Many small businesses cost absolutely nothing to start.
A simple drop-shipping model with a focus on sales and marketing will net you about $2,000 a month working from home. Optimize your sales funnel with the right tools and processes, and voilà. You're set.
First, find yourself some high margin products whose supplier is willing to drop-ship them. The beauty of "drop-shipping" is that you do not have to stock or touch any product. You don't pay the supplier until your customer places an order and pays you!
When it comes to pricing, the sweet spot is between $75 and $175 at an 8-10x mark-up. Let's say a customer orders this beautiful, $100 picture frame from you. You then send an invoice for the frame to your supplier. They charge you $13, and ship the frame straight to your customer. Meanwhile, you collect $100 for a profit of $87.
This margin will be plenty for advertising these frames on Google/Facebook. Let's assume it takes $17 worth of ads to make a sale and you have little to no no other operating costs. That's a net operating profit of $70/frame. Great! Your ad campaigns will run while you sleep.
The question I am most often asked is, "How do I find great suppliers offering me profitable margins?". This is what separates the great drop-shipping sites from the rest: finding the right suppliers, getting the right deals, and branding and pitching your products so they are perceived as high-value.
Finding suppliers and negotiating ideal contracts is a rigorous process. You should not delve too deeply into it until you have already established your niche as viable (ie. you get sales with reasonable marketing spend).
Instead, consider drop-shipping and wholesale directories. These middlemen already have relationships and contracts with suppliers in place. They will make your life a million times easier.
This directory has been my favorite for years, they have a lot of recognizable products, both brand-name and generic. Their interface is also very easy to navigate. If you don't already have an idea for what to sell, you will find one there.
Of course, you will need to build a website to showcase and sell your products. But you won't need to write a single line of code. In fact, it only takes a few hours to get an awesome site up and running with a content management system. You can pick your color scheme, drag and drop the images you like, and write your own content. Still, your site will appear more credible and professional than 90% of e-commerce sites.
Shopify is the most popular CMS out there for a reason. I’ve been using it for 2 years now and recommend it to everyone I can because it’s easy as hell to use and it’s optimized for e-commerce purposes. You list your products the way you want to and customers pay right there.
If you alternatively want to drop ship products from AliExpress instead of directories and/or simply want your store to work on auto-pilot, add this free plugin to your store. The plugin will allow you to automate practically everything inside your store, from pricing to shipment tracking and auto-fulfillment. But keep in mind that this will make you less money than using directories.
Drop-shipping is awesome because it’s incredibly inexpensive to start. Begin with a specific niche and expand later. Test, track, and improve your marketing efforts over time. As you refine your sales funnels, your profitability will grow exponentially.
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