Have you ever wanted to start an online business but felt discouraged because you didn't have any money or experience? I've been there, and I want to share my journey of how I started a dropshipping business from scratch, without any initial capital or much prior knowledge at all. And I'll guide you through the entire process and show you how you can achieve similar results.
In case you’re unfamiliar, Dropshipping is a business model where you act as a middleman between the supplier and the customer. You facilitate the sale of products, marking up the price and keeping a portion of the profit for yourself. What makes dropshipping so appealing is that you don't need to invest in inventory or manage a physical store. You simply connect buyers with suppliers and earn a profit from each sale.
Here's a simplified example of how dropshipping works: Let's say there's a product listed on Amazon for $30. You can list the same product on platforms like Facebook Marketplace, Tiktok shop, Poshmark, Mercari, and dozens of others, and add a markup of, let's say, $15.
When a customer purchases the product from you for $45, you use their order information and address to order the item from Amazon for $30. You then keep the $15 difference as your profit, minus any small fees associated with selling on the platform.
Now, you might be wondering, how can you start a dropshipping business without any money?
Unlike other business models, dropshipping minimizes your risk because you only spend money after you make a sale and generate a profit. This means you only invest money when you are guaranteed a future profit. It's a waiting game to multiply your cost of goods and recoup more money in the future.
And if you’re already listing on websites where buyers are actively searching for products, you DON’T need to spend any money on ads to make sales. You can just spend your sweat equity to list…and capitalize on free organic traffic.
You can also leverage credit cards for purchasing products without needing upfront cash. Of course, this approach requires responsibility in managing your finances and ensuring you set aside a portion of your profits to pay off your credit card balances.
But using cashback credit cards can be particularly beneficial since you can earn up to 5% cash back on purchases you would make for your business anyway. Personally, I recommend cards like the Amazon Store Card, Walmart Store Card, and eBay Store Card, all of which offer 5% cash back and are reliable suppliers with millions and millions of products you can dropship.
Additionally, it's wise to explore cashback credit cards that offer rewards for purchases made anywhere online. This way, you aren't limited to a specific store. Look for cards that provide up to 2% cash back. The accumulated rewards and cashback can significantly contribute to your business's growth, and they're not considered taxable income.
Now, let's address the issue of experience. Starting a dropshipping business doesn't require you to be a tech guru or have extensive industry knowledge. With the abundance of information and software available today, you can easily navigate your way through the process. One software I personally use and recommend, especially for beginners, is ZeeDrop.
ZeeDrop is a powerful tool that simplifies the dropshipping process by copying products from various websites and listing them on multiple marketplaces with just a click.
It automatically copies product pictures, titles, descriptions, and even applies price markups for you. I typically mark up my products by around 60%, which has proven to be a sweet spot for profitability.
The best part? ZeeDrop is incredibly affordable, with a monthly subscription fee of only $17. So you don’t have to break the bank to start your ecommerce business (contrary to what you might have believed).
By leveraging the capabilities of ZeeDrop and other resources available online, you can start building a profitable dropshipping business without any prior experience.
It will take some consistent listing…and obviously the better and more in demand your products are, the more money you’ll make. But there’s no reason you can’t be up and running with just the $17 zeedrop fee and making multiple thousands in profit every month really fast. I see people do it all the time.
Ultimately, starting a dropshipping business with no money and no experience is absolutely possible. By understanding the fundamentals of dropshipping, leveraging credit cards for purchases, and utilizing user-friendly-time-saving software like ZeeDrop, almost anyone can.
If you'd like to watch the complete video explanation of this, check it out below.