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BEST ECOMMERCE BUSINESS MODEL?

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

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

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