Drop shipping seems like the answer to our eCommerce prayers.
It's easy to get started, has low overhead, and lets you carry a larger amount of products than you could if you had to physically produce and stock them yourself. And because you don’t have to worry about fulfillment or running a warehouse, you can run your drop shipping business anywhere in the world with just an internet connection and a laptop.
Doesn't that sound amazing?! Sign me up.
And while those are all great reasons to use drop shipping to start the eCommerce store of your dreams, there are already some awesome articles out there on how to do that, and that's not what we're here to talk about.
In this post we'll go over some drop shipping basics and talk about why you should be using teelaunch to run your online store with Shopify.
Let's get started.
What is drop shipping
We touched on this earlier, but let's dive into the details a little bit more.
In the most simple terms possible, drop shipping lets you hire out the production of your products to a fulfillment center, who then ships the item(s) directly to your customer. So while you're still the one creating your products on your store, your not physically making them. It basically cuts out the middleman (you), by having a manufacturer ship directly to your customers without you ever seeing or handling the product yourself.
During the process, there are two financial transactions that happen. 1) Your customers pay you for your product and 2) You pay the fulfillment center for creating it.
Here's how pricing works
Let's say I run a t-shirt business selling shirts with pictures of cats on them. Customers would land on my website, find our best selling 'Mew-rific' tee for $24.00, and complete their purchase. The order would then be processed by the fulfillment center, with them charging me $8.50 to produce and ship the shirt directly to the customer. The remaining $15.50 (65% of the purchase price) is then my profit.
Not all drop shippers are created equal though, so be careful. There are a lot of fake companies out there that would love to take your money, so pay attention to the section below.
Choosing the right fulfillment company
Depending on where you're searching, you'll likely come across a large number of “fake” wholesalers. Unfortunately legitimate wholesalers are traditionally poor at marketing and tend to be harder to find. This results in the non-genuine wholesalers – usually just middle men – appearing more frequently in your searches, so you'll want to be cautious.
Check out the full article in their Ultimate Guide to Drop shipping, skipping to Chapter 3 to read about finding and working with suppliers.
One of our favorite suppliers is teelaunch. Full disclosure: I use teelaunch for my own business. I wanted to wait a few months after opening before I wrote this article so I could give you a real review, and I'm happy to report that I'm loving it so far.
How orders are processed
Once you've downloaded the teelaunch app and started creating your own customized products, with the click of a button you can make your products live on your store. That's not even the easiest part. When a customer orders from your store, teelaunch automatically creates a fulfillment order within the teelaunch system.
These orders are tracked and updated within your Shopify store immediately. Tracking numbers are sent right to your Orders dashboard and the shipping status is updated. Shopify’s automated system then delivers shipping updates directly to your customers. source
Take a look at the video below for more info.
What can you sell?
One of the main things I love about this app is how many products you can create. From apparel, phone cases, mugs, posters, tote bags, jewelry, and more, I've spent hours playing around creating new products.
And that's the beauty of drop shipping: You can create as many products as you like with zero risk.
If that same store selling cat shirts decided to branch out into tote bags, there wouldn't be any lost revenue if they didn't sell a single one since there wasn't any money put down up front.
Already have an online store? Use teelaunch to create branded merchandise to go along with the products you stock.
Have a retail location? Use the app to create shirts for your employees to wear or to print sweaters for your kids softball team that you sponsor.
With over 50 different product options available, it's truly fun to sit down and start playing around with new designs. And who knows, maybe that Siamese cat sticker you created at midnight last Thursday will become your new #1 best selling item!
Try teelaunch on your store for FREE
You can install teelaunch on your Shopify store for free by clicking here. No obligations. No hidden fees. You only pay when you make a sale.
Head on over to their product page to check out a full list of all their products and to learn more about pricing. And don't forget to post your best designs in the comments below!