How to make money dropshipping up to $1M a year?

Many of you may wonder how to make money dropshipping. Dropshipping is one of the hottest forms of MMO at the present, with advantages such as less risk, less capital, easier to start. It’s a unique way to run an e-commerce store that lets you get started with little to no investment. Many dropshippers have been earning regular income of $ 5000-10000/ month from this online business.

Check out this webinar to learn: How To Build A $100,000 Amazon Dropshipping Business

Let’s dig a little deeper to help you understand what is dropshipping and how to make money dropshipping. In the article, I have gathered all the knowledge about this model. And each of them has a link to a detailed article to explain in detail to help you understand the most. Then, we’ll also share how you can get started with your very own dropshipping store.

What is dropshipping?

Definition?

Before embarking on any business form, the first thing is that you need to identify its concept. In thaihoanghd blog, there are many articles that introduce what dropshipping concept is, dropshipping advantages and disadvantages.

Summarize the dropshipping model’s process:

Step 1: Market research. Looking for products that match the market and customers’ tastes.

Step 2: Search for the product provider you plan to sell.

Step 3: Select the selling channel. (sales market)

  • Dropshipping on free channels. Like ebay, amazon, bonanza, wish … Why call free traffic. Because these are reputable markets. With huge purchases every month. So the above sales just need to be optimistic that you have got traffic to your product.
  • Dropshipping on your own webstore and use ads to pull customers to our dropshipping webstore. We will explore these issues thoroughly later in the article as well as in-depth analysis articles.

Step 4: Customers go to your store (maybe on ebay, amazon … or your own webstore) to buy goods. Customers will pay and send their information to you.

Step 5: You use that money, the visitor’s information goes back to supplier to purchase.

Step 6: Supplier is responsible for packaging and shipping goods to customers. send you tracking number (bill of lading code)

Step 7: You follow the transportation and customer care process. Perform crm strategies, retargeting …

Step 8: Optimize profits, continue to repeat the process steps 1 through 7 for the next product.

Your profit when making dropshipping is the difference between the price you sell to the customer on the selling market and the price you get from the supplier minus the surcharges (list fee, advertising fee if any …)

OK! Now let’s go deep so that you can get a better understanding of each step in the above process.

International Markets.

As mentioned above, up to 90% of dropshipping sellers (also called dropshipper) are currently working in international markets like England, USA, Canada … for great reasons that cannot be argued.

Dropshipping on Ebay?

Ebay is one of the oldest and oldest dropshipping markets to date. With monthly traffic in extremely large markets. Particularly, the US market of 1 month traffic from ebay has reached over 1 billion. So sales on ebay in form of dropphipping is still a gold mine for us to exploit.

Dropshipping on Etsy?

Actually etsy is a top 1 world handmade selling market. To sell goods on etsy, your product needs to match the criteria such as craft, classic, handmade … So I do not encourage you to do dropshipping on etsy. Because etsy is very strict in locking accounts if you don’t comply with their rules.

Dropshipping On Amazon?

Currently Amazon is the world’s number one e-commerce site, and Dropshipping is one of the many forms of money making on amazon.

If it was 1-2 years ago. Dropshipping on amazon is still a gold mine for mining dropshipper. Then at the time of 1 year ago. Amazon has tightened up a lot, not as easy as before. So want to do dropshipping on amazon. You need to have an in-depth knowledge of the amazon market, ensuring compliance with amazon’s policy policies.

Check out this free webinar to learn: How To Build A $100,000 Amazon Dropshipping

Dropshipping on Bonanza?

Bonanza is also an extremely potential international drosphipping market, especially suitable for sellers in beauty fashion categories. Bonanza gives you an easy-to-use interface and has many really beneficial features for sellers. For example, the feature to import data from ebay, amazon, etsy websites to bonanza help you easily synchronize your store on different markets. Not only that, if you have your own product data file, you can also import it to your store on bonanza.

In addition, If the buyer has questions about your items, you can talk to them via Bonanza’s internal system even if they are using a supported external system (Gmail, Messenger). This is perfect for sellers who want to interact directly with their customers and exchange terms and prices.

Currently, sales on bonanza is 3.5% for revenue of less than $ 500. Orders over $ 500 are charged a fixed fee of $ 17.5 plus 1.5%. Bonanza does not limit the number of products listed on your store.

Dropship On Shopify – Build your own sales webstore.

If you don’t want to sell dropship on a third-party platform like ebay, bonanza, amazon … then you can completely build your own e-commerce website (webstore) to sell your dropship products.

Shopify is a comprehensive platform that helps you build a professional sales website with just a few simple steps. As I mentioned above doing dropshipping on shopify is a form of paid traffic. That is, you should use advertising to pull customers back to your product. You can then sell the goods. Unlike on amazon, ebay … with billions of natural hits every month.

In addition, you can also use SEO methods to build traffic on webstore on shopify. However, this is a method that should only be applied to large teams. Determining to do long term and can invest huge capital.

Product sources for Dropshipping?

Wholesaler is a product manufacturer for us. The Supplier can understand who provided the product to us. That is, the supplier can be the producer and may just be the agency to take the goods from wholesaler and sell it to us. The most current dropship source is still China because it is the factory of the whole world. In addition, there is a large amount of products that can be taken in the US.

In general, all concepts on descriptions come to the source we get to post to dropshipping markets for sale.

For example, Salehoo is a reliable product sources for dropshipping. They have:

  • 8000+ verified suppliers spanning 150 categories.
  • Suppliers suitable for all sorts of business sizes – including suppliers with no minimum orders, international shipping and more.

You can choose suppliers from Salehoo if you are:

  • Beginners who don’t know how to find a supplier, and don’t know which products they should sell online.
  • Intermediate and advanced customers who have experience selling online, but are struggling to find legitimate suppliers( It’s is a good alternative for Aliexpress).

They are also provide store building and customize. You can build your store easily with SaleHoo here

Paygate – International Payment Gateway.

When you start setting up Dropshipping system in USA, UK, Canada … you will wonder how we will get money from ebay, amazon, etsy … to your account. How do we pay when we buy products in those markets? All these issues will be generalized in this paidgate section.

Some basic knowledge you need to know about payment portal for dropshipping overseas (paygate.)
If you want to buy goods on Amazon, you can buy goods with visa, payoneer. If you sell goods on amazon, amazon will pay you through Payoneer account.

If you want to buy goods on ebay, you can buy goods by visa, payoneer, paypal. If you sell on ebay, customers will pay you through your paypal account.

Other channels like bonanza, etsy all trade via paypal.

All payment gateways like paypal, payoneer allow you to link directly to your bank account to withdraw money to your bank. (withdrawal fee, exchange rate you read carefully in your detailed analysis articles)

To best understand the concept of knowledge about payment gateways, read this article:

What is Paypal and why do you need one?

What do you need to prepare before doing Dropshipping

If you still think dropshipping is a game then you probably won’t succeed with it. Remember, dropshipping is a profession. A career really helps you create a stable monthly income without having to stay fixed in the office from morning to night. And already a real career, you need to invest time, money and a serious attitude to learning and doing.

Prepare capital and time.

How much money can you spend on building your own dropshipping system? Remember the bigger the scale, the bigger the amount you spend. For newbies, the capital you need to prepare is $ 100-200 is enough to start participating in dropship.

Does dropship take time?

This is a question I have received a lot, my answer is that firstly you need to determine what your goal is. With different goals, the time spent on each person is different. Target 1k $ / month differs from 200 $ / month. So the goal of determining the goal is an extremely important step.

But in general, if you need to give a relative number, you need at least 1.5 hours a day or more regularly if you want to study and make money with dropshipping.

Determine the target.

You need to identify clear goals before taking any form. The goal is as a compass to help you reach your destination. Each person has different goals. Nobody looks like anyone.

Some notes when setting goals:

Set goals to rely on resources. resources are the things you have at the present time (time, capital, skills, relationships, …). From there you determine the target for the corresponding resources you have. If you set a goal higher than your resources, it will make you feel depressed. If you aim to lower your resources, you will not be able to fulfill your internal capabilities.

The goal must be short, medium and long term. The short-term example of the first 3-5 months is learning knowledge, proficient in market research, product search.

When you determine your goals, you must set up a detailed plan of time and work to accomplish the goal, then try your best to pursue that goal. Remember one thing, in business “No failure – Only experience”

Misconceptions about dropshipping.

No need to spend money?

Dropshipping is a form of online business that is considered to be the least capital needed in the current mmo forms. This doesn’t mean you don’t need capital but still do dropshipping. You still need to have capital to make a bank card, to raise an account, to pay for customers’ shipping … But as I analyzed above, with a new capital of $ 200 is enough for you to join this market.

How to make money dropshipping?

Many people who have a view to making money are easy to think that throwing a little $ can make money make money. That is a wrong view. Money is just a tool, the tool that is handed into someone’s hand is important. If given into the hands of an unskilled, sooner or later you will fail.

Making money with dropshipping is not easy, but it is not difficult. As long as you endure perseverance, learn and do the right method. Or even better, having a guide is sure to generate dropshipping income. Many of my friends have been earning regular income of $ 5000-10000/ month from dropship.

Dropshippers don’t need to take care of customers?

Not quite so, the supplier is only responsible for shipping to customers instead of you. But you have to in charge of CRM if you want to have sustainable passive income. Remember that at the present time, email marketing channel for your old customers always brings a huge amount of sales.

Why do you fails to do dropshipping?

Some of the main causes are lazy to do, impatient to choose reckless products, do not check onpage carefully … there are some following reasons leading to the failure of young people when entering the large market but full of aggression This spine:

  • Illusions about your ability without deepening your knowledge.
  • Do not set goals, plans for yourself. -> no direction.
  • Do not choose a niche.
  • Do not know the market research and analysis.
  • Just run after profit and forger CRM- that will kill your business.

Focus more on product quality and customer experience if you want your business to grow sustainably.

Conclusion

Now that you can answer “what is dropshipping and how to make money dropshipping”, it’s time you choose your product supplier.

For an easy way to get started, you can browse the huge array of suppliers at AliExpress. You can easily order samples to test product quality and delivery time.

From there, you can test multiple products on a dropship store. Start your store with five to ten products in the beginning and see how it goes. Then, you can drill-down on the products that convert the best.

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