2014: A Beginner's

Guide to
Dropshipping from
China
eBook

Chinavasion
1st Edition, 2014
Contents
Preface............................................................................................................................ 3

Full Disclosure: What is Chinavasion? .......................................................................... 5

Chapter 1: What is Dropshipping? ................................................................................. 6

1: What is dropshipping and how does it work? ........................................................ 6

2: Advantages & Disadvantages ................................................................................ 8

Chapter 2- Decide the Products You Will Sell ............................................................ 11

1: How do we understand markets? ......................................................................... 11

2: Creating your product strategy ............................................................................ 13

Chapter 3 - How to Choose the Right Dropshippers for Your Online Store ............... 15

1. Favor the big and reliable online wholesalers...................................................... 15

2: Reputation is the top criteria when choose suppliers ........................................... 17

3: How to manage after-sales in a dropshipping business ....................................... 19

Chapter 4 – Sales Channels.......................................................................................... 22

1: How to drop-ship on eBay ................................................................................... 22

2: Useful eBay selling resources ............................................................................. 23

3: Selling on Amazon............................................................................................... 25

4: Dropshipping on your own online store .............................................................. 27

Chapter 5 – Useful Ways to Market Your Online Dropshipping Business ................. 30

1. Market your business ........................................................................................... 30

2: How to improve your sales .................................................................................. 32

Chapter 6 - Collect Late Payments from Customers ................................................... 35

1: Don't ask, don't get ............................................................................................... 35

Conclusion ................................................................................................................... 37

Page 2
 A Beginner's Guide to Dropshipping
from China

Preface
Dropshipping is the retail strategy of the future. With a global economy fueled
by E-commerce and world-wide delivery services, people can retail goods from
anywhere, to anywhere. Dropshipping makes that possible by putting products into
your power even if you don‟t have them in your hand.

How does it do that? It works by connecting wholesalers with retailer

entrepreneurs worldwide. It is a division of labor that shakes the traditional model of –
you rent a space, you decorate the space, you buy the products, you open shop, you
advertise and hope you can sell all your products before they are outdated and
worthless.

With new products being developed in every field faster than ever before, it‟s
becoming less and less possible to maintain this business model. For instance, say you
sell phones, so you buy 100 of a new model. Over time you sell some, but then the
next model comes out and you still have leftover stock. Dropshipping eliminates that
risk by taking the stock out of your hands and keep it in the wholesaler‟s until it‟s
time to ship to the customer‟s door. All you need to do is open up an online shop,
create a relationship with a wholesaler and advertise. No extra staff, no stock, no
inventory, etc. There‟s just you, your computer and a relationship with a reliable
wholesaler.

Have you ever wanted to go into the online retail business, but didn‟t have the
costs for overhead, sourcing research, employees, or shipping operations?
Dropshipping is the solution to this situation. Even if you do have start up money, it
can be a lucrative and hassle-free business model to follow, and you can spend your
money elsewhere, on things such as marketing.

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 The internet is filled with illusory solutions to working from home, but
dropshipping is not one of them. You can truly work from home because it does not
require you to have a physical storefront, an inventory of your own, or a shipping
operation.
All of those aspects to the business exist, of course, but they are on
wholesaler‟s premises – out of sight, out of mind. The clincher then is to find a niche
market and a reliable wholesaler for the goods that niche market demands. Your
wholesaler needs to not deal in faulty products or make errors in shipping, and your
niche market needs to truly be something unique. But if you do this you can make a
success of yourself.

Page 4
Full Disclosure: What is Chinavasion?
Although this e-book is about dropshipping as a business strategy in general,
and can be used to educate yourself whether you wish to sell clothes, toys, food
products, or anything else – its funding comes from Chinavasion, a wholesaler who
deal strictly in electronics.

For those who are considering or would consider retailing electronics,

Chinavasion is a top notch wholesaler. Here‟s why:

Chinavasion‟s motto is „China Prices, Western Quality‟ – and while it‟s not so
hard to find China prices, it‟s the western quality part that can be difficult to obtain.
That is why Chinavasion has a quality control team whose job is to visit sourcing
locations, find reliable products, and find out the products capabilities for themselves.

In fact, they do not take the manufacturers‟ claims about products for granted
at all – they individually test each specification and write their own report with
precise details about each detail for every product that ends up on the website. Many
products are turned down every day because they do not fit the high standards
Chinavasion applies to its sourcing. You can be sure that the ones that do pass through
this process will do what they say they do, and have the specs that they say they have.

Page 5
Chapter 1: What is Dropshipping?

1: What is dropshipping and how does it work?

To begin with, it would be wise to clarify a few misconceptions regarding the
term “dropshipping”. There are many entrepreneurs who make the statement that
they want to start a dropship business, when in fact, what they mean is they want to
become a retailer who uses the best priced dropshipping products and beat
competitors. 1

With dropshipping, you save on setting-up and other built-in costs because
you do not have concerns and responsibility about the shipping or stocking of
products. The process is simplified: when you receive a customer‟s order, you
contact the wholesaler, and they arrange the delivery on your behalf.

Therefore, as a retailer, you are able to sell a wide variety of products without
carrying any stock whatsoever. Dropshipping 2 offers a potential that makes it an
extremely attractive financial proposition for new, home-based online businesses with
limited funds available!

Sales and profit

As in any retail business, retailers generally make their profit on the difference
between the wholesale and final selling price of the product, making sourcing your
products a crucial step. Dropshipping from China ensures you gain the best
opportunity to make more profit with better priced products. It is also wise for
retailers or agents to receive a percentage of the sales commission paid by a
wholesaler.

There are different ways in which a retailer can display their products to the
marketplace. These include keeping product samples for displaying to customers, or
showing their range of products on a website.

1
Wholesale Dropship Electronics Direct From China. Chinavasion. 2014
2
Drop shipping. Wikipedia. Modified 13 January 2014

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 It is important that a dropshipping retailer does not reveal the origin of their
wholesale source, because then the customer could contact the wholesaler directly.
Therefore, it is in your interest that you find a wholesaler who you can trust and do
not reveal this source to customers.

This is achievable by what is known as “blind-shipping”.3 It is a procedure

whereby merchandise is shipped without a return address, or displaying a customized
label with the address of the retailer. It is also possible for the wholesaler to include a
packing slip with the same and retailer contact information.

Wholesaler and products

Two of the most important aspects regarding dropshipping are choosing the
type of product(s) and the wholesaler for whom you would like to sell as a retailer.
Basically, the way to do this is either by working directly with a wholesale
organization, or registering with an inventory sourcing company, or agency, that gives
you access to a variety of wholesale outlets. If however, you prefer the easier and
more convenient method, then operate by way of an inventory sourcing company,
which saves you time in researching the various sourcing options.

In general, receiving your products directly from the wholesaler can result in a
higher profit margin, because there will not be any membership fees payable. It will
further help you, by finding a wholesaler that not only offers a wide range of
products, but also specializes in the types of products that you want to sell!

Marketing and promoting your products

This is an exciting and creative stage in your business as a highly competitive
dropshipping retailer, because having committed yourself to a wholesaler and
products that you want to sell – it is now the time for action!

If you receive your products directly from a reliable wholesaler, then you will
have a higher profit margain because you will not have to pay any membership fees.

3
Drop shipping. Wikipedia. Modified 13 January 2014

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If, however, you prefer an easier and more convenient method of operating, then
working with an inventory sourcing company could save you valuable time. In this
case you will not need to research the various product options.4

When dealing with China dropshipping wholesalers, you are given the
opportunity of being able to compete in the market with the best products at the best
prices. You could, however, receive a minimum listing price, meaning that you cannot
sell below this price. There are a variety of reasons for this, including making the
product too cheap and reducing its value appeal and inherent cost factors.

On the other hand, you are permitted to sell your products for as much over
the listed price as you wish!

2: Advantages & Disadvantages

As with any type of business enterprise or investment in your life, there are
various advantages and disadvantages5 to consider with dropshipping. However, the
main influencing factor is the opportunity you have for immediately making an
impression on the market with highly competitive prices. You will find that the
business of dropshipping is relatively simple, as are the advantages associated with it.

Primarily, if you utilize a wholesaler as a dropshipping source, it means that

you do not have to invest and carry a stock inventory of your own! Therefore, there is
not the potential for you to be left holding stock that cannot be sold for whatever
reason. In addition, the setting-up costs for your enterprise are considerably reduced
and accordingly, so are any financial risk factors.

Source of investment and income

The business of dropshipping could be compared to making an investment in
your future,6 as it can provide the opportunity for you to establish a source of income,

4
Wholesale Dropship Electronics Direct from China. Chinavasion. 2014
5
Starting a Dropshipping Business. Karen Waksman. 2014
6
Starting Your Business. Andrew Youderian.

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by working from home and using the Internet as your marketing and sales medium.
Like any other occupation, the more you know, the better your results are!

With dropshipping you are able to focus on making a profit by doing what you
do best, which is marketing your products. As you do not have to concern yourself
with getting added storage space for stock, or maintaining inventory records, you can
sell a variety of products without the usual time consuming and financial burdens.

Awareness of dropshipping
If there are advantages with dropshipping, then it follows that there are also
disadvantages. However, if you are made aware of the potential pitfalls, you are
prepared and able to anticipate them. As a retailer, you would probably not hold any
physical stock of the products. This means that your customers do not have the
opportunity to see the items they are purchasing, which can result in a high percentage
of returns. A good wholesaler, such as Chinavasion, will provide you with product
images and descriptions that you can use on your website, in brochures or any other
advertising media.

A customer who is not satisfied with a product will contact you as the retailer
and the source they dealt with originally. However, this type of control is a particular
aspect that you do not have, in the event of faulty products being delivered. This is the
responsibility of the wholesaler or manufacturer, but it is possible for the wholesaler
to make a mistake when shipping products, and in this respect it will be you who the
customer will hold accountable. Therefore, it is essential that you find a dropshipper
who offers you certain warranties on their products.

More pros and cons

Competition, in the high pressured business world of today is a significant
factor and it possible that there will be other retailers selling the same products as you.
The main factor of dropshipping is to be prepared and ensure that the wholesaler(s)
you deal with are established and reliable. Determine your profit margins, as they can
vary with the total amount of the orders you submit.
The Internet is an amazing and potentially lucrative business medium, but
your website must be designed to both attract an audience and hold their attention.

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Therefore, when selecting your products, check and research their features and
benefits before targeting your market!7

7
Dropshipping: Pros and Cons. Mitch Bettis. 1 June, 2006

Page
10
Chapter 2- Decide the Products You
Will Sell

1: How do we understand markets?

Market research could be considered a guide for your business, by providing
you with direction and making your journey an easier and more profitable one. In
other words, it will give you an indication of whom and where your customers are and
target indicators regarding their purchasing habits. These people are your target
market and it is crucial that you are aware of them.8

You can gain an insight into the types of new products that could be profitable
for you, with the capabilities of market research to help you. For products that are
already being marketed, this type of research can determine whether they are in fact
meeting the needs of customers and/or their expectations. This is a vital tool for small
business owners, as it can show whether it is necessary to re-design packaging, or
improve on their customer support services.

Creating and measuring objectives

From the results produced by market research, you are given the capability of
either creating a business and marketing plan, or measuring the success of a currently
operating one. It is therefore critical that during research, the appropriate questions are
asked by the right people in the correct manner! Poor or mismanaged market research
could create a situation of a business being directed in the wrong direction.

There are methods of conducting market research, but the main objectives of
primary research, is the gathering of data from an analysis of current sales
ascertaining the effectiveness of current operating practices.9 In addition, this type of
research will take into account your competitors plans and provide useful information
regarding them.

8
Market Research. Wikipedia. 12 February 2014
9
Conducting Market Research. Entrepreneur Staff. 2010

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11
Included in this method of research are:
 Telephone or personal interviews
 Online or mailed questionnaires
 Online or mailed surveys
 Group feedback from defined potential customers10

Analyzing published data

The objective of secondary research is the analysis of published data. With
this secondary data, you have the capacity to identify your competition, target
segments, and determine bench-marks. Your market segments are those potential
buyers who meet the criteria of your targeted demographics. They will be determined
by a particular lifestyle, display a certain pattern of behavior, or be part of determined
age grouping.

In the highly competitive business world of today, a small business cannot

succeed unless they have knowledge of their customers and products, services
provided and general market related conditions. Without proper and planned market
research being conducted, there is a distinct possibility that competitors would gain a
market penetrating advantage!11

Quantitative and qualitative data

Within the sphere of data collection, there are two recognized categories,
namely quantitative and qualitative. In the first mentioned, mathematical analysis is
employed, which requires a significantly sized sample volume. The derived
information can help you establish variety in your market related aspects. For
example: origins of leads, length of stay on your website by visitors, and the page to
which they exit.

The qualitative method requires a vastly reduced sample volume and can help
you not only refine your quantitative research options, but also enable you to assess
the opinions, values and beliefs of customers.
10
Ways to Get Information. StatPac Inc
11
Market Research. Wikipedia

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12
2: Creating your product strategy
If you are new to the business of dropshipping and the sales and marketing
strategies that go along with it, then the first part of creating a product strategy is to
define exactly what it means. It is the final vision of where you want your product to
end its journey. This will be determined by the effort you put in to your business.

Selecting a market niche is never an easy task for any type of business,
particularly gaining popularity for the product against huge online competitors like
Amazon, etc. Your product strategy is the foundation that enables you to retain focus
on a particular determined market segment, instead of spreading your resources across
a vast and varied area, which could mean attempting to please everyone, everywhere.

Profit and competition

The goal of your business efforts is to achieve business success and profit and
for this to happen you need to determine the product that will attain the greatest
rewards for you. Therefore, when selecting your market niche, keep this in mind, in
spite of any perceived personal preferences!

If, during your research and strategizing, you reveal a niche segment that is
underexploited, this could open the door to opportunity.12

Amazon, price and quality

Consumers have become more discerning with experiences learned from
online buying and selling. Amazon in particular has changed consumers‟ perspectives,
causing them to expect more things, faster shipping, and better prices all on the same,
easy to use platform.

Accordingly, their priorities have become directed towards value related to

product quality and the price they pay for it. It will attract attention to your website if
you are able to add value to them, with, for instance, personalized information and
photography, which will stand-out from duller presentations.

12
Supply and Demand. Wikipidia. Modified 18 February 2014

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13
 Understanding a product and the support behind it gives value and is a
foundation for creating good will and trust, which merits a higher price and will thus
increase your profit.

Delivery to a global marketplace and product strategy

When creating your product strategy, take into account that with the advantage
of dropshipping, you can access targeted market segments worldwide. As long as you
can work with the language, you can access the market. The dropshipper takes care of
the rest.13

You should determine the dropshippers policy related to shipping costs,

reliability and ability to resolve any product related and delivery issues. You must be
aware that a failure in any one of these areas could result in a greater loss in revenue
than shipping costs.

If you can find the right wholesaler, a well researched and well designed
product strategy can make a critical difference between the success of your
competitors‟ and yours. Find that niche.

13
How Your Goods Will be Sent. Chinavasion. 2012

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14
Chapter 3 - How to Choose the Right
Dropshippers for Your Online Store

1. Favor the big and reliable online wholesalers

Remember that there are a large variety of dropshippers available. What you
have to do is find the one that best serves and suits your business interests! While
there is a huge selection on the Internet waiting for you to discover them, a large
percentage of them will not meet your expectations.

Your priority ought to be selecting the biggest, established and most reliable
wholesalers. One way of doing this, if you have decided on the product(s) you want to
sell, is by recommendations from the manufacturer. With this method, you will have
assurance that the wholesaler or distributor is authorized and supports the product
effectively.14

Wholesaler options
There are other options available to you, for instance, a thorough, but in depth
search on Google, which could prove a time consuming and frustrating exercise.
Another more positive option would be to establish which online dropshipping
directories are legitimate, and then access their database.

With this method you are given the capacity to search a significant number of
pre-screened dropshipping companies. By now, you have probably reached the
conclusion that this is a business that requires your dedication and some serious
common sense if you are to make a success of it!

Some marketing methods for you

To market your products to the largest possible consumer audience, you need
to learn and apply some traditional online methods, such as these:

14
Wholesale Dropship Electronics Direct From China. Chinavasion. 2014

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15
  Keywords are the way to get customers to your website. For example;
“Wholesale Electronics” gives you “Electronics” as the keyword, because that
is where you want to direct the customer from the first page of Google and
other search engine directories.

 Research gives you information on how to make your business a success.

Therefore, find and make a list of the most popular dropshippers. See what
other people say about them. Remember, this is a competition to win
customers, so don‟t just accept everything you read at face value. Some
competitors will go to extreme lengths to gain customers from other
companies, so make sure your research is thorough and your sources genuine.

 When you have a list of companies you believe are the most suitable, contact
them by email. Make a note of how long they take to respond to you. Is it
within 24 hours? Are they polite? Informative? Do they answer all your
questions?

 Prepare a list of any questions for which you require information and discuss
your proposed business with them, online directly. Determine their attitude
towards you, their efficiency and knowledge.

 Contact their customer service and determine their performance towards you.
A first class dropshipper realizes that professional customer service is a crucial
part of their business and will act accordingly.

 If it is possible for you to visit their premises, do so. If not, place a small order
and then check the following:

* Delivery time (Good delivery = 1 day: Acceptable = 2 -3 days)

* Product quality
* Service effectiveness
* Payment arrangements
* Documentation

 Find out their social media presence and determine if they update it regularly.
Look at customer comments and whether or not the company responds to
them.

 View their “New Products” page and see whether they frequently release new
products.15

15
How to Find a Dropshipper for Your Online Store. Matt Winn. 8 May,2013

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The importance of a supplier
Finding the right supplier or wholesaler is an essential aspect of dropshipping.
You want an association with one who is established and supportive of the product.
Keep in mind that if you enter the business of dropshipping with an unreliable
wholesaler, do not anticipate being in business for very long.

Keep in mind that an initial set-up fee and a per order dropshipping fee are
normal. It is a means of covering shipping and packaging costs, as well as an
obstruction to non-retailers. The fees you must be wary of are recurring fees. Many of
the best and reputable dropshippers do not charge any ongoing monthly sums for the
privilege of doing business with them.

Some issues that may arise

Insist on having a copy of your official resale certificate. Do not be surprised
if you are asked for some form of proof of identity by a wholesaler before they begin
negotiations with you. This is to determine that you are a retailer and not a consumer.

2: Reputation is the top criteria when choose

suppliers
One of the most critical factors relating to your dropshipping business is
selecting the wholesaler that is best for your operation.

You must at all time keep in mind that your customers will be dealing directly
with the dropshipping company because of the contact regarding shipping and any
goods returned situations. It‟s essential that you find an established wholesaler who
not only provides high quality products, but has a reputation for efficient and effective
customer service and support.16

16
Reputation Remains Top Criteria When Selecting Preferred Suppliers. Yolanda Walters. 11
Dec,2012

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17
Your starting point
For anyone getting ready to launch their online dropshipping business, it is
probable that you don‟t have an excessive amount of capital to invest in inventory.
Therefore, seek out those dropshipping wholesalers who don‟t impose a minimum
purchase order. At the same time, make note that dropshippers usually offer
significant discounts on larger orders.

The right choices

Somebody once came up with a saying that any publicity is good publicity. In
your business of dropshipping, this is as bad as it gets because if you link to a
wholesaler who delays shipments, short-supplies products, or takes shortcuts with
quality, you‟ll find your customer base shrinking fast.

The right dropshipper

If your products can only be effectively and profitably sold by an overseas
wholesaler, then make a huge effort with researching their reputation. If you can, try
to find one close to home.

The dropshipper you choose must deliver your products on time, in good
condition, and in accordance with established terms that allow you to make a profit on
every delivery. You can achieve this by effective control of your budget. In other
words, you want the drop-shipper who can provide the best products, at the most
affordable prices, with the best customer service and support.17

Look for the following qualifications:

* Your dropshippers should have an established business history

* Their rating on resellerratings.com should be positive.
* Look in forums for anyone who is involved in dropshipping with this particular
company and ask their opinion.
* A dropshipping company should be able to show you how many items they
sell in 1 month.

17
Finding the Right Wholesale Dropshippers/Suppliers/Distributors. Aqua. 29 Dec 2013

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18
 * Their „after-sales product guarantee‟ should give excellent user protection
* Determine if they have enough stock to meet customer demands.18

Causes and effects in your dropshipping business

Once the order from the customer has been received and processed by you, it
is then dispatched to the drop-shipper for completion and delivery. This is where you
no longer have any control of the situation and why it is critical that you are
associated with a wholesaler who fully meets your determined criteria.

3: How to manage after-sales in a dropshipping

business
Like any other sales business, your dropshipping operation relies upon your
ability to assess cost benefit analysis. Keep in mind the time span between the
purchasing of the product and its delivery to the buyer is of paramount importance.
This is critical to your customers‟ happiness. The quicker they receive it, the more
likely they will do business with you again.

It is a common failing, not only in the dropshipping business, but in general,

that once the deal is made the sales person usually becomes invisible. Do not do this.
If there‟s an issue, let your customer know what is happening with a personalized but
simple email, or, even better, a phone call. It is a sales technique that will be
appreciated and remembered in the future.19

The after-sales comfort zone of dropshipping

When a customer buys a dropshipped product from you, they are placing their
trust and money in your care. Although you will not be delivering the goods or
supporting the product, it is you that the customer is depending on. Poor service is
unfortunately commonplace in the fast, quick turnover business world of today.
Therefore, do something different and surprise your customers with that extra service.

18
How to Choose the Right Dropshipping Company. Manon Monsall. 30 Nov,2011
19
Thinking of Dropship Selling On eBay? Daryl and Trish Evans

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19
You will be surprised at the positive reaction you will receive, even if you are
providing information of a delivery delay.

Post-sales communication in dropshipping is not only a support function; it is

a means of keeping your name and the products you sell alive. Offer you customer
additional and useful information about the product they purchased. This could
include answering any questions, documentation, spare parts access and any item of
interest related to the product they purchased from you.
Business success is contributed to by negotiation. Therefore, don‟t be shy in
trying to negotiate with your dropshipping company for a longer „product guarantee‟.
This will not only give you advantage over your competitors, but, most importantly, it
will offer your customers a post-sales comfort zone in which any doubts they may
have about the product, or you, are disposed of efficiently.

Increase customer base with referrals

To grow your dropshipping business, you must expand your customer base
and on of the oldest and proven methods of doing this, is by the referral system.
Maintaining contact with your customer during the dropshipping procedure is a step
in this direction. This emphasized when the delivery is completed and you contact
your customer on a follow-up call; it is the time to start the referral procedure.

Combine any telephonic communication with regular newsletters, or

information about new and related products, loyalty discounts and importantly, a
personalized form of address.

Maintaining customer satisfaction

Customer satisfaction is your advantage over your dropshipping competitors.
Regular customer surveys, conducted at regular intervals, are a method by which you
are able to determine satisfaction levels. It provides you with various indications of
any failures and also, what you are doing right! It can be conducted online, or to the
customer‟s address on your data-base.

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20
 This is also a way of stimulating new business and if you offer an incentive for
returning the completed forms, you will receive a regular flow of valuable
information.

Everybody likes a comfort zone, so make your dropshipping customers feel

secure, by giving them a post-sales one!

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21
Chapter 4 – Sales Channels

1: How to drop-ship on eBay

The art of buying and selling lies in the ability of both parties to make smart
shopping choices, although, sometimes you can be lucky enough to sell or but an item
at a price that is way beyond your greatest expectations. However, the golden rule and
the safest way in dropshipping, is to gain knowledge of your market and the products
you are selling.

If you are considering dropshipping by way of eBay, then “Buying Guides”

help to find the products you prefer. Your business is dependent on the sale of
products that are shipped directly from a manufacturer or wholesaler, to your
customer. The profit you make on each item is the difference between the wholesale
price you pay and that which you charge the customer. There are a variety of
methods by which you can reach your market, but in this instance, we are specifically
considering eBay.20

The start-up
The first thing you need to do is to become listed on eBay, which will involve
listing fees when you create your Sellers Account. The next and crucial stage is to
conduct some thorough research into wholesalers, or suppliers which provide a
dropshipping facility. If you cannot for one reason or another, find appropriate
wholesalers that are located in the same country as your target market, then spread
your search criteria. There is a variety of established directories available to you.

One factor you must be aware of is that there are the scam artists, who pose as
wholesalers or suppliers, but in effect are only middle-men. If you are required to pay
a regular fee to any entity for their services, treat it as a severe warning signal!21

20
Evaluating Sales Channels. Ecommerce University
21
How to Set up a Dropshipping Business on eBay. George Watts and 28 others

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22
Crucial decisions
You are going to be called on to make some decisions that will influence the
success of your dropshipping business; one of them being, what to sell?

A primary factor is determining the demand for a particular product and

whether the supply of it limited. Being listed on EBay provides you with various
marketing and selling related advantages. You have the facility to conduct advanced
searches for any product and determine those which are the best sellers and at what
price. Take some time over this aspect because it can make all the difference to
getting off to a great or indifferent start in your dropshipping business.

Linking with a wholesaler

Once you are satisfied with the product you are going to drop-ship, the next
stage is to establish an account as a retailer, with an established and reputable
wholesaler. Determine whether they will provide a dropshipping service to your
customers and will also identify the shipments with your customized label. This will
create the impression that their order was shipped by you.

List your dropshipping products on eBay, with images and descriptions,

obtainable from the wholesaler websites, or preferably, your own if you have samples.
The main thing is to present a professional image, with a competitive price structure
that provides you with a fair profit, after deduction of listing fees.

2: Useful eBay selling resources22

On your journey with a dropshipping business the one aspect that will always
be riding with you is research. During the setting-up stage and as you develop your
business, this factor is sometimes forgotten, but it is crucial to your success.

Before listing your products on eBay, learn how search results for product
seekers are displayed and whether your items will bring the best results with a “Fixed
Priced Format” or an “Auction” type listing method. Once the listing is made, you

22
eBay Seller Center. eBay

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have the advantage of a “Listing Analytics” app that details your best and not so good
product performances.

Market trends and acceptance

You control your dropshipping business and can influence the direction it is
taking. Successful sellers utilize the tools offered by eBay that will give them an edge
in the marketplace. They include analysis, tracking market trends and your related
product sales performances. You can fine tune your market presence by researching
and understanding the key growth factors that can make a difference and create
opportunities for your dropshipping business.

It could help you with your marketing perspective, if you consider eBay as a
reduced website and construct your promotional material in the same way as you
would view a successful, commercial website! Creating “View Items Pages” such as
those in the online search engines, could provide help for search engines to discover
you. This advantage can be enhanced with the use of keywords that relate to your
products and would be used in audience searches.23

Attract an audience
Keep in mind that your dropshipping products are competing with a vast
number of other eBay items, all screaming for “Buy Me” attention. How you display
your products titles is critical to your marketing strategy and visibility, because it is
the influence that is read by the eBay (Google) search engine. Determine the
influencing keywords that buyers use, to search for products like yours.

A well designed and presented should clearly identify your products,

sometimes with alternative descriptions. You want your products to be noticed and
regarded with confidence, therefore, use brand names whenever possible, with their
construction materials if relevant. Greater the volume of information you provide,
more traffic will you attract.

23
eBay Seller Center. eBay

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Be smart and professional
Be smart and professional with any promotional and advertising space and
take time with the content. Product searchers on eBay do look for keywords such as
the popular, “wow”, “awesome” and “really, really” among others!

Another factor to remain aware of and where that word research applies again,
is not to list products that other sellers are listing and which are not selling. Your time
is a valuable commodity, so please do not waste it and energy, by trying to promote
and sell anything that other sellers, apparently cannot sell! Ensure the products you
do list are in the correct categories and provide the relevant information.

Utilize available resources

If you are in any doubt regarding which listing category will bring the best
results, use eBay‟s multiple listing facility. It‟s all part of utilizing available resources
effectively and efficiently to gain that competitive edge.

3: Selling on Amazon
One of the most widely used and successful Internet mediums for selling and
buying online, is Amazon. Vast volumes of people, searching for numerous products
visit this marketing media, which provides a service that makes it easy and convenient
to find what they are looking for. For your business in dropshipping, you could take
advantage of a system that for buyers is easy to use.24

This is an online opportunity for selling your dropshipping products, in

marketplaces as diverse as Europe, United Kingdom, France, Germany, Italy and
Spain. In addition, you are supported by the expertise and experience of Amazon
eCommerce, which has the capacity to teach you proven techniques in how to be a
successful online marketer. All you need to start is an Amazon seller account!25

24
Evaluating Sales Channels. Ecommerce University
25
Dropshipping for eBay & Amazon. Skip McGrath

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Effective online marketing
The ambition of every online marketer is to reach the maximum number of
potential buyers and to draw them into their website, and towards their products.
Amazon provides you with this opportunity and also the product search and payment
facilities to technically streamline your online dropshipping business, without any
product listing fees!

Amazon is recognized as a trusted, secure online, convenient shopping

experience by millions of Internet users. Their user-friendly designed website makes
your products easier for visitors to find, within a secure environment for customers
and you as a seller. You are able to sell your products on all 5 of the Amazon
marketplaces, which expose them to millions of online searchers.

Getting started and free support

When starting your selling venture with Amazon, it is an easy process to
upload your dropshipping inventory. Following your registration, you are offered the
freely available web-based tools and a desktop software application, or text files that
will start you quickly on your selling path. Valuable, further assistance is given by
Amazon, by them helping you to create a high quality product catalogue, which is
compatible with their website.

Regardless of the size of your dropshipping business, Amazon gives you the
opportunity of expanding its online presence to Europe. To encourage your
international success, you are given various options that can determine the most
suitable strategy for your particular business.

Advantages and benefits

As an ambitious dropshipping business owner, you will want to create a well
designed business sales plan. Amazon provides you with the advantage of creating
new products and adding them to their European catalogue. In addition, you have the
use of various feeds, spreadsheets and a variety of other tools with which to load your

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inventories. Featured merchant status is a desired status to achieve, with the benefits
that go with it. 26

Customers prefer buying options that are convenient and user-friendly and
Amazon ensure that this is what they get! With their “1-Click” buying feature, making
a purchase is worry and trouble-free, which is a significant benefit for your sales
chart.

After sales support

One aspect of dropshipping sales that should never be ignored is customer
service and support. This factor is appreciated by Amazon, who will notify you by e-
mail when an order has been placed. You then simply advise your wholesaler of the
details and maintain a check on their delivery to your customer.

The process is completed with payment for the order being deposited into your
bank account, about which, you also receive notification by e-mail.

4: Dropshipping on your own online store

There are various advantages to be gained with the dropshipping principle of
selling, which include the making it easier for you to offer a wider and more varied
range of products to your customers. In addition, you do not need to carry stock items
and also you are able to start your business a lot quicker.

Your customers will place their orders online and as the dropshipping retailer,
it is then your responsibility to place those orders with the manufacturer of the
products, or with their recognized wholesaler or supplier. They will then ship the
products directly to your customers. You are not expected to pay the amount due until
the customer has paid for their product, which eliminates the need for you to make a
substantial financial investment.27

26
5 Reasons to Consider Dropshipping. Armando Roggio. 21 Nov, 2011
27
Start Your Own Online Store Business from Home. Estorefrontguide.com

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Challenges and reliability
Creating a name for your business requires some thought and innovation, as
does making a decision as to what products you want to sell. However, a particular
challenge for anyone starting a dropshipping business, is finding a manufacturer or
wholesaler who is reliable and completely trustworthy. Therefore, you would be wise
to contact those who have are established and who will ship products to your
customers, correctly and promptly. They must also be prepared to provide solutions
for any customer service problems, relating to fulfilling the orders.

One method of tackling this challenge is to approach various manufacturers

and wholesalers to determine which one best meets your product needs and operating
requirements. Ensure they will accept a dropshipping agreement, for ordering small
quantities when needed and negotiate for the best terms and lowest unit cost.

Your shop window

Your dropshipping business will be conducted in the highly competitive
environment of the Internet. Therefore, your shop window for the products you sell
will be your website, which means making it as consumer appealing and user-
friendly. Obtain images and pictures from your product manufacturer or wholesaler,
or order product samples and take your own pictures. Be sure to include a full
description of each one on your site and the correct prices, with any other relevant
information.

A shopping cart is a buyer‟s temptation, so add one for your customers to

check out and a button for those who wish to purchase by credit card. People like to
know who they are dealing with, therefore, an “About” page can give benefits of
buying from you. A URL is then needed, or website addresses for your online
business, as well as an Internet Service Provider (ISP), who will host your website.
When you approach manufacturers and wholesalers, seek their advice regarding your
website, as they could provide valuable support.

Search engines and SEO

Once you are satisfied with your website, submit it to various search engines.
You want the best possible visibility; therefore, it could benefit you by getting a

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helping hand from a search engine optimizer. They can influence your page rankings,
regarding people who are searching for your particular type of products.

How you approach this stage of your business can have a prolonged affect.
Getting off to a good start is not only profitable, but extremely motivating and can
establish your capabilities and potential, with manufacturers and wholesalers.

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Chapter 5 – Useful Ways to Market
Your Online Dropshipping Business

1. Market your business

Every business has a business plan of some description and the one you have
created, should indicate a structured on line marketing plan for your dropshipping
business. Creative, innovative marketing and promotional strategies are a huge
influence in the success of your online business. It is through this media that you
expand, create customer awareness of your products and open doors to opportunities.

There are many and different methods of getting your business in front of a
potential buying audience. However, they vary in relation to the amount of time
needed, labor intensity and their cost effectiveness. It is usual for many businesses to
employ a variety of marketing strategies and operate them at the same time, founded
on particular requirements and the prevailing circumstances.

Brand awareness
The ultimate goal for your dropshipping business could fall under the heading
of brand awareness; in other words, when somebody thinks of a product type you sell;
their first thought is to contact your business! Brand awareness, gives you instant
recognition, credibility and is a great referral vehicle.28

Create an innovative and easily recognizable logo that is placed on every piece
of paper or any other medium in which your business is portrayed. This will include:

 your websites
 business cards
 stationary
 mail signatures

28
Building Brand Awareness. 15 Nov, 2013

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  brochures

Direct marketing
Direct marketing used to be associated with knocking on the doors of
unsuspecting homeowners, or walking into a business and presenting your product.
Although this is now a past art, the principle of one-on-one communication and
product promotion is still alive and well!

The enthusiasm you have for your business and products can be a contagious
entity and will be noticed in meetings with other business persons in related
endeavors. This not only provides you with the opportunity to promote your own
enterprise, but also to learn about those of your competitors.29

Mutual goals and opportunities

Professional business people are highly aware of the need and potential for co-
operation. Forming mutually beneficial partnerships in complimenting industries can
be an opportunity of gaining customer referrals and creating that much needed,
business awareness.

Discover from the Internet, newspapers and trade magazines, how and where
you can attend networking group meetings. At these meetings, introduce yourself;
explain your business and why you are different from your competition. It also gives
you the opportunity to clarify what you are seeking in the way of business
associations.

Most important people

While it is generally worthwhile giving special offers, or handing out free
samples or branded merchandise at meetings and events, never forget the most
important people in your business venture; your customers! Establishing and
developing personal relationships with your customers is regarded as your best form
of marketing and promoting your business.30

29
Direct Mail Marketing. Experian.com
30
Managing Your Customer Relationships. Marketingdonut.co.uk

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 A simple Birthday or Christmas card to a customer, or members of their
family, can work wonders. You not only retain their loyalty to you and your business,
but they will conduct marketing on your behalf, by promoting your business to
everyone they have contact with. This in turn, is a never ending chain of referrals, for
you!

2: How to improve your sales

There are many and varied concepts and theories about how to improve your
sales, whether online or direct, but the crux as to whether they work or not, is always
in the testing, especially on a website! An example of this is shown when if you are
selling more than one product or service through your website. Instead of displaying
your complete product range on your home page, in a cacophony of color,
information and ads popping up all over the place, present just the one item.

It has been found that by offering fewer products in one concentrated area, but
with more descriptive product content, greater sales volume was generated. Looking
at it objectively, it makes sense. Customers do not want to be confused, whether in a
shop or online and they haven‟t got the time or inclination to wade through volumes
of products.31

How to improve your sales

Better marketing means more customers and sales, with greater profit for you,
therefore:
 Use the advantages given by SEO (Search Engineering Optimization)
 Benefit from an on-site SEO and an external SEO
 Display various product reviews
 Have articles written about the benefits of using your products
 Use the publicity gained from Press Releases
 Market your products with special promotions and video presentations
 Consumers want to know what other people think, so use the Social Networks
 Advertise free online with many and varied classified ads sources
 Check this informative resource: www.moz.com and www.seobook.com32

31
How to Improve Your Sales. Allgold Cem and 19 others
32
How You Can Use SEOmoz in Your Sales Process. Lucy Langdon. 22 nd Jun, 2009

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Sell your products not politics
For the average buyer, they want to skip through the various sites at a fast rate
of knots and will spot immediately what they are looking for. Looking at a blur of
pictures with bits and pieces of information on a website, or in a poorly presented
catalogue, can be for many a frustrating task.

You could at a stretch, compare this to the differences between a high class
salesperson and a politician. The latter will generally waffle along seemingly pointless
while the salesperson will quickly establish your needs, with the right information and
create a desire to buy at the right price; result, an order!

This does not mean that you must only sell one product. Use other web pages
to offer them and at the same time, try out different methods of presenting them. This
is what selling anything, anywhere to anybody is all about; innovation.

News headlines
The first thing that strikes you on a newspaper is the headline, which is the
idea and applies equally to a sales letter. It can have a dramatic effect on your sales
volume, providing an impact that makes consumers sit up and pay attention to what
you have to say. It is the same type of mouse-stopper that immediately stops the
surfers and the browsers in their tracks and drags them into your website.

The main criteria for any sales-marketer is to remain focused on their

customers, their wants and needs. Whether online product descriptions or in a sales
letter, stay focused on your site visitor and remember that the way to success with any
sales content is being viewer-friendly!

Credibility
Enhance your credibility and gain customer confidence by outlining your
experience and credentials, as well as any other information that helps qualify you as
being the best person to meet their requirements.

This is a feature that can be reinforced by customer testimonials, which should

be in the form of genuine excerpts from emails or letters. They should explain how

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you and your product/service helped in meeting a particular need and the benefits they
received from it. This is more effective than a few words such as, “wow, what a
fabulous????”

Successful selling today is high paced, challenging, but it is a profession that

has always taken courage and tenacity. Look after your customers and they will look
after you!

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Chapter 6 - Collect Late Payments
from Customers

1: Don't ask, don't get

There is an old saying about those who don‟t ask for something, will not get it
and in various instances this can be true, especially when you are waiting for overdue
payments from your customers. We all know it is not fair, but it is a situation that
occurs in any business environment and, you have to deal with it!

Before you even reach this stage, you should have determined that the due
payment dates on your invoices and statements are clearly defined. Another factor is
to have prominently displayed, the late payment policies of your company. In
addition, there should be no room for misinterpretation by the customers regarding the
actions that will be taken for late payments, including late fees.33

Keep positive in a negative situation

In perspective, this is situation in which you do not want could find yourself
on the losing side, due to heavy handed tactics. Approaching the problem with the
wrong attitude will create an adverse situation, because they are going to spread it
around to their family, friends, neighbors and anybody else who will listen to their
tale of woe and how badly you treated them. It‟s bad for business and who will be the
bad guy? You!

Many businesses attempt to put fear in to their late paying customers with
threats of additional fees being charged. Remember, you probably went to a lot of
trouble and expense to get this customer to buy from you, therefore, you would
probably like to keep a positive relationship with them, despite their payment lapses.
So, make sure they understand why they are being charged a late fee and be prepared
to show them in detail if they ask.34

33
How to Collect Late Payment from Customers. Donna Fuscaldo, 11 Nov, 2011
34
Five Rules for Collecting Late Payments. Monica Mehta. 31 Aug, 2010

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Reasons and attitudes
Collecting outstanding payments involves some customer psychology and this
includes putting yourself in their shoes. Before you go into orbit and start blasting
them with emails, phone calls and text messages, try to determine if there has been an
oversight, or an emergency that has delayed the payment. Accordingly, begin with a
friendly email reminder, which can be automated with available software.

It is preferable to avoid this developing into a conflict situation, so when

phoning the customer, choose an appropriate time of day, especially if they are shift-
workers. Another aspect to consider is customer privacy. If you don‟t want to really
upset this customer and ruin your chances of being paid quickly, do not leave
messages with family members, friends, or contact them at their workplace. This is a
personal and direct matter between you, and the customer.

As far as you can go

After 90 days and once you believe that you have exhausted all possible
avenues for getting payment and despite all the emails and phone calls, you have still
not been paid, it‟s time to consider the legal alternative.

If you are able, make a last ditch attempt to get them to explain why they
cannot, or will not pay you. Run through the payment options that remain open to
them and discuss the consequences and costs of legal action. In many instances, it
revolves around pride and a genuine lack of money, so still try to reach a solution.

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Conclusion
Our goal with this book has been to educate the reader about the dropshipping,
providing both an insider‟s look into the way the business model works, and an
extensive discussion of strategies that will hopefully prove helpful to you as an
entrepreneur. We will continue to release new versions of this book as we feel the
business is constantly evolving, new platforms for retailing are arising, and more
dropshipping companies are starting up. Look for the second edition later this year.

As dropshipping develops further as a model for E-commerce businesses,

more strategies will arise, and perhaps you will be an innovator in this business one
day. Dropshipping is the retail market of the future. We hope more people will
recognize that and join in the business.

You truly support the global economy‟s development with dropshipping, and
not only that, you diversify the world‟s wealth. Don‟t let gigantic retailers take over
the E-commerce world. Find your niche and become the best providing for it. There
are plenty available and, as mentioned in the book, you can find them anywhere in the
world. That is the best part about dropshipping. You can be living anywhere and
selling to anywhere. It‟s pure retailing freedom.

The men and women at Chinavasion wish you the best in your dropshipping
endeavors. We hope that if you are considering selling electronics you will check out
our website. If you have any comments or suggestions for ways to improve this book,
please contact [email protected] . We wish you all the best!

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