Want to be an Entrep?

Day 2 - The Trivial Things

Day 2 – The Trivial Things

On the second day, I'm a bit familiar with Shopify. I remember the section for my account, for my settings, and for my online store.

Now, my next problem was where do I get the products? Remember, this is drop shipping. A drop shipping source may be a wholesaler or a manufacturer and yeah, some of them also sell as retailer. A dropshipper allows you to order their products at a lower price and then they take responsibility for shipping the products directly to your customers. And you only pay when you order after making a sale. This was popular to people who have no capital to purchase inventory beforehand. So yeah, I have no capital.

In drop shipping, what you need to do is to compute how much you're going to charge for the products. You have your cost, what you're going to pay for the dropshipper. Then, you have the shipping cost which would ultimately depend on how much your drop shipper source would charge. Another is the payment processor you're gonna choose. Are you going to use Shopify payments, or paypal, or some other credit methods? Those processors will definitely charge you for using their service. You have to take that into account. And then there are taxes, and ultimately, how much margin you want to get for every sale of the product. Would it be 15%? Or 25%? Or maybe 100%? It really depends on you. You want to get a higher profit or a higher market share? You choose. You decide for the price of your product.

Me? I did this excel file to take into account the taxes, transaction charges, and whatnot. I decided to put only 15% of margin. Look, I'm not after the money. I'm there for the experience. And really, I'm also trying to get customers to choose my store because of the lower prices. Trust me, I googled the product names and I saw these bunch of other online stores which have the same products – same name, same pictures, same description. This is drop shipping, after all. Some with high prices, some with low ones. I'm gonna stick to my formulated pricing.

Well, before I came up with the excel file, I used the suggested retail price of the dropshipper. It took a while for me to decide on my pricing strategy, and about an hour to come up with the formula which I applied to every product I've chosen for my store.

It was an awesome experience. As an employee, I don't make much decisions for the company I work for. Putting up this online store made me decide on things that would probably affect my future. It was cool. I get to decide for myself and yeah, I do a lot of thinking and analysis. I have to take into account multiple things.

At this point, I have committed myself to continue with this adventure no matter what. It might take weeks or a couple of months, but I'm gonna go for it. I'll do my best.

On Day 3, I had a website name.

#9192016/855pm/ged

 A/N: Sorry, I wasn't able to post this yesterday. I was just so sick. I'm feeling better now.  Thanks.