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Bagbrokers.com World Drop Shipping Master Course
1.
BAG Brokers World Drop
Shipping Master Course By David Smith © 2007-2008 BAG BROKERS - www.bagbrokers.com
2.
Feel Free to
copy this eBook and pass it on to anyone else who may be interested in this subject. DISCLAIMER AND/OR LEGAL NOTICES: While all attempts have been made to verify information provided in this eBook, the Author assumes no responsability for errors, inaccuracies or omissions. If advice concerning legal or related matters is needed, the services of a qualified professional should be sought. This eBook is not intended for use as a source of legal, accounting or general business advice. Copyright 2007-2008 by David Smith - BAGBrokers.com http://www.bagbrokers.com © 2007-2008 BAG BROKERS - www.bagbrokers.com
3.
Welcome to Bag
Brokers e-book entitled quot;World Drop Shipping Master Coursequot;. BagBrokers.com has created this e-book for you to use as a guide in establishing your online retail business using drop shipping. The e- book is free for you to download and read. Feel free to share and distribute the e-book with anyone wanting to learn more about drop shipping and starting an online store. Here are just a few things you get with The BagBrokers.com Drop Ship Guide: 1. After you read this step by step guide... You will have the tools to become a successful bagbrokers drop shipper. 2. Bagbrokers will provide you with a list of wholesale prices not found on our web site 3.You will be able to create a substantial amount of money with ease. 4. Bagbrokers will show you how to start or expand your online auction business for maximum profit. 5. BagBrokers will also give you many other useful tips you need to know. 6. You will immediately be able to use the BagBrokers.com system to maximum profits. Simply register here at BagBrokers.com and download your very own Free ebook guide to Drop Shipping Profits! © 2007-2008 BAG BROKERS - www.bagbrokers.com
4.
Welcome to BAG
Brokers World Drop Shipping Maters Course quot;Starting and Running Your Internet Business RIGHT!quot; This EBook is offered FREE OF CHARGE to anyone who would like to read it. If you like, you are welcome to distribute it freely as well, by any method you prefer, as long as it is distributed intact with no changes, and no money is charged for it. :o) The purpose of this EBook is not to convince you to start an online business. That's a decision YOU have to make. I'm not here to talk you into it! I'm here to help you avoid the common traps, pitfalls and scams that are out there, and give you REAL information that will help you get started, if and when you decide to do so. The information contained here is the result of years of hard-won experience with the Internet. It's intended to help you avoid the mistakes that I and others have made in the past, and in many cases, paid a great deal to learn from! Anyone with a home computer can open and run a successful online business, for VERY little money. There are lots of excellent ways for someone with little or no experience to open and run an Internet Store from home. Low cost hosting deals, Internet Malls, etc...we WILL talk about that, but that's not the hard part. The hard part is finding products to sell without getting raked over the coals by the thousands of quot;middlemenquot; out there who are lying in wait for you to come along and fall into their clutches. They're good at what they do, and they'll use you up and wring your pockets for every cent you have, then hang you out to dry. The key to avoiding these traps is having the right information available to you. THIS is the right information! Each section builds on the previous one, so it's best to read them in order. Please click on the link below, to continue to Section One, Selling on the Internet. What is drop shipping? Drop shipping is when the manufacturer (or wholesale distributor) of a product will ship a product directly to your customer. Usually they will put your label on the box so that the customer doesn't even know that it did not come from you. © 2007-2008 BAG BROKERS - www.bagbrokers.com
5.
What are the
advantages of drop shipping? There are several: *You do not have to buy items for inventory. *You do not have to store inventory. *You don't have to package and ship merchandise. For example, suppose you have an online store that sell toasters. Ordinarily you would have to pay for a case of toasters from the manufacturer and store them in your basement until you had a sale. Then you would have to take one of the toasters, package it up and send it out via UPS or whatever. You can see the problems already. Those toasters take up a lot of room. And if you don't sell them all they're yours because you already paid for them. Then there's the time involved with packing and shipping. But with drop shipping, the supplier takes care of storing the inventory and shipping it. And, best of all, you don't have to pay for the item until you already have an order! Are there any disadvantages? The same problems plague any online store whether drop shipping is used or not: *Items lost in shipping *Customer dissatisfaction with the product *Fraudulent credit card charges The only special worry for you is making sure you have a legitimate drop shipping supplier. BE CAREFUL OF SCAMS POSING AS DROP SHIPPERS! Dealing with customers… Your customer doesn't know that the product they purchased from you really comes from a drop shipper. So if there is a problem, you are the one they will go to. And since your reputation is on the line, it’s important to make sure that the drop shipper you use can resolve problems quickly. Also, be certain of the refund and return policies of any drop shipper you use. If a customer returns and item you don’t want to be left holding the bag. The drop shipper’s return policy should be clearly spelled out. When you do get a refund request (and you will at some time, guaranteed) assure your customer that you are personally taking care of the problem and will make things right. Good customer relations is the key to a successful business. © 2007-2008 BAG BROKERS - www.bagbrokers.com
6.
What products are
available from drop shippers? Just about any product you can think of. But just because you can sell a product doesn't mean yous hould sell a product. We'll talk more about this later. What kind of profits can I make? That depends on the product you sell and the company which you get it from. Your discount can vary widely – anywhere from 25% to 75%. In general you need at least a 40% markup on the product to make a decent profit. It is also OK to add a small markup to shipping costs. The operative word here is “small.” Charging outrageous shipping fees will only turn off customers. But adding a dollar to cover your time and effort is acceptable. How do I get started? 1. Determine the product you wish to sell. 2. Find a manufacturer or distributor who will drop ship. 3. Open an account with the drop shipper. 4. Set up your online store. 5. Sell lots of merchandise and make a lot of money! We’ll go over each of these steps in detail. Determine the product you wish to sell… Before you can start selling you need a product (or products) to sell. That may seem pretty obvious, but you would be surprised how many people go about it backwards. They set up their online store before they know what they will sell! How do you go about deciding what to sell? No one can tell you what the best product for you will be. You have to figure that out for yourself. But if you follow these 2 rules, you will do just fine: *Sell what you know. *Don't compete with WalMart. © 2007-2008 BAG BROKERS - www.bagbrokers.com
7.
Sell what you
know. Everyone has some area of special knowledge whether learned in school, on the job, or from a hobby. If you have a passion for golf, maybe you can sell golf clubs or golf-related novelties. If you've spent your whole life as an auto mechanic, maybe selling auto parts or tools to do-it-yourselfers is the way to go. Even if you think you're quot;just a housewifequot; you in fact have knowledge that marketers spend thousands of dollars to discover: what products will make a housewife's life easier. Don't make the mistake of selling a product because it's quot;hot.quot; Every quot;hotquot; new product cools off eventually. Then what do you sell? And don't sell a product you know nothing about just because it seems very profitable. Customers will have questions. And when you can't answer them your credibility will be shot. And that means no repeat customers. Don't compete with WalMart! Nobody will buy a toaster from you and wait 5 days for it to be shipped when they can buy it today at their Local WalMart And don't even think about trying to sell it for less. Bigger fish than you have failed at that game. You need to find niche products - products that you seldom find at your local mall. For example: WalMart sells several brands of toasters. But they don't sell every brand of toaster. They don't sell the $400.00 Pierre Cardin designer toaster. That's a niche product! And WalMart doesn't sell toasters shaped like a cat. But your store - quot;Everything Catsquot; - does (along with cat-shaped bread for in your cat-shaped toaster). But there is one last consideration: to be successful you must know your market. If your niche is too small it may not be profitable. You might make a large profit on that $400.00 designer toaster, but if there are only 4 people willing to buy it, you won't have much of a business. This is where quot;selling what you knowquot; is helpful. If you've been involved with an industry or hobby for a number of years you should already know more about the market than most people Seek out trade publications or hobby magazines to learn more about your market. What are others selling? Can you find an empty niche market that's just begging to be filled? © 2007-2008 BAG BROKERS - www.bagbrokers.com
8.
How do I
determine if a niche is profitable? New software has made researching the profitability of a niche much easier. Chris Malta of the Drop Ship Source Directory (see below) has created software that he calls The Market Research Wizard in response to requests from his customers. What you do is type in a few words describing the product you want to sell. Then The Market Research Wizard will analyze data from several online sources and give you detailed information on: How much demand there is online for that product ? ? competitors you will be up against How many ? competitors are Who your ? of advertising others are using to sell that product What kind How much they pay for advertising ? eBay auction listings and bids for your product ? ...and much more! ? Then the Wizard will give you an easy to read Analysis on whether you should try to sell that product online. You can download a free trial copy of the software to try out. You can learn more at: www.esmartbusiness.com/dropship A free alternative (though not as good) is GoodKeyWords. You can download a copy of this free software at: www.goodkeywords.com © 2007-2008 BAG BROKERS - www.bagbrokers.com
9.
Setting Up Your
Account One you have found your supplier, the rest is simple. Call, write or email the supplier and tell them you would like to set up an account. It is generally a good idea to give them a copy of your Sales Tax ID. They will contact you for any other information they need to set up your account. Simple as that. The Drop Ship Source Directory As I mentioned above the Drop Ship Source Directory is recognized by many as the best source for legitimate wholesale drop shippers on the Internet. This link will take you there: www.esmartbusiness.com/dropship Chris Malta began developing The Drop Ship Source Directory after years of frustration with all the worthless source lists that are floating around the Internet. What he found was lots of companies who call themselves distributors but are really just brokers or resellers. They tell you that they are drop shipping products for you, but what they are actually doing is placing your order with the real drop ship distributor every time you order. Then they mark up the product, and take profit that should be yours. The Drop Ship Source Directory is the most comprehensive online tool for finding Name Brand and Specialty items to sell online with NO INVESTMENT. It is a fully cross-referenced, web-based directory of REAL Drop Ship wholesalers for over 500,000 world-class, brand name products, updated in REAL TIME via the Internet. For every brand name listed, you get the REAL wholesale source, their address, phone numbers, email addresses, web site, contact person, credit terms, how to order, and when this info was last updated. All sources are continually updated and re-verified for accuracy. Unlike other lists that claim to provide drop ship sources, Chris does not allow any company to quot;pay their way inquot; to the Directory. Qualified distributors are listed for free AFTER their authenticity has been verified. This insures the completely unbiased quality of the Directory's information. Once again, the URL for the Drop Ship Source Directory is: www.esmartbusiness.com/dropship Now you know what to sell and how to find wholesale suppliers. Now we'll look at how to go about selling your merchandise online. © 2007-2008 BAG BROKERS - www.bagbrokers.com
10.
To sell online
you must accept credit cards. Doing business online is simply impossible without accepting credit cards. Ecommerce is all about speed and convenience. No one is going to buy from you if they have to mail you a check. They'll just go to your competitor who does accept credit cards. A full discussion of credit card options could be a whole course in itself. Therefore, I recommend quot;The Merchants Guide To Payment Gatewaysquot; by Dr. Ralph Wilson: http://wilsonweb.com/ebooks/gateway.htm This is a thoroughly researched ebook on merchant accounts and payment gateways (how your web site interacts with your credit card processing). If you just don't know where to start with merchant accounts and payment gateways, then you need to read this ebook. If you use either Yahoo Store or eBay to sell your goods, this is less of a problem. Yahoo Store will help you get your merchant account, and on eBay PayPal is definitely the way to go. How to create your online store… If you know HTML and the basics of CGI, building an online store is rather inexpensive. But what do you do if you don't know your META tags from a hole in the ground? Basically you have two options: hire a website developer or use an online store front. An online store front is basically an online service that allows you to create your own e-commerce website without needing to know all the techie stuff. It creates the HTML code for you and comes with a built in shopping cart. Both options have their advantages and disadvantages. © 2007-2008 BAG BROKERS - www.bagbrokers.com
11.
Hiring a web
developer is your most expensive option. But it does give you unlimited flexibility to design your store exactly the way you want it. Because this is a sizable investment, carefully check the references of any web developer you hire. Check with the owners of other sites they have built. Online store fronts will not give you the same degree of flexibility as a professional web site developer, but it’s a lot less expensive. You will have to choose from a variety of web site templates when you build your store. In most cases, however, you will have enough choices and enough flexibility to avoid a quot;cookie cutterquot; look. Perhaps the best known store front is Yahoo Store. It is both well known and easy to use. And the Yahoo Shopping Network get 13 MILLION shoppers PER DAY! There are less expensive store fronts, but the traffic that a Yahoo Store can get can make it very profitable. Yahoo Store currently charges $49.95 per month plus 10 cents per item you display on your site plus 1/2% of your sales each month. This is IN ADDITION to the charges from your merchant account (usually around 2%-3%) for your credit card sales. And any customers sent to you by Yahoo!(either from the Yahoo Directory or Yahoo Shopping) costs you an additional 3.5%. Before you become discouraged, keep in mind that the cost to get set up is minimal. The rest is commissions that you pay from the sales you make. That means your overhead or up-front costs are small. You just need to make sure that your mark-up is large enough to cover these commissions. The details of Yahoo Store can be found here: http://smallbusiness.yahoo.com/ecommerce The definitive guide to Yahoo Stores is quot;Yahoo! Store Profits, A Step-By-Step Systemquot;. This ebook is written by 2 real Yahoo! Store owners Audrey Kerwood and Andy Jenkins. Just one of their Yahoo! Stores is earning over $3,470 a month! (This shows that you can make a good living with the right kind of store.) * The Authors use actual screen shots from their own profitable Yahoo! Store so you can just copy their success. * Exact instructions show you how to find out what products are selling like crazy on the Internet. * They show you their techniques for driving highly qualified shoppers to your Yahoo! Store in just days. * This is not just theory, it’s all been tested, proven and illustrated. The book is easy to read and gives tons of screen shots. You get a good look inside a real Yahoo! Store and see exactly how it operates. Once you’ve seen this material, there is no doubt in my mind that you can open a successful Yahoo! Store. Check it out at the link below: http://smallbusiness.yahoo.com/ecommerce © 2007-2008 BAG BROKERS - www.bagbrokers.com
12.
eBay – How
to sell without a store… Are you unwilling to commit the time and/or money for an online store? No problem - you can still make money without a web site. How? My personal favorite...eBay! www.ebay.com Your drop ship supplier doesn't really care how you sell your product (as long as it's legitimate, of course!). So why not auction off a product one Bay? There are many people doing this right now and making good money at it. The advantage of selling on auctions is that you have no costs for creating and maintaining a web site. You just put your product up for bid. But there are some definite disadvantages: *Everyone is looking for a bargain - Your minimum bid price will have to be high enough to make a profit but low enough that people will bid. This can mean a slim profit margin unless you have something unique to sell. And the competition on eBay is getting tougher all the time! *Selling fees - Even if nobody bids on your item, you still have to pay fees for having your item listed in the auction (though these are usually small). Over the last few years, competition on eBay has gotten really tough. As a result it is getting almost impossible to compete using drop shipping. Your best bet is buying bulk wholesale and storing it at home until you sell it. The problem with this is that you usually need to spend thousands of dollars on minimum quantity orders. And then you need to find someplace to store it all. Exactly the problems you’re looking to avoid through drop shipping. And it’s exactly this problem that The Light Bulk Wholesale Directory tries to solve. This is another innovation by the people at The Drop Ship Source Directory. The Light Bulk Wholesale Directory is the Internet's first and only directory of real Wholesalers who have already agreed to sell small bulk quantities to Home-Based Internet Business Owners. All Suppliers listed will accept $500 or LOWER minimum orders while still giving you real Wholesale Prices. For more information go to: www.esmartbusiness.com/dropship © 2007-2008 BAG BROKERS - www.bagbrokers.com
13.
You can still
make a good living on eBay, but you need to research carefully. And don’t commit too much money until you know you have a winner on your hands. For those of you interested in selling on eBay I've acquired a free report quot;eBay Tips For Online Auction Success.quot; It's written bye Bay expert Karol Gajda. Even if you've had experience selling one Bay before, there are tips here that will help boost your sales. And if you are just looking to sell some of the junk in your attic, these tips will help you get the most from your auction. You may also send copies to any friends who are interested in selling on eBay. To read more, visit the link: www.selfseo.com/online_auction_articles.php Karol has also just released a free online video called that shows you how to find wholesalers in your local area. You can view the free video here: www.esmartbusiness.com/dropship I also highly recommend 'Ebay Search Profits' by Barbara Ling. She uses a clever new approach that will boost the profits of any eBay seller. Her proven system requires: No advertising ? No up-front fees ? No commitments ? Zero extra expenses ? In other words, it'sf ree! And it's easy to do. (I'm a big cheapskate. I love it when an idea costs nothing to implement!) Other eBay Resources: Here are some other books I would recommend if you are serious about making money on eBay: quot;Make Your Net Auction Sell!quot; by Ken Evoy (of Make Your Site Sell! fame) is probably the most comprehensive ebook devoted to the art of selling via online auctions: http://mynas.sitesell.com quot;The Silent Sales Machine Hiding on eBayquot; offers advanced information on using eBay auctions to create a steady stream of residual income. www.silentsalesmachine.com © 2007-2008 BAG BROKERS - www.bagbrokers.com
14.
Promoting your online
store… Promoting your website will make or break your online business. There are over a billion web pages on the internet and the number grows every day. Your site is just a needle in a search engine's haystack unless you reach out to attract visitors. Website promotion is a subject way too large to cover in this course. There are literally dozens of books devoted to selling online. Many of them will not meet your needs (and some of them are just outright crap). So all I will do here is offer my opinions on the best sources of information. Here are the ones that I think are worth your time and money: Make Your Site Sell! (under US$20.00 ) is my #1 choice for anyone getting started in e-commerce. It is a well-written, practical guide to creating and marketing a money-making web site. It shows you how to create a site that makes the sale. And it teaches you all the basics of online marketing including how to make your site appealing to the search engines. http://myss.sitesell.com The Internet Marketing Course is much more expensive, but also more comprehensive. It consists of over 1,000 pages in 2 volumes, plus 2 CD-ROMs. Learn more here: www.marketingtips.com/tipsltr.html I strongly suggest you get one (or both) of these and study it (them) well. Your success will depend upon it! These guys are both pioneers from the early days of online selling. They have done all the work and made the mistakes for you. Comparing the two, I would say that quot;Make Your Site Sellquot; is the equivalent of a bachelors degree in online marketing while the quot;Internet Marketing Coursequot; is the equivalent of a masters degree. Practically speaking, if you are a beginner start with quot;Make Your Site Sellquot;. Then as your business grows use the advanced knowledge in the “Internet Marking Course”. There is, of course, some overlap in the information presented. And there is also some disagreement. That's because there is noo ne magic formula that works all the time for everyone (despite what some “business opportunity” ads may say). Offline Marketing Just because you have an online business, don't neglect the power of offline marketing. The bible of effective, low budgetmarketing is quot;Guerilla Marketingquot; by Jay Conrad Levinson. I highly recommend this book. You can find it at your local bookstore or at Amazon.com: http://astore.amazon.com/drop-ship-20 © 2007-2008 BAG BROKERS - www.bagbrokers.com
15.
Well that's it!
Now it's time to take what you've learned and put it into action. I wish you SUCCESS! David Smith BAG BROKERS www.BAGBROKERS.com 2007-2008 © 2007-2008 BAG BROKERS - www.bagbrokers.com
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