How Dropshipping Rescued My Retirement
I started working on Wall Street in 1980. Over the following decades, I forged a successful career building wealth management, asset management, and private banking businesses for some of the biggest banks in the world. Then came the 2008 financial crisis.
Like so many other people, I took a huge financial hit in the crash and, in my late 50s, my retirement plans were in tatters. I realized that I needed to take some bold steps to rebuild my finances, so I moved abroad to extend my banking career by several years and gain time to formulate a new retirement plan.
To save my retirement, I needed to pivot and build an alternative income stream, one that I could control and run from anywhere. I wanted to be proactive and get this stream of income started before I actually retired, so I started researching a wide variety of online income strategies. Some were simply too techy for me. (I’m not the most tech-savvy person in the world.) Others seemed to be quick-money opportunities, rather than sustainable incomes. To fund my retirement, I needed a durable business that would deliver an income year after year.
After months of looking at the financials of several e-commerce business models, it was clear to me that a dropshipping store represented the best investment, and specifically a high-ticket dropshipping store. My wife and I figured dropshipping was the best bet since we could run it as a side-business while I continued to work. So we took the plunge and bought a small dropshipping store in the bathroom furniture niche.
There were some rough days in the beginning as we were learning on the job. Neither of us had run an online store before. Still, we believed we could turn a profit, so less than a month after buying our first dropshipping store, we purchased a second. In time, we were able to streamline the businesses and in two years, we went from zero experience and income to $2 million in sales with our first store.
Thanks to my wife, who is a whiz at developing standard operating procedures (SOPs), we documented every process in the business. This allowed us to outsource a lot of the work to online freelancers. With most of the day-to-day operations off our plate, we realized we could expand further. Two stores turned into three and now five years later we own eight income-producing stores. Using our method of developing SOPs and outsourcing, we have created a five-figure dependable and semi-passive monthly income for our retirement.
How High-Ticket Dropshipping Works
Let’s take a step back for a moment. If you’re not familiar with dropshipping, I’m sure you’re probably wondering at this point what it is and how it works. So let me explain.
With dropshipping, your online store acts as the middleman between the customer and the product supplier. Your dropshipping store lists and sells the products but you hold no inventory. The products are stored at the supplier’s warehouse. When a customer purchases an item from your store, your store generates an order that is automatically sent to the supplier, who then ships the item directly to the customer. It’s hands off for you, other than offering customer service if there is an issue with the order.
Now, you may be wondering why high-ticket items work better with dropshipping. As a dropshipper focused on a specific category of products, you can offer a better shopping experience for customers. Customers prefer to purchase big items from boutique or specialty shops that offer comprehensive product guides, videos, and other content that explains the product thoroughly.
Middle- to high-income shoppers who routinely buy higher-ticket items above $1,000 usually expect detailed product information. Industry giants like Amazon, Home Depot, and Wayfair simply don’t provide this. Also, the brands we sell in our stores adhere to MAP, or minimum advertised pricing. This means that the minimum price is set by the producer, so other stores (even Amazon) can’t undercut you and you don’t have to worry about price wars.
The simplicity of the dropshipping business model is its greatest advantage. You don’t need to be a tech guru. Nowadays, if you can build a Facebook page, you can build an online store. Plus, you can set up your own dropshipping store for a minimal investment and you can run it anywhere there’s a decent internet connection.
Once you understand the fundamentals of dropshipping and working with suppliers, you can use this simple model to earn more than enough income to fund a rich retirement. And you can do it from virtually anywhere on the planet. I’m proof of that. Dropshipping saved my retirement, and it can do the same for you.
By Ian Bond