BEST ECOMMERCE BUSINESS MODEL?

Published on: November 28 2022 by Peter Pru - Ecommerce Empire Builders

BEST ECOMMERCE BUSINESS MODEL?

BEST ECOMMERCE BUSINESS MODEL?

BEST ECOMMERCE BUSINESS MODEL?

startTime	durationTime	text
00:00:07	00:00:12	what's up Empire builders welcome back
00:00:10	00:00:14	to another episode and today we're gonna
00:00:12	00:00:17	tok about why I think drop shipping is
00:00:14	00:00:20	the best business model when you're
00:00:17	00:00:22	first getting started and also is drop
00:00:20	00:00:25	shipping the end-all-be-all
00:00:22	00:00:27	is that like the goal here right or
00:00:25	00:00:28	what's the bigger picture so I wanted to
00:00:27	00:00:32	tok about that today
00:00:28	00:00:35	so yes firstly I do think drop shipping
00:00:32	00:00:37	is the number one biggest best business
00:00:35	00:00:38	model for newbie entering
00:00:37	00:00:42	just internet marketing e-commerce in
00:00:38	00:00:44	general why because the upfront costs
00:00:42	00:00:46	are so low guys think about it
00:00:44	00:00:50	those of you that have started on Amazon
00:00:46	00:00:52	FBA you have to put how much inventory
00:00:50	00:00:53	do you have to buy nowadays like when I
00:00:52	00:00:56	got started you didn't have there was
00:00:53	00:00:57	less a lot less competition so you could
00:00:56	00:01:00	get away with only investing like you
00:00:57	00:01:01	know five grand and inventory shipping
00:01:00	00:01:03	it over but now there's so much
00:01:01	00:01:06	competition you at least need to spend
00:01:03	00:01:09	10 15 grand just to ship enough
00:01:06	00:01:11	inventory over so you can do like
00:01:09	00:01:13	giveaways and stuff to you know start
00:01:11	00:01:15	getting product reviews and and all that
00:01:13	00:01:16	so guys I don't think if you if you're
00:01:15	00:01:20	thinking about starting an Amazon FBA I
00:01:16	00:01:22	highly highly suggest you think twice do
00:01:20	00:01:24	not start Amazon FBA alright I'm not
00:01:22	00:01:25	saying get rid of it if you're already
00:01:24	00:01:27	selling on it great but you don't have a
00:01:25	00:01:29	real business if you're just selling on
00:01:27	00:01:30	Amazon I preach that a lot here right
00:01:29	00:01:31	you don't you don't even get any
00:01:30	00:01:34	customer two assets you don't get
00:01:31	00:01:35	anything from them I highly recommend
00:01:34	00:01:37	you start drop shipping this is all
00:01:35	00:01:38	gonna tie together I promise you so I'm
00:01:37	00:01:41	gonna tie together at the end of this
00:01:38	00:01:42	video drop shipping guys if you don't
00:01:41	00:01:45	know what it is it's basically you are a
00:01:42	00:01:47	middleman between your customer and a
00:01:45	00:01:47	supplier so right here where my head is
00:01:47	00:01:50	I'm right in the middle
00:01:47	00:01:53	I am the drop shipper so I make a sale
00:01:50	00:01:55	in my store my ecommerce store or my
00:01:53	00:01:57	sales funnel wherever I take my
00:01:55	00:01:59	customers money I turn around and I now
00:01:57	00:02:02	tell my supply hey can you ship that
00:01:59	00:02:05	product to my customer and I obviously
00:02:02	00:02:07	make a cut in there in the middle
00:02:05	00:02:09	that makes it an amazing business model
00:02:07	00:02:13	why because it's kind of like retail
00:02:09	00:02:14	stores guys like Walmart or Target but
00:02:13	00:02:18	the thing is we never have to store any
00:02:14	00:02:19	inventory right we sell the products for
00:02:18	00:02:22	a high cost
00:02:19	00:02:24	right but the best part too is we sell
00:02:22	00:02:27	the products first before we even have
00:02:24	00:02:30	to buy anything from anybody right so
00:02:27	00:02:31	we're making money up front first that's
00:02:30	00:02:35	why I drop shipping is so easy to get
00:02:31	00:02:38	started in for newbies guys because it's
00:02:35	00:02:39	so cost effective you really like a lot
00:02:38	00:02:41	of people say you need to have like a
00:02:39	00:02:42	thousand dollars to start drop shipping
00:02:41	00:02:44	I don't believe that whatsoever if
00:02:42	00:02:46	you've listened to the strategies I show
00:02:44	00:02:48	you how do you sales funnels to start
00:02:46	00:02:49	drop shipping making six figures with
00:02:48	00:02:52	your funnels before you know there's
00:02:49	00:02:54	Shopify Amazon all that stuff it's not
00:02:52	00:02:56	that difficult and it's not that
00:02:54	00:02:59	expensive especially using you know
00:02:56	00:03:01	influencers to really build your brand
00:02:59	00:03:02	up initially and then branching off the
00:03:01	00:03:05	Facebook ads and all that other good
00:03:02	00:03:08	stuff the video for another time though
00:03:05	00:03:11	um but that's why I think drop shipping
00:03:08	00:03:13	is such a good business model guys even
00:03:11	00:03:15	for those of you that sell Amazon FBA
00:03:13	00:03:16	now start drop shipping that's what you
00:03:15	00:03:18	can start building up your customer
00:03:16	00:03:21	email list right thinking about much
00:03:18	00:03:24	easier would be to launch on Amazon
00:03:21	00:03:27	after you already have a huge customer
00:03:24	00:03:30	uh you know a huge customer list
00:03:27	00:03:32	right it would be easy right you just
00:03:30	00:03:34	send an email or just entre product
00:03:32	00:03:36	Amazon we're doing at 50% off giveaway
00:03:34	00:03:38	just leave a review give us your honest
00:03:36	00:03:40	review when you get the product boom
00:03:38	00:03:41	that's it right when you're starting
00:03:40	00:03:43	Amazon you're kind of doing it backwards
00:03:41	00:03:45	right so that's why I always recommend
00:03:43	00:03:47	dropship me is a great way to start to
00:03:45	00:03:50	at least even start testing products
00:03:47	00:03:51	guys it's so easy so simple to start
00:03:50	00:03:53	testing products just on dropship me and
00:03:51	00:03:56	finding out finding those winners that
00:03:53	00:03:57	you know you could pursue so what's the
00:03:56	00:04:01	end goal here right do we just drop ship
00:03:57	00:04:03	till we make millions and retire no so
00:04:01	00:04:06	this is what we've done and this is what
00:04:03	00:04:08	I teach you know my students six-figure
00:04:06	00:04:10	funnel is everybody do is when you're
00:04:08	00:04:12	finally ready to scale right when you're
00:04:10	00:04:14	making don't even think about this if
00:04:12	00:04:16	you're not into hitting already in the
00:04:14	00:04:19	six-figure mark right I'm doggy bow oops
00:04:16	00:04:23	qz scaling to that seven-figure mark and
00:04:19	00:04:25	beyond unfortunately a drop shipping is
00:04:23	00:04:27	you can keep doing it it's gonna it's
00:04:25	00:04:30	gonna still be a crucial part of your
00:04:27	00:04:30	business but we can start sourcing our
00:04:30	00:04:33	own
00:04:30	00:04:35	products guys we start sourcing our own
00:04:33	00:04:37	products from you know Alibaba for
00:04:35	00:04:39	example we find a supplier with our
00:04:37	00:04:40	best-selling products which we already
00:04:39	00:04:42	know which our best sellers are and we
00:04:40	00:04:47	start sourcing them directly from a
00:04:42	00:04:50	supplier in China to us right not only
00:04:47	00:04:52	now will our margins be a lot better
00:04:50	00:04:53	right because we're getting them at a
00:04:52	00:04:56	huge discount we're not relying on like
00:04:53	00:04:58	Aliexpress anymore which takes a cut -
00:04:56	00:05:01	we're getting them directly sent to us
00:04:58	00:05:04	from Alibaba for a much cost-effective
00:05:01	00:05:06	price okay so our shipping times are
00:05:04	00:05:09	gonna get better right our margins are
00:05:06	00:05:12	gonna get better right that sounds like
00:05:09	00:05:15	a win-win right but again I recommend
00:05:12	00:05:17	that for later on because obviously to
00:05:15	00:05:18	source a good amount of product in you
00:05:17	00:05:21	might have to buy you know a thousand
00:05:18	00:05:23	two thousand three thousand units right
00:05:21	00:05:25	and that costs money and I think that's
00:05:23	00:05:26	why starting with drop shipping building
00:05:25	00:05:28	up that cash flow of doing that and
00:05:26	00:05:29	think about this now
00:05:28	00:05:31	after you've been drop shipping for a
00:05:29	00:05:33	while you have a customer list you have
00:05:31	00:05:35	cash flow now you say you want to sell
00:05:33	00:05:37	on Amazon boom you could do it you
00:05:35	00:05:40	source the product send it to Amazon
00:05:37	00:05:41	warehouses you know to email your list
00:05:40	00:05:43	say hey we just launched our new product
00:05:41	00:05:45	on Amazon because of it we're giving out
00:05:43	00:05:46	50% coupon codes all we ask is you leave
00:05:45	00:05:48	your honest review and you get the
00:05:46	00:05:50	product boom now you're gonna be
00:05:48	00:05:52	probably ranked on the top page of
00:05:50	00:05:54	Amazon for your new product even though
00:05:52	00:05:57	there might be tons of other competition
00:05:54	00:06:02	out there your sales volume will be a
00:05:57	00:06:03	huge okay but if you're not song on
00:06:02	00:06:06	Amazon and and this is kind of where I
00:06:03	00:06:08	don't want to I don't want to lose you
00:06:06	00:06:10	when we're ready to just scale to that
00:06:08	00:06:12	seven make figure mark even if we're not
00:06:10	00:06:14	gonna send our products into Amazon or
00:06:12	00:06:17	wherever we still want to source him
00:06:14	00:06:20	ourselves but I want to source them and
00:06:17	00:06:22	fulfill ourselves so you know I think
00:06:20	00:06:24	it'd be I might be getting hundreds of
00:06:22	00:06:25	orders every single day how am I gonna
00:06:24	00:06:27	strip out all this product that's gonna
00:06:25	00:06:29	it's gonna be crazy I can't I don't have
00:06:27	00:06:30	room in my house race and I'm not saying
00:06:29	00:06:31	you have to fulfill it in your house
00:06:30	00:06:34	guys
00:06:31	00:06:38	we use third-party fulfillment centers
00:06:34	00:06:39	to fulfill our orders for us okay think
00:06:38	00:06:41	about that think how much more powerful
00:06:39	00:06:43	you still your margin might be a little
00:06:41	00:06:44	bit less because let's say they might
00:06:43	00:06:46	take a cup from every single
00:06:44	00:06:49	order obviously than probably taken 50
00:06:46	00:06:51	50 Cent's 75 cents a dollar to fulfill
00:06:49	00:06:53	every order plus shipping costs
00:06:51	00:06:54	obviously let's think about it your cut
00:06:53	00:06:57	your customers will get their products a
00:06:54	00:06:58	lot faster and your margins are also
00:06:57	00:07:00	going to be a lot better because you're
00:06:58	00:07:02	sourcing large amount of product and you
00:07:00	00:07:04	don't ever have to store it either guys
00:07:02	00:07:06	think about it you can still do this all
00:07:04	00:07:08	remotely right you can still do this
00:07:06	00:07:10	fully virtual you don't need to actually
00:07:08	00:07:12	store the products ever I don't I work
00:07:10	00:07:14	with a third wedding fulfillment center
00:07:12	00:07:16	that fulfills all of my orders for us we
00:07:14	00:07:18	just they're synced up to our stores and
00:07:16	00:07:20	they just see the orders come in and
00:07:18	00:07:23	they're it's our autopilot guys it's all
00:07:20	00:07:24	an automated system that works okay and
00:07:23	00:07:26	this is exactly what I teach in
00:07:24	00:07:28	six-figure funnels master class in
00:07:26	00:07:30	module six when we're scaling to add
00:07:28	00:07:32	seven-figure mark right how we can start
00:07:30	00:07:33	selling on Amazon FBA how we can find
00:07:32	00:07:35	these third-party fulfillment warehouses
00:07:33	00:07:38	that we can start working with and
00:07:35	00:07:40	fulfill our orders right and bringing in
00:07:38	00:07:41	inventory from Alibaba at that point so
00:07:40	00:07:44	I hope that makes sense but that's the
00:07:41	00:07:45	bigger picture guys right that's the big
00:07:44	00:07:47	picture and we start branching out to
00:07:45	00:07:49	different sales show okay once on
00:07:47	00:07:51	Walmart boom let's search on the Walmart
00:07:49	00:07:53	but Sir sama on Amazon let's are selling
00:07:51	00:07:56	on Etsy let's her son on eBay
00:07:53	00:07:58	wherever jet calm whatever right and
00:07:56	00:08:00	that's at point guys you're not gonna be
00:07:58	00:08:02	a small business anymore you're gonna
00:08:00	00:08:03	have multiple probably multiple virtual
00:08:02	00:08:06	assistants working for you say you want
00:08:03	00:08:09	to start selling on Amazon right don't
00:08:06	00:08:11	do it yourself go hire somebody on that
00:08:09	00:08:13	floor that's an Amazon expert and let
00:08:11	00:08:15	them handle the entire sourcing process
00:08:13	00:08:17	writing your copy just managing the
00:08:15	00:08:18	whole Amazon FBA aspect for your
00:08:17	00:08:20	business okay this is why I don't really
00:08:18	00:08:22	like like Amazon FBA courses I think
00:08:20	00:08:23	they're unnecessary it's a single sales
00:08:22	00:08:25	channel and it's not really a
00:08:23	00:08:27	sustainable business model cuz you have
00:08:25	00:08:30	no customer assets so that's why I just
00:08:27	00:08:31	I would hire that crap out if I could
00:08:30	00:08:33	redo it all over again it's a sales
00:08:31	00:08:34	channel why do I care about that like
00:08:33	00:08:36	it's just another place where I take
00:08:34	00:08:38	orders I'll hire somebody when I'm
00:08:36	00:08:40	already making a good cash through my
00:08:38	00:08:42	business through my funnels dude Shopify
00:08:40	00:08:44	store or whatever all right so I hope
00:08:42	00:08:45	that all makes sense guys if you found
00:08:44	00:08:46	this video helpful please like comment
00:08:45	00:08:48	and subscribe there's a bunch of
00:08:46	00:08:49	resources down below including
00:08:48	00:08:51	information about the live classroom and
00:08:49	00:08:52	every week go check all that good stuff
00:08:51	00:08:54	out and I got a bunch of freebies down
00:08:52	00:08:56	there as well for you guys but please
00:08:54	00:08:57	like comment subscribe
00:08:56	00:09:00	not notification bail on it means so
00:08:57	00:09:03	much to me and guys remember your empire
00:09:00	00:09:03	starts nap