Should You Dropship or Just Sell On Amazon? Which Is Better? with Alex Ryan

g’day guys Alex Ryan here welcome back
to another video this video we’re gonna be looking at drop shipping this is
actually a question I’ve got asked from one of my students hey Alex where do you
find great products to dropship you know what the heck is drop shipping and is it
something that you suggest we do and is there profit margins involved in drop
shipping so in this video guys I’m going to address that and more so stay with me welcome back guys it’s good to have you
here in the studio so guys well then we talked about drop stripping on today’s
video and I’m going to spend a little bit of time I’m gonna condense my
history and my background and experience with dropshipping and it’s more of a
high margin dropshipping that I’m going to focus on I’m not gonna talk about
teddy bears and making three bucks selling you know packs or sports gear or
socks or anything like that right I’m gonna focus on the high margin stuff and
I’ve got a quite a few colleagues of mine who do drop shipping and their
dropship small stuff so their dropship stuff like backpacks kids backpacks that
kind thing cool funky unique items and you know what they make ten bucks they
make twenty bucks I make 30 bucks margin that’s that’s all well and good and
they’re happy with that and they’ve got a pretty good business running right and
I would prefer to sell only a few products and make a pretty good return
on that rather than sell a home you know many products right so if your product
margins selling backpacks is like 20 30 bucks per one purple and you saw a ten
in one day okay you just made 300 bucks right but if you basically sell you know
I’ll give you the one example a prefabricated house and you saw one a
week you know you have just made probably close to about forty fifty
thousand dollars and I’m going to talk about those products in this video but I
would rather sell one product which has a bigger profit margin rather than sell
a hundred different products right does that make sense and it still takes some
times then you think about this it still takes very similar effort to sell a lot
of products on on the small scale then and it be very similar energy to selling
big stuff but in big stuff you make you make more profit margin alright so you
still need a website for the small ones you still need a maybe potentially talk
to customers they’ll have questions about it or shipping or something like
that you’re gonna answer questions either way I would personally rather
sell the the bigger higher priced margin products then the smaller stuff arrived
so that’s my that’s my background I I don’t have a lot of history swelling
small the more stuff I’m more off the big stuff so
we’re gonna be talking about that on this video now guys if you haven’t yet
seen or subscribe to my video series don’t forget to check it out I’m also an
author of how to import from China and make a fortune so how to find the
profitable products and launch these on Amazon and I’m gonna actually do run
events on that as well so hopefully I’ll be seeing you at my next event alright
so the drop shipping model as you can sort of see here I’ve got a bit of a bit
of an explanation on on how the drop shipping model works right so I sort of
switched here with I’ve sort of switched here so this is basically how it works
right so you have the customer list you have to have a website you need some
sort of platform to sell the product right the website the person orders the
product from you let’s say for example he’s 100 bucks right you place the order
with the supplier you give the customers details to the supplier and you pay them
70 bucks and then you basically make $30 and they the supply ships it directly to
your customer so that’s really kind of in a nutshell how drop shipping works
and it’s profitable but you need a jump on niches that aren’t overwhelmingly
governed by all these other people trying to sell the same product right
that’s what’s happening with a lot of these websites drop shipping websites
and Shopify is people there’s a couple of big drop of drop shipping websites
and they’re all selling the same stuff and everyone’s starting to jump on there
everyone’s trying to advertise everyone trying to you know do pay-per-click and
do SEO and put up videos but selling the same stuff so I would rather to go after
products that not everyone is doing and how do I find those products right so
first of all I jump up on Amazon not Amazon Alibaba and I look here
alright and this is a product that I’m actually still considering jumping on so
this particular product it’s a homebrewer equipment now again I’m not
talking a 50 bucks hundred bucks right these products they’re pretty expensive
5 grand 10 grand you know this one’s up to $23,000 these are big things you got
a hunter valley up in central Central Coast and Sydney right the wine valley
regions right you go to those craft brewery places you’re gonna see stuff
like this big vat big tanks when they make the B they make
the wine right I’m thinking this sort of scout and the advantage of doing drop
shipping is you don’t have to hold but a whole bunch of stock you can start with
pretty much zero capital seriously you can start at zero capital but you still
need to one build a website you still need to know how to market and get
people who are interested in buying this stuff onto your website and knowing
about you if you don’t know how to do that
do not do drop shipping all right you need to learn marketing and we do talk
about this at the training I do hold these workshops and I do talk about
marketing and Facebook advertising and all this other stuff I do talk about
drop shipping a higher priced higher higher margin products but if you are a
complete newbie with online marketing drop shipping is off for you you’re
better off doing selling on Amazon because Amazon is far easier and you’re
just got to narrow down a great product I’ll show you how to do that as well but
if you’re a complete newbie to internet marketing don’t do drop shipping because
you’ve got to learn how to market how to advertise you’ve got to learn how to how
to basically Drive people and convert people on a website okay and you’ll
learn how to sell a little bit as well so but this is the sort of stuff I’m
looking at right so I look at this sort of stuff
most people who dropship don’t do this other stuff they don’t look at this sort
of scale now how would I go about building something like this well the
first thing is I would build a website I’ll click on here for this is purely
example right and this is unplanned I don’t I didn’t plan this presentation I
didn’t really I don’t even know what this what this actual product is okay so
it’s a 50 litre homebrew equipment right so it looks like like what okay so
minimum sets two sets so got as ten thousand US dollars now if I wanted to
jump on this particular product I would build a website for the particular
product I would take these images I’ll put it on the website I would price it I
would find out what other people are charging in the marketplace I would
price mine let’s say for example fifteen thousand bucks or as I make a three-time
margin on that particular product okay and I would basically take all these
details copy and paste and put them on my website and they’ll start running
some ads I would put up a gum tree add or trade me out or start doing some
Facebook Ads I’ll do some videos talking about this particular product now don’t
have in stock and I have not bought this
product to keep that in mind I have not bought this product I’m just talking
about the product and selling off a website people see the website I
advertise I go to Hunter Valley I hand out pamphlets or call them up and say
hey I’ve got this thing currently retails are in Australia or New Zealand
it’s 30 grand but I can do it for 15 gram here’s the website now you can’t
check it out because you’re saving 15 grand I’d orders directly from the
supplier right so you can’t check it out and be up front of them say I order
directly from the supplier right but it’s a top-quality product right so you
connect with them and you got to make sure it is a top-quality product you
don’t deliver junk all right you want to be able to go about this you don’t have
deliver drunk you wanna make sure this is a top-notch product all right so you
call them up and they say yep place an order you could they pay you the money
up front right so whatever it is 2015 gran or whatever you pay the supplier
whatever they’re asking will sets two sets for five grand since two and a half
thousand bucks each looks like it and basically you bank your money right
that’s and that’s they the supply ships are directly to your customer that is
how I would set up and dropship a particular product I mean I’ve got
solder and other things before like prefabricated house have this typed in
prefabricated houses right here this is just a wet an Australian website where
they talk about houses right you can buy prefab houses you can sort of go to a
LaBarbera prefab houses row and these it can container homes that kind of thing
so I have consulted in the parts of people who do these particular
properties right here right the container homes see it looks nice nice
and trendy $3,500 minimum unit so 3500 units
okay looks quite nice is that class in class he great for like a little back
yard good for an office in the back yard a granny flat and you can sort of see on
some of these websites right you’re looking at big bucks alright again comes
down to putting on a website and selling it on the website and getting the supply
to deliver directly to your customer all right so yeah so this is all
prefabricated houses right pretty nuts in it and here you can actually put
these things together yes these these once a nice here like
little homes this looks like a little Indonesian wooden home the backyard
granny flat right so different different qualities that kind of thing here we go
sus 2,000 bucks unit and that might retail and you’ve got to know what the
price is out guys you that might retail for god knows how much I don’t know it
might retail for um you know 10 grand or 20 grand and Australia or New Zealand or
or in the US right so you’ve got to know what the prices are right and got to
make sure you are gonna be making a margin on it and but yeah so that’s kind
of how drop shipping works and how you go about finding supplies is you jump on
sites like Alibaba and you do the research and you find out what’s selling
it in your country and Australia for instance you find out what it’s gonna
cost you to ship to your customer and find out how much gonna cost you to buy
one then you put all the stuff on a website you learn how to market you
learn how to advertise and some of these sales you could be I mean potentially
whatever you’re selling note but these particular products you’d be making
twenty thirty thousand dollars to build these particular products off one sale
so all you did is one sale at month and they’ll be pretty decent right and again
you’re not holding stock right you none of this is stored in stock so I just
wanted to make this a quick video for you guys just talking about drop
shipping talking about how to go about getting started on this higher priced
margin products alright and the good thing about this is you don’t need
upfront costs you don’t need to buy this stuff you don’t need a stored but you do
need to know how to get customers and how to sell alright and that’s that’s
kind of yeah that’s kind of why Amazon is a good as a fantastic alternative
because you you know you don’t have to UM really learn how to sell that much at
all you just got to find a good product that’s exactly what I teach alright so
have a great day guys talk to you soon enjoyed it and by the way if you haven’t
yet done so subscribe my youtube channel hit me up on LinkedIn like this video
comment share share the love and I hope our paths cross again in
future my name’s Alex Ryan thanks for joining me see you later have a great
great day you you

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