Vijay Sivaraj Dropshipping
So for today’s video I’m going to be resolving a facebook blog post that I really published inside my facebook group link for that remains in the summary, and that was a total breakdown of my wholesale drop shipping business. Vijay Sivaraj Dropshipping
Now this is a video that I actually ought to have made a while back, but mainly i’ve just been making tutorials and also just how to’s.
So this is mosting likely to be even more of a newbie video clip and also it’s going to be describing what exactly is wholesale drop shipping, however extra especially, what is my service and my company model and all the parts that enter into my service because you guys have actually asked numerous Comments also a number of instagram vms, so I’m going to be answering it all in today’s video clip.
To begin out, my company version is sourcing from wholesale distributors.Vijay Sivaraj Dropshipping
Now there are different kind of distributors that I will certainly source from.
Mostly you have distributors.
You also have brand names.
You have importers, you have manufacturers, and then you just have general dealers so to break each one down.
A supplier is a person that basically purchases from all these various brand names.
They are large companies and you can typically obtain a lot of different products from them.
Normally brand name products yet they’ll carry a range of products, so I don’t collaborate with as much distributors.Vijay Sivaraj Dropshipping
Vijay Sivaraj Dropshipping
My main part of my service is, I typically collaborate with brand names and importers currently brand names, that’s obvious.
Those are just business that they make their own item or they get it from china, and then they put their logo design on it, and afterwards they have a brand name and also they sell their product.
So typically my business is primarily made up of two different techniques.Vijay Sivaraj Dropshipping
I will be an agent or i’ll, be a certified reseller for these brand names and afterwards i’ll market their products onto amazon.com or onto any type of industry that they permit, or I will actually be the agent for the brand on the industry.
So, for example, I collaborate with a number of brands that do not have a presence on amazon.com or on ebay or on etsy, for instance, or walmart, and also what i’ll do is i’ll contact them as well as i’ll claim hello.
Let me develop the listings.
Let me be the vendor for your products on these markets and then I will certainly offer their products on the aforementioned industries.
The last kind of distributors that I resource from are importers.
These are people that have the products made overseas either in India, Vietnam, China or perhaps in the U.S., and then they just offer the items to various other businesses.
They do not actually market their products to the general public as well as they do not truly have a brand name.
They just make items and after that they sell them, and after that I presume you can likewise classify that with manufacturers.
These are simply people who make items and after that they market it to other sellers, as well as these are all organizations that market organization to service.
They are the individuals who source the product or make the product, and then I am the merchant they offer it to me, and also after that I market it to the end consumer.
That is the person who is buying it from me, uh over any kind of site like amazon, ebay.com or my very own internet site? So allow’s talk about fulfillment currently the majority of the firms that I work with, I sourced by means of drop shipping.
This is where I don’t house any one of the inventory.
Instead, when I make a sale, I send out the details over to my vendor as well as my vendor ships it out to my client.
This is the technique that I selected to start with, due to the fact that it permitted me to grow without actually spending a great deal of cash on inventory.
It was reduced danger.
In this manner I didn’t have to go as well as spend a thousand dollars or buy 10 000 units, as well as I had the ability to obtain accessibility to a huge catalog.
Generally, a lot of distributors will certainly have a big brochure or a number of brand names, and also you can go and also you can get accessibility to all of their items, checklist them on the markets and then see what sells and after that only ship out that product from your vendor.
When you really make a sale, so you’re earning money up front, and also by doing this you do not need to spend lots of money or tons of capital on items that you’re not sure if they’re mosting likely to market.
I started with drop shipping, however over the years i’ve slowly been expanding more in the direction of acquiring in mass and also more specifically fva, so i’ve been doing fba for a number of reasons.
One of the truth is that I can really see what an item sells or I can see which things are going to be good vendors.
So, like I claimed previously, with drop shipping, I get to test out a product and let’s say I listing an item and it’s drop shipping and I’m making a hundred sales each and every single month.
If it really makes feeling like if I can get better offers, if I can conserve on amazon charges, if I can obtain really inexpensive shipping or truly cheap pack as well as pack charges from amazon, I can go, and also I can purchase that and also I can have it Sent right into amazon’s warehouse instead than drop shipping that item the other point is, I can see which products from my producer’s magazine or from my providers.
Directory are doing well on amazon.com, for the sales rank and are making a lot of sales, and after that I can just send out that product into amazon rather than drop shipping it.
So some other reasons that I like amazon fba, is due to the fact that amazon.com manages the client interaction.
Amazon.com deals with the returns, the delivery everything like that.
In this manner, if I get a thousand drop ship orders, I don’t have to have my software program.
Send out that to my supplier, after that submit the tracking, it’s just much less points, less points that are mosting likely to go wrong.
There’s less cogs in the wheel as well as amazon.com is mosting likely to be automating most of it currently amazon does have its issues you’re, going to find time for time that amazon.com misplaces, a delivery amazon doesn’t refund you cash when they should.
It’s not best.
Nonetheless, for me, it’s mosting likely to allow me to automate more of my service as well as for me to expand my business.
An additional aspect of me purchasing in bulk is, I will certainly also send out things to my very own storehouse.
By doing this I can go on as well as I can deliver that out to various other marketplaces like ebay, walmart, etsy, shopify and all the other marketplaces that do not have their own fulfillment service.
You can utilize third-party fulfillment services like supply or you can likewise utilize.
There are regional third-party satisfaction services and also you can keep your stock there as well as they will certainly ship out your order whenever you make a sale on the marketplace so for the future.
I most definitely wish to get even more wholesale as well as I intend to get bigger orders for the items that are offering also, as I also want to do it to top.
I wish to get better discount rates for the products so this way I can lower my cost as well as I can improve my margins, but additionally, if I area larger orders, I after that get to develop my connection with the choose couple of distributors that I intend to.
This is mosting likely to allow me, like I said, to get better discounts, however additionally it can permit me to obtain access to various other items.
It can likewise allow me to potentially get exclusivity.
Maybe the business is mosting likely to do a cleanup of sellers who are not making enough sales.
This way, I can make the cut as well as I can improve my standing keeping that business.
So the third part of my business is exclusive tag and also this is different than drop.
Delivering or wholesale since I’m mosting likely to be creating a product from scratch or more or less.
What I do is I source from all these wholesale suppliers, as well as I see what items are doing well, so what you can do on amazon.com is, you can actually create a new listing for that product as well as if you have brand name pc registry or if you have your own Brand on amazon.com, you can put it under your own listing.
You can enhance that listing.
You can get your own photos taken, you can proceed and you can improve evaluations.
You can actually improve on that listing.
If, let’s say it was refraining from doing well currently on amazon, if the initial listing was dreadful, if the original listing – let’s say it was also crowded or if the product images misbehave, so I am doing more personal label, and also this is not just sourcing products from My wholesale vendors, however this is likewise allow’s say an item – is doing well.
I can after that proceed and I can make my very own version of that product placed it under my very own brand and then I can go ahead as well as I can introduce that item since I have previous data that that thing is succeeding.
I desire to put a caveat here, due to the fact that this is something that I am experimenting with.
I’ve just launched 2 products using this technique and once again these are products that were wholesale items.
Nevertheless, I went to producers in the us, and I had my very own version made.
Still something I am examining out, nevertheless, this is where you’re going to locate the best revenue margin, because you are going to regulate your satisfaction method, but it is going to cost you a lot more because you’re going to have to develop the item you’re going to have To produce your logo design, obtain your trademark for your product.
If you desire brand name registry and afterwards you’re mosting likely to need to put a large moq with your maker that is making your item, so the last point I want to speak about are sales networks.
This is mosting likely to rely on the product and also along with the provider, certain distributors will not allow you sell on amazon.com or ebay.
Certain distributors will not allow you sell on walmart it’s going to depend on the vendor that you deal with.
However, for me, I offer from a lot of various vendors.
I have more than 20 vendors and also I normally function it out with supplier is mosting likely to be sold on where so a few of them are sold on walmart.
Several of them are sold on amazon and then some of them are sold on ebay.com, so whichever supplier permits me to offer where that is just how I set them up.
Additionally, let’s say an item is handmade.
I collaborate with a lot of brands that hand make their items.
Those things do extremely well on etsy, yet they would not do well on walmart, let’s state or on ebay, so those would certainly not be offered there.
It is going to depend on where the brand name lets you offer those products as well as if the product will really do well on that marketplace.
A lot of you have actually asked which marketplaces I sell on I currently sell on.
In order amazon, I sell on ebay, I sell on etsy I sell on walmart, I sell on my very own web site and also this is hosted on shopify.
You can additionally utilize bigcommerce or any other platform, and also then I additionally offer on smaller sized markets.
Like gold mine, I market mercarI I sell on poshmark I offer in real gether.
I saw an e-crater, after that there are other ones that I’m attempting to obtain accepted for like sears, as well as there are just other various markets, yet my whole goal is generally to contract out that, so I have va’s list on those marketplaces as well as I utilize an omnI Channel software – and I basically just automate all that I take my listings from amazon and also ebay, and I listing it on all these smaller markets.
Whenever I get a sale, I just accomplish it, however these are not my primary sales networks.
These are just smaller channels where I can reach other customers that I would certainly not always reach or else.
The last 2 points that I want to discuss for my service are software programs along with va’s assistance employing your own worker, obtaining stockroom area as well as the logistics of running a service.
So the first thing is software program for software program, specifically if you’re doing wholesale drop shipping or even wholesale and you’re collaborating with a lots of suppliers.
You’re gon na want a truly good omnI channel software application.
It took me a while.
I underwent 30 various software applications 30 various demos, really experimentation squandering money.
You’re going to want a good omni-channel software.
That number one can import your products appropriately, that if you are actually doing drop shipping that can keep an eye on in and out of stock of rate fluctuations, then you want a great network software program that can in fact push out the products to the networks that you are Selling on you’re also going to desire one if you are doing drop shipping that can do car ordering.
This is something that’s actually important, since it’s going to permit you to scale in regards to other software applications.
You likewise might wish to check out an excellent item study.
Software application for the different marketplaces that you’re selling on likewise you’re going to wish to consider one for repricing and those are much like the basic software programs, however then for bookkeeping.
So for audit I use quickbooks along with I’m exploring using web agility.
I do not utilize it right now.
I am on a demo with them, yet that is something I am looking to link my sales channels to and after that push out to quickbooks, which is what I use for accounting.
The last element is going to be the logistics, and also this is going to be points like storehouse things like shipping points like having workers having help.
This is still something that I am figuring out for my company as well, as I possibly constantly will certainly be functioning on, but as your organization expands, you’re gon na want more help.
You’re gon na wish to work with va’s.
You may wish to consider employing workers if you’re attempting to ship out a lot of stuff locally, but this is constantly something that I am working to enhance which is generally a total failure of my business.
I collaborate with wholesale providers I resource and also I accomplish making use of a great deal of various approaches, and I sell on a great deal of different sales channels.
Thank you individuals for enjoying.
I wish that you guys appreciated this video.
This was meant to be a full break down of my organization and simply offer you an extra basic idea of exactly how I run my business and also the different components that go into running a wholesale drop shipping organization.
It’s difficult, yet at the end of the day, it’s something that I actually wish to grow and also because I am working with wholesale providers, I’m constructing partnerships.
This is for the long-term and in my concept, or in my sight, I’m developing an asset that I can in fact possibly market so by developing my brand by constructing my company by building my connections, I’m constructing a property that maybe someday I can in fact sell This service – or perhaps it specifies where I can go public with it – I don’t understand, yet this is exactly how – and also this is the business that I actually intend to construct.