Dropship Business: Zabubli’s Five Golden Rules For Fools Starting A Dropshipping Business
Zabubli thinks it’s in your best interest to make sure your dropshipping business is profitable.
In order to make sure that your dropship business is a money-making machine like Zabubli’s, there are just a few things you need to get through your brain.
In order to achieve success in the dropshipping business, Zabubli has laid out five golden rules for you:
1. Find A Hot Selling Item Which Will Make You Good Profit.
In order to make your dropship business as profitable as possible, you need to find an item which will:
- appeal to a large group of people (customers)
- sell in sufficient quantities
- provide you with a good profit margin
The above 3 factors will ensure that if you sell that particular product, it will make money. You have to first assess if there is demand for the product you’ve chosen to sell. At the same time, you’ve got to check your competition. What kind of competition is there? Is there any competition at all? How much are they charging for the same item(s)?
Competition research is beyond the scope of this article, though you are welcome to send Zabubli your questions and I will try to respond with my wisdom as quickly as possible.
One thing you’ll find is that there are other businesses who are willing to basically price product in a very cut-throat manner, making little to no profit while making it harder for the rest of us to do business. However, their customer service is not always acceptable either, so that’s where you can shine like Zabubli and make your company’s name known.
2. Don’t Try To Sell Everything To Everyone. Specialize In A niche.
It is best when first starting out selling products using dropshipping, that you only sell a select few, in a tight niche.
Don’t try to sell all kinds of stuff to all kinds of people, because you’ll never get anywhere with it, unless you have a very large advertising, promotional budget and are willing to absorb losses for a year while building a customer base.
Select a tight niche, a section of a market to sell your products to, and go at it. This will help you concentrate more on marketing your products, rather than make you run around with your head cut off. It will also help you keep your costs down. At the same time, you will be able to establish and brand yourself in the given niche, and then grow from there.
3. Don’t Get Scammed, Genius. Find A Reputable DropShipper.
The more people like Zabubli that make money with a dropship business, the harder it becomes to find legitimate suppliers for your dropshipping business. Sadly, over the recent past there have been so many scams and stories that have become known in this industry, it is not even funny anymore.
If someone offers to sell you a “list of dropshippers” for hundreds of dollars, run like Usain Bolt (the fastest man on Earth). These are usually middlemen who are playing the game like they are dropshippers themselves. Use your common sense here, this is drop shipping for dummies:
- Will you make more money buying directly from a wholesale dropshipper, when you buy wholesale?, or
- Will you make more money buying dropship products going through a middle-man?
Oh my dear Entrepreneur, I think the answer is obvious, ain’t it?
The whole idea of a dropshipping business model is to keep your costs as low as possible by eliminating the inventory, space, money, resources, and manpower required to have your own warehouse. These middlemen scammers will help you do exactly the opposite, by raising your costs whenever and however possible.
Whether we’re running our drop ship business through eBay, or an online store through a website, at the end of the day we want to make a profit, no?
4. Keep your money. Avoid “Turn-Key” Online Stores Like The Plague.
That’s right. Zabubli suggests staying away from those turnkey, “dropship wholesale business in-a-box” type of deals that sell you a package of products, the whole e-commerce and marketing fever for a “one-time fee” of half your retirement fund or a monthly fee. All Zabubli can say about these type of deals is, that there is definitely profit made in them. Huge amounts. People have retired off the money they have made from these deals.
Guess what? It’s the people selling those “turnkey business opportunities” who make all the money in these deals, not people like you and I who may be wanting to start a legitimate business to make some income.
Now, don’t get scared by what Zabubli has just said. There are exceptions to this rule, and there are exceptions to the exceptions. I am just trying to make you aware of what is out there, so you don’t get scammed and feel like a moron.
One of the best ways of finding reputable dropshippers for your dropship business is through looking at directories such as this one. They provide you with a list, and put you in touch with hundreds, even thousands of legitimate dropshippers and wholesalers that you can begin using to make money quickly. Build relationships with these people, and you’d be surprised how far it can take you in your entrepreneurial endeavors.
Building business relationships with dropship companies from this place is crucial to your success when starting or running a dropshipping business. I’ll give you some quick examples why:
Just like any other retail business, you will need to deal with the issues associated with out-of-stocks and returns/refunds. Just because you are doing your business online doesn’t eliminate these issues.
There will be times when one of your customers orders a particular item, and then you find out that your supplier does not have that item in stock at the moment, so you will not be able to ship it immediately as you probably promised the customer already.
Now, if you’re working with a legitimate dropshipper such as the ones part of this strict-standards directory, you will be able to quickly work out these matters in an efficient manner with your wholesale supplier. They will provide you with the answers you can provide to your customers, with estimated date of the next shipment and all that good stuff, which will help you retain YOUR customers and YOUR bottom line.
Also, these people will keep you up to date via content on their website and special notifications they send to members only, so out-of-stock issues and the like can be avoided ahead of time in the first place. Zabubli is a big believer in being proactive, instead of reactive.
5. So What If You’re Working From Your Basement In Your Undies? Treat Your Business Like Any Other Business.
Last but not least, Zabubli must stress the fact that an online dropship business needs to be treated just like any other business. Don’t half-ass things just because “it’s online”, or “who will know”. Get some good advice on how to run a business properly, through Zabubli and other well-groomed entrepreneurs. Read books.
- For your online store, do not use one of those free or personal web page addresses for God’s sake. Get a real domain name, it is ONLY a few bucks these days and the face of your business.
- Register your business with your County Clerk, and get a TAX ID number. File taxes each year. It is so much easier to deal with drop ship wholesale suppliers if you have a TAX ID, trust me. Yes, at least in the USA, you can usually do without it and just use your SSN (Social Security Number), but if you’re trying to run a real dropshipping business, why not register it and get the added benefits of owning a small business?
- Also, don’t even think about spamming your customers or random people to make sales. Spammers are the scum of the universe, and believe me, you do not want to be part of that group. Your domain will be banned like there’s no tomorrow, and you will lose your shirt, along with your dignity and self-respect.
As long as you stay optimistic, consider joining a real directory of dropshippers with high standards, take smart action, and expect that your business is going to make a profit… there are very good chances that you will actually achieve just that.
I know I haven’t answered every single question and concern in this post, so why don’t you take a few seconds to post a comment using the form below? Zabubli thinks you should not be shy and just speak your mind.