I have several years of selling products to specific customers using email and the old school methods where we build a relationship with the customer and have an inventory, but I never used the dropshipping method, so this whole thing is new to me. While everything seeing to makes sense and doesn't seeing to have too many secrets besides which app and software to use, while I been searching and learning about the method I keep seeing, words and videos like "no money needed", or "just copy and paste", "start with $0 money", etc. Which made me confused.
My niche and products are a bit expensive and the products cost around $500 to $2000 each, and if I make few dropship sells in the first week, let say an easy 2-3 sell on the first week, I won't see that money in the next 5 to 15 days, the way I see it, I will have to pay out of my pocket to my supplier $3000 to $5000 on the first few sells, so my products get to my new customers. So, I do need to have cash upfront to start my online business using dropship method. We are not using CC on this matter.
So, are does just punks trying to get views on youtube and running some type of scam, or am I missing something here?
I see everyone explaining how to find and post products online, but nobody goes in-depth on what to do afterward.
Thanks a lot
Happy selling everything.
Solved! Go to the solution
This is an accepted solution.
Hyde here from Shopify. Great question!
Dropshipping is a retail fulfillment method where a store doesn't keep the products it sells in stock. Instead, when a store sells a product, it purchases the item from a third party and has it shipped directly to the customer. As a result, the merchant never sees or handles the product.
In truth, before you accept money from a customer for an order you will need to order the product yourself from the supplier. So, truthfully, there is an initial expense on your part which you should immediately recoup from the customer.
To be clear, you're not buying the entire inventory in one go. You simply buy the product(s) that the customer orders.
If you're using the Oberlo app, this video should help demonstrate how this works in practice.
You can take a look at our ultimate guide to dropshipping here. It will walk you through everything you need to know about starting off, finding suppliers, and maintaining your business.
Here are some great resources to get you started. Check out our Dropshipping 101 course on our Academy, as well as our Intro to Dropshipping.
I would highly recommend you ignore all the Youtube videos suggesting you don't need money to start a business because truthfully you will need at least some capital to start any business venture.
I hope this all helps, let me know if you have any other questions.
All the best, Hyde.