From the Owner of Dropship Town

Below is why I know we can help you be successful drop shipping

I have a feeling if you take the time to read everything, you will understand why I say that!

Hi everyone, my name is Larry and I am the founder of Dropship Town and at the time of this writing I am just months away from it being my 18th year anniversary since I started selling online in one form or another, I am not new to this industry, and I am not going to waste your time or money. I can say with pride that I have had no other income since I started selling online and I never would have been able to support my family otherwise and lets just say I have a big family that just keeps getting bigger as my wife and I are about to welcome "Lucky Number 7", and yes, this is our last (seriously this time!).

When I first started out in life I had a real hard time holding down a job because I knew I would never get anywhere with those jobs and I was miserable doing them, they were all low level minimum wage jobs that nobody else wanted, I could barely support myself not to mention my family. I figured out quick that if I wanted to change that I better come up with a plan as I didn't have the money or support to go to college.

I didn't start out drop shipping, I actually started buying at auctions and then reselling what I bought on ebay, which allowed me to go from broke and months behind on bills to getting my first warehouse in just a matter of a few months after my first sale. But I will admit at the time, eBay was just starting out and it didn't matter what you put on there it would sell quickly, so it was actually really easy to make money.

I did well over a million dollars by the end of my first year and this is when I realized I had found my niche. But not long after that millions of other people figured it out too, and it started getting harder and harder, until my growth stopped and I had to start looking at how to cut costs to keep my business going.

At the time I was spending an average of $10k per week in freight after discounts with the trucking companies we used, so I started calling my suppliers to see how we can shave some of our overhead, a few of them agreed to drop ship for me and ship the products directly to my customers. This worked out so well, that I decided to get rid of the warehouse and just use suppliers that drop ship and I have never looked back. It saved me money in freight, warehouse overhead and all the losses I had from idle inventory that didn't sell and just sat in the warehouse collecting dust.

But, like anything else there were pros and cons to every choice. I learned quickly that there were certain "rules" to drop shipping in order to be successful at it. Like I mentioned earlier, its very competitive these days and things aren't as easy as they used to be, and it all comes down to having an edge and a unique idea.

Before online retail took off there was a supply chain, and because of the supply chain many people made money as the product traveled through the supply chain.

Manufacturer sells to the Distributor,
The Distributor would then sell to the Wholesaler,
The Wholesaler would then sell to the Retailer,
Finally the Retailer would sell to the Consumer.

Now with the ease of being able to bring your products online and offer them to just about every corner of the globe, it has broken up the traditional supply chain. Now on eBay, Amazon etc you can buy directly from the Manufacturers, Distributors, Wholesalers and Retailers which is great when we are buying as a consumer, but it is also why it is hard to be competitive on the marketplaces especially if you are a small business, it is very difficult to compete with the top of the chain on price if you are at the bottom of the chain.

The good news is you can still be successful dropshipping on the marketplaces and online, you just have to take a different approach. Over the years I have helped a lot of people (friends, family and clients) find real success drop shipping and I have also watched many fail, and I have found the differences.

The ones that failed all had similar characteristics in common. But first, to be fair when I say failed, I am talking about the people that wanted to be able to quit their job and sell online full time but were never able to. The following does not really apply if you are just looking to make a little extra side money to add to your existing income.

They only listed between 10-200 products and generally only on one channel either ebay or amazon.
They thought that every product they list should sell really fast.
They thought they had to be the cheapest seller in order to get a sale.
They thought that the only products that they could possibly make a profit on is the latest released gadgets.

So let me take this moment to debunk these myths,

1. Yes, you can make money with only 10-200 products listed, but in reality, you won't make much and more than likely you will be disappointed with how much you will actually make. The real secret to drop shipping to get into deep 5 and 6 figure incomes is to get as many products out there on as many channels as you can.

Yes, I do realize that marketplaces like eBay won't let you start out listing tens of thousands of products if you are new, but you can generally build your reputation to the point where you can in just 3-6 months with a little effort. I wish I could tell you that drop shipping will make you rich quick, but if you want a long term steady income, it is going to take a little time to get it there.

2. If/When you start listing thousands or tens of thousands of products, there will always be products coming in that will sell really fast, but you will find when they do those products will also run out of stock just as fast. Being the first to list items like that is always great, but it won't last long so you can't look at it as a steady income, so you have to think bigger.

With tens of thousands of items listed some of them will only sell once a year, others will sell one or two times a month, and others will sell weekly and so on. But with enough products out there on enough channels that will really start adding up as the more products you get out there for sale.

3. Probably the most common thing I hear from drop shippers is the price is too high nobody will ever buy it, well they are right and wrong, It may not sell as quickly as they would like, but eventually someone will come by and purchase it, and if its not moving at all the supplier will eventually lower the price where they will start moving, but you will find that most products will sell at least once a year or more.

4. Latest greatest gadgets are exciting and cool, at least for a nerd like me, but have you ever thought about how many people are all trying to sell those latest and greatest gadgets. Talk about competition, you are competing with some of the deepest pockets in the country. These items are great if you are selling at cost or even under, they will bring traffic to you, but that works better if you have your own website or a brick and morter store, but on the marketplaces there really isn't a benefit for you doing that.

For years when we would get new products in I would always get excited and think these are going to do great, and then they would be the slowest selling items in the load, and the stuff I never thought twice about ended up being the biggest profit makers, this made me realize that its the every day stuff we use, replacement & add on parts, refurbished items, closeouts, last year models, new open box, basically everything else that really made the most money, and the great thing is the big manufacturers and distributors that are selling directly on the marketplaces really aren't focused on these types of products so you have a lot less competition which converts to more sales.

Once you get past those myths the next set of hurdles was how to manage tens of thousands of products, price them, categorize them, keep up with out of stock items, new arrivals, price updates etc all from multiple suppliers was a big challenge and it is a big challenge for anyone thinking about drop shipping, which is where I got the idea to build Dropship Town and all the tools that we have available on our site now which easily handles all that for you.

I have noticed seasoned customers will come in and say "Wow that is really cheap for what you are offering", and new sellers come in and say "Why so much, I would never pay that". Well think of it like this even on our biggest package that includes everything and a website is $99 a month, you are starting a business with the tools to make some serious money. With our multi channel integrations, suppliers and tools that we offer you would have to try hard not to make money on a $99 investment. There is no other money making business you can start for less, not to mention the time you will save from trying to do all those things manually.

I am the type of person that believes if I am helping you make money, I should be able to make money too. And if you are paying me money, I should be providing you a beneficial service or product for your money. That is how the world works, we all have bills to pay. I can assure you of this, I am there for my customers and have many that have been my client for years, if you have a problem that my staff can't help you with, please feel free to call or email and ask for me, I may not always be able to talk to you right at that moment, but I will get back with you in a business day or so.

My goal at this point is the more customers we have making sales, the more bargaining power we will have with the suppliers to bring you better and better pricing along with more exclusive products. I will take the time to help you understand everything and if you want to let me know what your goals are, I will even brainstorm with you to try and come up with a plan to reach your goals. I have a very high success rate with reaching goals.

I hope that the above information will help you, and allow you to look at drop shipping a little differently than how it is portrayed on the internet by people that have little to no firsthand knowledge about it. Just remember drop shipping has been around long before the internet for a reason, the internet just made it more popular considering 80% of websites on the internet dropship.

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