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  1. Naddey

    Naddey Entrepreneur

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    Is there money is drop shipping

    I'm looking to start a website and offer physical products to sell

    but before I purchase a domain I need some recommendations on whether I could make £300/month profit

    What products do you guys have experience dropshipping

    btw this is my first post
     
    setupdisc likes this.

  2. William Clements

    William Clements Moderator Business Owner Entrepreneur

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    @Naddey, Welcome to EntrepreneurFix!!!
     
    setupdisc likes this.
  3. djentre

    djentre Entrepreneur

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    Yeah. drop shipping is viable. You can look up to find out how much people make. You can definitely hit 300 a month.
     
    setupdisc likes this.
  4. Naddey

    Naddey Entrepreneur

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    Yh sounds good but is it a time demanding business venture?
     
    setupdisc likes this.
  5. Naddey

    Naddey Entrepreneur

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    Would want to operate something that I can run alongside full-time education & work
     
    setupdisc likes this.
  6. bria1

    bria1 Entrepreneur

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    I heard drop shipping is only useful or resourceful if you are getting good prices on the wholesale products. This is what determines your income ability per month. Correct me if I am wrong.
     
    setupdisc likes this.
  7. Naddey

    Naddey Entrepreneur

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    You need relatively low prices i guess but you sell more
     
    setupdisc likes this.
  8. bria1

    bria1 Entrepreneur

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    That is the only way you will see a profit. Most people that I know personally who were in this business had a really good hook-up overseas, mainly China. The prices were great and the products were very good quality.
     
    setupdisc likes this.
  9. setupdisc

    setupdisc Moderator Entrepreneur

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    You can make money at it, but you're going to have to build it up and most importantly, stay competitive with your rivals. When you're getting started it can take a while, but even if you are getting just a percentage of what the larger competition is when you start, then you're doing good and you're succeeding.

    You might have to start with wholesale options that aren't as high of a quantity as the competition at first, just so that you can get your foot in the door. Once you do, you can then buy an amount that is not too large of a loss to stay on top of your profit margin and not exceed your stock to sales ratio. You always want to make sure that your profit margin covers half or more of any losses incurred if the price of what you're selling has to be reduced on short notice (due to changes in the market or trends that affect how everyone prices it).

    So you might want to try out alibabaexpress instead of alibaba's main site (just as one possible source) to get the same products in smaller quantities until you can build up your sales numbers and projected figures you expect to sell each month.

    9 years ago I used to do drop-shipping of some types of electronics and had a web site for VAR (value-added reselling) to where I would provide software and support to products that were harder to obtain, or were no longer being serviced by the original manufacturer. It was that niche that made it successful, but in addition to that I was able to use a company called SquareTrade to provide warranty services for anything else I was selling which I either didn't have the time or additional tools to work on. If it was something that took more time to repair than to replace or have a contract service center take care of, I would send it to them and still have everything the customer needed in a reasonable amount of time.

    If you have a special niche and the public loves it or needs it, then you can do really well with drop shipping products (whether you're providing any type of additional services for them or not).

    Stay aware of the competition trying to clone or copy your niche, though. If you start doing really well as a drop-shipper and have a specific method or offer that is unlike anyone else's to gain marketshare, then just as certain as death and taxes it's guaranteed that someone is eventually going to try and copy what you are doing uniquely and try to pull the rug (and those customers) out from under you.

    So if you do it, you have to a) protect your investment by knowing your limits for profit and loss, b) make sure you have a large enough customer base to justify what you order, and c) be flexible and adaptive to change to make sure you can stay competitive with your rivals from price to performance.

    Some people are ok with having an insurance policy and others not so much, but I would strongly suggest having some kind of insurance that covers lost or damaged shipments as well.

    You can minimize losses if you start having a really large number of shipments that go out but carry auxiliary insurance, and you'll get reimbursed faster if you have a major insurance coverage to protect you (even though if you're doing it through USPS or FedEx, they usually have their own type of insurance to cover you). If you carry your own, then you don't have to worry about instances where the shipping company decides not to cover it and leaves you having to replace something at-cost or losing money to resend it.

    As pointed out above, you're going to either have to dedicate your time to something like this, or have hired help that is there to do it with you. It can be really stressful to run a drop-shipping company (even a small one) all by yourself daily.

    Having one or two people to help you make it through that you can trust can make all the difference in how well you do and how well the customers like your company and products.

    You can make $300+ a month or exceed that, but it will take some time and strategy to build up to.

    Oh, and one last thing: Welcome to EntrepreneurFix! :D
     
    Last edited: Jan 29, 2016
    Naddey likes this.
  10. Vinaya.Ghimire

    Vinaya.Ghimire Entrepreneur

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    Unless you have pocket customers, £300/month profit is very ambitious idea. If this was so easy, everyone would resort to this business. Dropshipping is a good business idea but you need to have a high performing website first.
     
    Naddey likes this.
  11. Naddey

    Naddey Entrepreneur

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    Are shipping costs high in from china to Europe?
    Do you any recommendations
     
  12. onlinecashcity

    onlinecashcity Entrepreneur

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    This was my concern, as it involves successfully promoting products from a website. Without a good site, nobody would buy from you. Seems it might be worth it down the road but the start would be sort of rough!
     
  13. rz3300

    rz3300 Entrepreneur

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    Just like everything to be successful at drop shipping you really need the people and the contacts in place, and like other users have said that usually means having a viable website and good communication networks. That takes time, but with those in place it is certainly an option. The question really is is it something that you can continue to grow with, because if not then you might be wasting your time.
     
  14. thedude

    thedude Entrepreneur

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    I made some small time cash doing some dropshipping on amazon. You could make a lot more though if you make a website with good articles for SEO, then dropship from your own site that has a high google pagerank. I recommend a combination of Wordpress and WooCommerce. Works really well and it's free.
     
  15. Naddey

    Naddey Entrepreneur

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    I'm willing to grow and put 100% into the business trust me.
    To begin with though I'm looking to find cheap quality sources and offer best selling products at a lower price than competition to get noticed, once i have sold a decent amount of product I will expand my range. I am looking to sell on websites like Amazon eBay Etsy even local sites using a brand name.
    Regarding contacts i hope to build relationships with sellers via my loyalty to them.
     
  16. Naddey

    Naddey Entrepreneur

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    What do you think of reselling high-value electronics on local apps like 5miles & wallapop before moving into the over saturated international site like Amazon?
     
  17. thedude

    thedude Entrepreneur

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    Another thing. Dont pay for dropshipper list from any website. Use google to find dropshippers of the products you sell. Contact manufacturers and they will put you in contact with the right companies. For dirt cheap pricing, contact chinese dropshippers but do lots of research into the companies.
     
  18. ctfranklin28

    ctfranklin28 Entrepreneur

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    I was actually referred to drop shipping by a friend and read a little on it. Does anyone have any good resources to help me decide if drop shipping is for me?
     
  19. Naddey

    Naddey Entrepreneur

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    Where
    I have looked through a couple drop shipping forums for niche advice, if you can't find anything here search google. I learnt alot
     
  20. Naddey

    Naddey Entrepreneur

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    What questions should i ask a supplier to make sure, I'm not going to get ripped off and having to handle upset customers?
     

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