Did The Government Just Kill Dropshipping?

the US government is pushing through some legislation that many are calling the final nail in the coffin for Drop Shipping in fact some YouTubers have even made the Bold statement that Drop Shipping is 100% dead now in this video I'm going to break down for you what this new legislation is how it will affect drop shippers and other e-commerce Sellers and whether Drop Shipping is in fact dead so if you've been Drop Shipping for a while and you're worried that your business is about to be shut down or you're looking to start your first e-commerce business and want to know if Drop Shipping is still safe then this is the perfect video for you now to make sure we're all on the same page let me first show you an example of how Drop Shipping traditionally works so you can understand what the problem is with it

so I found this website right here where they sell these breathing necklaces that kind of look like whistles that just go around your neck and these are selling on this website for about $32 $56 sometimes as high as $150 or $300 and if you come down to the bottom here we can see that this website is built with Shopify so what this person has done is they have added these products to their own website that they've created now if I were to come through and buy one of these all the seller is going to do is turn around and buy the exact same product for substantially less money from a website like aliexpress. com and have the item shipped directly to me and you can see that the items on this website are 9 and a lot of times they get free or for very cheap shipping and the reason these items are so cheap is because this website is in China so this means the items are coming directly from China so that is Drop Shipping in a nutshell it's where you don't actually hold the inventory yourself you sell the product and then when it does sell you turn around and buy it from a supplier who will ship it directly to the customer and this has always worked really well for a number of reasons first you don't have to buy that inventory up front that means the cost to get started was very low and the risk was very low secondly there was a huge tax loophole that made this very profitable I think most

people know that when products get shipped into the United States the company doing that usually has to pay customs and duties basically that means that they have to pay money to import those items however packages that are valued at under $800 don't have to pay those fees what's more the cost to ship items from China to the United States as we saw is very cheap in fact it's a lot of times less than it cost to ship items within the United States what all of that resulted in was that Drop Shipping individual items from China just like I showed you was very cheap and according to many US companies was actually very unfair that's why new legislation has been proposed to close that tax loophole once in place even small packages coming from China will have to face customs and duties so this certainly doesn't look great for Drop Shipping so why don't I seem worried well the truth is I'm not worried because this new legislation will have no impact on the type of Drop Shipping I talk about here on this channel in fact I think this new legislation will actually benefit the type of Drop Shipping I do here's why I explained before how most people who get into Drop Shipping drop ship items from websites like AliExpress onto Shopify but that's never really the way I've drop shipped instead I have drop shipped onto marketplaces like ebay. com or onto Tik Tock shop now the benefit with that is that I don't need to build a whole website myself or pay for marketing to get customers to visit my website I can go where the customers already are websites like ebay. com but that's not really important for this video what is important is where I'm getting my products from and instead of sourcing products from China like most people traditionally do I have always said you should be Drop Shipping from us-based suppliers so for instance when I sell on ebay. com and I drop ship here I'm usually drop shipping from Amazon. com onto eBay so what that means is I sell some products here once they actually sell I turn around buy the product from Amazon and have Amazon ship the item directly to my customer now there's a lot more of nuances in there to actually make sure that's done correctly and to make sure that Amazon doesn't shut you down but it is very possible and very profitable another example is more recently we started Drop Shipping onto Tik Tock shop and using this method we primarily drop ship from ebay. com so again what this means is once an item on Tik Tok Shop sells I just go ahead on eBay buy the item from there and have the eBay seller ship it directly to the customer and in fact we actually have software that someone has developed that actually automates all of this everything from listing the products onto the different marketplaces like Amazon Tik to or eBay and it will actually fulfill them meaning that anytime an order comes in it will order the item from eBay or from Amazon for us and have it Shi to our customer so once you kind of have this system set up it becomes very automated and the benefit

of using us-based suppliers I think is pretty obvious items are going to get to your customers faster returns are going to be a lot easier and in general customer service is going to be a lot better and even though these items that were Drop Shipping from these USB websites they were more expensive than products that you can find on AliExpress I think that playing field is now leveled I think the prices are going to end up being very close to each other with this new legislation and then you include the fact that the items coming from us Bas suppliers are going to be faster it's just going to be a lot easier to deal with especially because we have that software I think the method that I've been talking about for years on this channel is really going to start dominating more than it already has so I'm not really worried about this and if you do the type of Drop Shipping I teach I don't think you should be worried either and if you're looking to start Drop Shipping I would say that this method is the only method that I think would work now so to that end if you want to learn this exact strategy for free using these methods that I've been talking about and you want insight into that software that I was talking about that can automate your entire Drop Shipping business then make sure to download my free dropshipping Secrets ebook I'll leave a link for it in the description down below because it covers all of that including how to use that software that I mentioned and how to find the best products to drop ship and inside of that I'll cover exactly how you can get started with your own Drop Shipping business that actually works with this new legislation so make sure to grab it by clicking on the first link in the description down below and then I'll see you in the next video bye for now