can be sold in the future. Dropshippin Dropshipping g on Amazon Although Amazon stocks and sells a number of items, many of the products listed are actually sold by third-party merchants via Amazon's website.

Like eBay, Amazon acts to help facilitate the sale and to resolve any problems that arise. Amazon also offers its own fulfillment warehouses Fulfillment by Amazon , which allow you to complement your drop shipped items with products of your own without having to deal with packing, shipping or warehousing. Again, if you're working with relatively small dropshipping margins, this will take a hefty chunk out of your profits.

Amazon has been accused of using this data27 to identify great selling opportunities and strengthen its own involvement in the niche, ultimately pushing out other merchants selling through its marketplace. Be prepared to be severely restricted on how you can brand your business, display your products and communicate with your customers. This is the method that attracts most people interested in building a successful dropshipping business.

You can customize the look and layout, and create custom product pages optimized to best inform your customers about the products. If you choose to build your online store with well respected hosted ecommerce platform your site will likely be responsive, which means it will look great on an iPad or mobile phone.

Some online store platforms, like Shopify, let you manage your entire business from your mobile device. This is particularly attractive to dropshipping business owners who often like to run their business on-the-go, or even on the beach somewhere.

Most importantly, you'll be building a business with equity. It's much easier to sell a business built around an independently owned website. There's more cost involved — either money or time invested — and you'll need to be willing to invest in a long-term campaign to promote your new store.

With your own site, you're ultimately responsible for configuring the design, layout and structure of your store. And if you're hosting your own store versus using a hosted service like Shopify , you'll be responsible for any technical configuration related to the software and servers.

So which platform should you choose? There's a lot to consider, and different platforms will be better suited for different people and situations. If you're looking to dip your toes into the dropshipping waters and explore it as a hobby, selling on eBay and Amazon can be a viable way to move forward if you can find products with enough margin to cover your fees and still make a profit. There are many people making money selling on eBay and Amazon so you shouldn't dismiss it.

But if you're serious about building a long-term business, we recommend starting your own ecommerce store. As discussed above, it offers the most flexibility, customization, ability to connect with customers, the chance to build real brand equity, and so much more.

Also, there's nothing wrong with selling a few items on eBay and Amazon while you're in the early stages of building your store.

In fact, a number of mature, established brands sell merchandise this way, particularly through Amazon. Many of these detailed suggestions are drawn from two basic principles about dropshipping: 1.

From botched orders to out-of-stock items, fulfillment problems will be something you'll have to deal with. If you accept this ahead of time, you're less likely to throw in the towel due to frustration. Given the inherent complexity of dropshipping — multiple suppliers, shipments from various locations, etc.

But if you try to do this, you'll likely go crazy, spend thousands on custom development and never launch a store. With these two concepts in mind, let's discuss how to structure your business operationally to make things run as smoothly as possible. When Suppliers Botch an Order Even great suppliers make mistakes, and you're guaranteed to have fulfillment errors from time to time. So what do you do when your supplier sends the wrong item — or nothing at all? It will only cause confusion and make you look like an amateur.

The customer has no idea the drop shipper even exists. Instead, you need to own the problem, apologize and let the customer know what you're doing to fix it. This could mean refunding the shipping fee a personal favorite of ours or an upgrade if the customer needs a new item shipped out.

Any reputable supplier will pay to fix its own errors, including paying for shipping costs to return items. However, it probably won't pay for any freebies or upgrades you gave the customer see above.

You need to chalk those up as public relations and brand- building expenses. Again, even the best suppliers will occasionally make mistakes, but be extremely wary of a supplier that habitually botches your orders and fails to fulfill them properly. Unless you can get the supplier to change unlikely , your business's reputation will suffer.