This video discusses dropshipping, addressing common misconceptions. It highlights that dropshipping involves selling products without stocking inventory and is legal if using legitimate suppliers. However, the profit margins are generally low, typically between 10% and 30%. It can be a good starting point to test products but may not be sustainable long-term. Handling returns and customer service is the responsibility of the seller. Dropshipping can be done through various platforms like Shopify, Amazon, or eBay, and the choice of suppliers can impact success. It's important to research products and suppliers carefully.
Here are the key facts extracted from the text without opinions:
1. Drop shipping is an ecommerce business model where the online store does not carry inventory and products are shipped directly from wholesale suppliers to customers.
2. Drop shipping is legal and legitimate as long as legitimate dropship suppliers are used.
3. In the US, a seller's permit and a business license are typically required for drop shipping.
4. Typical margins for drop shipping are between 10% and 30%, which is lower than other ecommerce models.
5. Drop shipping is a suitable model for testing products and can be a low-budget way to start an online business.
6. Customer service is a responsibility in drop shipping, even though order fulfillment can be automated.
7. Payment to drop ship suppliers can be made through credit card, ACH, or direct transfer, with some suppliers offering payment terms.
8. Drop shippers can use multiple suppliers as long as orders are routed correctly and customer expectations are set.
9. Drop shipping is a risk-free way to sell products online, with little upfront investment and scalability.
10. Drop shipping can be used for product research to eventually private label products for higher profits.
Please note that these facts are presented as concise statements based on the provided text, without including opinions or additional information.