Transcript:

we're goodMaybe you've heard of drop shippingand you're not quite sure what it actually means.I'm Clay, let me explain.Drop shipping has been a pretty hot topic lately.And I wanted to illustratehow it works at a very basic level.Now there are little details that sure maybeit depends on the type of drop shippingthat you're doing and the places that you're usingto make everything happen,but I'm just looking at thingsand I wanna walk you throughout more sojust a top down look at what the general conceptof drop shipping is and how it works.And essentially this is how it all breaks down.So I wanna kind of focus on a couple different scenarios.So here we have Bob the buyer,and then over here we haveSusie the seller.So Bob the buyer, Susie the seller,and they're gonna make up this drop shipping environment.So the way it all works is Bob has some sort of item,and the item here is a box.For whatever reason boxes are really, really popular.And Bob is gonna,or excuse me Susie is gonna sell the box,actually lets make this color coordinated.So Susie is selling the box.I created a tongue twister for myself, very smart.So Susie the seller is selling the box for $10.But here's the key, is that if Bob goesand buys the box for $10 how is Susie the selleractually gonna make money on this box?So Bob is buying the box for $10.Well there is some sort of,lets just call it other place.And this is where I'm keeping it broadbecause this other place can be all sortsof different things and all that.But this other place has this box.They are offering that boxand the other place is selling the box forlets just call it $4.So the way drop shipping works isokay Susie has just made a sale of $10.Bob is buying the box for $10.But Bob still needs to get the box, right?And Susie is saying I'm gonna mail the box to you.But the key with drop shipping is how does the boxactually get over here?Well it's gonna come down through this other place.So Susie the seller is gonna come buy that boxfrom this other place for $4.And then she is gonna say you know what"other place," please ship to this address.And "this address" is Bob the buyer's address.So this other place is gonna then sayokay thank you for the shipping information,we are going to ship the box over to Bob.So what, how does the math break down?Maybe you already see it,but just to make sure that we're crystal clear here,Susie sold the box for $10, right?But she had to go actually have the box,she had to buy the box herselfand then have it shipped.So what did all that cost?Well again she went to that other placeand her cost was $4.Therefore you have to subtract $4 away from the 10.Meaning she made $6 on the transaction.And she never actually owned the box at all.She never had it in her possession.She never had any sort of physical inventory of the box.This other place did and she used that other place,and she found a difference in pricing,and that is what allowed her to create that profit of $6.So that's what drop shipping is.You are having somebody else ship the productthat you have sold.Here the product sold was the box.Susie never owned the box,but she never of this other place that did have the boxavailable for $4.She sold it for 10 and then she just had that other place"drop ship it" to Bob the buyerand everybody's happy.Bob got the box he wanted,Susie the seller made $6,this other place apparently was able to get that boxfor less than $4 so they turned a profit.And that's how it all works.So whenever you hear about people drop shippingthis is the main mechanics of how it all works out.It's just people Using Somebody else's service,the other place, and then having them ship directlyto the customer that ended upbuying from them in the first place.So that's drop shipping and how it all works.First off, thanks so much for watching the entire video.Real quick, before you go,I wanna invite you to a live webinar,web class, training, workshop, online event,whatever you wanna call it,but it will be me live,revealing to you what I've discoveredthat has allowed me to transformmyself from being an employee to being my own boss,including how I had only one losing dayout of 73 days in total.I'm going to cover three keysthat have helped me unlock profitable consistencywithin the markets.The first key is super weird,but in a productive type of way.The second key is super awesomebecause it quite literally is wired into our DNA as humans,making it very easy to use,but in a cruel way this becomes a pitfallfor many traders.I'll explain it all though,including how to avoid the pitfall that it creates for some.And yeah the third key,when you hear it sounds way too good to be true,but it's not,and I'll show you how it all works.Then at the end I open it up for a questionand answer session that is again totally live.Even if you can't make the live session,please still sign up as it will be recorded,and you can go back and watch the replaythat I will send you.Click the image on the screenor click the link down in the description boxso you can get the date and time,and claim your spot,which I should note is limited due to the factthis truly is a live event.If you have any questions, let me know.If not, I'll be seeing you soon.