$1800+ Monthly Revenue: Making Money Online In 2020

$1800+ Monthly Revenue: Making Money Online In 2020

Today, i’m sharing a very special success story. This entrepreneur combined her full-time job with a dropshipping business, and she is making amazing profits.

So, here’s an in-depth interview that uncovers the secret of how to make money with eCommerce.

Disclaimer: The success stories published in this blog are the results of interviews conducted in the written form. Even though the editors may make some minor changes to the grammar, spelling, and/or punctuation, the respondents’ writing styles, views, opinions, stores screenshots and personal photos are left unchanged.

Hi, please introduce yourself!

Hi! I’m Tumini, and I work in a real estate company in Lagos. I’m also a dropshipper– that’s what my story is all about.

Why did you decide to try the dropshipping business model?

Dropshipping has 3 advantages that changes the status quo.

Firstly, you don’t need any warehouse and an employee for fulfilling orders.

Secondly, you are not limited by your cash flow, you don’t have to order and “wait” till some customer buy your goods.

And the last one – you can import lots of products without stocking them in!

Basically, you are selling goods to customers by clicking to “Place order automatically”.

What was your previous experience of making money with eCommerce?

I had a fairly solid previous experiences with eCommerce, i have been running an Instagram shop with mini importation (and yeah, with high logistic expenses).

Anyway, i started with dropshipping 6 months ago and my first shop was bad, the total revenues was not so good and i was in the negative.

How did you learn about Dropshipping Mastermind?

I’ve been looking for a good course that would allow me learn:

  • Copywriting and internet marketing.
  • How to build very good converting stores.
  • The intricacies of the dropshipping model

Dropshipping Mastermind was the best Nigerian course i have taken after a friend referred me on twitter. So, due to its simplicity i was able to learn everything i needed to know from the beginner level to where i am currently.

How much money have you made with eCommerce?

I went from 0 to $1,800+ monthly revenue with a very positive ROI (return on investment).

My current ROI is 5, so, from every invested $1 i got $5 back WITHIN 5 MONTHS.

What’s your product strategy?

I simply followed the strategy i learnt from the Dropshipping Mastermind course. I focused on the products that meet the following criteria:

  • More than 300k video views on Facebook.
  • More than 1000 orders on Aliexpress
  • A rating higher than 94%
  • The seller’s period of activity on AliExpress is not less than 2 years
  • The product has a search volume of over 90 in the past 2 months

For pricing, i used a simple formula:

X5 of product cost

No additional fees on checkout, for example, shipping and packing fees.

When did your first sale happen?

The first one happened immediately after the launch of Facebook Ads campaigns.

How do you promote your eCommerce business?

Really good question. There are lots of marketing channels allowing you get lots of sales, but there are only few channels with a high return on investment.

I am primarily focusing on:

  • Facebook Ads + Facebook Re-marketing

It’s very important to focus on one platform and master it first before moving to another platform

How much time does it take you every day to manage your online stores?

On average, I spend about an hour every day on tasks.

How has your life changed? What are your plans for the future?

To be honest i’m not where i really want to be but regardless i still ‘dream big’ – now, i’m trying to build something big like MVMT, even though there are really lots of technical details to solve.

What advise can you give to newbies reading this – those who already run their stores and those who haven’t started their own eCommerce business yet?

If I could go back to when i started, I would definitely start with taking the Dropshipping Mastermind Course.

Also, I want to mention that running and creating performance Ads is really hard. I would recommend to learn by taking a course. You will learn a lot from from this, and then you will be able to use the expert knowledge to create better campaigns and save lots of money.

And oh – don’t forget about customer service. It’s the most important thing.

The 10 Best Dropshipping Niches of 2019 for Maximum Profits

The 10 Best Dropshipping Niches of 2019 for Maximum Profits

Looking for the best dropshipping niches of 2019?

Well, I’ve got good news for you. Not only am I going to give you the complete list for 2019’s most-profitable drop ship niches, I’m also going to give you my top ten niche list from the previous four years!

That means you’re about to get 50 proven-profitable niches to choose from! Now let’s get started…

2019: Brandable Niches

Moving into 2019, we’re heavily focusing on brandable drop shipping stores. That means we need niches that give us multiple opportunities for monetization.

While it’s still very possible to make a lot of money with niches that only provide the opportunity for one-off sales, I do believe that as we move into the future, the more opportunities for monetization, the better.

So Without Further ado, Here are my Top Ten Brandable Dropshipping Niches for 2019:

Minimalist Luggage

Build a brand around travel where you can drop ship minimalist luggage.  Add in another revenue stream by doing brand deals with travel companies and promoting flights as an affiliate.

Home Gaming Setups

Build a brand around gaming where you drop ship desks, mounts, and gaming chairs.  Add in another revenue stream promoting PC parts as an affiliate.

Increase your brand reach by virtually building e-sports stars’ gaming computers and share details on how visitors can recreate them for themselves.

High-Performance Workstation

Similar to home gaming setups, you can drop ship desks, mounts, chairs, and even treadmill desks.  Build a brand around productivity and add in additional revenue streams by promoting project management software.

Add in another revenue stream by promoting business conferences that focus on productivity and results.

Home Gym Equipment

Drop ship weights, bars, stationary bikes, and kettlebells.  Then build a brand around getting fit in the comfort of your own home.  Promote the fact that people save time and money in the long run by not having to commute.

Add in another revenue stream by promoting home meal delivery services, in-home personal trainers, and instructional exercise videos.  Build your brand’s reach by sharing meal prep and workout videos on your online store.

Tiny Home Furnishings

It’s not too late to cash in on the tiny home trend!  You can drop ship all of the furnishings that tiny home builders need. Increase your revenue streams by referring clients to tiny home builders!

Custom Window Treatments

Shutters, blinds, shades, curtains, drapery… you can drop ship all of these products while making a great profit margin!  Add in another stream of revenue by partnering with interior designers and sending them referrals!

Recreational Boating

Build a brand around recreational boating where you drop ship replacement parts and upgrade options for boater owners.

Add in another stream of revenue by doing brand deals with boat manufacturers, promoting boat shows, and promoting boat insurance as an affiliate!

Home Theater Equipment

Build a brand around home theaters and drop ship the projector screens, the mounts, the seating, the shelving, and the popcorn machines!

Increase your brand reach by showcasing different home theater setups for different size rooms.  Add in an additional stream of revenue by referring clients to home theater installation companies and also by promoting the electronic components as an affiliate.

Indoor Grow Rooms

Cash in on the growing cannabis industry by drop shipping indoor grow rooms, lighting, and related accessories.

Increase your brand reach by sharing “how-to” videos.  Add in another stream of revenue by doing brand deals with industry events.

Kiteboarding Gear

This is a niche that is continuing to grow with no signs of slowing down.  Drop ship the kiteboarding gear and start creating content to build your brand now.

Kiteboarding will be in the Paris Olympics in 2024 which should cause a huge boom in sales.  Do the work now and be positioned for even more success in the future.

2018: Repeat Purchase Niches

Keeping long-term strategies in mind will not only help bring in a consistent cash flow but will increase the value of your store over time. Meaning, if you decide to sell your store, it will be worth more.

That’s why 2018 was the year of the Repeat Purchases Niche. With these dropshipping niches, you’ll be able to acquire customers that will buy from your dropshipping store for years to come. This means you’ll have a much higher customer lifetime value and a higher ROAS (return on ad spend).

Here are Ten of the Best Dropshipping Niches for Repeat Purchases:

  1. Racing Bicycle Wheels (New Tires = Repeat Sales)
  2. Skeet Shooting Launcher (New Skeets = Repeat Sales)
  3. Grills / Smokers(Wood Chips = Repeat Sales)
  4. Video & Photography Lights (New Bulbs = Repeat Sales)
  5. Pottery & Ceramics(New Material = Repeat Sales)
  6. Automatic Pet Feeders (Pet Food = Repeat Sales
  7. Mobile Bars(Restocking = Repeat Sales)
  8. Commercial Restaurant Equipment(Restocking = Repeat Sales)
  9. 3D Printing (New Material = Repeat Sales)
  10. Bow Hunting (New Arrows = Repeat Sales)

2017: Community Niches

In 2017, we focused on passion-based niches that you can create Facebook groups around and become a leader in. If you build a thriving community around your products you’ll get a ton of organic and referral traffic, which means you’ll be able to sell more to your customers!

These ten niches are broad while still being specific. Meaning there are a lot of associated products you can sell with/after they purchase your main offer. Which means you’ll have huge upsells on the main offer AND be able to continually sell to them after!

So what niches are perfect for building Facebook groups?

Here are the Best Dropshipping Niches for Building a Community:

  1. MMA Training Equipment: Take advantage of the buzz created around fights
  2. Spelunking: It’s a competitive hobby, think photo bragging rights of “who climbed into that really really small hole”. Plus it’s usually a group activity.
  3. Survival Prepping:Think “Doomsday” preppers.
  4. Exotic Pet Supplies:People, LOVE their pets, and they also LOVE talking about their pets.
  5. RC Cars & Planes: Not just for kids. Adults pay some serious bucks for this niche.
  6. Rock Climbing Equipment: Also a group activity. Many rock climbers join local climbing Facebook groups to meet fellow climbers & talk “rock”!
  7. Lawn Care: These are the type of people who win “Lawn of the Month”.
  8. Robot Building:Another expensive “toy” for adults. There are even robot competitions!
  9. Bio-Hacking: Huge trend that has grown in popularity over the past few years.
  10. Amateur Photography: So many accessories to talk shop about: light boxes, stands, green screens, filters, etc.

With these ten niches, you can build up an active Facebook group that your customer will love to interact with. More importantly, you’ll have a brand that they’ll love to buy from!

2016: Upsell Niches

2016 was the year of the upsell. We chose niches that make you more money through selling add-ons with your main product. That means you make even more money per transaction.

Here are Ten Upsell Niches That Will Make You More Money:

  1. Power Tools – Value Added Upsell Idea: Woodworking Plans
  2. Drum Sets – Value Added Upsell Idea: Drum Lessons
  3. Gun Safes – Value Added Upsell Idea: NRA Membership
  4. Wall Paper – Value Added Upsell Idea: Interior Design Consultation
  5. Snowboards – Value Added Upsell Idea: Snowboard Bags
  6. Trampolines – Value Added Upsell Idea: Safety Net
  7. Fireplaces – Value Added Upsell Idea: Fireplace Screens
  8. Desks – Value Added Upsell Idea: Office Chairs
  9. Home Bars – Value Added Upsell Idea: Bar Stools
  10. Above Ground Pools – Value Added Upsell Idea: Pool Covers

2015: Hobby Niches

2015’s top ten dropshipping niches were all about hobby niches. People are passionate about their hobbies and will gladly spend top dollar to support that passion!

The best part? These passionate people can be targeted over and over again with new content that can be loaded into your email autoresponder. You can target the same customers repeatedly by delivering real value that they’ll love and want to share with their communities.

For you, this means less advertising costs, more qualified traffic, and more loyal customers.

Out of all the hobbies that are popular, we found that these ten dropship niches (in no particular order) were the winners:

  1. Aquariums
  2. Backpacking
  3. Deep Sea Fishing
  4. Home Brewing
  5. Bowhunting
  6. Model Trains
  7. Arts & Crafts
  8. Gardening
  9. Doll Houses
  10. Scuba-diving

These dropshipping niches have a lot of opportunities to use smaller offers for building trust with your customers. That way they’re comfortable buying your main offer.

Also, you can make some great free content with these niches to attract potential customers.

Conclusion

Now you have 50 of the best and most profitable drop shipping niches from the last 5 years! With these ideas, you can get started creating your own eCommerce store. And finally, live the lifestyle you’ve always wanted.

Tips For Choosing The Best and Most Profitable eCommerce Niches

Tips For Choosing The Best and Most Profitable eCommerce Niches

Have you ever wondered what the first three rules of finding profitable niches for drop shipping are? Have you been left scratching your head, thinking that maybe drop shipping isn’t for you?

If so, this is some vital information that will get you prepared to turn your drop shipping business around. Discover the three criteria Olisa uses to find profitable niches that will have you making a full-time living off your eCommerce store. You may be surprised at what they are… and we can guarantee you will use this information for years to come!

 

eCommerce Niche Selection Research is Essential

So, you’re ready to start an eCommerce drop ship business.  Congratulations! The first step is the biggest one of all. That step is not just saying that you “want to start an online business” but actually taking action and moving towards getting your first sale.

One of the largest mistakes that is made when starting an eCommerce drop shipping business is not enough research. Many times at first glance, a niche can look like a gold mine ready to start bringing in the big bucks. But, after some diligent research it can quickly be found to be infiltrated and overrun with competitors. This would mean very little profit, and the opposite of your goal.

Olisa will explain the tips to avoid this costly mistake.

The Importance of The Right Niche Selection

Here are three great tips from Anton on selecting the right niche while keeping three of the most important things in mind: Price, Target Market, and Brand Loyalty!

The first step of the drop shipping process is called “Niche Selection”.

This section will cover the first step towards building a profitable eCommerce business by choosing your niche.  A good niche will meet three prices of criteria: it will fall into our target price range, it will appeal to the upper-middle class, and consumers will have no brand loyalty which we will be explained in-depth later.

When selecting a niche for a new eCommerce store you should look for a set of products that meet certain criteria. Olisa constantly reminds us of how important it is to do this profitably. How to choose profitable niches and how it can actually be easy.

Now, the problem is you can still make money if you do it the wrong way. Except it will be a lot harder to get to your desired outcome. Which I guess is making a full-time living, right? Making a lot of money with eCommerce..

Below are three tips from Olisa, and he will better explain the tips and strategies to nail picking the best niche for you.

Tip #1: The Importance of Pricing

There are three tips for selecting a profitable niche that will actually make money. Now, here are a few pieces of criteria I look for. The first thing is always the price. That means product’s price, what you’re going to sell this product for.

The average product price should be $200 or more.  This is because your average profit margin (when you are drop shipping and using our method) will be about 25% of the gross revenue. What does that mean in practice? Well, if you sold something like a water bottle, that’s not at least $200. So that is not going to be a niche that I recommend get involved with.

The same amount of time will go into processing an order for $20 as it will for processing an order for $200 or $2,000.  If you’re going to be doing the work you might as well have a chance of making some real money on each sale.

It is important to note that although I do have websites that sell products for $999 and up, I have noticed customers placing an order that large prefer to call in to place their orders.

If you are comfortable on the phone, then this will not be a problem, but if you want to run an online store where the majority of orders come in before the customer even contacts you, I would recommend selling items priced between $200 and $700.

Now, on the other hand, if it is something like a cell phone, that’s more than $200. That would pass the price test, but it would not pass the third test that you’ll hear about later.

Tip #2: Your eCommerce Niche Target Market

I have sold products online that appeal to the wealthy, products that appeal to the middle class, and products that appeal to lower income households.  From all of my experience, I have learned that it is best to appeal to the upper-middle class, meaning online shoppers who have a household income of $100,000 or more.  It’s sad to say but if you sell products that appeal to low-income households you will have a lot more work to do.

Once we make sure our price is above $200, we look towards our target market. Now, if you are involved with marketing at all (if you ever studied marketing) you’re familiar with demographics. And the truth is you could break up the world into probably a billion different demographics.

When people don’t have enough money or spend their last dollar to buy your products, you better believe they are going to have more questions. They are going to be inspecting the items more carefully. If anything is wrong or even if they think anything is wrong, you are going to hear about it non-stop.

With the wealthy, it’s the same thing. When they are investing money or buying products, they expect a certain level of customer service that requires really a different type of business owner.

And there is nothing wrong with that.

But, just expect that if you’re going to go that route, you are going to be more of a concierge rather than someone that makes money online.

Again, that is why when we are looking at demographics. Remember, stick with the upper-middle class. I define that as having a combined household income of above $100,000 U.S. dollars.

When people have that kind of money, they are very comfortable with spending online. They are used to buying items that are $200 or more. They are not going to be calling or emailing you as much.

So again, this demographic makes niche selection a lot easier. It makes your business run a lot smoother. It makes it a lot more profitable if you choose niches that fall into that target demographic. If that’s who the products appeal to.

Tip #3: eCommerce Brand Loyalty

The final tip from Olisa is just as important as the first two regarding your target demographic and pricing. Now, we will talk about brand loyalty. As was mentioned earlier that while cell phones fall into the price range criteria, they don’t meet one of my other criteria and that is because of the brand loyalty.

When someone is going to buy a cell phone, in general, they are going to buy an iPhone or they are going to buy another Android phone, they pretty much already have a brand in their head of what product they want.

Same thing with people that are going to buy headphones. There is probably four or five big headphone companies. Right? There is Sony, there is Bose, there are Beats, and there is Sennheiser. There are all these big companies and people already know what they are going to buy.

So the third thing that you are going to look for when trying to choose a profitable niche is to pick an industry that has no brand loyalty. It’s going to make a big difference.

That’s because if you try to sell in a niche where people already know what company they want to buy from, it’s going to make it that much harder for you to get dropship suppliers. Harder for you to actually be able to sell these products, for you to be able to compete in terms of price. It’s impossible.


Remember The Target Market for eCommerce Niches Are Vital!

After two years of experience selling products online, I’ve realized that selling products to low-income households require much more pre-selling, more customer interaction, and more complaints/returns.  The same can be said about selling to the wealthy. They expect more personalized service and require much more of an effort to close the sale.

We are looking to start a business that requires as little effort as possible while generating the most sales possible.  We are looking to sell to single people or families with disposable income who are used to shopping online and comfortable making large purchases over the internet.

How Brand Loyalty Affects Your eCommerce Niche

What kind of computer or cell phone do you have? Is it the same kind of brand as your last one? Chances are if you own a Mac, the next computer you buy will also be a Mac.

Why? Brand loyalty.

When selling online, you want to avoid selling products that customers already have brand loyalty for…

For example, I wouldn’t try to sell TVs online.  Most customers who are buying a TV do the research on which TV is best for them or purchase the same brand TV they have had in the past.

They already have researched which TV brand has the best picture quality, the best warranty, and the best reviews online.  If I wanted to sell the TVs that people are actually buying (Sonys, Panasonics, LGs, etc) there is no way I would get approved for an account with the same payment and pricing terms as Best Buy or any other big box stores.

So, what type of products do I look to sell?  Products that customers are thinking about buying, but will not be diverted from buying it because it isn’t from a specific well known brand, or cause them any reservation because they could think it is “off-brand.”

Here are some examples of eCommerce niche markets that I would want to target:

Let’s say I live on a lake and I decide I want to get into stand-up paddle boarding.  I know I need a paddle board and a paddle but I have no prior knowledge of this sport or what brands are well known.  I could care less what company makes the board as long as I can find some good reviews and the price is right.

This is a great example of a product to sell online.  The average cost of a stand-up paddle board and the paddle is over $700, the average customer does not care what brand they are buying, and this sport is likely to appeal to the upper-middle class and would be purchased with disposable income.

Here is another example:

Mr. and Mrs. Smith move into a new home, there is a huge chandelier that hangs in the entryway.  Mrs. Smith hates it. They go to the local The Home Depot & Lowe’s but can not find a replacement that they agree on.

They know what style they are looking for but they can not find it locally. Mrs. Smith goes online and searches for a 30” x 30” entryway chandelier. She finds a website with hundreds of options including one that she and husband can agree upon.

This is another great example of a product to sell online.  Chandeliers are expensive, they appeal to the upper middle class, and the average customer does not care what brand they are buying as long as they like what they see.

  • Expensive
  • No Brand Loyalty
  • Appeals to Upper-Middle Class

Take some time now to think about other products that meet these criteria.  Write a list of as many product types as you can think of.

If you’re crunched for time, let us help you by providing you with some niche ideas.

eCommerce Niche Selection Conclusion:

These are some excellent first tips that are sure to be valuable and help in honing your strategy when choosing the right eCommerce niche.

Remember that these three rules for profitable and effective eCommerce niche selection are crucial: the target price, the target demographic, and brand loyalty cannot exist – because if it does it is going to make your life and eCommerce drop shipping business a lot harder.

Drop Shipping On Shopify: Amazon vs Oberlo vs Domestic Dropship Suppliers

Drop Shipping On Shopify: Amazon vs Oberlo vs Domestic Dropship Suppliers

There’s a lot of confusion about the differences between Oberlo, Amazon, and domestic dropship suppliers. But all we’re really talking about is different ways to fulfill orders on Shopify.

The main goal of this article is to show you which dropship supplier is best for building a real brand that provides real value to your customers and to your bank account.

We’re not going to focus on building burner stores that will make you some money for a few weeks.

We want to build a dropship business that’s going to grow and compound over the years and still be a business that you’ll be proud to call your own 5-10 years in the future.

If you’re serious about eCommerce, which I assume you are since you’re reading this article… the first question you should ask yourself is, “What’s the most important factor in building a long-term brand?”

I get different answers to this question all the time. People say getting good traffic or having good dropship suppliers.

But the key to long-term business success is having happy customers.

The key to long term business success is having happy customers.

When people actually trust you enough to give you their business, they have to actually like what you provide them. This leads to long-term success. Not only because they’ll leave positive reviews, but because they’ll talk about your business.

This adds up over the years.

On the other hand, if you’re giving people… 

  • A bad experience
  • Terrible customer service
  • Long shipping times
  • Poor quality items
  • Items damaged on arrival

You’ll get bad reviews and people will tell others not to trust you which won’t lead to a long-term business. So if you want to have a store that stays around for awhile, you need to keep your customers happy.

The Big Three Dropship Suppliers

Let’s give an example of the shopping experience. Let’s say our customer’s name is Sarah. She’s on the internet and sees your ad then lands on your Shopify store.

Once she places her order, we have a few different options to fulfill the order. one of them is Amazon.

You could go to Amazon, buy the product and have it shipped to Sarah.

You could also have Oberlo linked to your Shopify store that would be fulfilled from a third party supplier, most likely from China.

The last option is a domestic supplier, which means that they are based in the country you’re doing business in.

Using Amazon As Your Dropship Suppliers

First, the buyer will go to your website, place the order, and you get the money in your bank account.

Then you’ll go to Amazon and buy that item for your customer at a cheaper price. This model is called arbitrage.

How Amazon Drop Shipping Works: 

  • Buyer orders on yoursite.com
  • You find the product for cheaper on Amazon
  • You place an order on Amazon
  • Amazon ships to your customer
  • You keep the difference

This model can also use eBay and Walmart, instead of Amazon.

But it isn’t sustainable because you don’t have relationships with suppliers, so you can’t be sure that products will stay in stock, or hold at a certain price.

Arbitrage also has a lot more manual work for small profits. When you order the products from Amazon, you have to private message the sellers and ask them to not include any slips, invoices, and packaging from Amazon.

Otherwise, your customer will receive something from Amazon, becoming confused and angry.

There’s also no barrier to entry. If you found something very profitable to sell, you would have a ton of competition because literally anyone can do this at a moment’s notice.

Issues With Drop Shipping From Amazon: 

  • Not sustainable (no consistent selling products)
  • Too much manual work for small profits (need to private message all Amazon sellers to tell them not to include packing slips and Amazon packaging)
  • No barrier to entry
  • Customers will occasionally receive Amazon packaging on accident (leading to frustrated and angry customers)

While this technically still is drop shipping, it has too many issues for it to be a viable long-term solution and I don’t recommend it.

Oberlo Dropship Suppliers

You could build a Shopify store and import the products you want to sell from Oberlo, linking those products to your store.

The buyers will find the products on your site and place orders, then you process the order on Oberlo.

Oberlo then sends the product to your customer. But Oberlo isn’t a supplier, they’re a middleman between the manufacturers and your store.

They have a ton of suppliers, causing a lack of consistency in quality. If you deliver a bunch of defective items the customer will send them back to you, not Oberlo. Then you have to return them directly to the manufacturer.

We call this the ‘drop shipping from China model’ because most of the suppliers are based in China when using Oberlo.

How Oberlo Drop Shiping Works: 

  • You import products to your Shopify store
  • Buyer orders on yoursite.com
  • You process the order through Oberlo
  • The supplier ships the item to your customer

One of the biggest problems is that you’re always chasing trends to catch a hot product for a few weeks. Think of products like fidget spinners. After a short time, your store will fizzle out.

Most the products from Oberlo are both inexpensive and of sub-par quality. Overall, these products lack a lot of quality control. Not all of it’s bad but most of the products suffer from inconsistency.

There’s also no pricing control on Oberlo. They don’t use minimum advertised price (MAP) which results in pricing wars and little to no profit.

Another issue with the products found on Oberlo is that they’re usually generic with no branding. This may seem like a perk, but at Drop Ship Lifestyle, we believe that being retailers for brands is the key to long-term profits.

Because these items are coming from overseas (usually China), there are long lead times. So even with the fastest shipments, you’re looking at 10-days but it’s usually more like 20 days for your customer to receive their items.

Your customers don’t want to wait that long for products. This leads to customers having a bad experience, leaving negative feedback, and filing chargebacks.

There’s also no barrier to entry, so it’s highly competitive and there will always be a lot of people selling the same products.

Issues With Drop Shipping From Oberlo: 

  • Always trying to catch the latest trend
  • Inexpensive & offer sub-par quality products
  • No price controls (race to the bottom)
  • No branding whatsoever
  • Long lead times
  • No barrier to entry
  • No quality control assurance (from the suppliers)

With all these issues I can’t recommend this type of drop shipping.

Domestic Dropship Suppliers

When I say domestic dropship suppliers, I mean using dropship suppliers from wherever you’re selling. So if you’re in Australia and you’re selling in that market, use Australian suppliers.

This lowers shipping time down to 3-5 days, resulting in happier customers and more positive reviews for your drop shipping business.

It all starts with choosing a niche and building a store based on that product category. Avoid creating ‘shopping mall’ stores with a lot of different niches that aren’t related.

Once you find your niche, you look for people that already sell what you want to sell. These future competitors will have dropship suppliers and you’ll get approved to sell their brands.

This is somewhat of a barrier to entry because you have to talk with these brands and get approved to sell with them before you can start selling products. To me, this is a positive thing because it reduces your competition by adding a step.

Once set up, the buyer will come to your site and purchase. Then your dropship supplier will process the order.

The supplier ships the product directly to your customer and you keep the difference between the item cost and your retail price.

Besides much faster shipping times, one of the biggest benefits of the Drop Ship Lifestyle model is that if there are ever defective products, it can be directly returned to the supplier.

How Domestic Drop Shipping Works: 

  • You choose a niche & find your “future competitors”
  • You get approved to sell for legitimate brands
  • Buyer orders on yoursite.com
  • Your dropship suppliers process your orders
  • The dropship suppliers ship the item to your customer
  • You keep the difference

Like the other dropship suppliers, there are a few issues with this drop shipping model.

Before you turn on your store, you spend a lot of time doing niche selection and market research upfront.

You’ll also have to build your website before you have suppliers so that you can show them where you’ll be selling their products.

There’s a lot of effort put into building relationships with suppliers and you won’t likely get approved immediately.

This model is all about building long-term businesses that need time upfront to develop.

Issues With Drop Shipping From Domestic Dropship Suppliers: 

  • You need to do market research
  • You need to build a website BEFORE you apply
  • You need to earn the trust of top-tier suppliers
  • Put simply, it takes real work to get started

Since this builds a real brand that has long-term success, I recommend this model.

Have you tried Amazon or Oberlo dropship suppliers? Let me know in the comments!

Hopefully, this clears up the differences between dropship suppliers. This article is based on a Drop Ship Weekly video I did: