Do you want to automate your drop shipping income?
I have an arrangement with a drop ship supplier that allows me to make commissions ranging from 33 1/3 to 50 percent on the sale of business books.
It works like this. You order a business kit from me for $100 plus shipping. I fax your order to my supplier (paying $50 plus shipping). He drop ships it to you; I make a gross profit of $50.
Over the years, I have sold many, many business kits and publications. It sounds good but I have costs — credit card processing, eBay listing fees, occasional losses from fraud, and so on.
As well, I personally receive the email order, fax it, answer customer inquiries (“Have you shipped it yet?”) and check with my supplier (“Have you shipped it yet?”).
It’s not bad but could I make it better? Could I automate my drop shipping business so that I had less involvement in the process? Was it also possible for me to cut my costs?
Automate Drop Shipping Income I
In addition to online sales, my drop shipper also accepts orders by phone, fax, and mail.
This gave me the idea of offering my customers a substantial discount on a wide range of money making information if they order by phone from my supplier.
This is a win-win-win situation.
The customer wins because he gets a substantial reduction in price on valuable business information.
My supplier wins because he gets additional sales at no additional cost; the customer discount comes out of my commission.
I win because, although my commission is reduced, I have next to no involvement in the sales process.
My supplier answers the phone, processes the orders using his own merchant account, and handles all customer support issues.
I have no credit card processing charges, eBay listing fees, or losses from fraud.
I sell to existing customers, subscribers or members (using automated methods).
Automate Drop Shipping Income II
Still, I do get online orders.
Previously, I would list a product on eBay and the customer would pay using PayPal. After I received email notification of the order (from eBay) and payment (from PayPal), I would fax the order to my supplier.
It’s not difficult work but it still requires your involvement. You could outsource this but that would increase your costs.
Here’s a better way.
Automate the process.
Use a smart shopping cart to email your orders directly to the supplier. Have all support requests directed automatically to the supplier. Authorize your supplier to automatically charge your credit card for all orders.
Have your shopping cart make one-time offers, up-sells, and down-sells. Automatically subscribe all customers to your mailing list. You can now sell additional products and services to your customers by autoresponder.
You can still use eBay to advertise. However, instead of selling products and processing orders manually, generate leads; in other words, obtain subscribers. Then, develop a relationship with those subscribers by providing genuinely helpful information. Recommend useful products (your own or other people’s) to your list. This can be done automatically through a series of email messages sent by autoresponder.