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The Ultimate Guide to Dropshipping
- kitcar 14y agoOut of curiosity, if drop shipping enabled you to quit your job in finance a few years back (http://ecommerce.shopify.com/guides/dropshipping/about-the-authors http://ecommerce.shopify.com/guides/dropshipping/about-the-a... ) , why are you now 'giving away your secret sauce' by running a website dedicated to teach people how to setup "copycat" businesses? Is it that the drop shipping business has gotten so competitive that there is more money in teaching people about it than the business itself, or were there other reasons?
- allsop8184 14y agoI'll have to let Andrew, my co-author, speak on why he left the corporate world to start his ecommerce blog. But I can share why I decided to write this. I noticed that most, if not all of the information on drop shipping is bullshit. The topic is riddled with scammers looking to rip you off. A few months ago I published a guest post about drop shipping on my company blog. It was written by my co-author. It was very well received... seemed there were people out there starving for good information on getting a drop shipping business up and running. I bought every print and ebook on the subject, read most articles I found online on the topic, and quickly realized that we could probably write something way better. So we did. I hope! :P Anwyays, that's it... just published it today and can't wait to get feedback on how to improve it. Once we polish it up a bit, I plan on releasing an eBook so people can read it on their Kindles and what not. If you read it Kitcar, I hope you enjoy!
- TallboyOne 14y agoThat's admirable, but what about the answer to his question? You're giving away your secret sauce and introducing more competition into the market and lowering the barrier to entry.
- spiredigital 14y agoMark's co-author, Andrew, here. I just published a really length reply above, so hopefully that answers your question. In a nutshell, just like in business the biggest secret sauce is hard work and consistency - it's not like we're giving away the keys to the treasury where they print money! With that being said, there are a lot of nuances to picking a good niche (especially in drop shipping where the competition can be fierce and margins low) and to operating a drop shipping business (as it can get logistically complex). Those are some of the things we're trying to shed more light on in the guide.
- robryan 14y agoI don't think drop shipping is really something where there are a small set of secrets an in crowd are operating on that anyone can come along and easily replicate. So I don't think more information is really going to effect current players that much. Without reading the guide I would assume it doesn't tell you exactly which product you should sell and guarantees that you will be able to do a deal for someone to supply you that product. That is a large part of it, not really bigger though than any startup doing a key deal with another company. From there you face many of the same challenges as any tech startup. Functioning and easy to use technology, effective and positive ROI marketing and great customer support.
- spiredigital 14y agoCo-author here, and a totally valid question! I started my blog about eCommerce / drop shipping for a number of reasons: 1) To expand my professional network and opportunities I just finished co-writing a book with Shopify on drop shipping, which is something I never would have had the opportunity to do without the blog. It's allowed me to build credibility and expand my network. Additionally, the blog allows me to reach out to really interesting people when I otherwise wouldn't be able to. For example, I recently interviewed Gary Vaynerchuk - something I never would have been to do without leveraging eCommerceFuel. 2) To connect with other eCommerce entrepreneurs I've had the chance to connect with hundreds of other eCommerce merchants and share strategies and tips. I eventually hope to build a really vibrant community for small eCommerce merchants (as I think that's lacking online), and this is helping me accomplish that. 3) To eventually diversify my income stream with something new Like all entrepreneurs, I think the desire to try new things is strong - especially after you've been doing the same thing for a while. I saw the blog as a way to create another income source that leveraged the experience I have. While one of my eventual goals is to make money from the blog, my first priority is to keep the content extremely high quality, genuine, authentic and USEFUL. I wanted to give away a ton of useful information before I asked for anything in return. Take the eBook on my site, for example. I spent 2 weeks solid writing it and I give it away for free. If you download it and don't think it's one of the better free resources you've come across online just let me know and I'll send you $20 via PayPal for wasting your time. :-) 4) To dispel the the idea of "easy money" online You asked why I'm teaching people to setup "copycat" business, and I'd argue I'm doing nothing of the sort. 80% of success with any kind of business involves the execution and strategy - and not picking the perfect niche or having some "secret" sauce. If Alexis Ohanian released a killer guide to programming in Python that doesn't mean someone is going to be able to create a Reddit copycat... ...at least one that will successfully compete with them. Also, just because someone is sharing their knowledge and/or tactics doesn't mean that their original project is no longer viable. It simply means they're interested in sharing their experience. If building a profitable drop shipping business was an easy 48-hour project, I'd be less likely to share so publicly - you're right! But just like any business, it takes a lot of hard work. The knowledge is important, but the legwork is really what makes it difficult to implement. I completely understand your skepticism as the online business space is full of scams. But hopefully if you invest a few minutes reading our guide, and my blog (http://www.eCommerceFuel.com http://www.eCommerceFuel.com) you'll realize we're committed to publishing quality, useful content and not trying to rip people off. Let me know if you have any questions - happy to answer them.
- sayemm 14y agoAndrew Youderian's the real deal. I've been reading his blog for a while, here's his story: http://www.ecommercefuel.com/my-corporate-escape-story/ http://www.ecommercefuel.com/my-corporate-escape-story/ http://www.pocketchanged.com/2012/08/14/online-business-secrets/ http://www.pocketchanged.com/2012/08/14/online-business-secr...
- spiredigital 14y agoThanks sayemm!
- callmeed 14y agoYour guide looks really good, but you're definitely correct in your 1st paragraph: when I hear "guide to drop shipping" I immediately think back to the days of "MAKE THOUSANDS FROM HOME SELLING PRODUCTS ON EBAY" ... it has a bit of a snake-oil perception to me and I'm glad you addressed that right away. My wife started an Instagram printing business (http://cheergram.com http://cheergram.com) a few months ago and it's going very well. All products are dropp-shipped from our partner lab so I know it can work. I haven't finished the guide yet, but so far it looks really good.
- allsop8184 14y agoThanks so much. Part of the reason I decided to write this guide with my co-author Andrew is there's so much bullshit out there regarding drop shipping. It's really bad.... and if you go to Google to learn more about the topic I'm afraid most results are scams. I wanted to change that. Shopify was gracious enough to give me the time out of my regular duties to pursue this project and I'm really happy with how it turned out. Tell your wife Cheergram is awesome, and a huge congratulations for getting her drop shipping business up and running! Happy reading callmeed - I really hope you enjoy the rest of my guide! :)
- callmeed 14y agoThat's great ... it's probably a good time to tackle this since people seem to be gravitating away from Ebay and toward more direct selling through social media, shopify, and all the recent "SELL ANYTHING WITH STRIPE" services we see here on HN. If you have any specific questions or need quotes related to print/photo drop-shipping, let me know. I actually just got back from a big photo industry trade-show. Lots of interesting things going on.
- mrchess 14y agoWould love to get a PDF version of this. I'll make one once I get home but if someone beats me to it... ;)
- allsop8184 14y agoI just launched the online version today so I haven't had time to make a PDF yet. But yes, I'll definitely get on that ASAP. Glad to hear you think that would be useful mrchess.
- sabat 14y agoYeah, +1 on that idea. PDF would be really nice.
- patrickk 14y agoInstapaper- PDF print each page. You'll have sub-par formatting, and will have to combine the PDFs yourself though.
- phreanix 14y agoPDF version in case anybody wants it: https://www.dropbox.com/s/ryv5rp0cw28daf7/ultimate_dropshipping_guide_shopify.pdf https://www.dropbox.com/s/ryv5rp0cw28daf7/ultimate_dropshipp...
- charlietran 14y agoGreat job! One typo in Chapter 3: "drop hipping" (though that would be a cool name for the official Shopify dance)
- allsop8184 14y agoHaha drop hipping sounds awesome. I think I'll just keep that there as an easter egg. :-)
- sachingulaya 14y agoThis is especially ironic considering shopify does not offer dropshipping. I've had multiple people inquire about dropshipping our products but we've never been able to make it work.
- rexreed 14y agoAnd they link to a specific inventory management system which is expensive and isn't tailored for drop shipping when there are other alternatives, at lower price, in the Shopify app store.
- jes5199 14y agookay, I've never heard the term "drop shipping" before and I read the entire intro page and I still have no idea what it is. I guess you plan to tell me in Chapter One, but that's a lot more commitment than I want to make when I have no idea what you're talking about.
- spiredigital 14y agoGood feedback - we'll have to incorporate this into our 1st round of revisions. Drop shipping is a fulfillment model where a merchant doesn't carry any inventory. Instead, they only purchase an item from a wholesaler when they receive an order from a customer. Then, they have that item shipped directly from the wholesale warehouse to the customer. It allows a merchant to start a store without having to invest up-front in inventory, and without having to manage a warehouse.
- whatshisface 14y agoSo, now we have merchants with no store, no warehouse and no inventory... what exactly is left for the merchant to do?
- Buzaga 14y agosell
- dminor 14y agoFind customers, take orders, provide customer service.
- prawn 14y agoMarketing, making the sales happen, etc. They wouldn't exist if they didn't do something useful. It's like asking why affiliate marketing exists. It does and it's huge.
- whatshisface 14y agoI suppose I was thinking about the wrong kind of product, I now realize it would be much more viable for one-time small purchases than it would be for repeated purchases or large purchases. (where the incentive to cut out the middleman would be powerful)
- terryb100 14y agoI work at a Wholesale supplier and he pretty much nailed the 3 points regarding the Google searches.
- cbhl 14y agoThere's a typo on this page[0]: "per-order drop hipping fee" [0] http://ecommerce.shopify.com/guides/dropshipping/finding-suppliers http://ecommerce.shopify.com/guides/dropshipping/finding-sup...
- deleted 14y ago[deleted]
- timtamboy63 14y agoVery awesome. Might be worth adding ecommhub.com in there somewhere - makes life a hell of a lot easier for a drop-shipper :)
- spiredigital 14y agoAgreed! I love eCommHub, and use them for one of my sites. Kurt and the team over there are great and have built a solid service. Hopefully we can get them included.
- swib 14y agoThanks for the mention :) I'm Kurt, founder of eCommHub. I think it was an editorial mistake, so hopefully we'll get included in the guide soon. Just to give others some background, we started as a Shopify app a few years ago, so our whole platform is built around dropshipping (with Shopify). eCommHub helps with automating the inventory management and order processing, which can otherwise be quite manual and tedious. Some of our clients are automating as many as 5,000+ orders per DAY through Shopify using eCommHub. Anyway, this truly is the ultimate guide on drop shipping, so congrats to Mark and Andrew for putting together such a great resource! Here's our app listing if you're interested in checking out more: http://apps.shopify.com/ecommhub http://apps.shopify.com/ecommhub or http://ecommhub.com http://ecommhub.com
- arbuge 14y agoI just read the section of your guide about finding suppliers. So you recommend supplier marketplaces like Doba? I've heard alot of strong opinions either way on them. Is the pricing you can get there really competitive? Most of their clients appear to be really small mom-and-pop online stores.
- spiredigital 14y agoDOBA's interface can be convenient because they integrate seamlessly with big suppliers, but they have a limited number of end-suppliers and the service is more expensive. So while I'm sure some people have used them successfully, I think starting from scratch there are more compelling options. I've never used them, however, so I can't speak from personal experience. If you can find and work directly with your suppliers, that's preferable. Next best is going with a directory like World Wide Brands if you're struggling to find suppliers or need a solid brainstorming tool. Instead of serving as the go-between, they simply connect you directly to suppliers via their listings. Additionally, they'll have a larger selection of smaller niche suppliers which is where I see people have the most success with drop shipping. I've used WWB for years and they're a good source for legitimate wholesaler suppliers. Full disclosure: I've been interviewed / posted on the DOBA-affiliated blog to promote eCommerceFuel.com as they have a well-known blog in the drop shipping space.
- maaku 14y agoGonna burn karma here but... I read the title as "The Ultimate Guide to Dropshitting" and realized I have a great new name for 2HWW-inspired fly-by-night fulfillment companies :)
- cm2012 14y agoAs a manufacturer who drops hips for online sellers, this is a pretty god guide (jewelry)
- cm2012 14y agoEmbarrassing number of typos made on train home yesterday. Can't fix now, but good reminder to proofread when tired.
- refuteit 14y agoDropshipping = Chargeback risk that you can't control.
- jetti 14y agoThe amount that you save on inventory and warehousing could offset that risk. Plus depending on your niche I would imagine that the risk varies.
- kentwistle 14y agoDoes anyone have any experience with pixmania-pro drop shipping? I am specifically looking for a merchant that sell automated vacuum cleaners. (iRobot / Samsung)
- deleted 14y ago[deleted]
- xlevus 14y agoI'm not entirely sure if it's still classified as dropshipping. But I've been told that some postal services (e.g. NZ Post) are able to provide dropshipping like logistics for you. e.g. You manufacture your product in China. The postal service will then manage logistics for you from factory to your customers.
- DenisM 14y agoCould you make it into a kindle book please? 9.99 looks like a good price to me. Thanks.
- themonk 14y agoIs right supplier best kept secret in dropshipping? It would be nice if you can provide at least one supplier for any product you wish, this would give us fair idea about suppliers.
- terrellm 14y agoThis guide has some great information. A dropship commerce store can be a great complement to a software company if you are able to integrate a company's products in with your software. My wife and I develop a cattle management software called CattleMax and began operating two dropship e-commerce stores several years ago. Our stores help us offer customers a full solution (identification + weighing/measuring + management software) and also provide a nice supplement to our SaaS revenues. Our first store, The Cattle Tags Store (CattleTags.com), sells cattle identification supplies including visual ear tags and RFID tags & readers. Our software is useless of the rancher hasn't identified his or her cattle, so good identification is important. Our second store, The Cattle Scales Store (CattleScales.com), sells digital weigh scales designed for weighing livestock. It is a natural fit since our software can import weights from the scales and these scales also integrate with the RFID readers we sell at The Cattle Tags Store. In the beginning, we were hesitant to create the stores but got through that hesitation by saying "OK we will try it out for a few months".