Brian (10K Challenge Finalist) answers the question "What is drop shipping?" during a YouTube Live session.
Go here for the full session: https://www.youtube.com/watch?v=U2et2...
"What is Drop Shipping?" YouTube Live Session Transcript:
Adam: I know how I would define drop shipping but someone is asking, let's see (I am not sure of the pronunciation of their name) Rajitha is asking: so, what is drop shipping and how would you define drop shipping.
Brian: Well, I like the way that Anton describes it: a means of fulfillment in today's day and age where, where I guess people are spending less time in stores and more time online it becomes less and less necessary for dealers or distributors to stock. The other interesting thing is that it seems like in this climate more manufacturers sell direct, either because they are doing it simply through Amazon or a lot of these stores have their own eCommerce stores which is a funny dynamic because in some sense you compete with them but usually they are pretty good about that. Essentially I guess drop shipping means that we are the marketing arm, the sales arm, for a manufacturer. So, we come to an agreement with the supplier and we market and advertise and sell their products. Then when somebody buys it, rather than spend money putting it in a warehouse and shipping it twice, it gets shipped once directly to the customer which... I think a lot of people have their stigmas about drop shipping but in the big picture it feels like to me that you are saving, there is a resource gain, there is a general saving across the commerce chain because you are minimizing steps. I think sometimes suppliers are funny about it because they see it as maybe you are not getting any skin in the game. In actuality that is not the case and, you know as well as I do, that we are spending thousands of dollars advertising their products long before the sale out, I guess I would say pre-sale, so that's not entirely true. We are also spending money putting together, spend money and spending time which is even more valuable than money putting together websites, putting together promotional campaigns and all kinds of things. I hope that wasn't too much.
Adam: No, I think that was a great answer and you expanded upon it. I think I know what your big why is, obviously, you found success in a short amount of time. You were starting with your store in August, you started running ads in September around the time we started the 10k challenge.
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| Education | Upload TimePublished on 3 Mar 2017 |
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