- It's been months since I did an update
about drop shipping on my Facebook account
but for anyone new here,
let me break this down.
I find products on Amazon and eBay
and list those for a markup on my Facebook account.
People will then buy those products.
They're shipped to the customer
and then I get to keep the change that's left over
and doing this has allowed me to live rent free
for the last six months.
And the best part is,
is that I'm not even the one doing this
and unlike most passive income streams,
this is truly 100% passive.
Now this is an extremely summarized version
of how this works,
and I'm not only going to be covering
how much I've made over the last six months,
but some setbakcs I've had along the way,
and you're going to want to make sure you stick around
to the end of the video,
because I have a giveaway for one lucky subscriber
on how they're going to be able to get started
immediately for 100% free.
Let's get into it.
(upbeat music)
What's up guys,
my name is Kris
and on this channel I cover different ways
I'm making passive income online.
And today we are covering
Facebook Marketplace Drop Shipping.
And this is actually my third video on the subject.
But since my last video
there's been quite a few new faces to the channel,
so I wanted to make sure I did a thorough update.
But after this video,
I recommend checking out those other two videos as well,
to get a better picture
about Facebook Marketplace Drop Shipping.
But for right now you're probably wondering
how this all works,
how much have I actually made,
how can you get started
to where this can be 100% passive,
just like I have,
and why are all the people that are helping me out
not just listing all of the products for themselves
on their own Facebook account?
And I'm going to be getting into all of that and more
about drop shipping in this video.
But first,
you know what really helps this video out
is dropping your thumb or mouse down to that like button
and subscribing for new videos every single week.
Now first let's talk about what drop shipping actually is
because I hear this term misused so much
in the e-commerce make money online space.
And all drop shipping is is selling goods
that you do not physically own,
but have access to.
And once that item sells
you will then have that good shipped
from the place that has the product to the customer.
This means that you actually never own the product on hand
and you do not have to purchase the goods in bulk.
And there's a wide variety of places
where you can drop ship from.
So in this video,
we're only talking about finding products on eBay or Amazon,
but people teach drop shipping to find products
on Home Depot,
Target,
Walmart,
and the list goes on,
and you can sell those products
not just on Facebook Marketplace.
You can sell those on eBay,
Amazon,
Walmart,
Poshmark.
However,
with those platforms it's usually
against their terms of service.
And if you get caught,
you will get shut down
despite what these gurus on YouTube are teaching you.
And you could go the exact opposite route
where you don't wanna list those on third party platforms.
You could list it on your own website
and drop ship from your own website,
but then you're going to be battling
how do I get traffic to my own website?
And you're going to have to run Facebook ads
and there's a huge learning curve with that,
and that could be costly as well.
And I feel like Facebook Marketplace Drop Shipping
addresses all of these concerns.
Not only is drop shipping permitted on Facebook Marketplace
within certain guidelines,
but they have over 1.8 billion customers.
So there's never a shortage of people shopping on Facebook.
And then you couple that with Facebook's low fees
where it's only 5%
as opposed to some of these other third party platforms
like Amazon,
Walmart,
eBay,
Poshmark,
they usually start at 15%
and work their way up to 25% in fees.
So those lower margins give sellers more wiggle room
to work with to find profitable products to sell.
Now the two questions I want to answer is
how much have I actually made so far,
and furthermore,
how much did I have to spend to make that?
(cash register ding)
And so far I've made $12,424,
which comes out to be a little over $2,000
over the course of the last six months.
And I've spent $30,205 on that.
Meaning that my return on investment is a little over 40%,
and that's after paying out both of my employees.
And on top of that,
not included in the profit that I just gave you,
I'm earning $500 every month
in either cash back or travel rewards points
based on credit card sign on bonuses,
meaning that if I spend $5,000
I'm getting an additional $500 back every month
and I'm not going to be getting into how that works,
but I will leave a link
to some of the credit cards that offer
some of those sign on bonuses to their users.
And I'm really happy with this 41% ROI.
For anyone who isn't familiar
with how ROI's are in e-commerce,
usually they vary anywhere from 20% to 80%,
and usually you have to spend more to get that 41% ROI.
So I think that's really good considering
there's no work attached to this.
And this leads me into how much work
am I actually doing for this output?
And the answer is none at all.
So I found two different freelancers.
One was from fiverr and the other was from Upwork.
And these freelancing websites allow you to
basically arbitrage work
where you can pay people in other countries
more than they would make working a minimum wage job,
but we get to save on wages
if we were to hire here in the states.
So it's a win-win for both parties.
And there's multiple parts to the Facebook business.
There's fulfilling the orders to the customers,
finding those products,
listing those products,
uploading tracking once an item sells,
managing customer returns,
and then obviously answering questions about the products.
And that can definitely get time consuming
if you were to do this yourself.
Here in a little bit I'm going to be sharing
with you how you can get started
using one of my team members.
But first I want to talk about some of the setbacks
I've had along the way,
and there have definitely been a few since the last video.
So my marketplace account has definitely had a few setbacks,
a couple of which were getting suspended multiple times.
And the reason why my account got suspended
was because I had a couple of different people
accessing my Facebook account from different IP addresses.
Now to combat this problem we now use this software
on my laptop called any AnyDesk,
which is a software when you give employees access
they can access the laptop from anywhere in the world.
However,
I did not want them accessing my main laptop.
So I got a cheap $60 laptop from eBay
that I leave on at all times.
And they can then in turn access that marketplace account
at any time,
any part of the day,
all from the same IP address.
Now another problem that other people have faced
that I've helped get set up doing this
is just the whole payout structure
and there being a lag of payouts.
And what I mean by this is the fact
that there's going to be delayed payouts
in the beginning as your products sell.
And Facebook marketplace just wants to make sure
that you are in turn fulfilling those orders
and the customers are happy.
So there's a two to three week lag time
between the time when something sells,
to the time that you get paid out doing this,
which means that you're going to want to make sure
that you have funds available to kind of float you
while you're getting paid out in the beginning.
I always tell people it's probably best to start
with about a thousand dollars,
that way in the beginning you start with $500
and then as those sales come in
you can then deploy another 500 bucks to get sales.
And once again guys,
keep in mind,
this isn't risky
because we're not buying goods in bulk,
we're just purchasing once the product
has already been ordered by the customer.
So in theory,
you should want to try and sink in as much money
as you possibly can based on the orders that you're getting
which leads me into the third problem
I see a lot of people face.
That's just getting the store up and running.
And usually it's a little slow in the beginning.
A lot of people they don't want to purchase from you.
They wanna purchase from people
that already have more reviews
and that are more established.
And that's the biggest obstacle in the beginning
is just getting those reviews going.
Now something that I think helped jumpstart my results
in the beginning as opposed to other people,
is just just have a friendly picture,
maybe a picture of you smiling,
or with you with kids,
or if you have any pets,
maybe put them in your Facebook profile picture
or your store picture.
That might help.
Now I don't have any data to back this up,
but I'm just trying to use common sense
and any little bit will help you out here.
And before I help you get started,
a common question I hear a lot of people ask me is,
Kris,
why don't these people that are helping you
out just list them on their own Amazon store?
And my answer to that is twofold.
My first one is is just job security.
So these Facebook stores will go down
and you can only list so much on any given store at once.
And would you rather list $50,000 across 25 different stores
or $50,000 across 10 different stores?
And the answer is the first one.
So that way,
if one store goes down
you have more eggs in different baskets.
And the other reason is just being able to
list a certain amount of goods on each store.
And the more reviews each store gets,
the more products you can list on that store,
but there is a threshold to this.
I don't know what that threshold is,
but there comes a certain point where Facebook
will flag your store for doing too much revenue.
Now,
as I said,
I'm not going to be getting
into the hiring process in this video,
but I wanted to help some of you guys out,
get going on this whole Facebook marketplace business.
Down below I have a link to one of the guys that I use.
I'm only offering this out to 20 different people
and it is a small one time fee.
So you do have to be cool with that.
And you do have to be located in the United States,
but if you meet all of those criteria
I'm also going to be giving this out to one subscriber.
If you just comment down below,
just why I should pick you.
I will comment winner before my next video drops.
And that person will then get a free slot.
Guaranteed,
locked in no matter what,
will get a guaranteed spot.
So be sure to do that.
And one more thing is I recommend
having at least a thousand dollars for inventory.
The first month probably will be pretty slow,
but you just wanna make sure
that you can have enough money to back that up.
And credit cards are great for of this
because it's not like you're buying these goods in bulk.
As I stated,
it's only once an order is placed.
So you should want to fulfill that order.
So I'll have down below a link
to a couple of credit cards
that have really helped me out
and also earn you cash back as well.
As always guys be sure to like and subscribe
for new videos coming out every single week.
Check out the free Facebook
and discord group in the description below.
Thanks guys for watching and I'll see you next time.