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How can I sell other brands on my website and have them drop shipped?

I am starting a retail website where I showcase other people's brands through the site. My goal is to basically promote and market these select products, almost like a blog but I want consumers to be able to make purchases through my site. I will not hold any inventory and will have these item's drop shipped.

I am wondering how I am able to either, 1) take a percentage of every product or 2) set up an affiliate marketing site where I redirect consumers to the actual brand's site. What do you guys think is the best way to set this up and do you think it is a smarter move to dropship or make it an affiliate marketing site?

Thanks!

15 Replies

Alexander Reekie
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Alexander Reekie Entrepreneur
Founder at Faver Ltd
Setting up as an Amazon affiliate partner is fairly easy However, you should bear in mind that they reserve the right to withhold membership from you if they feel your site adds little value to the user's shopping experience. If your site is a blog format, featuring and promoting select products, you should be fine. They won't provide an affiliate partnership for a "mini Amazon" though.

An additional benefit is that their affiliate cookie counts for all purchases made from them in a 24hr window, regardless of the affiliate product link the user clicked. Any purchases within that window will be attributed to you.
Julia Rosa
1
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Julia Rosa Entrepreneur
Owner, Satori Online LLC
There are pros and cons to both situations, Troy. If you are offering products and dropshipping them, you will need to have an ecommerce store, or something to activate a cart, so they buy on your site. You will have to have permission to sell the products, and set up an account with each manufacturer, or a wholesale dropshipping company that sells multiple brands. Depends on where you are selling from, all manufacturers that I deal with, want a resellers certificate and business EIN. If you are an affiliate, the product needs to be associated with a brand that has an affiliate program. OR you could sell through Amazon, and that isn't as profitable. As an affiliate for physical products, you will usually make a commission of 4-10%. With dropshipping, markup is usually 100%, so you're making about 50%. $100 as an affiliate max $10. $100 dropshipping, $50. There are more expenses to dropshipping, so that $50 is not true profit. You have things like advertising, credit card fees, hosting, etc. There are expenses with being an affiliate, so that $10 is not true profit. You have things like advertising, hosting, etc. The one thing I like about dropshipping, is that I am building MY brand. I work with stable companies and know they're not going away anytime soon. I have control over coupons, discounts...I am building a list of buyers/customers, so when I have a new product, I am sending them an email to let them know. I am able to communicate and build loyalty with my customer base and entertain them, offer a referral fee when they bring in a customer. There's so much you can do. And if you want to sell the site later, it's worth a lot more then an affiliate site because you have a list of buyers that the new owner can promote to as well as new ones. With an affiliate situation, you aren't building a list, unless you have an offer on your site to entice them to sign up. And they aren't buyers. They haven't pulled out their credit card. In the end, you're building the business of someone else. I've done both. I prefer dropshipping. I still have affiliate sites. And I like them, because they are hands off when you find the right traffic sources. Cheers, Julia
Kristin Spear
0
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Kristin Spear Entrepreneur
DESIGNER AND CEO
Hi Julia- I have a question regarding the companies you use to drop ship with. How do you find them and how do you make sure they are reputable? thank you- Kristin

Julia Rosa
1
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Julia Rosa Entrepreneur
Owner, Satori Online LLC
Hi Kristin, I've been doing ecommerce since 2005. Affiliate marketing from about 2008. I still use the same system I worked then. It's really simple, and a good question. I figure out what kind of products I want to sell on my site. Let's say, yoga, as an example. I want a yoga mat, yoga pants, and a yoga ball to start. I make a list of all of the products I know I want to carry, in a spreadsheet and will continue to add along the way. I will do a Google search for yoga mat, using keywords like 'yoga mat manufacturers' and 'yoga mat wholesalers' to start. Then maybe 'yoga mat', 'best yoga mat', I will have columns in my spreadsheet for manufacturers and their info, please see attached spreadsheet. When manufacturers or brands pop up often, it usually means they are legit. I do more research then this, find out if they are on Amazon, check ratings and reviews etc. I'll find other sites selling the product as well. If the site looks clean and professional, it makes my spreadsheet. Personally, I look for a niche that I am passionate about and will hold my attention. I also look for quality products. I will go through each product and make a list of manufacturers. THEN, I'll contact them, first by phone and request to speak with the person in charge of new wholesale accounts. Ask for their name, this is your contact person. And the person you address a follow up email to later. If they don't have good customer service, or phone system, I'll not work with them, no matter how good the product is. Keep asking questions. That's the way to learn. I'm here to help. Cheers, Julia
Aurelija Griciute
1
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Aurelija Griciute Entrepreneur
Product Manager | Allergomedica
Have you guys tried Oberlo? It think it's a great tool for dropshippers. This service allows to easily import products from AliExpress directly into your Shopify store and ship directly to your customers - in only a few clicks. They have many cool features like product and order management, which allows you to spend more time on other important stuff like growing your business. There're also a shipment tracking, pricing automation and other cool stuff.
Julia Rosa
0
0
Julia Rosa Entrepreneur
Owner, Satori Online LLC
Oberlo is a good option if you're using Aliexpress.
There are many benefits to using Aliexpress for dropshipping, and there are a lot of cons as well.
I've tried them, and I went back to the way I've always done business, through US manufacturers.

Aliexpress...

- Shipping times can be very long leading to complaints from customers.
- Even though products can be much cheaper (and there is no control over quality), the prices have definitely risen as it has become more popular.
- I've paid for epacket shipping to speed shipping times up, and sometimes the supplier has 'forgotten' to ship that way, and they pocket the extra cost, and I've had issues trying to get that money back. Too much wasted time.
- tracking isn't available until it hits the US, or outside of China.

There's other reasons, and I have a site that my customers appreciate knowing the products are manufactured in the US, not China, it attracts people. Some people have challenges with Chinese products and not supporting US made.
Also, as time goes on, eventually, the products will cost more then it's possible to create a good profit, so I don't see it as a sustainable, long term business. There are many things changing, and have changed with their laws in the past year, that are affecting doing business with them.
I'd rather develop relationships with people here, and offer products that you can't get overseas.



Julia Rosa
0
0
Julia Rosa Entrepreneur
Owner, Satori Online LLC
Oberlo is a good option if you're using Aliexpress. There are many benefits to using Aliexpress for dropshipping, and there are a lot of cons as well. I've tried them, and I went back to the way I've always done business, through US manufacturers. Aliexpress... - Shipping times can be very long leading to complaints from customers. - Even though products can be much cheaper (and there is no control over quality), the prices have definitely risen as it has become more popular. - I've paid for epacket shipping to speed shipping times up, and sometimes the supplier has 'forgotten' to ship that way, and they pocket the extra cost, and I've had issues trying to get that money back. Too much wasted time. - tracking isn't available until it hits the US, or outside of China. There's other reasons, and I have a site that my customers appreciate knowing the products are manufactured in the US, not China, it attracts people. Some people have challenges with Chinese products and not supporting US made. Also, as time goes on, eventually, the products will cost more then it's possible to create a good profit, so I don't see it as a sustainable, long term business. There are many things changing, and have changed with their laws in the past year, that are affecting doing business with them. I'd rather develop relationships with people here, and offer products that you can't get overseas.
Kristin Spear
0
0
Kristin Spear Entrepreneur
DESIGNER AND CEO
Thanks for all the great info! Julia- when you reach out to the wholesale department of these companies are you then asking if they will drop ship? we have done some of that and get about 30% of them that will do it and the others only wholesale. Kristin
Aurelija Griciute
0
0
Aurelija Griciute Entrepreneur
Product Manager | Allergomedica
Thank you Julia for your feedback on this! I was actually wondering how Oberlo manage the shipping difficulties, because yea, it's quite hard to control Chinese orders. As a consumer, I had many problems getting products from some of Aliexpress sellers. Some of them never arrived. Anyway, I heard Oberlo is creating some suppliers verification feature, so maybe that will help to avoid unreliable suppliers. Will see!
Kristin Spear
0
0
Kristin Spear Entrepreneur
DESIGNER AND CEO
Both of you have great feedback thank you! Power in numbers:)

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