How Can You Get Started?
And I know what you’re thinking – because I thought the same thing. -"It feels like I will never get there."
-"That kind of success is for other people – not for me."
-"It all sounds like too much damn work."
-"I don’t know if I have what it takes."
-"I have been trying and nothing is working."
I said all of those things, and more (likely with a few more swear words thrown in during the rough
times). I said them all because everyone online tries to make it all seem peach and cream, and like it’s
easy and it did not feel easy. But what WILL make it easier is getting the right kind of help.
I had a lot of help when I started... just not the right kind.
My company, LalaJ Mass Marketing (The GirlBoss Network) was started and is designed to give each of
you the RIGHT kind of help.
Step 1. Figure out who your consumers are. (Are you in a small town, are you on a college campus,
what do the people need in your community need, what is no one selling yet, that should be sold,
how can you sale it differently from everyone else?)
Step 2. Put a price on it. (If you pre-sale, double the factory sale price to what you want to profit.
If you offer service, think about the time it takes to complete the task, be mindful to the people in your
community, think of how you can undercut the competition.
Step 3. Stop being afraid and SIGN UP FOR MY ONLINE CLASS: READY, SET, BOSS that takes place
SEPTEMBER 10th because you just took the first two steps in becoming your own boss, and I want to
help you take the next 3 (Branding and Marketing on and off social media, developing your product
content and catalogue , Building your site and Trademarking your business... if needed.)
Step 4. Drop Shipping!
What Is Drop Shipping?
Dropshipping is a retail fulfillment technique where a store does not hold the products it sells in stock.
The idea of drop shipping is that a wholesale drop shipper (the supplier) offers you the option of selling
products without buying them first. They also act as service providers who prevent you from having to:
-Store items
-Package and ship items
-Risk money on items when you aren't sure about how they will sell
The most important distinction amongst dropshipping and the same old retail model is that the
merchant doesn't stock inventory or own lots of inventory. Instead, the merchant purchases inventory
as wanted from a third party – commonly a wholesaler or producer – to satisfy orders.
This particular model has a number of benefits and disadvantages:
Benefits
There are several benefits to drop shipping, the main one being: Less Capital Is Required. You can launch
an ecommerce store without having thousands of dollars to front for your business or for the products
you wish will to sale to your customers. Other benefits include:
1. Increase your cash flow: Since you don’t stock the product, you don’t pay for it until it’s sold (after
you’ve been paid for it).
2. Scalability: Test products and add new ones quickly without bearing the burden of ordering in bulk
and having something fail
3. Low starting cost: You can start selling without a lot of early investment because you don’t have to
buy wholesale or cover the cost of manufacturing your own products.
4. Unlimited Inventory!!!
5. Run Your Business From ANYWHERE (As long as you have a mobile phone or
desktop with wifi)
Easy To Start – Running an ecommerce business is much easier when you don't have to deal
with touching the products. With dropshipping, you don't have to worry about:
• Managing or paying for a warehouse
• Packing and shipping your orders
• Tracking inventory for accounting reasons
• Handling returns and inbound shipments
• Continually ordering products and managing stock level
Disadvantages
1. You don’t control anything except your prices and the products that you “offer”.
2. Reduced margins, or low profit margins especially if you find yourself competing with
other online merchants that have set their shop’s prices at rock bottom prices. With competitors making
only minimal profits, if you try to match them or compete head on with their low prices you may find
that your profits are only pennies.
3. Your store is only as good as your ecommerce platform
4. Requires basic skills (at least) to manage an online store, including some technical
knowledge like uploading products to shopping cart, cropping photos, writing unique
product descriptions
5. Drop shipper can make mistakes, as it is not a guarantee that they fulfill 100% of their
orders 100% correctly
6. Supplier Erros – Have you ever been blamed for something that wasn't your fault, but
you had to accept responsibility for the mistake anyway? Even the best drop shipping suppliers make
mistakes fulfilling orders – mistakes for which you have to take responsibility and apologize.
7. Buying from Different Suppliers- Let’s say a customer buys three items all in which come from
different suppliers, shipping time could be different for all three items. Unless you only provide products
from the same supplier. (If you run into that problem, explain that your store has different ship times
and processing times due to high traffic and the items will be to them in no time)
Is It Worth It?
As I initially warned, drop shipping isn't a perfect, stress-free path to building a successful online
business. The model has some definite advantages but comes with a number “apart of the game” issues
that you will have to address from time to time. The good news is that with some careful planning,
consideration, and great customer service, most of these problems can be resolved and need not
prevent you from succeeding in your online business.
The Order Process:
Step 1 – Customer Places Order Through Your Online Store
Ashley Simpson needs a shirt for Beyonce’s Concert, so she places an order through “All Things Needed”
online store. Once the order is approved, a few things happen:
• AllThingsNeededonlinestoreandAshleySimpsongetsanemailconfirmation(likely identical) of the new
order that is automatically generated by the store software.
• Ashley’s payment is captured during the checkout process and will be automatically deposited into All
Things Needed bank account.
Step 2 – All Things Needed Places the Order With Its Supplier- Once you receive an order for from a
customer you will then place that order for them through your supplier. Typically, your supplier will have
a portal where you can see all of their products at factory price. If so: You will place your customer order
as if you were placing an order for yourself. (Their Name, Address, Phone Number..etc)
Step 3 – Wholesale Clothing Ships the Order
Your whole seller will receive your order (typically the same day and process it the following day), box
up the order and ship itdirectly to the customer. Although the shipment comes from your whole seller,
your business name and address will appear on the return address label and itslogo will appear on the
invoice and packing slip (You often have to request for this to be done prior to making the order or
shortly after you place the order for your customer). Once the shipment has been finalized, you will
receive tracking information, as well as your customer.
Step 4 – The Order Is Finalized
Both you and your customer will receive a notification when the product has been dropped off and
signed for. Your profit has already been made, and your customer now has their product.
NOTE: The turnaround time on dropshipped orders is often faster than you'd think. Most quality
suppliers will be able to get an order out the door in a few hours, allowing merchants to advertise same-
day shipping even when they are using a dropshipping supplier.
Blind Shipping
The customer who receives the product does not see where the product is coming from or what the
product was originally priced as when you use the drop shipping method.
The dropshipping wholesaler doesn't exist to the end customer. Its sole responsibility is to stock
and ship products. Everything else – marketing, website development, customer service, etc. – is your
responsibility.
How to Detect Fake Dropshipping
Wholesalers/Vendors
Depending on where you're searching, you'll likely come across a large number of “fake” wholesalers
and vendors. For example: Aliexpress is filled with several real wholesalers who own a factory but they
are also filled with several fake wholesalers. I like to compare it to an international flee market. Fake
whole sellers are a lot easier to find because they market the most! However, legitimate wholesalers do
not market as much as they should and they are a lot harder to find. Legitimate whole sellers are very
exclusive in business. This results in the non- genuine wholesalers being seen a lot more frequently.
Here are some tips in determining if the whole seller is legitimate: They Want On Going Fees (Monthly
Fees)
They Sell To The Public – Legitimate Wholesale Vendors Require A EIN to gain access to their portal.
But here are some legitimate dropshipping fees you’ll likely encounter:
Minimum Order Purchase – Some vendors will have a minimum of products you must purchase before
gaining access to wholesale prices. They do this because there are a lot of people just window shopping
with no intentions on actually moving forward with starting a business.
If you're dropshipping, this could cause some complications. For example, what do you do if a supplier
has a $500 minimum order, but your average order size is around $100? Try to order as many customer
orders from this supplier as possible.
Finding Wholesale Vendors
Contact the Manufacturer-
This is the best way to easily locate legitimate wholesale suppliers. If you know the product(s) you want
to sell, email/call the manufacturer and let them know that you are inquiring about drop shipping, and
purchasing certain products through their store.
Since most wholesalers carry products from a variety of manufacturers, this strategy will allow you to
quickly source a selection of products within the niche you're exploring. After making a
couple of calls to the leading manufacturers in a niche, you'll quickly be able to identify the leading
wholesalers in that market.
Search Using Google
Using Google to find high-quality suppliers may seem obvious, but there are a few rules to keep in mind:
1. You have to search A LOT – Wholesalers are terrible at marketing and promotion, and they're
definitely not going to top the search results for “wholesale suppliers for product X.” This means you'll
likely have to dig through LOTS of search results.
2. Do not judge a book by its’ cover (or its website) – Wholesalers websites can suck sometimes. So bad
to the point where you might find yourself second guessing if you can even do business with them. Don't
let the poor design scare you off.
3. Use lots of keywords – Wholesalers aren't doing extensive SEO to ensure you find their websites, so
you might need to try various search queries. Don't stop at just “[product] wholesaler.” Try using
modifiers such as “distributor,” “reseller,” “bulk,” “warehouse” and “supplier.”
Order From the Competition
If you're having a hard time locating a supplier, you can always use the old order-from-the- competition
trick. Here's how it works: Find a competitor you think is dropshipping and place a small order with that
company. When you receive the package, Google the return address to find out who the original shipper
was. In some cases, it will be a supplier you can contact.
Attend a Trade Show
A trade show allows you to connect with all the major manufacturers and wholesalers in a niche. It's a
great way to make contacts and research your products and suppliers all in one spot. This only works if
you've already selected your niche and/or product, and it isn't feasible for everyone. But if you have the
time and money to attend, it's a great way to get to know the manufacture and suppliers in a market.
Your To-Do List:
If you purchased ‘The Vendors List” you should now have a number of suppliers you are interested in
drop shipping your products through. But before you start contacting these suppliers you'll want to have
everything aligned so that communication and setting up runs smoothly.
You need to have your EIN (Have your sh*t together) – As I mentioned earlier, most legitimate
wholesalers will require proof that you're a legal business before allowing you to apply for an account.
Most wholesalers only reveal their pricing to approved customers, so you'll need to be legally
incorporated before you'll get to see the kind of pricing you'll receive.
Bottom line? Make sure you're legally incorporated before contacting suppliers! If you're only looking to
ask a few basic questions (“Do you drop ship?” “Do you carry this product?”), you won't need to provide
any documentation. But don't expect to launch without having your business properly set up.
Understand how you come off – Wholesalers are constantly bombarded by people with “great business
plans” or who are “looking to purchase through them” who ask them thousands of questions, take up a
lot time and then never order anything. So if you're launching a new business, be aware that many
suppliers aren't going to go out of their way to help you get started.
Most will be happy to set you up with a dropshipping account if they offer it. But don't ask for discount
pricing or spend hours tying up their sales representatives on the phone before you've made a single
sale. It will quickly earn you a bad reputation and hurt your relationship with the supplier.
If you do need to make special requests (say, trying to convince a supplier to dropship when it normally
doesn't), you need to build credibility. Be definitive about your business plans (“We ARE launching this
site on (What day you expect to launch) instead of sounding as if you are on the fence about your new
business venture.
You need to convince suppliers that the inconvenience of accommodating your special request(s) will
pay off down the road when you become successful and start bringing them a ton of business. For
example: “I will be bringing a lot of clientele, and making a lot of purchases through your company”
Don’t be afraid to make a phone call – Believe it or not, your vendors communicate better viaTelephone,
being that most of them are foreign. Also, they communicate well through a WhatsApp (download this
app, because most of them communicate through this platform)
How to Find Good Suppliers
Although it won't give you a complete picture, placing a few small test orders can give you a great sense
of how a supplier operates. You can see:
• How they handle the order process • Howquicklytheitemsshipout
• How rapidly they follow up with tracking information and an invoice
• The quality of the pack job when the item arrives
Your Options on Paying Suppliers
The vast majority of suppliers will accept payment in one of two ways:
Credit Card When you're starting out, most suppliers will require you to pay by credit card. Once you've
established a thriving business, paying with credit cards is often still the best option. They're not only
convenient (no need to write checks regularly), but you can rack up a LOT of rewards points/frequent
flier miles. Because you're buying a product for a customer who has already paid for it on your website,
you can rack up a high volume of purchases through your credit card without having to incur any actual
out-of-pocket expenses.
Net Terms The other common way to pay suppliers is with “net terms” on invoice. This simply means
that you have a certain number of days to pay the supplier for the goods you've purchased. So if you're
on “net 30” terms, you have 30 days from the date of purchase to pay your supplier – by check or bank
draw – for the goods you bought. Usually, a supplier will make you provide credit references before
offering net payment terms because it's effectively lending you money. This is a common practice, so
don't be alarmed if you have to provide some documentation when paying on net terms.
“What Do I Focus On?”
A question I often see in my emails and flooded DMs is: “What do I focus on?”- “What do I start my
business with?”– it's likely one of the biggest decision you'll make and my advice is: FOCUS ON WHAT
YOUR COMMUNITY WANTS AND ONLY HAS FEW OF!
The most common mistake at this stage is picking a product based on personal interest or passion. IT’S
NOT ABOUT WHAT YOU LIKE, IT’S ABOUT WHAT YOUR CUSTOMERS WANT! This is an acceptable
strategy if being interested in the product is your primary objective, not necessarily business success.
But if your #1 goal is to PUSH SALES AND MAKE THE MONEY, you'll want to consider setting your
personal passions aside when doing market research and debating on what to sale.
How To Reach Success Through Your Online
Store:
To build a successful ecommerce business, you'll need to do one of the following:
Make Your Own Products –When you create your own products, you can sale it for what you want to
sale it for and also create a high demand for your products being that only so many will be produced and
they cannot be found everywhere CUSTOM MADE. This limits competition and allows you to charge a
premium price. If you intend to dropship products, you'll be selling existing products manufactured by
someone else, so this isn't an option.
Sale Exclusives– When Rihanna Pumas came out I was one of the few people who had them to resell. If
you can arrange an exclusive agreement to carry a product – or if you have access to exclusive pricing
from a manufacturer – you can profitably sell online without creating your own product. These
arrangements can be difficult to arrange, however, and hundreds of other dropship merchants will have
access to similar goods and wholesale prices.
Start With The Lowest Price – If you can offer the lowest price, you'll likely steal business from a large
chunk of the market. The only problem? It can eventually cost you. If the only thing of value you have to
offer is to your clients is a low price, you'll be caught in a pricing war that will strip virtually all your
profits.
Add Value Across The Board– Great customer service is priceless! Provide your customers with
information without them having to ask! Social Media is the perfect platform to offering amazing
content in regards to answering those FAQ’s.
Add Value To The Market– Just add value! Simple enough, right? Well, that's easier said than done.
Some products and niches lend themselves to this strategy more than others. You should look for a few
key characteristics that make adding value with educational content much easier.
Ways to Add Value:
You can add value to complex and confusing niches in a number of ways, including:
• Creatingcomprehensivebuyersguides
• Investing in detailed product descriptions and listings
• Creating installation and setup guides
• Creating in-depth videos showing how the product works (MAJOR KEY)
• Establishing an easy-to-follow system for understanding component compatibility
Finding Your Ideal Client
When finding your target audience, this is the time to think about the product you’re selling and
yourself. Take into consideration the community you are in, the price you wouldn’t mind paying for the
product or service you are now offering, how often would you be interested in buying this product- One
time? Or more than once?
Loyal Customers – Recurring revenue is a beautiful thing. If you sell products that are disposable and/or
need to be reordered frequently, you can grow rapidly as you build a loyal customer base that
frequently returns to purchase.
Other Considerations When Selecting
Products
The Perfect Price– Pricing your products in the sweet spot where you maximize overall profits (balancing
a low enough price to encourage a sufficient volume of sales and a high enough price to keep profit
margins good). Pricing also involves planning strategies such as offering coupons, discounts, etc. to fuel
sales.
I often suggest coming up with three prices:
1. High Price (I know my worth Price)
2. Average Price ( I’m not making any sales so I budge a tad)
3. Family/ Friend Discount & No SALES (This is the lowest you’ll ever drop a product or
service)
Marketing 101 – The time to think about how you'll market a business is before you launch it, not three
months in when you realize that customer acquisition is a nightmare. Promotion can only be done
effectively once you have researched and developed your products, priced them strategically to
optimize cash flow and profits, and set up sufficient distribution channels. Without successfully
completing the full marketing cycle, promotion is expensive and will fall flat.
Find out who you are marketing to, who follows you already, figure out who your consumers are and
what your consumers like. TAKE ADVANTAGE.
Marketing is an ongoing process, not a one-time project.
Can you brainstorm a number of ways you could promote your store by, for example, writing articles,
giving away products or reaching out to active online communities that use the products you're selling?
If not, you may want to reconsider.
As customers, we're also much more sensitive about the price on a big-ticket item and care less about
the price of smaller accessories. To use the previous example, you'd likely shop around for the best price
on an expensive smartphone. But are you going to call around to find the best price on a $20 to $30
case? Probably not. You'll likely purchase it from the same store where you bought the phone.
High Demand And Hard To Find – Selling a product that's hard to find locally will increase your chances
of success. Like I mentioned earlier, deadstock or exclusive sold products in store helped me a lot more
than what I thought it would and paid me a lot more than what I thought it would. Think of things that
are hard for you to buy, or hard for others to get a hold of.
Smaller Is Cheaper – A lot of you mentioned offering free shipping, which means the shipping cost could
eventually fall on you if you gear towards paying for your products up front. If you ever come to that
conclusion and you find that you offer large/heavy products, then you’ll also find that shipping fees are
going to take a toll on you.
Picking a profitable niche isn't easy and requires you to consider numerous factors. These guidelines
should give you a good idea of the types of drop shipped products that work well.
Is there a High Demand?
Without demand, it doesn't matter if your product fits 100% of the whats listed above. If nobody wants
your product, you'll have a hard time making any money! I once read, it's much easier to fill existing
demand than to try to create it.
Fortunately, a number of online tools allow you to measure demand for a product or market. The most
well-known and popular is the Google Keyword Tool.
How To Study The Market: Google Keyword Tool
The best way to measure demand for an item online is to see how many people are searching for it
using a search engine like Google. Fortunately, Google makes this search volume publicly available via its
keyword tool. Simply type in a word or phrase, and the tool tells you how many people are searching for
it every month.
Google Trends
Search Volume For Volume: Ideally, you want the niche you're entering to be growing and
Trends can let you know if this is the case. For any given search query, you can see the growth or decline
in search volume over time.
Below is a chart of search volume for the term “smartphone”. As expected, search volume has risen
sharply in the last few years:
Seasons Are IMPORTANT: Understanding the seasonality of a market can make you thousands if you
push out a product during the RIGHT season. Seasons that are coming to base your product selection off
of:
1. Black Friday
2. Thanksgiving
3. Christmas
4. New Years
5. Refund For College Students
One Final Thing
Aspiring drop shipping entrepreneurs commonly want to know, How can I be sure that my niche will
work out? The answer is, you can't! I’ve started a few businesses, some that did great and some that
didn’t. The only way to ever figure out if it’s going to work is to try and give it your all while trying!
Reminder: “Nothing works unless you work it”
So do your homework, research and gather as much information as possible. But then make the best
decision you can and move forward despite your hesitations and fears. If you wait for all uncertainties to
be resolved with “the perfect market,” you'll never take the JUMP into entrepreneurship.’ Just Jump
already!
Commitment is REQUIRED
As with any other business, building a successful dropshipping business takes significant commitment
and PATIENCE. If you're hoping for a six- figure income from six weeks of part- time work, you're going
to be sadly disappointed. This generation lives for instant gratification! Don’t be that person. Approach
your business with realistic expectations about the commitment required and your profitability, you'll be
much less likely to get discouraged and quit.
When starting a online business (drop shipping), you'll need to invest heavily using one of the following
two currencies: TIME OR MONEY
Investing Time
Bootstrapping and investing sweat equity to build your business is the recommended approach,
especially for first-time entrepreneurs. I favor this approach over investing a large sum of money for
numerous reasons:
• You'll learn how the business operates inside and out, which will be crucial for managing others as
your business grows and scales
• You'll intimately know your customers and market, allowing you to make better decisions
• You'll develop several new skills that will make you a better entrepreneur
Realistically, most people aren't able to quit their job to spend six months ramping up their new online
store. (I was really blessed) It may be a bit more challenging, but it's definitely possible to get started
with dropshipping even if you're still working a 9-to-5 position assuming you set appropriate
expectations regarding customer service and fulfillment times for your customers. As you start to grow,
you can then transition into working full-time on your business.
Investing Money
It's possible to create and grow a business by investing a bunch of money, but I personally say, work
with what you can and do what you for the time being.
Without understanding how your business works at every level, you'll be at the mercy of expensive help
and marketers who will quickly eat up any profits you're getting. You don't need to do absolutely
everything yourself, but I strongly recommend being the captain of your ship to success.
What Type Of Business Are You?
NOTE: The business structure and EIN (employer identification number) information discussed below is
applicable for entrepreneurs in the United States and won't apply to other countries.
If you're serious about starting your business, you'll want to set up a legitimate business entity. I’ve
gotten several questions in regards to which structure is best. I have always been set up as a sole
proprietor but I suggest making your decision based off what you feel fits you and your business best:
SOLE PROPRIETORSHIP – The simplest business structure to implement but also offers no personal
liability protection. So if your business is sued, your personal assets also may be in jeopardy. Filing
requirements are minimal, and you simply report your business's earnings on your personal taxes. No
other state or federal business filings are required.
LIMITED LIABILITY COMPANY (LLC) – An LLC offers increased protection of your personal assets by
establishing your business as a separate legal entity. While the liability protection isn't foolproof, it does
offer more protection than a sole proprietorship. You may need to comply with additional filing
requirements and will need to pay both incorporation and ongoing fees.
C CORPORATION – Most major corporations are set up as C corporations which, when done properly,
offer the most liability protection. They are likely to be more expensive to incorporate and are subject to
double taxation, as income doesn't pass directly to the shareholders.
So which structure to choose? Most small entrepreneurs tend to go with either a sole proprietorship or
an LLC.
Requesting an EIN Number
The IRS requires all businesses to have an employer identification number (EIN), which acts as a Social
Security number for your business. You'll need this number to file your taxes, apply for wholesale drop
shipping accounts, open a bank account and pretty much do anything related to your business.
Fortunately, getting an EIN number is easy and free. You can easily apply for an EIN number
online.
Getting Your Finances in Order
One common mistake entrepreneurs make when starting a business is blending their personal and
business finances. ( DO NOT DO THIS BECAUSE BUSINESS MONEY IS NOT PERSONAL SPENDING MONEY)
This causes confusion and makes accounting more difficult.
When starting my business I opened a separate Personal Checking Account for my business. I only
allowed business deposits and business direct deposits to go into this account. I never withdraw any
money from this account or move money around on this account. I also don’t have a debit card for this
account. (It keeps me from spending)
BUSINESS CHECKING OR PERSONAL ACCOUNT – You should run all of your business finances through
one primary checking account. All business revenue should be deposited into it and all expenses should
be withdrawn from it. This will make accounting much easier and cleaner.
PAYPAL ACCOUNT/STRIPE – If you plan to accept PayPal (which you likely will), you'll want a separate
account for your business.
Collecting Sales Tax
You'll need to collect sales tax only if both the following are true:
1. The state you operate from collects sales tax AND
2. An order is placed by someone living in your state
Local Business Licenses
Another question that is frequently asked is: Do I need a business License. When drop shipping and
selling online, I personally say the most you need is your EIN. Again, do your best with what you have
until you have enough for best!
Drop shipping With Your Own Online Store
The Pros of Selling on Your Own Store
More Control – With your own online store you get to create a shopping environment that's conductive
to selling your products and – most importantly – adding value to your customers. You can customize
the look and layout, and create custom product pages optimized to best inform your customers about
the products.
Easy Design – You get to develop your own layout template and landing page as oppose to
what’s already been made for you.
Mobile Design – Depending on the domain you choose to go through, buying from your online store will
work wonderfully and be a lot easier through mobile.
Some online store platforms, Mercari, Poshmark, Vinted, and many more let you manage your entire
business from your mobile device. This is particularly attractive to dropshipping business owners who
often like to run their business on-the-go, or even on the beach somewhere.
No extra fees – Typically when you run your store through third party sites, you run into things like seller
fees. (typically 5%-10%)
The Cons of Selling on Your Own Store
You are in business for yourself and by yourself- which means that marketing fear that you have, YOU
HAVE TO GET OVER IT.
When starting your own online business, your sales are going to rely on you until your business starts to
speak for itself. Something I always say: “Being an Entrepreneur is like working solely on commission.
You get what you put in”
If you've never run a drop shipping business/online business, I want you to know:
[Link] can get a little sticky– The convenience of drop shipping comes at a price that’s worth paying,
and having an invisible third party involved in each sale often complicates things. The biggest problem I
see a lot is turn-around time for those small items like t-shirts and accessories
2. RICH DAD, POOR DAD – Having a KISS (Keep It Simple, Stupid!) mentality will serve you well with the
drop shipping model. Don’t over think the process. Take it slow, and keep it simple!
When Suppliers Screw Up An Order
Even great suppliers make mistakes, and you're guaranteed to have fulfillment errors from time to time.
So what do you do when your supplier sends the wrong item?
1. Own It. – I’ve had this and the only thing you can do is provide great customer service. Say sorry, send
a heart filled message, offer a discount on their next purchase, and get the problem fixed FAST.
2. Make It Up. – Do not be afraid to compensate your customer with something free or a discount. “If
you drop the ball, just drop the price”
3. Make Your Vendor Fix It.– You may have to assume responsibility for the error, but that doesn't mean
you need to pay for it! Any reputable supplier will pay to fix its own errors.
Security and Fraud Issues
Dealing With Fraudulent Orders
The possibility of fraudulent orders can be scary when you're starting out, but with some common sense
and a bit of caution you can prevent the vast majority of losses due to fraud.
NOTE: Even if you don't route all your orders on price, you should have your suppliers bid against each
other to achieve the best pricing possible as your business grows. Just don't try to do this too early – if
you're asking for pricing discounts as a newbie, you'll likely only annoy your suppliers.
Fortunately, fraudsters tend to follow patterns that make it easier to spot illegitimate orders before they
ship. Individually, these signs won't help you flag a fraudulent order, but if you see two or three of them
you should investigate:
• DIFFERENTBILLINGANDSHIPPING–Again,morethan95%ofallfraudulentorders will have different billing
and shipping addresses.
• DIFFERENT NAMES – Different names on the billing and shipping addresses could be a red flag for
fraudulent orders. That, or a gift purchase.
• UNUSUAL EMAIL ADDRESSES – Most people have email addresses incorporating some part of their
name, allowing you to match part of an email address to a customer's name. But if you see an address
like dfssdfsdf@[Link], there's a good chance it's a made-up address and is one sign of fraud.
• EXPEDITED SHIPPING – Since they're charging everything to someone else's card, fraudsters will often
pick the fastest – and most expensive – delivery method. It also reduces the amount of time you have to
catch them before the item is delivered.
If you spot an order you suspect is fraudulent, simply pick up the phone. Fraudsters almost never put
their real number on an order. If the order is legitimate, you'll likely have a 30-second discussion with
someone that clears everything up. If not, you'll get a dead number or someone who has no idea that
she ordered a 25-foot boat scheduled for overnight delivery. At that point, you can cancel the order and
issue a refund to avoid any chargebacks or problems.
Dealing With Returns
Before writing your own return policy, you'll want to make sure you know and understand how all your
suppliers deal with returns. If they have a lax 45-day return window, you can afford to be generous with
your terms. A strict return policy from just one supplier can cause you to re- evaluate the terms you can
afford to have in place.
When a customer needs to return an item, the process will look like this:
1. A customer contacts you to request a return
2. You request an RMA (return merchandise authorization) number from your supplier
3. The customer mails back the merchandise to your supplier, noting the RMA # on the address
4. The supplier refunds your account for the wholesale price of the merchandise 5. You refund the
customer for the full price of the merchandise
It's not always this straightforward, however. The following can complicate returns: Defective Items
Be sure to ask your customer for images of the products before you allow them to be sent back to you.
Sad to say, but a lot of people are getting over on business owners. So to protect your business, take
that extra step and request for product images.
You, however, should ALWAYS compensate your customers for the return shipping fees for defective
items if you're interested in building a reputable business. Again, this is a fee you won't be able to pass
along to anyone, but it's part of the cost of running a quality online business.
If the defective item is relatively inexpensive, it often makes sense to just ship the customer a new
product without requiring them to return the old one. This has a number of advantages compared to
making them return the old item.
Shipping:
Calculating shipping rates can be a big mess for dropshipping merchants. With so many different
products shipping from multiple locations, it's difficult to accurately calculate shipping rates for orders.
There are three types of shipping rates you can use:
REAL-TIME RATES – With this method, your shopping cart will use the collective weight of all items
purchased and the shipping destination to get an actual real- time quote. This is very accurate but can
be difficult to compute for shipments from multiple warehouses.
PER-TYPE RATES – Using a per-type method, you'll set flat shipping rates based on the types of products
ordered. So all small widgets would ship for a flat $5 rate, while all large widgets would be $10 to ship.
FLAT-RATE SHIPPING – As the name implies, you'd charge one flat rate for all shipments, regardless of
type. You could even offer free shipping on all orders. This method is the easiest to implement but is the
least accurate in reflecting actual shipping costs.
Picking A Carrier
Selecting the right carrier is important, as it can save you a significant amount of money. In the U.S., the
largest decision you'll need to make is between UPS/ FedEx and the U.S. Postal Service.
UPS/FEDEX –Great for shipping large, heavy packages domestically. Their rates for big shipments will be
significantly lower than those charged by the USPS.
U.S. POSTAL SERVICE – If you're shipping small, lightweight items you can't beat the rates offered by the
USPS. After dropshipping fees, the cheapest UPS shipping fee you're likely to see is around $10, while
you can often ship items for $5 or less through the post office. The post office tends to be a better
choice for sending international shipments, especially smaller ones.
When setting up your shipping options, consider categorizing them by shipping time (“Within 5 Days” or
“Within 3 Days”), as this gives you the flexibility to pick the carrier that's the most economical for each
order and delivery time.
This is something you will not have to think about until you decide keep products on hand to be deal
with shipping yourself.
Customer Support
Phone Support: It is important that you offer a call back number to your customers. A great one to use is
Google Voice (It’s linked to your phone, but has a separate number). It’s rare that a customer will call or
text the number, but if they have any questions or concerns it’s good to have, and it looks great for
business!
Email Support: I know it may seem old school but email support is important and kill a lot of businesses
when they are not active with their email. I suggest setting up a business email, strictly for your
business. Check your email frequently. (I often check mine when I’m walking pass a group of guys and
I’m trying to look busy)
In A Nutshell...Key Elements of Success
I’ve covered a bunch of information so far, discussing everything from the fundamentals of dropshipping
and starting your online business. By now, you should have enough of a foundation to confidently get
started researching and launching your own online business.
Being that I went over so much information, I would like to wrap up the key factors in starting and
running your online business:
1. Add Value
2. Focus on Marketing
Coming in a close second to adding value as a key success factor is being able to drive traffic to your new
site. The #1 problem and frustration new ecommerce merchants face is driving traffic to their site. Too
many merchants slave away for months on the perfect site only to launch it to a world that has no idea
it exists. DEVELOP AMAZING CONTENT WHEN YOU ARE DOING NOTHING ELSE! PROMOTIONS RUNS
BETTER WHEN YOU HAVE CONTENT TO GIVE.
Marketing and driving traffic is absolutely essential to the success of your business and is difficult to
outsource well, especially if you have a small budget and are bootstrapping your business. You need to
take the personal initiative to develop your own SEO, marketing, outreach and guest posting skills.
[Link]!
Before launching your online business, ask yourself- WHAT WILL MY BUSINESS SPECIALIZE IN? It can be a
specific product or a specific service. What do you want your customers to know that you always offer at
the best price with the best quality?
Remember: IF EVERYONE IS YOUR CUSTOMER, THEN NO ONE IS. Specialization makes it easier to
differentiate yourself, charge a premium price and concentrate your marketing efforts more effectively.
4. Have a Long-Term Perspective
IF YOU’RE IN IT TO WIN IT, YOU HAVE THE RUN THE ENTIRE RACE!
5. Offer Outstanding Service
Get to know each and every one of your customers. Be professional at all times.
Take your time.
Give your customers more than what they paid for (Doesn’t always have to be a product or service.)
FOLLOW UP WITH ALL YOUR CUSTOMERS
6. Don't Get Hung Up on the Details
Don’t focus too much on the details. Your company name, logo, theme or email marketing service aren't
going to determine your success.
What makes a business successful are the things I just talked about: adding value, marketing,
outstanding customer service, specializing and a long-term commitment. The home can be beautiful but
what does that matter when the foundation of the home SUCKS!
7. The Most Important Step
The most important step: START!If you want to be successful, if you want to be wealthy (not only
financially, but; spiritually, emotionally, mentally and physically) you have to start! And there is no way
around it. When you start I can assure you that your parachute to success and wealth will not open right
away. But if you do not start, your parachute will NEVER open. If you're safe, you will never soar! Let
today be the day you start. It's what entrepreneurs do. Start.
10 Ways To Grow Your Business Content:
1. Write How To Post: Teach your customers how to use your products, or how the can benefit from
your services. MAKE IT APPEALING.
2. Play The Numbers: Numbers make me look. I’m sure they make other people look as well. If you’re
having a sale, MAKE THE NUMBERS STAND OUT.
3. Create The Best Of Who To Follow: Business is not all about you! Learn from others and give other the
chance to learn from you and get to know you.
4. Definitions: Not everyone knows everything about your business, and more than likely that’s what’s
keeping them from buying into your products or services. Tell people about what you do and what you
offer!
5. LEARN HOW TO USE PINTERST! I’m sure most of you have mastered posting on Instagram, Facebook,
and Twitter. EXPAND YOUR PLATFORM USAGE
6. Be Active In Groups Or Start A Group. When I started a “Women In Business” group chat not only did
we all motivate each other but we all supported each other!
7. There are 3 Types of Post -Inspire
-Motivate
-Tell A Story
8. Create Challenges! Always have a branded hashtag for your
customers or clients.
9. DO NOT BE AFRAID OF AUTOMATION. Instagram has
automation. Email has automation. USE IT.
[Link] To Your People
-Get On Live MORE!