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You may be saying to yourself, “I barely know what it is, let alone how to make money drop shipping.”
Well, it’s actually quite simple and there’s people running drop shipping businesses both on the side and full time from the comfort of their home using their computer.
What Is Drop Shipping?
Put simply, drop shipping is when you sell a product as your own, but do not store any inventory. For example, perhaps you have a friend who runs a makeup company and they sell mascara for $5.00. You now list the site on your own store (or on EBay or Amazon or a similar site) selling at $15.00.
When you get a sale, you go to your friend, purchase the mascara from them for $5.00, and then have them ship the mascara to your customer directly. You now made $15.00, spent $5.00 and had someone else handle the shipping. Would you say this was the easiest imaginary $10.00 you ever made? 🙂
That’s why so many people are loving drop shipping, because you basically get to profit without ever having to store a single piece of inventory or personally handle any shipping.
This has made drop shipping a very popular side hustle and business method.
Setting Yourself Up With Drop Shipping
Setting yourself to make money with drop shipping is quite easy. All you need to do is find products that sell routinely at a certain price, while being able to purchase them elsewhere for much cheaper. I will now give two very popular ways to make money drop shipping.
Drop Shipping Method 1: Ebay/Amazon Arbitrage
Right now, there are tons of products being sold with price disparities between EBay and Amazon. What I mean by this is the same item on EBay selling for $12 can be selling for $16 on Amazon.
So, there are people making quite a bit of money that find as many items as they can with price disparities and then listing the product up on the other site. When they get a sale, they source the product from the other site.
Let me break it down to be simple to understand:
- Joe see’s that the same exact watch is selling for $50 on Ebay, and $70 on Amazon.
- Joe takes the photos from Ebay and lists the product up on Amazon at $65-$70
- When he gets a sale, he goes to Ebay and orders the product for $50 and sends it to the customer’s address directly from Ebay.
- Since he got paid $70 up front for the watch, and paid out $50 of that to Ebay, he profits $20.
- Simple, right? There’s people doing five figures a month with this consistently.
- The beauty is that Joe never had to store any inventory, or even shell out any up front cost. He only had to do work AFTER he got paid.
Drop Shipping Method #2: Your Own Online Store
There’s ways for you to set up your own online store very easily now and start collecting payments for products you offer for sale. Let me quickly outline this method:
- You research products in a niche of your choice
- You find products on Etsy, Ebay, AliExpress, and similar sites you want to sell
- OR, you find wholesalers by using google, typing in things like “dog toy wholesaler” for example.
- You build a store using Shopify or WooCommerce (WooCommerce will require knowledge of how to set up a blog)
- If using Shopify, see How To Make Money with Shopify
- You start working on getting visitors to your site through:
- When you get a sale, you follow the same idea in method #1 about shipping to your buyer from your source.
- You keep growing the brand awareness and visitors/profits go up over time
It’s very similar to method #1 in a sense that you’re still drop shipping (don’t need to store any inventory) except there’s a few advantages: You can keep all your customers, email them again later and build your own brand vs. building Amazon’s or Ebay’s. A disadvantage is running your own store will come with more setup work.
I personally prefer to earn with the second option, I have a dog site where I sell dog products. Here’s just one example where I get a LED (light-up) dog collar for $5 or so, and sell for $19.95 on my site:
Most of my traffic comes from Pinterest for the dog site.
So how you have seen two straightforward ways on how to make money drop shipping. This is truly something anyone can do, and with ease.
In the end, you have to decide which route of how to make money drop shipping will be right for you.
Another cool thing is you can combine drop shipping with a blog. You can read my post on how to start a profitable blog, as well as check out my free 5 day blogging and traffic primer course. I also have my premium, more advanced Blogging and Traffic Masterclass if you’re really serious.
Find out more about how you can make money online in these articles: