The Best Earning Opportunity You’ve Never Heard Of
With modern retirements spanning 20-plus years, many baby boomers are struggling to see how they will maintain their standard of living beyond the end of their conventional careers. This is a problem I personally grappled with…until I found the ultimate online earning opportunity.
For decades, I’ve been a career-driven banker. I’ve worked at Goldman Sachs, Credit Suisse, Citigroup, and other firms, and built businesses on four continents. Then, in 2008, much of my lifelong hard work was undone when the global financial crisis hit my family hard. In the following years, things never bounced back, and by 2013 my income was down more than 60% from pre-crisis levels. My wife and I weren’t sure how we could make ends meet, let alone fund our retirement.
We made the decision to relocate outside the U.S. so that I could extend my working career. In moving overseas, I also hoped to find time to explore new income opportunities, particularly in the area of ecommerce. And in my subsequent research, I came across an online business model I’d never heard of—dropshipping. I feel lucky that I did because dropshipping ended up saving my retirement.
Dropshipping is a modern variation on an age-old business. Basically, dropshipping is an online retail model where you operate a storefront but don’t hold any inventory. Instead, when a customer makes an order, you purchase the product from your supplier and have them ship it directly to the customer.
The majority of ecommerce businesses today take care of shipping and handling for their customers, which is an expensive and time-consuming process. But with dropshipping, you simply act as a middleman. This allows you to focus on providing a quality online shopping experience and managing customer service inquiries.
Here’s a breakdown of how a typical dropshipping business works:
1. A customer places an order with your online store.
2. You submit a purchase order to your supplier.
3. Your supplier sends the product to your customer.
4. You communicate with the customer and manage returns (if necessary).
5. Your profit is the difference between what the customer paid you and the wholesale price you paid your supplier.
A dropshipping business can sell just about any type of product. But the biggest opportunity for profit lies with niche sites selling high-ticket items.
Consumers in the market for high-ticket items often want extensive product information and expert recommendations before buying. Big sellers like Walmart and Amazon don’t provide this. Creating a niche authority site with extensive product information and advice allows you to meet this demand and sell expensive products at a premium price.
If you’re looking to get into ecommerce, dropshipping is a great opportunity. The fact that you don’t hold any inventory means you need significantly less working capital than with a typical ecommerce store.
Today, my wife and I run several online stores that sell high-ticket home decor. We sell almost exclusively to the U.S., and thanks to the dropshipping model, we’re able to manage our businesses from wherever we happen to be in the world.
Most dropshipping businesses have profit margins of between 9% and 15%, but we’re able to earn a significantly higher percentage than that by selling high-priced items. Our biggest store sold about $400,000 in products the first year, and then revenue grew five-fold to about $2 million in year two.
In 2013, I felt lost in my career and worried about my family’s financial future. Today, my eight revenue-producing websites are providing ample funds to secure my retirement. And it was all possible thanks to the flexibility and scalability of dropshipping. It’s hands down the best earning opportunity out there today.
Written by Ian Bond