How to Use Drop Shipping to Kick Business Into High Gear

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Going back six years, the concept of owning an e-commerce business where you could set up a site, sell a physical product, and never have to hold stock was extremely appealing. That concept has died down in recent past. Today we have someone on the podcast who is here to report that drop shipping is not dead. It is sustainable if it’s done right. We’re going to hear how our guest is perpetuating that sustainability with his business.

Anton Kraly is the founder and CEO of DropShip Lifestyle & eCommerce Lifestyle. His business is focused on empowering people through eCommerce and effective marketing. From a book that he absorbed in one week, Anton got his website up and his business going. He learned all about AdWords and how to make it so his site got those clicks. Anton takes us on his twenty-year journey from delivering a physical product, then moving onto product listing and inventory on a larger scale, to eventually going back to the true drop ship model. A successful drop shipper’s job is to build a store with a desirable product, make it look good, have excellent customer service, and then sell, sell, sell.

Episode Highlights:

  • Benefits of drop shipping versus building your own brand.
  • The disadvantages of drop shipping – if any!
  • Anton’s tips on where to find products.
  • The average order value Anton recommends.
  • How to convince the manufacturer to take you on as a seller.
  • The best platforms to use for sales and website examples to review.
  • How to advertise and where to find clients.
  • Marketing channels to use other than Google.
  • The importance of self-management/DIY when building.
  • We discuss the Amazon factor and its implications for the drop ship model.
  • How to use drop shipping as a stepping stone to building a brand.

Transcription:

Mark: About five or six years ago Joe we had an e-commerce business … man maybe even more than that, maybe seven years ago or right around the time you started at Quiet Light Brokerage. I remember like the hierarchy for e-commerce businesses right at the top was having a drop ship business. Because people love the idea that you could set up an e-commerce physical products business but never actually have to touch the product like oh this is beautiful. Today they’ve kind of fallen out of favor. We don’t see drop ship business as often and I think it’s because people think that they’re just kind of easy to spin up and then they get wiped out. But you had somebody on who is in the drop ship world and loves it and is doing a great job.

Joe: Yeah. Anton Kraly ‘s been doing it for about 20 years. He actually started in New York. He had a bakery route where he had a truck literally delivering bakery products to different retail outlets and set up a website and started dropping shipping bakery products all around New York online back 20 years ago. Fast forward to today he really talks about the differentiation between owning a physical products e-commerce business and large amounts of working capital rolling like crazy and taking all the profits putting it right back into it and [inaudible 00:01:56.5] that story versus a drop ship model. A drop ship model; he really hones in on the fact that it is mostly pure profit. You’re focused on advertising dollars; that’s important. We talked about the average ticket size and why it’s important to be larger rather than smaller and US manufacturers and how to find them. Like you said five, six years ago it was all the rage. I think it’s a great model, to be honest, we think it’s fantastic. It takes less working capital to get started if you do your research and really focus in on some of the things that he’s talking about. I think it’s a great opportunity for somebody to s

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