Welcome back to Module 3 of What is Dropshipping Mini-Course. This lesson is all about working with dropshipping suppliers or known as drop shippers.
WHO ARE THE DROP SHIPPERS
A drop shipper isn’t just you and me, a drop shipper is also a supplier, and you are online retailers. We are an ecommerce marketing professionals. You have to understand suppliers to work with them. Who they are and who they want to work with. We have to know what is their ideal dealer so you can present yourself to them as a perfect dealer and entrust you to sell their products.
AVOID MIDDLE MAN
It is advisable to go directly to the manufacturers. The customer, you and the supplier, are the only people who should be in the picture. The lesser the people in your business, the more profit you will receive. I would suggest not to go to a middle man where they charge you per month for access to the drop shippers.
FIND THE COMPETITORS
The way to find the suppliers is to find your competitors first. You can start with Amazon or Google. You have to look for ecommerce websites with the same niche of your choice. Find the brands of that product and look for them on google. Check on their website if they have a storefront. If you find the address, search it on google if it looks like a store. If not, call them and ask them if they do dropship. I have this course called Niche Hacks where it will show you step by step process on how to do what I just talked about doing.
US-BASED SUPPLIERS ONLY
You will be working with US suppliers that can ship out products within two or three days, and the product will arrive at the customer’s door within a week. Those are the suppliers you want to work with because you will get fewer chargebacks as people get their product faster. You will also have an easier time dealing with the supplier in case there’s product damage issues or warranty issues.
WHAT TO AVOID
You want to avoid these low-value products as you have to do a lot of volume with that product to make a business model out of it. A lot of time, it is a product-specific. You have to test different products and run tons of different ads, and it is very time-consuming. With high ticket dropshipping, you have to pitch that brand on your website and run shopping ads. When someone searches for that product, they are going to find you place the order if you are right enough to do it. Avoid these dropshipping from China apps. Use this method and set up a real long term sustainable business.
A few more methods are to find trade shows in the US. You might be meeting brands that do not market themselves online that much. There is a possibility that they are new or more significant. If you talk to them, you might get a supplier account them and have a higher profit margin.
Directories are one robust method. It is a hit or miss. The cool thing about it is that you don’t have to walk around all day long chat with people and spend a lot of energy to find suppliers. Some are free for directories.
BEFORE ANYTHING ELSE
Before you contact suppliers to get an account, you must have some things finished. Choose your niche, create a website, and get a domain name. I show you a step-by-step process in my Masterclass, where you can find the website creation module. Just make sure to set up a legal business. If you have not done it before, you can take a business course or consult an accountant or lawyer. I cannot give you legal advice, but I can give you a couple of tips. That is a sole proprietorship is the purest form of business to start, but it leaves you with the most significant amount of risk and liability. If you have assets like home, cash, and investment account sign up a sole proprietorship sets you at risk to lose those assets in case your business gets sued.
The type of business that a lot of people are starting now is LLC. It can cost a lot of money depending on the state you set it up in. It is different for every state, but it gives you limited liability. It stands for Limited Liability Company. You have to register with the IRS, and you have to get an EIN which is free, and they have a website for that. Then you have to obtain a seller’s permit then get a bank account and credit card that you will need.
The key on the phone with the suppliers is never to be afraid. Have full confidence in your business even if you have never done it before. You don’t need to lie. You have to talk like a business owner. Don’t talk like a newbie or sound like a newbie because if you come off like a newbie, chances are you won't get the account. You have to follow up with them later when you have more confidence.
KNOW WHO YOU ARE DEALING WITH
Right suppliers are essential to a business. A good supplier has expert staff and focused on their industry. They are doing a lot of marketing for their products, friendly, knowledgeable, and dedicated support representatives. Those are the people you go to deal with issues specifically. Also, make sure they can take orders via email because having to process orders online is a pain, and it takes more extra effort and training to do. With an email, you have to print a purchase order and email it to them.
IDEAL LOCATION OF THE SUPPLIERS
Suppliers that are located in the central US are better than suppliers on either coast. A supplier from Los Angeles will take seven days to get to new york. If they are located in the central part of the US, it will be faster to ship anywhere in the US.
That is all the stuff you need to know when talking to the suppliers. I will be making this supplier sourcing course. Stay tuned for that, and it will come up for the next weeks or months. If it is already created, you will see the link below where you can sign up for the course.
I am going to be creating all sorts of the resource guide. Make sure to sign up for the email list, and you will get those email to you as soon as they are ready.
Next, we will be talking about finding the best products for drop shipping that goes along with suppliers. Stay tuned for that. If you pay for the full access, get into that next video right now.
See you in the next video.