The You-Tubers are making money from selling their courses. This is How it works: You get an e-commerce website through Shopify or another similar service. There are a lot of them. It will cost you between $147.00 and $598.00 per year, but it should include credit card processing. You THEN contact a company that carries the product you want to sell. And they agree to sell it to you for $4.95 plus shipping…and they agree to ship it to a third party (your customer) with only the packing skip and no invoice. They will ALSO agree to provide you with pictures of the product and descriptions …or in some cases they let you download it from their website. So, you take those pictures and descriptions and put them on your website. You price the item at $8.95 plus shipping…because that is what the people you buy it from suggested…it is what they sell it for on THEIR website. The idea is that when people place an order their $8.95 plus shipping goes directly in to YOUR bank account. You then send the order to the company along with $4.95 plus shipping. They ship it, you keep $4.00 on each sale. If you sell 250 a week you make $1,000.00 a week which is $52,000.00 a year. And that is great! But …in reality …it does not work out that way for 99% of the people who do this. WHY? Because, when you are operating as a drop shipping business...you are in the middle. Additionally, there are other people doing the same thing with the same product. There are people who will price it lower than you because they are happy making $30,000.00 a year ...or less. AND the wholesaler you buy from ...one at a time…is ALSO selling to other retailers. A company that can BUY A HUGE QUANTITY of THEM OUTRIGHT may pay only $1.95 each (or less) …that means THEIR WEBSITE is selling them at...$4.95 each and making a profit. The MANUFACTURER may be able to sell them at $0.95 each… (Probably in lots of 12 or more) and that is on their website. The person looking for the product does a search on line and sees the product at prices anywhere from $22.95 down to $0.95. They are not going to pay $22.95 unless that is their only choice. They are also not going to pay you the $8.95 … unless that is their only choice. THEY are going to pay the lowest price they can including shipping and handling. AND THAT PRICE will be from the company that YOU actually buy them from. AND THAT is another problem…unless you pay someone like me hundreds of dollars a month to keep your web page coming up on the first page of a search…. people will not see YOUR website first. The next problem is your supplier: If, for any reason they do not ship the product…YOU have to refund the customer’s money whether or not the company you have an agreement with refunds the money you paid them. There was a 'Kitchen Supply Manufacturer' (I'll call them KSM) that used to sell (and still does) high quality kitchen and food prep supplies. The stuff is very good. They sell both wholesale to big department store chains and retail on their website. One of my clients decided to start a drop shipping business by selling the products from her website. She bought a few and got pictures up and got a drop shipping agreement with KSM. She got her website up and paid me thousands of dollars for' marketing' before she gave up. Why did she give up? BECAUSE: When people shopped her website, over 90% of them left without buying. Why...because although she was selling the BRAND NAME PRODUCTS...the manufacturer was selling the same products on line for 35% less. (they were selling them at the price she paid.) So she was getting sales from people who had seen the stuff in the store...and her stuff was less... but the people who continued to shop ALWAYS found the manufacturers website and the lower prices there. So, when faced with: buy it at the DEPARTMENT STORE NOW for $35.00 or buy it on line and get it in a week ...for $25.00 or buy it on line with free shipping from the people who MADE IT and pay only $20. She closed that business and invested in a Chik-Fil-A that seems to be doing nicely. My advice is get out of drop-shipping and invest in a nice stable franchise!
Small Business · 14 hours ago