- Hi guys, Neil Waterhouse.
Lately I've been getting a lot of questions asking
exactly what is eBay dropshipping?
So this week's video is dedicated
to answer the question of what is eBay dropshipping.
So let's launch straight into it.
Now, the biggest difference with a drop ship business
compared to a traditional non dropshipping businesses is,
with a dropship business, you sell items first
and get paid first, before you purchase any inventory.
This means you don't need to spend any money
pre-purchasing inventory before it sells.
Now, in the industry, dropshipping,
it's also known as virtual inventories.
It's using your supplier's inventory
instead of purchasing your own inventory.
With a traditional non dropshipping business,
you first purchase items from a supplier,
and then after you purchase your items from your supplier,
you then list those items on eBay or Amazon
and then sell them.
So with a traditional non dropshipping business,
you're out of pocket until your items sell.
With dropshipping though, you list the items first,
and then after each item sells, you get paid,
you make your profit,
and then you order your items from your supplier,
and your supplier ships the item direct to your customer.
So the big advantage with dropshipping
is you sell your items first
before you purchase the items.
This means you're always cashflow positive,
and you make your profit before you purchase your items.
Now, back when I started on eBay over 20 years ago,
dropshipping wasn't an option.
Back then, the only way to build
a large, full-time business
was to invest tens of thousands of dollars
pre-purchasing inventory before it had sold.
Back in those days, we defined all different strategies
to come up with a cashflow to keep growing the businesses.
Today though, with dropshipping,
you can build a full time eBay dropshipping business
using literally less than a $100.
This is why dropshipping has become so popular
over the last few years
with not just eBay and Amazon sellers,
but also with traditional bricks and mortar businesses.
A lot of bricks and mortar business,
they don't want to spend tens of thousands of dollars
purchasing more inventory, leasing larger warehouses,
and paying for more staff.
As with dropshipping, you don't need any local staff.
You don't need a warehouse,
and you don't need to dig into your savings
to pre-purchase the inventory before it sells.
You also don't need to spend your days
wrapping and packing your products
as your supplier does all this for you.
And they also ship the items
direct to your customers for you.
Now, as you get bigger,
your suppliers work harder, not you.
As the host and founder of the four largest
eBay and Amazon meetup groups in Australia,
with over 6,000 members,
we've seen a big shift to dropshipping
over the last few years,
as more and more people prefer to run businesses from home,
rather than the traditional style of leasing warehouses
and pre-purchasing inventory.
Since COVID-19, we've seen this movement grow even faster,
as more and more people prefer
or are forced to work from home.
Also, since the start of COVID-19, as most people know,
there's been a huge spike in online sales,
as people stay home and shop.
And with dropshipping, it's much easier
to pivot to the hottest selling items,
as you're not trapped with thousands of dollars of inventory
that you've pre-purchased and you need to sell up,
or you need to sell it to free up some cash.
Many non dropshipping business,
they can not easily pivot to the latest hot selling items
because, you know,
they got their money tied up with inventory
that they've pre-purchased.
Also, over the last couple of years,
the software that automates dropship businesses
that is available now
was simply not available just last year.
And another advantage of dropshipping is,
because your suppliers ship direct to your customers,
you never see or touch the products,
which means the whole eBay dropshipping business
is run remotely from home or your favorite coffee shop.
And then as you grow, you automate the business
by outsourcing all the tasks
to low cost overseas virtual assistants,
who you can get from $1 per hour,
who run the whole business for you.
So you can build multiple dropship businesses
all over the world.
As I mentioned many times in my weekly blogs over the years,
you can get low cost virtual assistants today
from $1 per hour.
And before I get a ton of emails asking where to get them,
I'll put a link on the screen and below to a free guide,
which shows step by step exactly where to get them.
So bottom line with dropshipping,
because you sell items first,
and get paid first and make it profit first,
before purchasing inventory,
this allows people who do not have thousands of dollars
to invest in inventory, or don't want to spend
thousands of dollars of their savings,
pre-purchase the inventory
to build a full-time eBay or Amazon business.
Today, you can build a full-time eBay dropshipping business
using literally less than $100.
And you can do this without having to leave
the comfort and safety of your own home.
With a dropship business, it also does not matter
where in the world you're located,
you can literally run a drop ship business
from the North Pole,
as all you need is an internet connection.
I'm not going to go into
how to build a dropship business in this video
as I've done it many times before,
but, again, if you missed it,
I'll put a link on the screen and below
to a free workshop teaching, step by step,
how to build an eBay dropship business from scratch
using less than a $100.
That free course also includes
case studies from people who've built
six and seven digit eBay dropship business all from scratch.
It's a very windy day to day.
Anyway, lastly, another big advantage
with an eBay drop ship business is,
you don't need to spend thousands of dollars on advertising,
like you do if you have your own website,
like a Shopify store, et cetera.
Hope this week's video helped you
with what is eBay dropshipping.
That's all for this week.
Please scroll on down and leave me a comment below.
And while you're there,
make sure you hit the subscribe button for more
no fluff hints, tips, and advice
to increase your profits on eBay and Amazon
from the comfort of your own home.
Until next week, stay safe, list more, sell more,
this is Neil Waterhouse.