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If you’re reading this piece, it’s more than likely that you are someone who is just starting with your entrepreneurial journey.

Sure, many important lessons are learned via experience, but there is also plenty of benefits that you can learn by reading.

Some view that books are becoming outdated due to the advances in technology.

However, you should not underestimate what we can learn from reading books.

Books keep all kinds of thoughts and sorts of information about someone successful or, at the very least, interesting.

You don’t need a computer, phone, or other electronic gadgets to absorb their stories; just open the pages and start from there.

There are tons of books out in the market that label themselves as books all entrepreneurs should read.

For this list, though, we handpicked six books every entrepreneur should read, with a summary and other related information.

Books Every Entrepreneur Should Read: Summary and Info

Listed below are a few recommended books entrepreneurs should read that cover various aspects of the business world.

Each one provides excellent insight on how to navigate this turbulent venture.

The Decision Book: 50 Models for Strategic Thinking

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With just over a hundred pages, this book provides a guide to handling life’s biggest challenges.

These challenges are making the right choices and understanding ourselves.

Summary

This book summarizes 50 of the most famous decision-making models that businesses and individuals worldwide have adapted to think and decide strategically.

The Decision Book educates its readers on developing their strategy, identifying various alternatives, and ultimately making sound decisions.

These decision-making models are presented graphically for easy absorption.

While the 50 strategies sound daunting and exciting, this book fails to cover them with intricate details.

Much of the content are summaries of other people’s models, which could probably use an in-depth analysis.

About the Authors

Mikael Krogerus and Roman Tschappeler wrote the Decision Book.

Krogerus wrote for a Swiss daily newspaper, while Tschappeler is the CEO of Guzo, a communications platform based in Switzerland.

Leadership: In Turbulent Times

In any organization, leadership is arguably the most important factor to one’s success or failure.

The author draws her inspiration for the book from four presidents that paved the way to America’s rise as the premier economic and military superpower of the modern world.

Summary

Abraham Lincoln, Theodore, and Franklin Delano Roosevelt, and Lyndon Johnson’s impact on our world are still evident to this day.

Unlike most autobiographies for these presidents, the author chose to highlight their experiences when they first became public figures.

In that particular time of their lives, they committed numerous mistakes due to inexperience, naivety, and ego.

These three attributes are pretty common among leaders who have yet to earn their stripes.

Each of them has different personalities, circumstances, and adversities.

Still, what these men have in common is their knowledge about human nature.

While it’s improbable that we will become the POTUS in the future, the experiences of these leaders could translate one way or another into your brand of leadership.

This will ultimately dictate the success or failure of your business.

About the Author

Doris Kearns Goodwin has made herself a career revolving around politics, history, journalism, and education.

She got a Pulitzer Prize on her belt for her work No Ordinary Time, which centers around Franklin and Eleanor Roosevelt.

The Creative Curve: How to Develop the Right Idea at the Right Time

 

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This book attempts to debunk the mystical aura that is usually associated with creative genius.

It certainly belongs to the top books every entrepreneur should read if they have issues executing their vision.

Summary

According to this book, we are misled by the notion that creative genius comes from a select few.

The phrase “either you got it or don’t” is probably the shortest way to describe this way of thinking.

The author wanted to show a science or method behind achieving business success, not simply summarizing it to creative genius.

By understanding the “creative curve,” we are one step closer to reaching our goal of becoming successful.

There are four laws behind the so-called “creative genius,” according to the author.

This book identifies each of them and the blueprint for reaching creative success.

About the Author

Allen Gannett founded a marketing analytics platform called TrackMaven.

Some of his high-profile clients are Microsoft, Home Depot, Honda, and General Electric.

He was recognized for his efforts, as he was included on the Forbes’ 30 under 30, which is a list of the top young entrepreneurs.

Never Split the Difference: Negotiating As If Your Life Depended On It

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Based on the author’s experience as a lead international hostage negotiator for the FBI, he intends to educate readers on his view on high-stakes negotiation.

Summary

One of the main points that this book wants you to know is that compromise is the worst way to negotiate.

The real art of the craft is mastering the intricacies of the other party’s responses.

Never Split the Difference reveals strategies that the FBI around the world field-tested.

These strategies offer favorable outcomes not only for criminals but also in every business, home, or just about any situation you can imagine.

From the tone of your voice up to the types of questions you ask, you potentially control how the conversation would transpire.

Overall, these techniques promise better results in business negotiations.

About the Author

Chris Voss and Tahl Raz wrote the Never Split the Difference book.

Voss is a 24-year FBI veteran and founder of the Black Swan Group, a firm that handles training and advises various Fortune 500 companies.

Raz is a journalist who won awards for his works. He is also involved in several national firms as an editorial consultant.

The 60 Minute Startup

If you’re someone who wants to start a business but doesn’t have the time for it, this book offers hope.

According to The 60 Minute Startup, it is possible to create a profitable business venture in just one hour of work per day.

Summary

As per the author, it is common for new entrepreneurs to be perfectionists.

They will spend a lot of time editing their logo and other minute details just to have an impeccable appearance.

However, that kind of approach is counter-productive for the author.

He states that starting small, not worrying about details, getting feedback, and making improvements should be the priority.

Overall, this unorthodox guide in doing business is utilizing agile techniques that come from software developers.

This book highlights that you should work smarter, not harder.

About the Author

Ramesh Dontha is a serial entrepreneur who consults with numerous Fortune 100 companies.

Dontha worked as a strategic planner with Intel for 17 years.

Why Customers Leave (and How to Win Them Back)

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This book points out 24 reasons customers are leaving you and how to get their business back.

By elaborating on the customers’ shift to others, Why Customers Leave intends to identify problems and other related topics.

Summary

Customer experience in the digital age, according to this book, is a bankable differentiator.

With a vast array of choices, earning customers’ loyalty is not as easy as before.

Why Customers Leave lays out the reasons for the recent change in the mindset and expectation of your customers.

It also explains the decisions made by companies that inadvertently drove their customers to their competitors.

By identifying the mindset of your customers and the issues with the companies’ service or product, the book also tackles how to earn back their trust, which will lead them back to you.

About the Author  

David Avrin is considered a marketing pro and known as the “Visibility Coach” by many.

Avrin has earned two decades of work in the fields of marketing, PR, and strategic branding.

Books Entrepreneurs Should Read: In Conclusion

The list of books all entrepreneurs should read we listed covers different strategies about the various aspects of running a business.

Like in most lists, we may have missed some books worthy of looking at.

As we embark into the mercurial world of business, getting as much information will only reap benefits.

Applying the lessons from these books might be challenging, but that will make your eventual success tastes sweeter.

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When we dream of having our own business empire, most of us imagine the business itself and the profit we’ll gain from it.

While it is important to have a vision, the reality grounds us back to what we should focus on first.

Arguably the most critical question you may ask is, “How much money do you need to start a business?“

We all know that every legitimate business venture needs capital to get your dream on first gear.

There’s a good chance that you are not one of those hedge fund kids, so starting with a small business is the way to go.

If you’ll ask small-business owners about their capital, you’ll get to hear different answers.

Before we get into the financial aspect of your business idea, let’s check out why it is crucial to pinpoint the starting cost.

The Importance of Determining How Much Money Do You Need To Start a Business

Getting to day one of a business operation will take a great deal of your time, resources, dedication, knowledge, and many other factors.

If you want to be successful at it, you need to cover all bases.

Even before getting to that first day, you will spend a considerable amount of money on pre-operating costs.

As such, determining the overall startup cost is just as important as the business you’re trying to create.

Once you determine the expenses you need for your business assets, prepare another set of budget for the first six months up to a year of operating funds.

Why? Because that will be your safety net if your revenue falls short of your expectation.

How Much Does It Cost To Start a Business

Most of the things you need to have for your business require payment or resources.

Let’s identify the most important types of expenses you need to prepare yourself for.

Market Research

Most, if not all, successful businesses are products of excellent market research.

Sure, there are exemptions to this rule, as some of the most famous entrepreneurs didn’t have to do market research because of various circumstances.

It is relatively common for people to skip this expense.

They think that just because they saw success in a business or know someone who didn’t need market research that gained consistent profit, they imagine it’s not a big deal.

However, if you’re one of those who want data on a market analysis of your prospective business, consider getting the services of a market research firm.

Legal

In any legitimate business, registering, applying for various permits and taxes for your business require payment.

There is no way you can skip this expense unless you want your business to get hampered by authorities.

Related to government fees, you should also consider getting legal representation.

A lawyer at your side is extremely beneficial if and when you have an issue with compliance, labor, and other legal matters.

A bookkeeper or accountant is also a critical part of your business.

In addition to getting your books in order, they will also be helpful during tax season.

Insurance

Securing your business is as important as it gets. We insure our life, car, home, travel, and pretty much anything we value.

Business is no exemption. There are different types of coverage depending on what your business is about.

Equipment

Any business requires equipment. That should be clear as day.

In the modern world, no matter what type your business is, you need computers, printers, and other related office equipment.

You need to invest in these tools because they are as essential as it gets when it comes to keeping records, monitoring tasks, and more.

Transportation also falls into this category. There are only a few businesses that don’t need any means of mobility.

Related to the equipment expenses are utility bills. Until your business is self-sustaining, you are the one who will ensure that the electric, water, internet, and other bills are settled promptly.

Space

Regarding the question, “How much money do you need to start a business?“, this particular aspect could single-handedly cause you to prepare a tremendous amount.

Commonly, startup businesses operate within the vicinity of the owner’s property.

That said, if the home set-up is not feasible, you have two options: rent or buy a business location. 

Buying a space is the most expensive way to secure your business location.

That is why most small business owners choose to rent instead.

Renting is probably the better way because it doesn’t require you to exhaust your life savings for it.

Still, you need to prepare for a long-term lease, which is a regular practice for land or building owners.

In the future, if ever your business becomes consistently profitable by having a sizable consumer base, consider purchasing your business location.

Payroll  

Unless you are some kind of a superhuman, your business needs employees.

They are the ones who are in charge of the daily tasks and essentially run the show.

Regardless if you are making a profit or not, as long as you employ them, they need to get paid.

In addition to the base rate, you need to shoulder your employees’ benefits, overtime, and commissions, if any.

Inventory

If your business revolves around retail, wholesale, or manufacturing, you will need to replenish your inventory constantly.

Your inventory is a significant part of your daily operations, and you need to be smart in spending money on maintaining your supplies.

Don’t overstock because you might risk damage or spoilage if you are dealing with food.

Understock is also a no-no because you might struggle to provide your product when the demand for it arises.

Marketing

It’s improbable that you can have a successful business without marketing.

You can choose from a multitude of ways to promote your product or service effectively.

If you’re going old-school, printing flyers, brochures, and stickers and posting ads on billboards and vehicles will require money.

Fortunately, if your target demographic is always on social media, you could also reach out to them with no fees.

There is also an option that the social media platform can help you promote your ad for a price.

Website

In this digital age, most successful companies have established their online presence.

Having a website for your business is an effective way of reaching out to customers who are checking the internet for the product or service they desire.

Having a professional-looking website costs money. Apart from web design, you also have to pay regular fees for maintenance, updates, and hosting services.

You can also make a social media account for your business at no cost.

A good percentage of internet users are online just to check their latest feed, and you can take advantage of that.

How Much Money To Start a Business: Conclusion

After identifying the different types of expenses regarding how much does it cost to start a business, there’s no way to give out a single answer.

That will all depend on the type of business you want.

If you are leaning towards retail or wholesale, chances are you need less capital than if you’re going to have a manufacturing business.

Unless you have some background about your business idea or someone is helping you out, your best bet is to hire a startup mentor.

A startup mentor has the knowledge and expertise about the business you are trying to establish.

Besides helping you figure out how much money to start a business, a startup mentor could also give you sound advice about the challenges you may not be aware of yet.

In the big picture, hiring one could potentially save you money because their guidance will most likely cause fewer mistakes and issues.

We all know that any inconveniences in a business can lead to loss of profit.

Also, you may be getting some invoices or receipts that you are not expecting.

Overall, as long as you consider all variables before you determine the startup cost, chances are you are going to be just fine.

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Dropshipping is one of the most convenient ways to start your ecommerce business, but it does come with its fair share of challenges.

Thus, a guide like this one can help you overcome all hindrances.

So if you want to start a dropshipping business but don’t know how to dropship from AliExpress, let’s help you out.

What Is Dropshipping?

If you are pretty new to the world of digital trade, you might wonder what dropshipping is.

Dropshipping is a retail business model where the owner doesn’t keep any inventory for sale in their store.

Instead, the store’s owner purchases the products from a third party and pays them to send the product directly to the customer. 

To summarize, in a dropshipping model: 

• You, as a business owner, do not have to invest much capital in starting a venture. 
• There is no need for a physical store. 
• You don’t have to store any inventory with you. 

To run a successful dropshipping venture, you need to look for trusted sellers.

You also need to be actively present in your online store to cater to customer feedback and follow-ups.

So, even if you work as a digital nomad, dropshipping does require lots of hard work and patience.

Still, it is pretty rewarding. 

What Is AliExpress?

When you think about dropshipping from China, AliExpress rings a bell.

It is one of the most famous online marketplaces for all kinds of products.

Established in 2010, it has quickly become one of the leading ecommerce companies in the world.

From kids’ garments to men’s accessories, AliExpress is shopping heaven.

It runs on a business-to-business model and offers a mass consumer market.

Also, almost 60 million buyers shop from here and trust the quality of the products it offers.

Can I Dropship From AliExpress?

If you are looking for ways on how to dropship from China, AliExpress is the ultimate solution.

You can add the products from AliExpress to your dropship online store and set a price for each. Make sure the price represents your markup.

When you get an order, you share the customer details with the respected AliExpress seller.

You then pay for the selected item at a wholesale price.

The seller then directly sends the product to your buyer without your intervention.

With AliExpress, dropshipping from China is pretty smooth.

That said, choosing the right seller and running your online store requires lots of homework.

Is Dropshipping From AliExpress Profitable?

There are many reasons AliExpress may be one of the most profitable platforms to start your dropshipping venture.

For starters, almost all sellers on AliExpress understand the demand for Chinese dropshippers.

They are aware that most of their customers are interested in dropshipping and hence are primarily resellers.

This knowledge makes it easy for them to set a profitable price for them and you.

Also, dropshipping from China through AliExpress doesn’t require any upfront charges or fees.

You can choose to test any product without a financial commitment ruining your profits.

You are also free to use the existing descriptions and images of products for your store. AliExpress is pretty friendly that way.

Is AliExpress Reliable For Dropshipping?

As stated above, AliExpress is an economical medium for Chinese dropshippers

It is also pretty accessible, but is it reliable or just a scam?

Any platform, irrespective of its reputation, is safe as long as you select trustworthy suppliers.

With dropshipping, you can quickly lose a customer if your platform fails to deliver the right products on time.

For that only, you should make sure your selected seller is a reliable one.

To give your customers top-notch service, dropshipping may come out as a little tricky.

AliExpress has a very organized system to handle scam suppliers.  

However, it would help if you were very careful and attentive with choosing a dropshipping supplier. 

Here are some relevant tips that can help you do that:

• Avoid Cheap Sellers

Don’t always go for cheap sellers. They may be selling goods of poor quality and service.

• Check Feedback 

Always select a supplier with positive customer feedback and a large number of sales.

• Don’t Go for Luxury Products

Be cautious when choosing luxury products from AliExpress for your dropshipping store.

There aren’t many luxury brands on AliExpress, but the existing ones may be fake.

• Choose a Responsive Supplier

Be very vigilant in your selection to avoid any mishap with the customer. You may come across several similar sellers on AliExpress.

But choose those who respond quickly, are preferably good at speaking English, and have clear information on every product they sell.

With the right AliExpress seller and an attractive product line, there is no way you can’t achieve success in your business.

Now that you know how reliable and profitable dropshipping from AliExpress is, it is about time you get to work.

Let’s guide you through setting your own AliExpress dropshipping online store.

How to Dropship From AliExpress

Below are the steps you should follow to kickstart your journey as a dropshipper.

1. Make Your Store

Before anything else, set your online store. You can either take professional help or follow a YouTube tutorial to set your retail platform.

2. Choose Products to Sell

Selecting a niche market is one of the first few critical things that decide your success.

If you have no idea what niche to focus on, log on to AliExpress and look for the product categories.

From women’s fashion to consumer electronics, AliExpress has a wide variety of products on its platform, but choose the ones that strike your interest.

Once you have chosen your product category, take your time to select relevant products.

This process may feel quite overwhelming, but, it is the most crucial step in this process.

Ideally, you should select products with over 300 orders and at least 4-star ratings.

Also, items that come with epacket delivery options are economical since they often get delivered on time.

Do your due diligence as well. It is essential to check whether the photos posted by sellers are authentic or fake.

Google Image Search may help you with this job.

3. Find an Authentic Supplier

A right AliExpress supplier will change the way you deal with your customer and your business.

Follow the criteria mentioned above to select the best source for your business.

You may find the list of suppliers at AliExpress pretty daunting, but don’t rush.

Go through as many product pages and portfolios as you like until you are completely satisfied.

Also, before you book your products, don’t hesitate to communicate with the seller.

Ask as many questions as you can and clear all your doubts.

4. Add Products to Store

When you have everything above sorted, it’s time to add all your selected products to your store.

Keep in mind. It’s not all about copying descriptions or putting images from AliExpress only.

To make sure your store achieves success, you need to position it correctly.

Instead of copying product descriptions from AliExpress, create your content.

Either hire a professional writer or do it yourself but make sure the content is original and not plagiarized.

Besides, for images, take help from authentic online tools and edit them properly. Don’t post any blurred or unclear images.

It is essential for your brand image and customer satisfaction.

Also, don’t forget to price your products correctly. All products should have a price at least 50% above the cost price.

It is important to run your business and efficiently cover all marketing costs.

When it comes to customer service, make everything clear. With every product description, mention the delivery time.

On AliExpress, most sellers are China-based; hence the delivery may take longer than average.

Make sure your customers know that before they place an order.

To make things more systematic, use an order tracking app to update your customers about the delivery status.

What Happens When You Receive an Order?

With your store ready with all the products, what happens when you receive a client?

AliExpress dropshipping is pretty similar to all other dropshipping platforms.

Once you have booked an order, head over to AliExpress and purchase the product.

While you are purchasing, give your customer’s address and name to the seller.

Once done, the seller will handle everything else.

For dropshipping at AliExpress, it’s better to let your seller know your status as a dropshipper. 

It will help prevent the seller from sending any irrelevant invoices or promotion cards to the customer.

Once your payment is approved, the seller will send the item to your customer.

You will receive an email for delivery confirmation that you can keep for your record.

Do AliExpress Suppliers Offer Refunds?

Most AliExpress suppliers do not have a refund or exchange policy.

That means you need to have your dropshipping exchange or returns policy in place.

A policy is vital to establish excellent customer service and increase customer retention rate. 

In your policy, focus on issues like:

A Failure In Delivery

If your customer doesn’t receive their order, talk to the supplier to immediately resolve this problem.

If the seller refuses to respond, have a word with your customer.

Either refund them or find a replacement for the product.

To avoid this from happening again, change your supplier for good.

Delivery of Damaged Goods

In this case, it’s best to ask your customer for images of damaged products. Once provided, offer any refund in return.

Also, if you think the packaging wasn’t durable, have a conversation with the supplier to prevent such accidents in the future.

What Are the Benefits And Drawbacks of AliExpress Dropshipping?

Now that you know how the dropshipping model at AliExpress works, here is a list of some benefits and drawbacks to summarize this topic.

Benefits

Here are a few good things about AliExpress dropshipping:

• Nil Warehouse Costs

As a Chinese dropshipper, you don’t have to carry your inventory in a warehouse.

AliExpress does that for you, and this saves your rent, maintenance, and labor costs.

• Access to a Vast Product Market

AliExpress dropshipping allows you to create a considerable product portfolio for your customers.

It also promises outstanding quality and reliable service most of the time.

• Increases Growth

AliExpress is a platform with an unlimited number of suppliers and product categories.

If a particular product doesn’t suit your niche, you always have the option to shift to another category.

The same goes for suppliers available at AliExpress.

If your experience with a specific source doesn’t go well, you can always look for new suppliers.

Dropshipping at AliExpress promotes growth and helps deal with many business-related hindrances.

Drawbacks

AliExpress dropshipping also has a few disadvantages, including:

• Excessive Competition

Dropshipping doesn’t require much capital or approvals.

Hence, it is one of the most common types of business models worldwide.

With lots of people doing dropshipping, you may come across a very tough competition.

A single episode of poor service may easily divert your customers to a competitor.

• Very Risky

With no control on delivery time or quality of products, dropshipping is a risky venture model.

You may face slow service from the seller’s side or receive negative feedback on quality assurance.

Since you do not have access to the inventory, there is nothing you can do here.

However, having an honest supplier is a blessing, as it helps solve all the issues.

Is Dropshipping From AliExpress Dead?

No, it’s not. You can still make lots of profits if you know how to dropship from China.

It is a fantastic platform with some authentic sellers and vast product lines, but AliExpress lacks a quick delivery service.

And this has compelled many dropshippers to opt for other better alternatives.

Final Thoughts

If you are interested in starting a dropshipping business, AliExpress is an effective platform to source your products.

It is similar to Amazon dropshipping but comes with its unique tactics.

With an attractive list of products and sellers, you can quickly become a Chinese dropshipper at any time.

When looking for ways on how to dropship from AliExpress, give the products and sellers lots of attention.

Don’t compromise on the quality of the items you want to sell. Also, select sellers with excellent customer feedback and sales.

Be honest with what you do, and success will follow.

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Do you want to have a passive income source or a side hustle where you don’t have to invest much money?

The good thing is, there are plenty of options out there that can earn you a good amount of money as a side hustle, including dropshipping.

Imagine selling products on eBay without creating your inventory. It’s possible with the magic of eBay dropshipping.

That’s why we will share a complete guide on how to dropship on eBay.

But why eBay? It’s because it is an excellent online marketplace, which doesn’t require you to invest any upfront cost.

Additionally, eBay allows you to attract millions of its existing loyal customers.

This is a detailed guide that will tell you what you want to learn about eBay and dropshipping. It will help you get started in no time.

Important Facts About eBay

We all know that eBay is essentially an online marketplace that connects buyers to sellers from anywhere in the world.

You should know that eBay also follows a customer-to-customer (C2C) business model, empowering different customers to trade with one another.

Additionally, eBay has an additional option of auction-based selling.

The good news is that you can set up an eBay account for free, but it’s not possible to sell anything for free on eBay.

Instead, you have to pay a moderate listing fee depending on the product price and listing interval.

Another point to consider is that eBay has around 27 international operation websites, giving you global exposure.

Free Dropshippers for eBay

According to the eBay website, it allows dropshipping but it prefers that the wholesaler or the retailer directly ship the products to the customers.

There is one concern which you should consider before starting dropshipping on eBay.

eBay has a clear rule to revoke or lower the seller’s listing if you don’t deliver the shipment within the given time frame.

What Is Dropshipping?

Dropshipping is an e-commerce business methodology in which you don’t have to maintain a product inventory as a seller.

All you need to do as a retailer is to display your products’ images on eBay, while the supplier will directly send the order on your behalf.

The customer also doesn’t need to know the original sender of the product.

The Benefits

The most significant benefit of opting for dropshipping is that it involves lesser risk as the seller doesn’t need to maintain an inventory, saving both money and time.

Not only that, but the seller can sell products of different niches simultaneously.

One important thing to clarify is dropshipping is legal on eBay since there isn’t any illegality involved in the dropshipping concept.

As long as you adhere to the eBay selling policies, you can sell products from anywhere in the world on its website.

The Drawback

That said, the eBay dropshipping model is a bit complicated; that’s why this eBay dropshipping guide will help you understand the concept and create your eBay seller account.

eBay Dropshipping Guide

You can start dropshipping on eBay right away if you follow these five simple steps:

• Step #1: Create a seller account on eBay and a business account on PayPal.
• Step #2: Set up a new DSM Tool account and synchronize it to eBay.
• Step #3: You must optimize the eBay account settings according to the dropshipping model.
• Step #4: You must set up your eBay store policies to source products from AliExpress.
• Step #5: Use the DSM tool, which is essentially a dropshipping software, to source products from different websites.

One of the most crucial points of dropshipping on eBay is to create product listings and rank them higher.

You should use all the information provided by the suppliers regarding product information.

Additionally, you should use images and other descriptions to optimize the product listing.

What Are the Best Items to Dropship on eBay?

If you want to establish a successful dropshipping business on eBay, you should master eBay market research and other product sourcing.

In dropshipping, you need to find a supplier and source the products and do aftermarket research regarding in-demand products.

In reality, what you should be doing is to focus on the snipping technique, which we’ll discuss in a short while, to yield quick output.

Conversely, you can also perform niche research; however, you have to buy a subscription to eBay’s research software, Terapeak.

A rule of thumb is to include those products in your store, which have recently been sold multiple times.

It’s because these are the most searched products, and it’s precisely what all eCommerce stores are aiming for.

Nonetheless, it’s a futile effort to include such a product with high demand if you don’t find its supplier selling it at a cheaper rate.

That’s why the goal is to find high-demand products and their wholesale supplier selling them at a lower price at another website.

This technique is essentially known as the snipping technique.

The Snipping Technique

Snipping is quite an easy and straightforward technique, involving the following steps:

• Search competitor dropshippers generating significant sales.
• Perform an in-depth analysis of their store to find their top-selling products.
• Finally, try to source the best sellers at a lower price from the same website they are sourcing from.

Search

You can use the advanced search function on eBay to search for the results with up to 200 listings per page.

The next step is to target sellers with feedback ranging from 25 to 5,000. You can easily see the seller feedback rate available on the right side of the listing.

Another point to consider here is that not all the sellers are dropshippers.

To target the dropshippers, you need to check the following things:

• Is the seller from a European country or the US?
• Is he or she selling products for 30 percent markup from AliExpress?

If both the conditions hold, it means the seller is a dropshipper.

Analyze

The next step is to analyze the store and find out its best sellers.

You can download a Chrome extension, known as eBay popularity sort, and press the “Items for sale” on the dropshippers eBay store.

The extension automatically sorts down the items, showing best sellers on top. You can also click on the product to check the total number of sales and other sales history.

Source

The last step is to source these best sellers at a lower price. For this purpose, install the Ali Tools Chrome extension to search for the product on AliExpress.

Not only that, but you can also sort the products by popularity and price.

Examples of Best Selling Products

• Vintage Items
• Clothes
• Shoes
• Books
• Mobile Accessories
• Collectible Toys
• Home Decor
• Video Game Accessories
• Trading Cards
• Collectible Folding Knives
• Vitamins and Dietary supplements
• Body Wellness Products
• Breast Pumps
• Vaporizers
• Baby Carriers
• Sports Bags

How Much Does It Cost to Dropship on eBay?

If you Google the above question, it will immediately provide you with a theoretical answer in which you don’t have to spend a single penny on starting dropshipping on eBay.

In reality, though, you need to invest a small amount in starting dropshipping on eBay from scratch.

If you are a beginner, you can list products after using the credits of “zero insertion fees,” you pass the limit after accumulating 200 credits a month and start paying a nominal fee per product insertion.

Lucky for you, you can receive more zero insertion fee listings if you are a beginner who wants to start dropshipping on eBay by subscribing to an eBay store.

You can exempt yourself from the insertion fee due to your eBay selling limits in the following cases:

• Standard fee with no store package translates to zero insertion fee listing for up to 200 listings.
• Starter store package with up to 250 listings.
• Basic store package with up to 350 fixed price and 250 auction-style products.
• Premium store package with up to 1,000 fixed style and 500 auction-style products.
• Anchor store package with up to 10,000 fixed prices with up to 1,000 auction-style products.
• Enterprise store package with up to 100,000 fixed price and 2,500 auction-style products.

How Much Is the Initial Investment?

You should know that the initial investment required for starting dropshipping on eBay is risk-free.

It involves the working capital you credit so that you can finance the hold of funds for the first 90 days.

The biggest cost involved in setting up a dropshipping store on eBay is buying the products you want to sell.

For instance, you set a profit margin of 30 or 40 percent profit margin per product. You still need to pay most of the money to the product supplier to cover the order processing and shipment cost.

Another thing to consider is that sellers get paid with PayPal instead of an eBay account when you start dropshipping on eBay.

However, PayPal holds incoming funds for 21 days because PayPal keeps funds for 90 days from the day you receive your first payment.

A Breakdown on eBay Fees

To sum up, you need to cover the following fees to sell products on eBay:

• Insertion fee
• Final value fee
• Upgrade fee
• Promoted listing
• eBay store subscription fee
• Payment processing fee

After you cross the free listing mentioned above, you need to pay $0.35 per listing for most of the product categories.

eBay charges you a final value fee of 10 percent, only when you sell a product.

Keep in mind, though, that it’s 12 percent for movies, DVDs, music, and books.

Apart from a free listing, you can pay a listing upgrade fee if you want to upgrade the listing:

• Bold Title: $4
• Subtitle: $1.5
• The Second Category: Variable
• Large Photo: $1
• One or three day auction

You also have to pay the above fee upfront, whether your product sells or not.

If you want to opt for an auction-style listing, eBay charges an insertion fee of 10 to 35 cents, depending upon whether you own a store or not.

Can You Make Money Dropshipping On eBay?

Yes, you can, but not in the first few weeks. Let us clear a misconception here.

Some people think more sales and lesser expenses are the basic foundation for building a profitable business.

It’s time to change our mindset from establishing a profitable business towards building a healthy business.

Yes, you have heard it right. Healthy business! And the key to a healthy business is traffic.

Establishing an unhealthy store on eBay will not get you any traffic, or at worse, your store might get suspended.

eBay monitors your store’s health based on specific criteria, including the last 12 months’ sales, transactions, cases closed without seller resolution, late shipment rate, transaction defect rate, and more.

You must be wondering how to turn your dropshipping into a healthy business on eBay.

The secret is to find profitable products and perform in-depth SEO optimization to generate traffic and sales.

You also need to provide exceptional customer service by promptly answering the buyer’s queries, messages, cancellations, and returns.

Is Dropshipping On eBay Worth It?

According to Statista, eBay has approximately 106.9 million visitors per month.

That’s why sellers opt for dropshipping options to fulfill eBay’s product requirements due to its minimal overhead cost.

However, eBay has recently made changes in the dropshipping policy, making it difficult for the sellers to enjoy free dropshippers for eBay.

Some of the eBay dropshipping policy include points such as:

• Removal of product listings from the search
• Moving the listing to a lower position
• Listing restriction on eBay platform

These policies aren’t really preferable for sellers to dropship on eBay.

In addition to that, eBay allows the sellers to list the products only if available in bulk.

Another way is to purchase bulk products from a wholesale supplier, which ultimately increases the upfront cost.

How to Dropship on eBay: The Conclusion

The recent paradigm shift in technology has digitized everything, even stores, and their marketing.

Dropshipping has successfully transformed the existing business model in which you no longer need to maintain a vast product inventory.

We hope the above step-by-step guide explained helped you understand the processes of how to dropship on eBay.

All you need to do is create an eBay seller account, select a product niche, create a product listing, and start selling.

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E-commerce is the trend nowadays. Even well-known brand names sell their products online since most consumers buy from digital stores due to our situation today.

Dropshipping is the perfect option for small entrepreneurs who do not have enough resources to manage an online store and fulfill orders.

These days, one can easily create a dropshipping account from multiple e-commerce solutions that support this business model, like Shopify.

Let’s look further and learn how to dropship on Shopify while weighing the pros and cons of dropshipping.

What Is Shopify Dropshipping?

We know that dropshipping means fulfilling a retail order without the need to keep the products’ inventory, but what is Shopify dropshipping?

Shopify dropshipping is more user-friendly than most platforms. It’s also compatible with different apps specially designed for dropshipping purposes.

It comes with various features that allow you to do things other than sell products, like engaging in marketing, making payments, tracking shipments, and viewing analytics.

It will also teach you how to develop effective strategies to address the abandoned-cart issues for most online stores.

However, all of these features come with a price tag costing $299 a month compared to the basic fee of $29 monthly.

Is Shopify Good for Dropshipping?

Some sellers might ask, “Is Shopify good for dropshipping?” To date, Shopify is one of the biggest e-commerce platforms that fully supports the dropshipping business model.

It’s a popular and favorite platform for most merchants because of its dropshipping-friendly features boosting your online business.

A Shopify account’s variety of features will let you create not just an e-commerce webpage but an online business.

It allows you to set up and design your dropshipping site according to your preferences while helping you market your products and manage your sales.

With all of Shopify’s excellent features, you will not feel overwhelmed with its functions and uses as it gently guides you on how to dropship with Shopify.

Is Shopify Dropshipping Legal?

Is Shopify dropshipping legal? You might be having double thoughts about venturing into e-commerce, especially about legalities.

Ensure the legitimacy of your digital store by learning more about some dropshipping legalities and required paperwork.

These are just tips and suggestions, and we still highly advise that you seek actual legal advice from an attorney.

Shopify is a legitimate e-commerce platform, and dropshipping is a valid business model.

Combining these two means, Shopify dropshipping is a lawful enterprise.

There’s no need for you to get hold of a business license to start an online business on Shopify.

Still, it’s better to obtain one for taxes, liabilities, and legitimacy.

How to Dropship on Shopify

Now that we have confirmed the legitimacy of dropshipping on Shopify, let’s closely examine the Shopify dropship guide and how you can start your business.

Find Your Niche

The first thing you need to do is to find your niche.

What type of products do you want to sell? Who are your target customers?

You will receive numerous suggestions when it comes to choosing a niche.

Some will tell you to focus on your interest and passion for determining what products to sell.

Others will suggest that you look for trendy and profitable products to ensure that you attract customers and make money.

If you can’t decide which one to choose, you can always combine the suggestions and look for products you are passionate about.

• Research Keywords

List product keywords relevant to your chosen product category that potential customers will use when shopping online.

You can use free tools, like Google Keyword Planner, to research the most searched words related to your prospective product.

• Figure Out Product Trends

Combine your keyword data with product trend information to determine if your prospect product is still in demand or not.

For these details, you can try using Google Trends by entering your keywords to see their trends, whether they are still in demand or people are losing interest.

• Check Profitability

After determining the keywords and their popularity, it’s now time to check the item’s profitability since that is your primary purpose of venturing into e-commerce.

For your online store to thrive and make money, you have to look for low-cost but quality products.

Build a Shopify Dropshipping Website

So you have determined your product niche. It’s now time to create your Shopify website.

Here are the steps that you need to follow:

• Create a Shopify Account

Before you register to the Shopify website, you must have a specific store name since it’s the initial information you need to provide.

From there, you just need to follow the screen prompt and answer the questions regarding your personal information.

Once you complete filling up the form, you will receive an email confirmation from Shopify with your store URL.

You can bookmark your store address for easier access.                                                    

• Add Products

After setting up your account, you will get redirected to your account dashboard, where you can add products, design your store, set up your domain, and a lot more.

It’s best to start adding your products first before designing your store so you can choose your layout based on your added items.

• Write Product Details

Once you have added all your products, go through each item and edit the product information with an appealing description.

Also, don’t forget to add product tags to your listed items for more straightforward classification and organization.

• Arrange Your Collection

Group your products according to how you categorize them, making it easier for your customers to search for the right item.

Design Your Store

After arranging your collection, you can now use your creative juices and design your store.

You can choose a free theme or search Shopify’s marketplace for paid ones.

• Customize Your Site

You can edit the look of your digital store from Shopify’s theme designer page.

You can even upload your store’s logo or additional photos to enhance your site.

Try to play around with the theme designer until you find the right layout, color schemes, checkout page, and more.

• Add Pages

Next is creating pages for your website, such as the about page, FAQs, contact page, shipping, and returns.

You can also update the description, meta title, and other relevant information related to your online store.

• Set Up Page Navigation

After setting up your collection and pages, you can proceed to the navigation settings by choosing what should be showing on the main menu.

Imagine how you want your customers to explore your website and what should be readily visible for them.

• Edit General Preferences

This page is your Shopify website’s backend, where you can modify your page’s title and meta description.

You also have the option to add your Facebook pixel and Google Analytics code on this page.

Add a Domain

Once you complete your store set up, you can make it look more appealing and professional by adding a domain name instead of the default URL.

You have three options to choose from when trying to add a domain with Shopify.

The first is by connecting a third-party with Shopify if you have an existing one.

The second is transferring a domain to your Shopify. Make sure to check with the other provider for guidelines or restrictions.

Lastly, you can purchase a new customized domain through Shopify with prices starting from 11 USD yearly.

Set Up Payment Options

Now we come to payment settings. You will find that PayPal and Shopify Payments are the default options.

However, you can still choose to set up other payment providers or different paying modes under the Payment Providers page.

Shopify can transfer the funds to your bank account if you have completed the setup process and provided the necessary information.

You will receive an email notification from PayPal after you receive the payment so you can set up your merchant account.

Check Out Shopify Dropshipping Apps

You are almost done with setting up your Shopify website.

Go to the Shopify app store and check out some dropshipping apps that you can add to your page.

• AliExpress Dropshipping

This Shopify app lets you import the products from their platform, so you post them on your website.

Pricing and stock level are updated continuously through its auto-updating system.

The company handles order fulfillment.

It has varying pricing systems: $5 a month for imports up to 5,000 products; $10 monthly for imports of up to 10,000 items from Alibaba, other marketplaces, and AliExpress.

Imports of up to 20,000 products from Amazon, AliExpress, Alibaba, eBay, and more are charged $20 per month.

• MODALYST: Dropship Name Brands

This Shopify dropshipping app specializing in name brands offers a vast array of branded products and less known suppliers.

It has four significant marketplaces: Name Brands, Independent Brands, trendy, Affordable Products, and Low-Cost Goods.

They offer product name and description editing and customization.

• Oberlo

Oberlo is a dropshipping app owned by Shopify where you can find plenty of product choices to sell in your online store.

Oberlo will fulfill all orders for their products, giving you more freedom to focus on managing your store.

You can edit product descriptions, images, and names through Oberlo’s product customization feature.

Keeping tabs on all your orders is more efficient through the shipment tracking feature of Oberlo. 

The app is free for websites with 500 or lesser products, reaching 50 orders every month.

Accounts with 10,000 products and can market up to 500 monthly sales need to pay $29.99 per month.

According to Shopify dropshipping guides, you have to pay $79.90 a month if your website has more than 30,000 products and endless sales.

• Printful: Printful & Warehousing

This dropshipping solution is specific for businesses offering print-on-demand products like apparel, mugs, or posters using their original designs.

It has no upfront monthly fees, and all orders are fulfilled by Printful hence no inventory costs.

Pricing also varies depending on the item. They also offer photography services, capturing pro-grade photos for uploading on your website.

Choose a Paid Shopify Paid Plan

Shopify offers a 14-day free trial allowing you to explore its features.

However, you can only sell products from your store after choosing a paid plan.

How Much Does It Cost to Dropship on Shopify

You don’t have to pay anything if you want to launch your online store.

Oberlo’s starter plan is free, while Shopify has a free 14-day trial subscription that will give you enough time to set up your account.

If you want to start selling your products, you need to upgrade your account with the following charges: $29 monthly for the Basic Shopify subscription, $14 annual domain fee, plus $29.90 a month for Basic Plan for Oberlo.

Thus, you need to pay an initial of $72.90 for the upgraded dropshipping account, plus an additional $58.90 a month for Shopify and Oberlo subscriptions.

How Profitable Is Shopify Dropshipping?

Some successful dropshippers earn as much as $100,000 in a year after building a brand and having the right suppliers.

One great example was how Becky Beach started with her online boutique dropshipping business.

Using her innate talent and acquired knowledge, she was able to grow and expand her business.

Printful, one of the dropshipping apps on Shopify, checked on Prinstant Replays, an online store with Shopify and Printful accounts.

They sell printed shirts and posters with classic sports play designs.

The company said that it never experienced any losses since it started with its dropshipping businesses.

According to studies, Shopify has over a million merchants to date. It has reached its first billionth order during the second quarter of 2018.

China still has the most Shopify users, making it the third most famous dropshipping company at present.

New entrepreneurs have a big chance of succeeding in this business model as long as they follow the Shopify dropship guide we have discussed.

How to Dropship With Shopify: The Conclusion

Knowing how to dropship on Shopify and having a successful enterprise are two different things.

It’s easy to create and launch a Shopify website, but it’s a bit challenging to maintain regular traffic.

You must have a good working relationship with your suppliers to ensure smooth transactions at all times.

If you are not aware of the comprehensive Shopify dropshipping guide we have discussed, you might get overwhelmed when issues arrive.

Kickstart your dropshipping business through the help of Shopify.

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Everybody knows what Amazon is. It is the biggest and one of the most visited online retail stores offering a wide range of products worldwide.

Have you ever thought of becoming an Amazon seller and grow your business through this online shopping app?

What if you don’t have enough capital for a substantial inventory? That is where dropshipping comes in.

We will show you how to dropship on Amazon, check its pros and cons, and understand if it is worth your time and effort.

What Is Dropshipping?

If you are not too familiar with this digital trade, let us first discuss dropshipping in brief.

Dropshipping is an online business model where you sell items that you don’t have in stock.

As a drop shipper, you have to look for trusted suppliers of products you want to sell in your online store, increasing the price as you post them.

Once a customer buys one of the posted items on your page, you forward the order details and the buyer’s information to your supplier.

You also pay the supplier with the item’s discounted price as you get your share of the profit from the marked-up price paid for by your customer.

At this point, packing and shipping the item to the customer lies with the supplier.

However, your buyer will still be contacting you for follow-up or if there’s a problem with the product.

That’s the essence of dropshipping. You can start selling online even without large capital and earn by only posting items online.

Nevertheless, you are responsible for maintaining your digital store.

You have to ensure that you take care of all your customer’s concerns related to his purchase.

Are You Allowed to Dropship on Amazon?

Does Amazon allow dropshipping? It’s one of the most frequently asked questions, especially from those new to e-commerce.

The simple answer is yes. Amazon allows dropshippers provided that they follow the platform rules, such as:

• You are the seller of all the products in your online store.
• Your information must appear on the product’s invoice and packing slip.
• The third-party supplier information must not show on any part of the order.
• You must handle all customers’ concerns about the product.
• You must abide by all the terms found in the seller agreement of the Amazon policies.

Amazon became one of the major e-commerce platforms because they provide opportunities for vendors, big or small, to use the website and market their products.

Does Amazon allow dropshipping? We have proven that they do. Aside from the guidelines stated above, below are additional rules to take note of to prevent account suspension:

• Your store’s order defect rate must not go beyond one percent of your overall shipped orders. A delivered item with negative feedback, an A-Z claim, or a chargeback is considered defective.
• Your cancellation rate must not exceed two and a half percent. These are canceled orders, either by you or the customer, before shipment confirmation.
• The late shipment rate is another factor to consider. You must not surpass four percent to avoid account suspension.

 

Is Dropshipping on Amazon Profitable?

You may be wondering how to make money dropshipping on Amazon.

Is it profitable to venture into this business model?

Getting into Amazon dropshipping can be lucrative, with its average limit of ten to 30 percent margin.

Amazon typically takes 15 percent off your profit; thus, if you reach the 30 percent margin, you will get the remaining percentage after the sales.

Dropshipping on Amazon is one of the most economical ways to start an online store since you don’t need considerable upfront money.

You also have the opportunity to reach a larger market compared to selling your products on your website.

How Do I Become a Dropshipper for Amazon?

Now that we have confirmed that Amazon allows dropshipping, naturally, your next query is how to start a dropshipping business on Amazon.

Here is a step-by-step guide on how to start a dropshipping business on Amazon:

1. Create an Amazon Seller Account

To create an Amazon seller account, you need to go to sellercentral.amazon.com.

From there, you need to choose whether you are making an individual or a professional seller account.

An individual Amazon seller account is for vendors who can sell 40 items or less every month.

In contrast, a professional Amazon seller account is for vendors who can market more than 40 products monthly.

2. Find the Right Products to Sell

Look for a high-demand product that does not have a lot of competition.

Be wary of Amazon’s requirements and restrictions when it comes to product choices.

There are plenty of product categories to choose from that do not need approval.

You can sell books, computers, electronics, office products, and video games, to name a few.

Beauty, fashion, and jewelry are some niches that need approval from Amazon; hence, you need to review the requirements for these product categories.

If you are a beginner, it is better to sell low-maintenance items first, such as housewares, home and garden products, or sports and outdoor items.

3. Find a Supplier

Once you decide on a product category, it’s now time to find a trusted supplier.

You can get your items directly from the manufacturer, a wholesaler, or a fulfillment center.

On the other hand, you can also check other online retail websites catering to small businesses searching for sellers who can market their products.

4. Create an Amazon Product Listing

If you have found a supplier for your chosen product, you can now make an Amazon product listing.

On your Amazon Seller Central account, go to inventory and choose the add a product option.

A screen pop-up will appear, then click on “Create a new product listing.”

Choose the product category and fill out the details about your listing. Remember Amazon fees when pricing your items.

Professional sellers have to pay a specific percentage based on their product category.

In comparison, individual sellers must pay Amazon a dollar for every completed sale.

After completing the details about your product, you can now click on publish so customers can see it on Amazon pages.

What Are the Benefits of Amazon Dropshipping?

We now have a better understanding of this business model and how to make money dropshipping on Amazon.

Let us also take a closer look at the benefits of this venture.

No Warehouse Cost

Dropshippers don’t have to spend extra cash for stocking products in a warehouse because Amazon does it for you.

The platform also offers FBA or Fulfilled by Amazon, where the sellers send the items to Amazon.

From there, Amazon fulfills the order by shipping it to the customer.

Amazon Suppliers

Amazon buys most of its products from European suppliers in bulk and then stocks them in their warehouse.

Amazon also takes care of everything related to the purchase, including returns and customer service, even for international customers.

Amazon account managers help all of their suppliers to grow their businesses internationally by providing strategic guides to increase their profits.

Multiple Product Categories

Amazon offers multiple product categories, providing you more options to choose your preferred niche target.

You can even select more than one niche for different customers.

Large Market

Businesses selling their products on Amazon have a bigger chance of making money because of the platform’s massive number of active users.

If a vendor knows what products to sell and offers them at an affordable price, customers will notice and increase sales.

You can take a hint from Becky Beach, who started her online boutique business in 2015 selling handbags.

Since Amazon has an established market, small-time sellers have a bigger chance of attracting and expanding their customer range.

What Are the Downsides of Amazon Dropshipping?

Of course, we cannot have the advantages without the disadvantages, and dropshipping is not exempted.

Here are some of the most common ones:

Competition

Since setting up a dropshipping business does not require substantial capital or paperwork, you will encounter lots of competition.

Although Amazon offers multiple product categories, there are still plenty of vendors selling similar items.

It’s now up to each seller to market their goods and how low they can price their products to stay in the competition.

Slow Delivery Time

Most drop-shipped goods come from suppliers and manufacturers overseas, taking longer delivery time to the customers.

Lack of Quality Control

Since the sellers don’t have the products’ inventory, and all items are shipped directly to the customers, they are not aware of their quality.

The long travel time from the supplier to the customer may also damage the product, resulting in negative feedback or complaints.

Can I Dropship From AliExpress to Amazon?

AliExpress, like Amazon, is an online retail store and dropshipping platform owned by the Alibaba Group based in China.

Since both platforms attract a huge following, more people have the chance to explore and try dropshipping from AliExpress to Amazon.

So if you are still asking if you can dropship from AliExpress to Amazon, the answer is a resounding yes.

Amazon sellers can choose a product from the AliExpress webpage and copy the product details, including the images, to their Amazon accounts.

You can mark-up the price as you publish the product to your Amazon seller account.

When a customer buys that item, AliExpress will send it directly to your customer from its warehouse.

Following the dropshipping process, Amazon only receives the order but will not have access to the product.

It’s the best business setup for newbies in the e-commerce industry.

Amazon is your seller platform, and AliExpress acts as your supplier.

How to Succeed in Amazon

If you want to know more on how to make money dropshipping on Amazon and succeed, here are additional strategies that you can follow:

Win the Buy Box 

What is the Amazon Buy Box? It’s the white box found on the right side of a product detail page, allowing customers to add the item to their cart.

Only professional seller accounts selling new items and with excellent metrics have the chance to win the buy box button.

Also, sellers must have an inventory of their posted product and ship it immediately within 14 days from the order date or lose their eligibility to win the buy box button.

The overall product cost must be lower than the other sellers is also part of the metrics for the buy box eligibility.

95% Seller Rating

Having a high seller rating is crucial to your business. Most vendors aim for at least a 95% or higher rating to boost their store.

Customers are more likely to trust your Amazon store and chance upon your business as they search the Amazon platform.

Do Keyword Research

Part of your Amazon product page optimization is using the right keyword.

Do some research and look for the most used keywords by the customers.

Using the right keywords on your product detail pages helps put your online store on a higher ranking during searches.

You can use online tools to do your research, like Merchant Words and Amazon ads, to help you target the right customers for your store.

Set-Up Competitive Prices

Ensure that you price your items with high margins, so you still profit after paying off Amazon fees and other charges.

However, your pricing should still be competitive with other sellers if you want to make a sale.

Optimize Product Title

Create product titles related to customer searches to get your customer’s attention. Avoid adding too many keywords on your item headings.

Professional sellers suggest that the title’s first word must be its brand name since customers often use it during searches.

Promote Your Listings

If you want to boost your sales, you need to promote your products and your store to lure customers into your webpage.

There are plenty of ways of directing traffic to your product page by utilizing technology through social media, email marketing, blogging, and more.

How to Dropship on Amazon: The Conclusion

Learning how to dropship on Amazon is a great help, especially for new online sellers who want to venture into this business model.

Professional sellers and veteran entrepreneurs will also benefit from Amazon dropshipping, boosting their business and attracting more buyers.

If you are serious about pursuing the dropshipping business, it is better to know some legalities and other legal requirements you need.

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You may have probably heard of dropshipping before but don’t fully understand what it is about and how it works.

In a nutshell, it’s an order fulfillment process that takes place online.

If your only concern is knowing whether is dropshipping legal or not, you can rest assured that it is, indeed, legal.

Before you decide to go into this e-commerce trade, though, it’s better if you first try to understand what it is and what its most common pros and cons are.

You can also look at this business startup checklist to give you an idea of what you need to do before jumping into the wagon.

Is Dropshipping Legal?

Before we go further about dropshipping’s legalities, let us first understand this e-commerce business’s basics.

Simply put, dropshipping is selling items online that you don’t have on-hand.

Here’s how the process goes: After receiving an order from a consumer, you then get in touch with a direct supplier, who gives you a discounted price of the product.

The third-party supplier will then send the item to the consumer. Your profit is the difference between the amount you received against how much you paid for it.

The problem is you don’t have control over the product’s quality and when your buyer receives it after the purchase.

As a seller, your main focus is to market and advertise the products and ensure that the consumers always feel your store’s online presence.

You act as the link connecting customers to suppliers offering the products they are looking for.

This dropshipping practice is very prominent in various online marketplaces that we regularly visit.

Now that you know it’s legal, don’t get too excited just yet. You may also encounter some legal issues along the way, depending on your supplier.

Legal Liability Issues

We are not saying that all dropshippers encounter legal liability issues with their businesses, but it’s better to be aware of it.

Remember that your direct supplier plays a significant role in the success of your dropshipping journey, so choose who you deal with carefully.

As a dropshipper, you are always dependent on your supplier to provide quality products and deliver them on time.

Be careful when choosing a supplier, as you might encounter unscrupulous and deceptive ones pretending to be legitimate businesses.

Keep in mind that you are also responsible for whatever illegal activities your supplier does because you are on the frontline of every transaction.

To reduce the risk of having problems with your suppliers, don’t forget to create a Dropshipping Agreement Contract before doing business with them.

Dropshipping Legal Requirements

Is dropshipping legal? We already know that it is.

Still, all entrepreneurs going into any type of business must comply with legalities for their venture.

Here are some dropshipping legal requirements you must consider and understand before creating an online store.

1. Business License

The first questions you would generally hear from new dropshippers is all about getting a business license.

Technically, you don’t need a business license to build a digital store and sell products online.

However, getting one is an excellent addition to your credibility as an online vendor.

2. Legitimacy

Another vital aspect to consider when starting your dropshipping venture is the legitimacy of your business.

Getting a business license only proves that your intentions are clean and you want to start a legitimate venture.

As your business progresses, you also need to process additional documents for your suppliers and other business dealings you might undertake.

3. Liability

Dropshipping means sourcing most of your products from overseas suppliers, which means you don’t have any idea or control over their quality.

As a seller, you will always be liable for how you conduct your business and all the products you sell on your platform.

Having a business license lessens your liability if one of your consumers complained about a product bought from your digital store.

You can also get Product Liability Insurance to further protect your business from legal and financial claims because of low-quality items bought from your platform.

4. Taxation

The taxation process may differ depending on each dropshipper’s geographical location, much like a business license.

At the same time, this factor is another vital element for your business to be recognized and prove its legitimacy.

Taxation is an evolving part of e-commerce; thus, it’s best to consult an accountant and a tax lawyer about this matter.

Optional Requirements

Sometimes, you might want to add other recommended elements for your business to act as extra protection if a problem arises.

1. Disclaimers 

Disclaimers are not legal agreements. They are statements meant for the consumers to understand your website and its policies better.

Disclaimers serve as reminders for your customers to understand your website’s limitations when handling disputes and complaints.

Choosing the type of disclaimers you need to put on your website depends on what kind of products you are selling.

Some standard disclaimers include affiliates, external links, legal, and health and safety.

2. Legal Agreements

Although not necessary, your online store should have definite Terms and Conditions. It’s an added protective measure to lessen legal risks.

It’s another way of letting your customers know how you run your business, especially when it comes to exchanges and refunds.

Online businesses require consumers to provide their data on the website for you to process their orders.

Most countries lawfully require digital stores to include a Privacy Policy on their websites to protect their consumers’ information against identity theft and other risks.

3. Refund Policy

Any type of business should have specific guidelines and policies, making it straightforward for every customer to know what to expect from the seller.

Online stores don’t need refund policies. However, there will always be exceptions to the rule where you will have to reimburse a customer.

Having this policy allows you to respond to a customer’s complaint in a legal manner where your business is protected while addressing the issue.

Unsatisfied customers can quickly spread negative reviews about your products and business, which will impact your credibility.

Ethical Marketing Practices

Whether personal or professional, we must learn how to observe and practice proper ethics in any dealings with other people.

Here are some marketing platforms where you can promote your products and how to do it.

Amazon and eBay

These are two of the largest digital platforms you can use for selling products online, where dropshipping is generally acceptable.

Primarily, you have to abide by their rules on handling dropshipping if you want to use these websites.

Thus, it’s crucial to learn and comprehend their policies and requirements for online selling. Today, we will run through some of their guidelines to give you an idea.

1. Ethical Violations

One of the biggest mistakes you can make as a seller is to acquire your product from another popular digital platform and sell it on these two websites at a higher price.

It’s an irresponsible marketing practice, as you take advantage of the customer’s trust and violating the websites’ policies.

2. Correct Way To Use the Website

The correct way of selling on Amazon and eBay is to look for manufacturers and suppliers who can provide unique products for your store.

Shipping timeline fulfillment is vital when using these online platforms. Thus, it’s crucial to have an excellent relationship with your suppliers and consumers alike.

There are also other things you need to consider when selling on this digital marketplace, like:

• Abide by their return procedures
• Comply with their legal agreements and policies
• Follow their packaging rules and documentation

Eventually, you will realize that it’s better to build your online platform and follow specific guidelines according to your ideals.

Email Marketing

Sooner or later, you will notice that your followers have increased, and your website is starting to gain traffic.

One way to better promote your business is through a newsletter subscription to update your customers and provide exclusive offers.

However, make sure you also check anti-spam laws in your area to guarantee you are not violating anything.

Standard Legal Compliance Practices To Consider

Below are some of the generally known practices when using email marketing for your e-commerce website.

• To provide the customers the option to receive further email communication from your website
• To prohibit using misleading header information
• To prohibit using false subject lines
• To establish that you are sending an advertisement
• To provide your business address
• To explain the process of declining additional email communication from your platform
• To immediately acknowledge the customer’s refusal for further email communication from the website
• To continually monitor what your admins did on the website
• To collect and safeguard the consent information
• To be aware of any changes made about the policy

Product Legalities

Most online sellers want to sell popular products to attract consumers. However, they can get into legal trouble if they don’t have the permission to do so.

Be aware of the following issues to avoid legal battles if these recognizable brands sue you.

1. Infringement or Breach Scenarios

Under this scenario, we will look at two violation examples that might cause legal battles between you and the concerned product’s company.

Copyright and Trademark

A trademark is any legally registered words or symbols representing a particular company’s brand or product.

On the other hand, a copyright is the absolute legal right provided to the creator of the word or symbol, authorizing them and others to use it accordingly.

These two intellectual properties are technically the same, although each one is protecting a specific asset.

Trademarks protect anything that symbolizes the brand, like its logo, while copyright protects artistic and literary creations, like books and music.

Counterfeit, Knockoffs, or Replicas

This second infringement scenario is the different categories related to either copyright or trademark violations.

It’s crucial to know each category’s difference, as they come with a specific legal consequence depending on the seller’s involvement.

Counterfeit products are created to look the same as the original, falling under both trademark and copyright infringement.

Allowing the customers to believe that they are buying an original product is a fraudulent practice that may lead to a lawsuit.

Knockoffs and replicas have a more subtle approach to copying a product from a famous brand to work their way around laws about counterfeiting.

Manufacturers usually copy the design of a famous brand but without the name or logo. Though it’s still deceiving, they are not considered illegal.

For those who wish to sell items from these famous brands, the law requires you to get a Reseller’s License to make it legal.

2. Prohibited and Restricted Products

It’s effortless to post and sell anything on your online store and digital marketplace.

However, you must be aware of specific laws about prohibited and restricted products.

A seller must have the proper credentials and documents to sell these items. Make sure you have a full understanding of the products before posting.

You can sell some restricted products online, provided you have a license, like food, liquor, and medicine.

Having a license to sell these products prove that you manufacture and distribute these items according to standards.

Prohibited products are banned items you cannot sell anywhere. Still, the list of both prohibited and restricted products vary according to your geographical location.

Below are some of the most common prohibited product categories you need to be careful of:

• Animals and plants
• Aerosol sprays
• Cash
• Drugs
• Intellectual property infringements
• Medical waste or poison
• Pornography 
• Precious metals and stones
• Weapons
• Illegal products from the originating country

Make sure to thoroughly check each item before posting anything on your platform to avoid legal conflicts.

Is Dropshipping Illegal?

Is dropshipping illegal? No, it’s not as long as you don’t sell prohibited items we have identified earlier.

Make sure you always observe excellent ethical business practices with all your transactions to avoid legal complications.

If you want to venture into something you are not familiar with, do extensive research on the subject. Look for recommended tools and websites to use for your business.

Additionally, make a comprehensive business plan to follow and use it as your guide to help you grow your business.

Last but not least, look for legitimate suppliers for your business and start building trust and confidence from your customers.

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Is dropshipping worth it? It’s a question uttered mostly by those thinking of starting a digital business.

Digital technology is fast-evolving, which is why e-commerce is becoming more and more popular among business-minded individuals.

Dropshipping, being a digital trade for more than a decade now, is still relatively young, which is why many don’t really know how it works yet.

What Is Dropshipping?

To better understand what dropshipping is, let us first clarify its meaning.

Dropshipping is a selling method of fulfilling a customer’s order through a digital store.

Here’s how it goes: First, the seller posts products online.

Next, when a consumer purchases one of the items, the dropshipper buys it from a supplier at a lower price.

The third-party supplier will then process the order and ship it straight to the customer.

Essentially, this means that the seller doesn’t handle the item.

As a seller, you get your share of the profit from the amount difference between the actual price of the item and how much you sold it.

It sounds easy when explained this way. However, there’s more to being a middle-man between the buyer and the supplier.

This order fulfillment process requires the seller to spend hours researching the right product to promote at the perfect time and on the correct platform.

Is Dropshipping a Good Business?

Is dropshipping a good business? Post this question in any forum and expect a mixture of answers.

There are plenty of blogs promoting dropshipping as the most effective option if you want to venture into e-commerce and become self-employed.

Admittedly, that claim is valid in some ways.

Maybe one of the best parts of going into dropshipping is its low financial upfront requirement.

One can quickly post an item for sale online without the need to have it in stock. You only buy a product from a supplier as needed.

So, capital-wise, dropshipping is an excellent business choice. However, don’t expect to earn thousands of dollars instantly. 

The Truth About Dropshipping

Let’s take a closer look at some facts and learn the truth about dropshipping to help you decide if you want to test the waters of e-commerce.

Low-Profit Margins

Since dropshipping does not require you to stock an inventory of all the products you are selling, you don’t need significant capital.

The problem is, you also get low earnings. You need a lot of sales before you can expect an increase in your profit.

If you are new to the dropshipping industry, your digital store needs steady traffic to build a following.

As a dropshipper, you need to manage your store, talk with suppliers, process the orders, and handle customers’ queries and complaints.

Highly Competitive

Again, dropshipping requires little capital, which also means you will have plenty of competition.

Also, more prominent companies can offer lower prices for the same product than new and smaller digital store owners.

No Control Over Supply

In dropshipping, vendors are dependent on their suppliers, but you need to handle all the client’s customer service needs.

If your customer has an issue with the product, you have to relay it to the supplier and wait for their response.

While you are waiting for the supplier to resolve the concern, you have to reassure the customer that you are doing something to fix it.

Legal Liabilities

Handling legal responsibilities is not a common thing for dropshippers unless you are dealing with dishonest suppliers.

Keep in mind that you are also responsible for whatever wrongful actions your supplier does since you are selling the questionable product.

Most experienced dropshippers always have the Dropshipping Agreement Contract ready when dealing with a supplier.

Branding Challenge

Dropshippers are the songwriters of a popular song. Your customers will remember the product brand but rarely your store.

That is why branding is essential if you go into digital trade. You have to make sure your customers remember your store when they shop online.

If you have loyal customers, it ensures consistent traffic to your platform, which is crucial for all online stores to survive.

How To Start Your Dropshipping Journey

If you are thinking of starting a dropshipping venture, here are some recommended steps for you to follow to save you time and trouble along the way.

Step 1: Invest Commitment and Dedication

Just like any other endeavor, you must have a long-term perspective and a significant commitment and dedication to build your dropshipping business.

Ensure you have a clear idea of what to expect from dropshipping and the amount of time and money you need to invest for this to work.

Invest your time to learn everything about the dropshipping business. And extend extra effort to know your market and your customers.

You will become a better entrepreneur as you learn new skills while knowing how to operate your business.

You can expect better chances of success in dropshipping if you focus your efforts full time on building your business. 

Investing money is also necessary to launch and operate your business. Shelling out at least $1,000 is enough for minor operating expenses.

Step 2: Market Research

You have to do some market research to choose the right dropshipping business niche that will make money.

Look for popular niches and trending products online to attract customers to your platform without competing with well-established online stores.

Niche products like beauty items, electronics, fashion, fitness, phone accessories, and yoga-related goods generally have an enthusiastic customer base.

Step 3: Competitor Research

Dropshipping is a competitive business, hence the need to learn about your competitors so that you can sell your products successfully.

It’s also crucial to have a comprehensive business plan to guide you through your marketing journey.

They say that competition is fair in dropshipping.

Try checking out other companies, including one or two popular ones, to help keep your focus.

Also, run a Google search about your products or niche to see the top businesses under that category.

It would also help to browse social media platforms and look for your niche in Facebook Ads to find the current top brands.

Finally, you can get updates from your competitors by subscribing to their email list.

This strategy provides you with first-hand updates about how they market their products.

Step 4: Choose a Supplier

To ensure your dropshipping business’ success, you have to be very careful with choosing your supplier.

You don’t have anything to sell if you don’t have a supplier.

After deciding on what product to focus on, look for a distributor with high-quality service.

Step 5: Build Your e-Commerce Store

Next, look for an e-commerce platform where you can do your business, like selling products, processing payments, and creating traffic.

These e-commerce platforms allow you to manage your products and sell them in different places. You can also accept payments in various currencies.

It’s easy to design and develop your online store, as these platforms provide tools to modify how your store looks.

Step 6: Choose a Business Structure

If you are serious about this business pursuit, it’s best to take the necessary steps to make a legitimate one.

One of the most straightforward business structures is the sole proprietorship.

However, it does not offer personal liability protection. A lawsuit may jeopardize your assets under the sole proprietorship structure.

An LLC or Limited Liability Company can protect your assets by building your business as an independent legal body.

Although LLC’s protection is not flawless, it’s better than the sole proprietorship’s lack of security.

The one that offers the most liability protection is the C Company, which is how most significant businesses are built.

However, a C Company is more expensive to set up and may have to shoulder double taxation.

You can also check this business startup checklist to guide you with what you need to do when building your business.

Is Dropshipping Worth It?

Is dropshipping worth it? It depends on a seller’s perspective.

You can venture into dropshipping if you have an established business and wants additional and reasonable income.

However, if you expect a more significant profit after several purchases, then dropshipping is not the right business for you.

A dropshipping entrepreneur must exert effort, money, and time for the business to survive and prosper.

Here are some pros and cons of dropshipping to help you decide if dropshipping is worth a try.

Pros:

• You have the option to sell various products, whatever your platform niche is.
• You have a useful business model patterned after big and popular online marketplaces.
• You are not required to keep an inventory of all your products.
• You do not have to worry about packaging and shipping of items.
• You are not required to provide upfront capital.

Cons:

• The high price-point of handling and drop-ship charges can eat up your profit.
• Some companies don’t drop-ship their products.
• It’s hard to monitor the availability of an item from the supplier.
• You may encounter some suppliers with inconsistent service.

Can I Really Make Money With Dropshipping?

As mentioned earlier, dropshipping is still one of the most sought-after businesses in the e-commerce industry.

It’s a thriving business, too, as most people have learned how to adapt their lives to how technology works.

Dropshipping allows new entrepreneurs a safe and convenient way to open a business without doling out significant capital.

To ensure your dropshipping business can bring in money, you must choose what product or niche you want to focus on for your platform.

Do extensive research to determine if your chosen product can attract a particular market.

Also, check the average price of the product and if your customers can afford it.

How Much Does the Average Dropshipper Make a Year?

The amount of money an average dropshipper can make may vary depending on multiple factors.

Some average entrepreneurs can make as much as $100,000 in a year. 

You can differentiate dropshipping into two categories: low- and high-ticket varieties.

Let’s look at how they differ from one another.

Low-Ticket Dropshipping

This low-ticket dropshipping model is the one usually advertised online. Here, you need to create a digital store on an e-commerce website.

You can create a specialty store selling specific products or only a general store that sells almost anything.

You can now post products sourced from an online marketplace to your digital shop based on your created store. 

Next is advertising your store on various social media platforms, like Facebook and Instagram.

If possible, you can also ask some online influencers to promote your products for a price.

Some seasoned dropshippers don’t recommend this low-ticket business model due to a large amount of time and money for advertising.

Your initial advertisement might click but may not last for long, which means you need to create another one. Doing so requires time, money, and effort. 

If your product supplier is overseas, you will encounter shipping delays and custom issues, which can take a toll on your business.

Due to these reasons, the profit per product sold is low. Your website may earn higher if you can also increase your sales.

High-Ticket Dropshipping 

According to experienced dropshippers, high-ticket dropshipping is the way to go if you want a more viable business.

With this business model, you also have to create a digital store on an e-commerce website.

However, instead of merely uploading items, you have to partner with well-established suppliers.

These stable distributors typically sell expensive or heavy items, making them perfect for dropshipping.

You can post their products on your platform and advertise them on Google Ads using the perfect phrase or keyword.

This technique will generate earnings from consumers who are continually searching for products online, creating traffic for your platform.

You can now look for other established suppliers or products and repeat the process until you create more ads that will sustain your business.

Is Dropshipping Profitable?

To conclude, let’s answer this question: Is dropshipping profitable?

As discussed, this business model is useful in bringing in profit for your business.

You can sell all types of products at a lower cost since you don’t have to stock the items and keep them on hand.

Undeniably, this order fulfillment method can generate more income than other e-commerce ventures.

Conversely, it’s more reasonable to venture into dropshipping if you include it in an already-established business with regular traffic.

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Knowledge is everywhere but getting that at the right place in a proper way is best. Here are the top 10 business books which will help you if you are running a small, medium business or you are an entrepreneur or you want to know how the corporate world works. Then you are in the right place.

Disclosure: Please note that some of the links below are affiliate links. When you make a purchase using the links below, there is no additional cost to you. I’ll earn a commission from the merchant. Please bear in mind that I’ll only recommend products/services I tried. The affiliate commission helps me to keep this blog free for readers like you. Thank you.

The Top 10 books are:

1.Getting Everything You Can out of All You’ve Got by J. Abraham

2.The Effective Executive by Peter F. Drucker

3.The 48 Laws of Power by Robert Greene

4.Start With Why by Simon Sinek

5. Influence: The Psychology of Persuasion by Robert B. Cialdini.

6.Built to Last: Successful Habits of Visionary Companies by Jim Collins and Jerry I. Porras

7.Master Content Marketing By Pamela Wilson

8.Never Split the Difference by Chris Voss and Tahl Raz

9.Decisive by Chip Heath and Dan Heath

10.7 Habits of Highly Effective People By Stephen.R.Covey

Below are more details on why I selected these book.

1.Getting Everything You Can out of All You’ve Got by J. Abraham

The book guru Jay Abraham has given 21 different ways of sales and marketing of the business. In a proper format, he has explained the concept by using real-life examples and advice. If you want to build trust, generate leads, and how to keep your clients happy, you must refer it.

2.The Effective Executive by Peter F. Drucker.

The author has mentioned the habits that you should follow to increase your efficiency and effectiveness. It tells you how to eliminate hard work and do smart work. It’s all about how you manage your time and prioritize your work. It will help you to achieve your personal goals.

3.The 48 Laws of Power by Robert Greene

This book is for you to discover different personality traits and how you can incorporate the power of them. Some laws explain the nature of human and individual power. It will help you to push your ambitions. You will get to know many secrets which you can add in yourself to get amazing results.

4.Start With Why by Simon Sinek

This book as the title says Start with why. With the help of this book, you will ask yourself why you have started your business instead of what you should do now. Because the base is clear then you can easily get the answers to the next questions. Simon has explained different approaches to inspire you and your employees and how can you find the answers to the above questions.

5. Influence: The Psychology of Persuasion by Robert B. Cialdini.

Robert wrote this book with his 30+ years of experience by searching and analyzing everything by himself. He mentioned some fabulous tips and tricks to increase your business sales. He also has explained how you have to stop manipulating every time and take some hard decisions for the business. It’s great if you want to increase sales and convince your customers.

6.Built to Last: Successful Habits of Visionary Companies by Jim Collins and Jerry I. Porras

In this book, you will find different companies’ ideas to execution details. How they managed things and what different they did to become successful. You cannot copy things for your business, but yes you can take things that are suitable for your business. It gives you exposure to the world.

7.Master Content Marketing By Pamela Wilson

This book is a savior to all those people who struggle in content creation. Pamela has explained all the strategies and tips to create content easily and make it engaging. The best part is he also teaches how you can make unique content consistently.

8.Never Split the Difference by Chris Voss and Tahl Raz

Negotiation is an art that cannot be done by everyone. It seems to be easy but when you do it practically it is not. So in this book, you will get to know how you should negotiate and where you were going wrong before. The strategies are easy to implement. If you want to learn this skill then refer to this book any day.

9.Decisive by Chip Heath and Dan Heath
There are times when we tend to make wrong decisions. This book has tools that will guide you and help you to make the right decisions in all the areas of your life. It’s important to make better choices.

10.7 Habits of Highly Effective People By Stephen.R.Covey

This book is from the 90s but still, it’s the most popular and famous one. The books have content that works tremendously in favor of people. It helps you to balance your things and focuses on the questions of your starting phase. Highly recommended to people who want to create something good in personal and professional life.

Concluding here with the list of top 10 books that will help you. And now you know which one to start for. Let us know in our comment section what are your views and which one you liked the most.

 

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When I read stories of companies like Uber, FaceBook, AirBnB getting started in a dorm room or someone’s garage, it seemed like fantasy and unreal. But when I talked to dozens of entrepreneurs for my second book ‘The 60 Minute Tech Startup”, it is all so real as many of them have done just that.

The 60 Minute Tech Startup is now available. Grab your copy at https://lnkd.in/dRHGmp9.

Here are the featured entrepreneurs:
Lori Cheek, Nathan Miller, Will Roberts, John Holmes II, Sukhi Jutla, Kunal Jain, Scott Swedberg, @Rebecca Beach, Will Hankinson, Brian Meert, Gundi G., Jill Dyché, Kyle Isaacson, Vartika Manasvi, Cory Minton

All of these people have inspiring stories. Some like Gundi had successful careers before starting their own ventures. Others like Vartika still working their way up. Someone like Kunal has built a powerhouse like @Analytics Vidhya from scratch. Sukhi works on cutting edge technologies like blockchain.

So proud and honored to have interviewed them for my book. As the book is free until Sept 2, you have nothing to lose to download and give it a glance.

https://lnkd.in/dRHGmp9

By the way, my interviews with all these are entrepreneurs are at https://RameshDontha.Com/podcast.

 

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