How To Start A Dropshipping Business in 2020
Start a high ticket dropshipping today and get launched in 30 days and start making money within 3 months
You might think that dropshipping is hard but it’s not.
It is simple and easy.
Let’s get started on the topic of how to start a dropshipping business using Shopify and Google Ads.
Almost anybody can do this kind of stuff.
It does not take a whole lot but it does require a couple of things to become an entrepreneur and run a business.
Business is not a simple thing but it is very doable for anybody.
You just have to get a basic foundational understanding of what business is and how it works so you can run one of yourself.
The best way to do that is to have a job and work for a business.
Most of you out there already have jobs.
If you don’t, you probably have had a job in the past a job is one of those great things you can start with because you are only taking care of one system within a bigger business.
A business is made all sorts of different types of systems.
You have admin, sales, customer service, marketing, fulfillment, purchasing, decision-makers, managers, and a CEO.
There are all these different systems in a big business whereas a small business just you particularly, you have to run the whole show.
You have to do all the different systems in one.
Being an entrepreneur or being a business owner is all about starting on your own first and managing all these systems and building these systems out, and over time, hiring a team to build them for you.
That is kind of a long-term outlook.
Dropshipping is a simple way to start a business online.
With dropshipping, you don’t necessarily have to have all the upfront capital to purchase a bunch of products and stock.
You don’t have to have a bunch of expertise and knowledge in any particular industry in order to start.
It is simple and easy and that is why I started dropshipping back in the day.
Before that, I was selling stuff on eBay just lying around my house.
I also go to garage sales and find deals on things.
I found a snowboard one time.
I was able to bargain the person down to $20 on a whole complete snowboard.
I went to eBay and sold it for $200.
However, garage sale flipping is not a scalable thing.
The cool thing about dropshipping is that it can be very scalable if you do it right.
I am going to attempt to teach you guys in this content on how to do dropshipping and how to start that type of dropshipping business.
Let’s clear things up, there are a few different types of dropshipping. I want to make it really clear. A sustainable type of dropshipping or evergreen model versus the overnight success dropshipping where you find a trending product.
You will import it from China or dropship it from China. You may find a supplier in the US. That is basically around trends and interests. The prices are lower on those types of products. You might be targeting an interest group like dogs and you might sell some sort of an item even a print-on-demand kind of item to people who like dogs.
These products are between $10 - $50 price point. They can be evergreen if they are based around an evergreen interest or niche. The trend of the actual product itself might be up or down depending on how you create it. In reality, you are the manufacturer of that type of business model.
If you are doing print-on-demand, you are the manufacturer. If you do dropship from China, you technically have the legal liability of the manufacturer. In other words, if a customer decides they don’t like the product or there is something defective with the product, you are the one that is responsible for that product.
You are going to refund or take care of the replacement. Whereas I’d like to do dropshipping is completely different. It takes a little bit more upfront things.
First and foremost, you need to have good credit or a bunch of capital to build support for a higher cost of goods sold. What I do is called high ticket dropshipping. There’s a lot of talk about high ticket drop shipping and what exactly high ticket means. It basically means expensive stuff.
There’s a whole model around high ticket drop shipping that works. Then there’s also a model that’s very sketchy and does not work.
The model is sketchy first off is dropshipping from china high ticket products. It is sketchy because what you are doing is you are assuming liability and the risk for that product. You are the supplier so you have the legal liability of that product. If there is something wrong with that product or it gets delivered, you get screwed.
It is a really good idea not to drop ship from China those types of products but actually drop-ship from the US. You have to work with the manufacturer that will give you a contract to fill out that makes you an authorized dealer of their products.
What you are able going to do at that point is to take advantage of their warranty system. Warranties are great because they give something to call back on. If there’s something wrong with the product or the product arrives damaged and it is a thousand dollar product. If it was something you drop ship from China then you have to assume the liability risk for that. You have to take the product back and have it on your own fulfillment warehouse and try to resell it on eBay.
If you work with a supplier that gives you an authorized dealer contract and then a warranty to go along with that that covers what happens in the case of shipping damage or in the case of the defective product.
You have more insurance or coverage to ensure you in case the item will be damaged which does happen sometimes especially with big bulky products as they are complicated. It is important to understand that.
QUESTION: SO YOU CAN’T USE THE PURCHASED MONEY?
You have to use the money that is from your credit to purchase the product. You can’t just go and buy a bunch of these products unless you have enough capital to do it. That is the whole idea with this business model.
You don’t need upfront capital to buy the product in bulk like you would if you were the manufacturer but in the same respect, you still need good credit because what happens in the dropshipping business model is you have to purchase the product as soon as you sell it.
Your manufacturer is going to stock it and inventory it for you but you still have to purchase it. You have to have it shipped right away. You can’t just wait for that money to get deposited to your checking account and then purchase it. It is going to take 3 to 5 days to even start the process of shipping.
The fulfillment process often takes up to three to five days because if it is a big bulky product, the manufacturer will have to take the product and do some quality control on it. The boxes it crated it up and then call a third-party carrier to come and pick it up for you and then take it to your customer. You might also be the one to actually fill out the bill of lading and have the carrier pick it up from the supplier and drop it off to the customer.
High ticket drop shipping from the US using your own store is very profitable and that what makes up for all this kind of go-between you have to do. The biggest benefit of this business model is you don’t have to create these products yourself. When you sell one of these high ticket products oftentimes the margins are20% - 30%. On average for a thousand dollar product, you are making somewhere between $200 - $600 on average in a profit per sale.
That makes it really profitable it gives you the ability to run paid advertising to your product listing so you can get targeted traffic really fast and close sales. You can make a profitable business. You can pay for Shopify host, apps, and VA after you have 10 to 20 sales per month once you get into that level. You can start paying for a VA full-time to manage everything for you and to grow your business.
Now you have an understanding of how dropshipping works. It is usually 20 to 30 percent margins. That’s usually what we will work out with. If you are doing a different business model like selling software, digital products, blueprints, music, and training course, the profit margin may be much higher but there’s going to be a lot more expenses related to marketing as well.
Regardless of your business model online, net profit usually comes out somewhere between 20% to 30%. Sometimes upwards of 50% if it is a little bit more of a digital-related model and you don’t have too many marketing expenses. Often times, that is where the margin lies.
How to start a dropshipping business is pretty self. You just have to know yourself and then get ready because the next step is really exciting. It is building your business fast. When you first make the decision and have that epiphany moment that this is what you want to do, the next thing that you have to do is plan it out.
Make sure that you are completely devoted to this business model for at least 30 to 90 days because if you give up halfway, you are not going to ever see any results. In the back of your head, you are always going to be thinking that never worked out for me.
It is the same thing with any business model you try to do online. If you try to go affiliate marketing and you give up halfway through, you are going to have the same feeling about it. You try to do anything else. If you go and get a job and you give up halfway through, you are going to get fired.
It is just the way it goes in life. You got to be completely committed to this. the first thing you need to do is form your legal business. It kind of goes without saying but a lot of people sort of look over that because they just start building a website. It is true that you can just start as a sole proprietor but you still need a couple of really important things even if you are going to be a sole proprietor.
Things you need before you get started:
You need a checking account.
You need a credit card.
You need an employee identification number or a seller’s permit or license.
You need to be an official business especially if you are doing business in the US. You can do this in any country. Every country is a little bit different. The rules and regulations and what not about how to start a business are different in every country but generally speaking, that is what you need. If you have assets to protect, it is important to start an LLC at least.
If you own a home, land, boat, car, bitcoin, some stock market holdings, or other businesses, you need an LLC to protect your other assets. If the customer gets really pissed, what could happen is they can sue you.
I have never heard of this happening but it is possible. If you don’t protect your assets from that then they can take all these other assets to use with all your other assets. If you have everything in the LLC, everything flows through that LLC as far as finances go, they can only take what’s in that business.
The next thing that is really important is niche research. Everybody kind of thinks about niche research as a confusing topic. I am here to simplify it for you. I am here to make it really easy to understand. I have been doing this for a long time now and I have tried to make it easy to understand myself. I have come to a point where I really understand it.
This is how it works. With high ticket dropshipping, specifically, you are going to have product categories. These are categories of products that include subcategories of products.
For example, wine cooler. Everybody is selling wine cooler these days, I don’t know why but this is something rich people buy for their home. With the wine cooler, you have subcategories. You have dual zone wine coolers, tall wine coolers, and small wine coolers.
If you are wondering what subcategories exactly are, just go type in wine coolers or something into google and go to one of the eCommerce stores that sell them online. You will see all the different subcategories of wine coolers. When you find a category of a product that has subcategories. When you look it up and there are stores selling just that product and you have a high search volume.
If you go to Google Trends and you type in wine coolers and you see there’s a bunch of search volume over time and there are trends, that’s a niche. That is a profitable niche.
When you look at a product category like bunk beds, there might be some subcategories but you are never going to find a site just selling bunk beds. That’s the interesting thing. It’s usually got other furniture categories in it. Most of the stores out there are going to sell a wider variety of just furniture.
In that case, you choose furniture but one of the most important things you have to keep in mind with high ticket dropshipping, this model specifically, basically the only way that you can compete in the online marketplace where anybody in their mom can sell stuff is if you only work with suppliers. They have a thing called minimum advertised pricing policies in place for their products.
MAPP is the lowest amount that is authorized dealer is allowed to sell out on the internet. It is simple if you type in a wine cooler and go to a store and find a specific model of the wine cooler and you take that whole name of the wine color and type it back into google. You will look at all the ads for that particular wine cooler. You will see a bunch of different listings. If those listings have the same price or very close to the same price then it’s likely that the manufacturer has and enforces their minimum advertising price policies.
It does not matter if those dealers been around for 10 years or they just started yesterday, they have to sell the same price. They cannot compete on price. They have to compete in other ways like offering free gifts, providing more value in a form of consultations, more content on their website, you can be sneaky and provide discounts in the cart on the full order instead of just on the product. They still have to advertise that product at the same price point.
You only want to work with suppliers that have MAP pricing and you only want to start in a niche where there is MAP pricing. If you go into the furniture niche and search around the store that sells furniture and you look at any particular product and the competitors that sell that particular product often times you will notice that the prices are all over the place online. I tried this to start furniture online and I tried to compete but the problem was, there’s a ton of these big box stores that are physical and online only. They have better pricing from the suppliers than the little guys do because they do more volume with them.
Since they have better pricing, oftentimes they will buy in bulk to get that better pricing, they can sell at lower prices because those suppliers do not have MAPP pricing. They will sell it at a lower price and those still have the margin to be profitable whereas if you try to sell with that lower price to your cost desire, you won’t have the margin to be profitable.
It is very hard to break into the furniture business without a lot of upfront capital. To purchase stock and warehouse it and to fulfill it from there and to have a showroom. That is the only way to be profitable in the furniture niche.
There are some suppliers of furniture that do offer MAPP pricing but it is very specific types of furniture. Once a niche to look into is adjustable beds as it is very small but it’s a niche where some of the suppliers do have MAP pricing.
If you have a website based around ‘sleep’ then you can have adjustable beds. You can try to find other suppliers and niche-specific categories like that. However, I would look for a category that matches these three criteria: (1) Online websites that are already selling only this product. If they are selling a bunch of other products then you have to wonder why they are not just selling that product anymore. They have broadened their niche. You have to keep that in mind and take those notes. (2) Type those products back into Google like and see if the supplies have enforced MAP policy or not. (3) The search volume and trends on the keyword of particular products. They come product category keyword like wine colors.
You have to look at the search volume using Google’s keyword planner. You can also look at the trends using Google Trends. You have to find something that is trending up or straight. Avoid trending down as it is bad. For search volume, you are looking for something that has over 50,000 searches per month in the US. If it is under that, then what you will start to find is that websites go a little bit broader. For instance, trampolines, you probably won’t find a site selling just trampolines. It could be a site that is selling trampolines plus playsets and that kind of thing.
There’s a ton of different niches out there if you want to get some idea of niches. There are some great ways to do it. The first one is my free niches list. If you have not gotten that yet, you can easily get it at eCommerce Paradise.com/99niches. It is a whole list of 99 Niches. Once you sign up, you get access to my mini-course and I will email you my niches list.
The other way is to go to a website like Amazon.com, Houzz.com, eBay.com, Wayfair.com, or OverStock.com. There are tons of product categories and what you want to do is you want to sift through all these categories. You want to plug those back into Google and look at Google Shopping.
Google shopping is a great tool to use because it’s a comparison shopping tool. They are wonderful as they pull data from this eCommerce site across the web especially younger and more niche-specific eCommerce sites that are run by a single entrepreneur which is basically your future competition. We want to model success, we also want to see what’s out there right now. People are going to be directly competing with.
Once you use google shopping, (1) you will be able to see if the price point of the product is high enough to be in high ticket range which is usually around like over $200, $500, or over $1,000. (2) How many niche stores are selling it and how many broad stores are selling it. How many stores that have nothing to do with that specification. Stores that have a product name in the domain of the store like a wine cooler. Direct.com is a niche store whereas Amazon.com, they are selling wine coolers. Amazon is a broad store.
You got to verify based on those three things. (1) Competitors (2) Suppliers and (3) Search Volume and Price Points.
The next step in this whole process is when you have found a niche and you have chosen one. Choosing a niche is sometimes the most difficult process or sometimes the easiest. It is just a decision you have to make. It can be tough to make sometimes but they are easy. You just have to go with your gut feeling.
If you find a bunch of different niches or product categories that match the criteria of profitability then you’ve got to just choose one and go with it. The key here is speed and getting launched as fast as possible and get into a niche to discover all the industry suppliers. The market of how it all works is important. Don’t ever feel like you are wasting your time because you should be learning lessons all along the way. Even if your first store fails, that’s okay as you should have four other niches that you can just pick up and run with. You can close that one down or sell it on Shopify exchange and get your money back that you invested in.
These are all great ways to go and you have to just get started with at least one that fits these criteria. Try to match it with some sort of prior skill set or knowledge that you have and maybe some sort of passion that you have as well. If that exists, that’s the perfect trifecta of the business for you. If not, you can always learn about your niche. You can always read guides and discover a passion that you did not know you have about a particular product.
If you love drinking beer, kegerators might be a great niche for you. Let’s say you love playing pool, you could sell billiard tables online. If you love watching movies, you can sell projector screens and home theater seating on your website. There are tons of high ticket categories around niches like that.
You are going to be the leader of your business. You have to be the one to drive it forward. That means having the most impetus behind that having the most passion.
The next step is to easily build out a Shopify store. Shopify is one of the easiest eCommerce platforms. It is very well optimized and I highly recommend using it. You can get your free 14-day trial at eCommerceParadise.com/Shopify. Shopify works great for this stuff. I only use it now. I used to use other systems like Volusion, BigCommerce, WordPress, WooCommerce back in the day. I found them all to be too feature-rich, too confusing, too annoying to use, and too slow.
Shopify is the best in my opinion. I recommend using them and a demo store is something where you just through up a website. You don’t even have to import real products. You just want to put a picture of a product and make a fake description. You can hire gigs on Fiverr or you can do it yourself.
What you can do with your demo product is really cool as you can call the same brands that are on your competitor’s site that you have found through the research and you can get authorized dealers to account with them for dropshipping without any money upfront.
A lot of business models online, they require you to pay money upfront in order to access certain things. Not all but some drop ship suppliers do require an upfront investment. You don’t have to do that if you don’t want to. You can work with just the suppliers that don’t require any investment. It will just require you to fill out a piece of paper with your business information and your credit card info and send it back to them.
Once you get these accounts, you can launch. It is really exciting. All you have to do is add their product to the store, put their SKU numbers in there. There barcodes price points and all the good stuff. You can put pictures and videos that you can find.
You can copy and paste the description off your supplier’s site. You can rewrite it a little bit so it’s good for SEO. Once you do that, all you got to do is install a few apps on Shopify to optimize your store. Instead of the thing like email marketing using Klaviyo which I highly recommend, you can set up your remarketing audiences.
However, what is really important is that you get all that done really quickly because the most important thing is Google Ads. That’s how you are going to get targeted buyer traffic to your website right away.
Launching cold traffic is the most important thing you will do and you go to start out low and start out slow but launching is good. Once you launch, you can adjust things along the way and then you will start making money. You will start getting sales and start becoming profitable. I hope all this making sense for you because I am about the dive into Google Ads a little bit so that you can understand it a little bit more. I am going to go beyond it to the next stages and what you are going to need to know.
Google is really simple to use. They have three different types of ads that we normally use. (1) Shopping ads (2) Search text ads (3) Dynamic remarketing ads.
Google Shopping ads are the place you will get the best traffic because google normally is a text-based search engine. They will also show images and YouTube videos but mostly the only images on their search page are from those and shopping ads at the top. Shopping ads go above everything because they are ads. Shopping ads pre-qualify customers. They have a picture at the top, they have a price point, the store’s name, and a special offer. Before the customer even clicks on the ad, a sort of pre-qualified for that.
They know they want that but you have to be careful with shopping ads because google chooses which search terms to show your ads for. This is completely different from the rest of their ads. Their search ads, for instance, you choose which search terms to show your ads for. With shopping ads, it is the opposite. You have to tell Google what not to show your ad for. This is how you can use it to your advantage. You have to use what it’s called an inverted funnel. They re really cool. How they work is based on keyword hierarchy.
The keyword hierarchy works in this way. (1) You have a generic keyword at the top, it is a product category keyword. This is a wine cooler, next you have the brand keyword or the brand plus category just below that. Let’s say ‘winter’ which a brand of wine coolers. Winter wine coolers or just winter, that’s the next stage of keywords, below that is the long tail, it’s the brand name, winter in this case plus the model name or the SKU number or maybe some other generic keyword related to the category. It could be winter, SKU number model name, wine cooler this or that. It could be just SKU number or just brand name and model name.
That’s the hierarchy, it is three levels of keywords. The cool thing about Google Shopping ads is in the settings. They give you the ability to choose high priority, medium priority, and low priority. If you set your ads up so that the most important high priority ads are for the generic keyword search terms, the medium priority is for the brand and the low priority is for the products.
People that type in search terms, these people that are interested in buying these products will type in these SKU number search terms. These are people that know exactly what they want. You can bid really high on that traffic. Those people that see your ad and click on your website. They want to buy that product right now. They are looking for the best deal on it. They will see around, they will see if they like the price. Maybe you have a discount or free gift that other competitors don’t. They might buy from you right then and there. That’s how you make this stuff work, it is like magic.
I have full training in my high ticket drop shipping masterclass. The beauty of it is I have done so much that I know exactly how to set it up. I have done it for you and you can get it directly from me. If you are interested in that, just go to eCommerceParadise.com/masterclass and get in there today. I have full training on Google ads set up.
After you have google ads going, what you need to do is continue to optimize your store by improving your product pages, your search engine optimization, all your page structure, internal linking, and get backlinks from influencers. You also want to grow your social media influence by promoting your social media channels through your internal marketing. You can also use social media ads to get likes on your page. You should also promote content through your page.
The next thing is video marketing. Most people skip this because they are afraid to do video. The cool thing is you don’t have to be on video to do video. You can do what’s called a slideshow. All you have to do is do it for your products. All you have to do is pull the data from your product page. Put it into a thing like Google slides. You can make a screen recording video using QuickTime and talk about the product and sell it. You can gain traffic from YouTube and other sources.
Video marketing is the key and you can use it in all of your business. If you are not afraid to get on camera, that’s the best thing for you because you are going to grow your business way faster that way.
One of the last stages is selling more to your current customers. As soon as you have a profitable product, find everything else that you can sell along with that product and add that to the product page. That is an option to buy. You are going to get people the option to buy it more of what they want to go along with that product and they are going to buy more from you. They are going to buy it from the product page, cart page, thank you page, and after-sale emails. You are going to make a lot more money. That is how you scale past seven figures with your business.
The launch process of getting a demo store is definitely easily doable within 30 days. After that, recruiting suppliers and getting all that done usually takes at least another month. However, what we have done is I put together a team of expert virtual assistance that can start and grow these businesses for me. What we do, we start businesses for people. We provided as a package so that you do not have much time and have a good-paying job and looking for something like this to be done for you, we have that available.
I have created a free training to go along with it that includes my three phases of success with my turnkey package. If you are interested in a turnkey kind of solution for starting to high ticket dropshipping business within 30 - 45 days, instead of having to take 3 to 6 months, to get it done and launched because of how little time you have then go check out my free training. It is from eCommerceParadise.com/TurnKey.
If you fail in your first niche, don’t consider it a failure. It’s not necessarily the worst thing that ever will happen to you in life. It just means something was wrong with the niche. So go to the next one and see if you can get success there. Oftentimes, it is just the way that you are marketing to that niche. Maybe you are choosing the wrong products to promote. Maybe you are not providing the best offer out there in the marketplace. There are lots of different things. You need to become a student of marketing in order to successfully do this online.
You cannot just throw things at the wall and see what sticks because a lot of it won’t stick. Become a student of success. Look at successful case studies out there. You can look at Amazon and read about how they become successful and model after what they did because there are clues. Success leaves clues.
This kind of business model can take you anywhere. It can take you all around the world. The coolest thing is that the first place it can take you is out of your day job and into your home again. You can relax and work from home. It is so much more relaxing and easygoing than having to go race to get to work every day, do what your boss tells you to do, answer to customers, make money for somebody else, take lunch when you are told, take a break when you are told, leave work at five, and battle traffic to get to the gym.
Life is complicated as well as money. If you start doing this stuff in the evenings, weekends, and while you are at work or on your break then you will get somewhere. Start as simple as you possibly can with one product category store and with one supplier with one product and grow from there.
If you decide to lower your expenses, there are many options for you. You can live in a cheaper city. The other cool thing is you don’t really have to live anywhere nowadays. You can travel around and find long-term housing situation in almost any city in the world. You can become what’s called a digital nomad. You can live in these developing countries in places like Southeast Asia like in Bali, Thailand, or the Philippines.
You can be surprised by how luxurious these accommodations in these cities there are very affordable. You can get a penthouse suite in Bangkok, Thailand for $1,500 a month. These are decked out apartments fully furnished. Everything is covered like a gym and swimming pool.
If you have friends with you, you can rent a millionaire mansion villa in Bali for $3,000 a month. If you are a single person, you can rent a studio apartment and a co-working apartment where the co-working space with $500 a month. It is super cheap. A dropshipping business can provide you enough income so you can travel around life in cooler places in the world.
I started becoming a traveler and my digital nomad is because I wanted to get out and experience more of the world. Now, I want to share it with you. I have been doing this for so long that it’s not exactly what it used to be. What it used to be was this exciting new thing for me. Now, I do this all the time and it’s no big deal.
It is like a Matrix, once you take a red pill, you are out. You want to give back and you want to go out other people get out of the matrix too. That’s my mission right now. It is to help you guys get out of the matrix.
I build a whole system in which you can utilize my training. You can even get me for private mentorship or private coaching if you want. You can also utilize my team to build you a whole business if you want as well. All the information is at eCommerceParadise.com. You can also email me at Trevor@eCommerceParadise.com. Make sure to subscribe to my youtube channel because I am putting out free content all the time.
If you have questions, leave them as a comment on this content.
I have a Facebook group called eCommerceParadise drop shippers. All of you guys should join that. I would love you to be there and help you out.
I am excited to announce that I have released a new Marketplace on my website. It is eCommerceParadise.com. It is the place where you can go to buy and sell a high ticket dropshipping store. If you want to sell your high ticket dropshipping store, all you have to do is email me at email@example.com or go to the contact page and submit my information about your store. I will list it in the marketplace. I will market it to my audience. IF it sells, we only take 10% of the listing as a fee. There is no upfront fee to list it.
We also have stores to sell at eCommeceParadise.com/marketplace. We have cash flowing stores, turnkey stores, and demo stores.
I have a big sale coming this week. Get into my email list for you to be notified. To go eCommerceParadise.com/99niches.