What is Dropshipping and How to Start an Online Store?

Introduction

Drop shipping offers a remote income opportunity, as evidenced by the speaker’s successful experience. Learn how to set up an online store and explore the potential of this lucrative business model.

Drop Shipping Business - A Lucrative Opportunity

• Drop shipping is a lucrative opportunity where individuals can earn millions of rupees from the comfort of their homes.

• The speaker shares his brother’s first-time experience with drop shipping in India, highlighting the results and the process.

• Within just six days, the speaker’s orders amounted to around 40,000 rupees, demonstrating the potential of drop shipping business.

• In drop shipping, individuals act as a middleman between suppliers and customers, leveraging the supplier’s stock to fulfill orders without the need for product storage or packaging.

• The speaker emphasizes the simplicity of the business, focusing solely on selling the product while leaving the other operational aspects to the supplier.

• Drop shipping allows for various product categories and the opportunity to negotiate deals with different suppliers based on individual preferences and agreements.

Understanding Drop Shipping and Setting Up an Online Store

• Drop shipping is a trending business model, where platforms like Shopify are used for creating websites to sell products without holding inventory.

• The process involves choosing products from a supplier’s list, setting up an online store, and connecting with a supplier to fulfill orders with just a click.

• Setting up a drop shipping business includes registering on platforms like Shopify, setting up the store, purchasing a domain, and connecting it to the store.

• It is essential to establish a brand identity by purchasing a domain, which involves selecting and purchasing a suitable domain name for the online store.

• Additionally, finding a reliable supplier is crucial for drop shipping, and platforms like Dropshipping.com offer a wide range of products for easy selection and connection to the store.

SEO Optimization and Product Selection

• I signed up on Roposo and linked my Shopify store to it for seamless order processing and delivery.

• Roposo offers easy integration with Shopify, allowing orders to be directly processed through Roposo.

• Selecting winning products on Roposo involves thorough research and testing to ensure good profit margins.

• Identifying profitable products requires analyzing trends and customer preferences on Roposo.

• After conducting extensive research, I carefully selected three potential winning products on Roposo.

Setting up Payment Gateway for Dropshipping

• After creating pages for the products, the next steps were to set up COD (Cash On Delivery) and connect a payment gateway.

• In today’s times, many payment gateways are not accepting new users, creating a major issue for dropshippers.

• After applying to several payment gateways without success, the speaker finally found acceptance with PhonePe after extensive research.

• The PhonePe gateway was successfully connected to the Shopify store, completing the setup process.

• With the store ready, the next task was to find ads for the products, which can be done either by ordering the product to create original ads or by using existing ads as references.

SEO Optimization and Ad Campaign Creation

• I have downloaded all the ads, whether it’s a hair straightener or a fit trimmer.

• Since I have downloaded all the ads, I will need a platform to run those ads.

• Facebook Ads is the best platform, and without it, nothing would work.

• I’m talking about banning issues, but somewhere deep down in my heart, I still love you. Anyways, this didn’t happen with me for now because I know all the methods.

• I won’t say that I created a Facebook account, then became a business manager, and went to ad manager. I don’t know all these things yet.

• But I had everything ready already. I have always been running ads, so let’s skip this part.

• Where are Pixel and others mentioned now? I just connected and clicked on ‘create’. After that, I created a campaign, and now let’s see.

• I’m telling you together, but I gradually created campaigns for each product and tested each product.

• Now, I will tell you the results of those three products. Our Lulu brothers, I tested this, and you can see how much money.

Understanding Product Pricing Strategy

• The speaker initially faced issues with the product not working, which led to discontinuation of testing. Later, the pricing strategy was discussed, and a product was offered at a price higher than expected.

• A specific example of a trimmer was highlighted, where the speaker added a margin to the cost price and set the selling price at 799. The decision-making process and the impact of advertising on sales were also mentioned.

• The rejection of certain ads on Facebook caused a change in the cost price of the product, resulting in a decreased margin and increased selling price.

• Overall, the pricing strategy was adjusted based on advertising performance and market demand, leading to changes in product pricing and sales.

• The speaker emphasized the importance of understanding the impact of advertising on pricing strategy and the subsequent effect on sales and profit margins.

Understanding the Importance of Cost Calculation in Sales

• A recent sales of 7000 rupees might seem profitable, but after considering the actual spend of approximately 5,900 rupees, the net profit decreases significantly.

• The total spend amount is not accurately reflected as it does not include taxes and other expenses. When factoring these in, the actual net amount reduces further.

• The cost per purchase has increased by 130 rupees, which impacts the overall profitability of the sales.

• It’s important to accurately calculate all costs and expenses to understand the true profitability of the sales.

• Additionally, it’s beneficial to consider drop shipping options like ‘Artio’ which is popular in India, as it can impact the overall sales and cost dynamics.

Order Analysis on Roposo Platform

• Out of the total 46 orders received, I have checked the delivery status on the Roposo platform.

• Upon selecting the dates and reviewing the deliveries, there were 10 products delivered on the first page and 7 on the second page.

• Additionally, 5 orders were cancelled, and there were a total of 24 returns to origin (RTO) for the 46 orders.

• This results in 17 successful order deliveries, 24 RTOs, and 5 cancelled orders.

• After making calls and further analysis, the revenue and profit/loss can be calculated using the provided template.

SEO Template for Dropshipping

• If you have incurred a loss in dropshipping, it’s normal to have around a 50-60% drop in revenue.

• I have created two templates for calculating revenue and drop shipping. If you sign up through my Shopify link, I will provide the template for free.

• Before starting dropshipping, it’s essential to have a budget. My experience in dropshipping has led me to create content on this topic.

• If you liked this video, please like and subscribe for more similar content.

• Thank you for watching!

Conclusion

Learn about the challenges and strategies of drop shipping, and the importance of effectively setting up an online store, product selection, payment gateways, ad campaigns, and cost calculation for profitable outcomes. Sign up through the provided Shopify link for free revenue and drop shipping templates.

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