The 4 Methods of Dropshipping (E140)

Show Notes: Retail ArbitrageInternational DropshippingDomestic DropshippingHybrid Dropshipping Sponsors: Drip – Get a free demo of Drip using this coupon code!Spark Shipping – Dropshipping Automation Software Links: Retail ArbitrageDomestic DropshippingHybrid Dropshipping Transcript: Charles (00:00): In this episode of the Business of eCommerce I talk about the 4 methods of dropshipping. This the Business of eCommerce episode, 140. Charles (00:16): Welcome to the Business of eCommerce. The show that helps eCommerce retailers start launch and grow the eCommerce business. And I want to talk about today, the four different methods of drop shipping. What I realized is talking with different users and different online forums is drop shipping is a very, um, confusing term where a lot of folks seem to have one method in mind. When they're speaking about that method, they usually kind of push that as the, that is the method that is drop shipping. And I think it's kind of helpful to map out these different discreet types of drop shipping. I've kind of mapped out as four different types. The fourth is less common. So I think that's an interesting one to talk about. Well, it's kind of go through each one, go through a pros and cons. Why? I think, you know, each one definitely has its benefits and let's kind of talk about each. Charles (01:05): So number one, and a lot of blogs, we'll talk about this as drop shipping, but retail arbitrage is kind of a niche inside of drop shipping. Today's episode is sponsored by drip, drip. It's a world's first e-commerce CRM and a tool that I personally use for email marketing and automation. Now, if you're running an eCommerce store, you need to have drip to try. And here's why drip offers one-click integrations for both Shopify and Magento. There's robust segmentation, personalization, and revenue dashboards. To give you an overview of how your automation emails are performing. One of my favorite features of drip is the visual workflow builder. It gives you a super easy way to build out your automation world visually and see the entire process. It lets you get started quickly, but also build very complex automation rules. It's powerful, but also easy to learn. Unlike a lot of email tools that offer the same type of automation to get a demo of drip today, you can go head over to drip.com/boe that's drip.com/b O E. Charles (02:03): Now onto the show drop shipping is when you don't take physical whole of the product or for very long sort of thing, it kind of just moving the product, right? So retail as a form of that, what that is is when a product is sold in one place, more than it's being sold in another retail location, a retailer, or the retail arbitrage, or 10, essentially sell on Amazon for a hundred and buy that same product on eBay for $60 when they get that order and Amazon finally buys it for a hundred, they say, grace, they get that shipping address. They go directly to eBay buy the exact same product, put in that, use a shipping address and have it shipped directly there for a hundred, right? So they make that 40 in between minus shipping costs, minus taxes, things like that. So it's very easy to get into. Charles (02:57): And that's one of the biggest benefits, right? Well, most folks are starting off. You might not even have a LLC set up any sort of actual business entity. You could literally do it all within your, um, Amazon account. You can just use a personal account and just start listing products. Super, super, super simple to get into the issue is, well, first one issue is I believe mature the reality here of the terms rather, but I believe it's against the Amazon's terms of service. So it's something that if you start doing it, any sort of scale and people find out, you can get reported, where that happens is a lot of times somebody gets a product and they think they're buying it from XYZ store,