Drop Shipping on Facebook Marketplace has become incredibly popular in the last few months. In this episode, I detail my experience with Facebook Marketplace drop shipping and report my numbers. I also offer some drop shipping tips you can use.
Several months ago, my 14-year-old son and I started a new revenue stream: drop shipping on Facebook Marketplace.
If you are new to Facebook Marketplace dropshipping, check this episode for a catch up on the fundamentals:
Basically, we find popular products on eBay and list 10-20 of them a day on Facebook Marketplace. Most of them don’t sell all that well but a few of them do and in the last 90 days, we’ve been able to generate $22,481.00 worth of revenue.
This revenue represents 525 sales — so it gives us an average of $43 per item sold, and an average of $250 of sales per day.
The question you always need to ask whenever you’re faced with these online business opportunities is the profit, and for us, it’s a net profit of 21.1%.
- Cost of goods sold – $16,620.00
- Gross profit – $5,861.00 (26%)
- 5% FBMP Fees – $4,700.00 (21.1%) Our only fees as we’re not boosting any ads
This is on the low end for Facebook Marketplace as a lot of people are seeing profits north of 30%.
One of the things that happen to you when you’re selling in a marketplace is that your supplier will adjust their price all of a sudden, and so your margins will erode. That’s what’s happening to us in spades right now. We’ve got a thousand items listed on Facebook Marketplace and there’s no way we can keep up with all of those prices manually.
The answer to this is getting repricing software. If the supplier price goes up, the software has a mathematical formula that can automatically increase the price of the item in your store. The problem is that Facebook Marketplace is so new and has been intentionally slow to release application program interfaces (APIs) so there’s just not a lot of good ways to automate the daily monitoring of thousands of items.
What are some other things you need to think about when you’re doing this? Well, you need some money — how much money you need depends on how fast you want.
If you are buying products to ship them to a customer, there’s an amount of time where the customer makes the order and Facebook has the customer’s money. You don’t have that money yet but you need to buy the product and ship it to the customer so you need working capital.
What my son and I have been doing is, we have a business credit card dedicated to this project. It has a high limit and it pays cashback and we use that credit card to buy items that give us an additional little bit of protection.
That would be my project updates for now and if you are interested in Facebook Marketplace drop shipping, there’s a very affordable course that I have gone through that you can check out here: latenightim.com/tom.
If you couldn’t really get a grip on what direction you want to go in, I’ve created a free video resource for you here: latenightim.com/explain. In several short videos, I explain to you what internet marketing and what online business is all about, and the different options that you have for starting an online business.
Links Mentioned In This Episode
- Tom and Jason’s Facebook Drop Shipping Course
- The Basics Of Online Business – Free Video Mini-Course
- Click this link to send me feedback
- Subscribe in iTunes, Google Play, Stitcher or Spotify
Help Me Help You Succeed Online
The more I hear from you about your struggles, trials and tribulations, the more I can help. So, be sure to leave comments on this post to reach out to me on Twitter or in the Late Night Internet Marketing Private Facebook Group
Tell Me What You Think
I’d love to hear what you think about the podcast. Better yet, Id love to answer your question about Internet marketing on the show. Just drop me a line here on the blog or on the digital recorder at 214-444-8655. Dont worry, there are no stupid questions. Unless you tell me not to, when you ask a question or leave a comment might even use it on the show.
Help Me Help Others
Thanks so much for your reviews on iTunes. We get a ton of exposure from iTunes, and we really appreciate the reviews there. At last count, we were over 100 reviews worldwide and counting. Reviews help us get new listeners — so I really appreciate you taking the time to leave a review on iTunes (link).
Get The Episode Transcript
Interested in the transcript of this episode when it’s ready? Transcripts are available to all of my subscribers. You can find them along with all the other episode transcripts and special bonus content in the Late Night Internet Marketing Podcast Vault (sounds mysterious, doesn’t it?)