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Do Not Dropship In 2020 Until You Watch This Video...

Published on: November 24 2022 by Sebastian Esqueda

Do Not Dropship In 2020 Until You Watch This Video...

Table of Contents About Do Not Dropship In 2020 Until You Watch This Video...

Do Not Dropship In 2020 Until You Watch This Video...

startTime durationTime text
00:00:00 00:00:03 so let me guess you want to start drop
00:00:01 00:00:05 tripping you see the business partner
00:00:03 00:00:07 you're just like oh hell yeah I'm about
00:00:05 00:00:10 to make stupid money in 2020 let's
00:00:07 00:00:12 freakin get it well before you jump the
00:00:10 00:00:14 gun on drop shipping it stay tuned and
00:00:12 00:00:16 watch this whole video because I'm going
00:00:14 00:00:18 to go through what you need to know
00:00:16 00:00:20 before you ever start drop shipping the
00:00:18 00:00:23 pros the cons everything that I
00:00:20 00:00:25 personally wish I would have known when
00:00:23 00:00:27 I got started because I've scaled stores
00:00:25 00:00:29 to six figures per month and I've ran
00:00:27 00:00:31 into many issues along the way so again
00:00:29 00:00:34 like I said I'm going to give you guys
00:00:31 00:00:36 the insight as to everything I wish I
00:00:34 00:00:38 knew before I even started this business
00:00:36 00:00:39 model now before we get into this be
00:00:38 00:00:41 sure to smash that like button for the
00:00:39 00:00:43 YouTube algorithm because I'm posting
00:00:41 00:00:45 every single day and also click
00:00:43 00:00:47 Subscribe if you haven't already again
00:00:45 00:00:49 grinding out content every day now that
00:00:47 00:00:50 that's out of the way let's get into it
00:00:49 00:00:52 we're gonna discuss pros of dropshipping
00:00:50 00:00:54 because that's very important there are
00:00:52 00:00:55 a lot of benefits you don't really have
00:00:54 00:00:57 to order products in bulk so you can
00:00:55 00:00:59 continuously sell literally whatever
00:00:57 00:01:02 product you want that you can find
00:00:59 00:01:04 online and you can rotate your products
00:01:02 00:01:06 very very often if one doesn't sell well
00:01:04 00:01:08 you can transition and pivot into
00:01:06 00:01:09 another product the second Pro is you
00:01:08 00:01:12 really don't need a crazy amount of
00:01:09 00:01:14 money to start I started with around $42
00:01:12 00:01:16 and overnight turned it into close to a
00:01:14 00:01:18 thousand dollars which is great and that
00:01:16 00:01:20 was all with drop shipping so the
00:01:18 00:01:22 barrier to entry is very low another
00:01:20 00:01:24 huge benefit is if a product starts
00:01:22 00:01:26 working well you can scale to the moon
00:01:24 00:01:28 almost overnight you don't need to order
00:01:26 00:01:30 any more inventory the suppliers are
00:01:28 00:01:31 housing the inventory for use so they
00:01:30 00:01:34 have the ability to just start shipping
00:01:31 00:01:35 out products faster and there is no
00:01:34 00:01:38 issues you again don't have to order
00:01:35 00:01:39 more inventory because they are handling
00:01:38 00:01:41 all that so now that I gave you the good
00:01:39 00:01:43 news that there is some bad news for
00:01:41 00:01:45 dropshipping there's a lot of stuff that
00:01:43 00:01:48 goes wrong and all this out some of the
00:01:45 00:01:50 cons that I've faced shipping times can
00:01:48 00:01:52 be extremely slow so last year I ran
00:01:50 00:01:54 some drops of these stories that had
00:01:52 00:01:56 shipping times of maximum 12 days I've
00:01:54 00:01:59 had some that were 30-plus days which is
00:01:56 00:02:01 terrible and I've had lots of different
00:01:59 00:02:02 shipping times and that is one of the
00:02:01 00:02:05 difficulties with drop shipping is you
00:02:02 00:02:06 really never know unless you build up
00:02:05 00:02:08 good connections with your supplier so
00:02:06 00:02:09 if you're looking to get in to drop
00:02:08 00:02:11 shipping don't be fearful and don't
00:02:09 00:02:13 think okay shipping times are bad
00:02:11 00:02:14 now I'm not gonna get in this whole
00:02:13 00:02:17 everything going on in the world is
00:02:14 00:02:19 allowing so much money to be spent
00:02:17 00:02:21 online due to people collecting
00:02:19 00:02:23 unemployment the stimulus checks are
00:02:21 00:02:25 being handed out everyone's collecting
00:02:23 00:02:27 checks right now so they again have
00:02:25 00:02:29 money to spend which means you have to
00:02:27 00:02:30 get in there and provide them those
00:02:29 00:02:32 products that they actually want to
00:02:30 00:02:33 spend their money on but just understand
00:02:32 00:02:36 you need to build up great connections
00:02:33 00:02:37 with your suppliers or else they either
00:02:36 00:02:39 won't ship out your product they'll ship
00:02:37 00:02:41 them out very slow like they'll have two
00:02:39 00:02:42 week processing one week processing
00:02:41 00:02:45 stuff like that that is just
00:02:42 00:02:46 unacceptable or they will provide you
00:02:45 00:02:48 with very low quality products I had
00:02:46 00:02:51 that happen last year where I scale the
00:02:48 00:02:53 product to over $100,000 a month and the
00:02:51 00:02:55 product quality was bad and they didn't
00:02:53 00:02:57 fulfill all of our orders and it
00:02:55 00:02:58 wouldn't have been bad if you had just
00:02:57 00:02:59 scaled it's like a thousand dollars and
00:02:58 00:03:00 then that was it
00:02:59 00:03:04 this is something where we scaled it to
00:03:00 00:03:06 over six figures and we had orders that
00:03:04 00:03:08 literally didn't get shipped out so that
00:03:06 00:03:11 is a big issue some suppliers are very
00:03:08 00:03:12 very sketchy and do not ship your orders
00:03:11 00:03:14 out properly so you need to make sure
00:03:12 00:03:16 you're building up a good connection
00:03:14 00:03:17 with them or you will be screwed over I
00:03:16 00:03:19 promise
00:03:17 00:03:22 another big downside of drop shipping is
00:03:19 00:03:24 the packaging is very generic it's not
00:03:22 00:03:25 like it's gonna have your logo on it or
00:03:24 00:03:28 anything like that there's gonna be no
00:03:25 00:03:30 branding which looks kind of bad when
00:03:28 00:03:32 the customer is accepting the package it
00:03:30 00:03:34 doesn't provide a great customer
00:03:32 00:03:36 experience which is one of the reasons
00:03:34 00:03:38 why I normally don't dropship anymore
00:03:36 00:03:39 I'm at the point where I now order
00:03:38 00:03:42 products in bulk and sell them and I
00:03:39 00:03:44 have inventory houses in California so I
00:03:42 00:03:47 do that because I have way more control
00:03:44 00:03:49 over my packaging I can provide custom
00:03:47 00:03:51 packaging custom shipping packages to
00:03:49 00:03:53 where when it gets delivered and they go
00:03:51 00:03:56 to check their mailbox the bag or box
00:03:53 00:03:58 that it comes in has my logo all over it
00:03:56 00:04:00 and just looks amazing provides a great
00:03:58 00:04:02 customer experience you can't really do
00:04:00 00:04:03 that with drop shipping now there are
00:04:02 00:04:05 suppliers that once you're already doing
00:04:03 00:04:07 a certain amount of orders they will
00:04:05 00:04:09 actually go out and print boxes or bags
00:04:07 00:04:11 or whatever you're doing or even the
00:04:09 00:04:13 logo on your product they will do that
00:04:11 00:04:14 for you if you're doing a certain amount
00:04:13 00:04:16 of orders every single day so that is
00:04:14 00:04:17 one thing you need to always tok with
00:04:16 00:04:19 your suppliers about like you know hey
00:04:17 00:04:22 if I do this amount of orders every
00:04:19 00:04:24 single day for 10 days would you guys
00:04:22 00:04:24 consider doing custom packaging for me
00:04:24 00:04:27 with
00:04:24 00:04:29 any upfront costs some suppliers will do
00:04:27 00:04:31 it I had one last year who actually did
00:04:29 00:04:33 it for most products I sold I just
00:04:31 00:04:34 contacted them and they had apparently
00:04:33 00:04:36 relationships with a lot of these
00:04:34 00:04:38 suppliers and they just set it up to
00:04:36 00:04:40 where I didn't even really have to work
00:04:38 00:04:42 with any supplier was just one so that
00:04:40 00:04:44 was amazing and you definitely need to
00:04:42 00:04:45 find people like that but all you have
00:04:44 00:04:47 to do is start contacting suppliers and
00:04:45 00:04:49 chat around and see what you can do
00:04:47 00:04:51 because that's very important again like
00:04:49 00:04:54 I said suppliers can take advantage of
00:04:51 00:04:55 you so make sure that the probability of
00:04:54 00:04:58 that happening is very low
00:04:55 00:05:00 another big con is the quality of the
00:04:58 00:05:01 product can be low like I said last year
00:05:00 00:05:03 I had a supplier who shipped out a
00:05:01 00:05:05 product that was not the product I
00:05:03 00:05:08 thought I was supplying for my customers
00:05:05 00:05:09 it was way lower quality that everything
00:05:08 00:05:11 was bad I don't want to explain exactly
00:05:09 00:05:13 what the product was but the stuff was
00:05:11 00:05:15 bad like the quality was not good and
00:05:13 00:05:16 the supplier happily did that they
00:05:15 00:05:18 didn't really care because their main
00:05:16 00:05:20 objective was just generating the
00:05:18 00:05:22 revenue and generating sales but that
00:05:20 00:05:23 was one huge downside I have no control
00:05:22 00:05:25 over the quality control so now I have
00:05:23 00:05:27 it to where I quality control all of my
00:05:25 00:05:29 products before they get sent out
00:05:27 00:05:31 because again their house in California
00:05:29 00:05:33 now I order in bulk from Le Baba and do
00:05:31 00:05:35 it that way it makes way more sense my
00:05:33 00:05:37 products are also custom so it's not
00:05:35 00:05:39 like they're a product anyone can go
00:05:37 00:05:41 order they're custom made and custom
00:05:39 00:05:43 logos on everything everything is very
00:05:41 00:05:44 custom it's not like a generic product
00:05:43 00:05:46 anymore so I'm grateful to be at that
00:05:44 00:05:49 position but when you're starting out
00:05:46 00:05:51 you can still have great quality control
00:05:49 00:05:53 with suppliers you just again have to
00:05:51 00:05:54 build up the relationship the biggest
00:05:53 00:05:56 thing is a relationship with your
00:05:54 00:05:58 supplier because they are kind of the
00:05:56 00:05:59 make-or-break of your business yes if
00:05:58 00:06:01 you have good ads and a great website
00:05:59 00:06:03 that is all fine and dandy but if the
00:06:01 00:06:05 product you're delivering to your
00:06:03 00:06:08 customers is terrible your business will
00:06:05 00:06:10 crumble in a matter of three months at
00:06:08 00:06:12 max so that is very very crucial for
00:06:10 00:06:13 your business's success now the big
00:06:12 00:06:16 elephant in the room is the
00:06:13 00:06:18 competitiveness of products I've heard
00:06:16 00:06:20 many times that people are like this
00:06:18 00:06:22 product is saturated this product is
00:06:20 00:06:24 saturated everyone discusses how drop
00:06:22 00:06:26 shipping is very competitive
00:06:24 00:06:28 and yes it is because it's very simple
00:06:26 00:06:30 if you find someone who's selling a
00:06:28 00:06:33 product it's very simple to attack that
00:06:30 00:06:35 product and outfit them on Facebook or
00:06:33 00:06:37 Google and make more money than them
00:06:35 00:06:39 it's a very very simple strategy that
00:06:37 00:06:42 you can do but that makes it very
00:06:39 00:06:44 competitive and I agree with that drop
00:06:42 00:06:45 shipping is very very competitive an
00:06:44 00:06:47 example I had a product i scaled last
00:06:45 00:06:49 year I think we got up to almost ten
00:06:47 00:06:51 thousand dollars a day and I told a
00:06:49 00:06:54 friend about the product and no more
00:06:51 00:06:56 than one week I find an Instagram page
00:06:54 00:06:58 that popped up with the same exact
00:06:56 00:06:59 product and they were brand new and I
00:06:58 00:07:01 checked this state that the page was
00:06:59 00:07:04 made in sure enough it was the state and
00:07:01 00:07:06 city that my friend was from and I was
00:07:04 00:07:07 like are you kidding me is this really
00:07:06 00:07:08 happening so I picked up my phone I
00:07:07 00:07:10 think I was hanging out with a girl at
00:07:08 00:07:12 the time picked up my phone called this
00:07:10 00:07:14 person I was like listen is this you
00:07:12 00:07:15 like is this your store and he admitted
00:07:14 00:07:17 to it and I was like I got pissed off
00:07:15 00:07:18 that was not a pleasant phone call I had
00:07:17 00:07:20 to have because it's someone who I
00:07:18 00:07:22 trusted and then I realized they ripped
00:07:20 00:07:24 me off on that product so yes drop
00:07:22 00:07:26 shipping is very competitive and I'm not
00:07:24 00:07:28 just toking about friends you can go on
00:07:26 00:07:30 google and type in you know Pore
00:07:28 00:07:32 Cleanser there's a poor vacuum for your
00:07:30 00:07:33 nose and stuff like that that I found I
00:07:32 00:07:35 didn't find it today but it's still
00:07:33 00:07:37 selling really well but if you google
00:07:35 00:07:39 the product there is hundreds of
00:07:37 00:07:41 listings of the same product so yes drop
00:07:39 00:07:43 shipping is very competitive which is
00:07:41 00:07:44 why you need to create you know your
00:07:43 00:07:46 website has to be way better than
00:07:44 00:07:48 competitors your offer has to be better
00:07:46 00:07:50 shipping times something has to be
00:07:48 00:07:52 better so that you're getting the edge
00:07:50 00:07:54 on all these other stores which again
00:07:52 00:07:56 the more people that get in to drop
00:07:54 00:07:58 shipping yes the more competitive it
00:07:56 00:07:59 will be but there are a lot of consumers
00:07:58 00:08:01 spending a lot of money right now so
00:07:59 00:08:03 throw that like mindset out of the
00:08:01 00:08:06 window because again still so much money
00:08:03 00:08:07 to be made for yourself if you are smart
00:08:06 00:08:10 with this business model some of the big
00:08:07 00:08:12 issues I also faced with drop shipping
00:08:10 00:08:14 were payment processors I didn't know
00:08:12 00:08:16 how much of a pain it was gonna be to
00:08:14 00:08:19 simply get my money from my business and
00:08:16 00:08:20 just have it be put into my bank account
00:08:19 00:08:22 I didn't know it was that crazy
00:08:20 00:08:26 difficult but I ran into so many issues
00:08:22 00:08:27 last year with ads I had plenty of
00:08:26 00:08:30 issues where my payment processors held
00:08:27 00:08:32 25% of my revenue and when you're doing
00:08:30 00:08:34 $10,000 a day that's not a small amount
00:08:32 00:08:35 that's the profit margin that you're
00:08:34 00:08:37 making
00:08:35 00:08:38 so it goes to you profiting too now
00:08:37 00:08:40 you're not really profiting you're like
00:08:38 00:08:42 breakeven and the money you're profiting
00:08:40 00:08:44 is being held for let's just say 90 days
00:08:42 00:08:47 so where you can't touch that money and
00:08:44 00:08:48 if you're living above your means or at
00:08:47 00:08:50 those means where you're you know you're
00:08:48 00:08:53 making the money that can be kind of bad
00:08:50 00:08:55 and some payment processors just throw
00:08:53 00:08:56 in holds randomly they don't even give
00:08:55 00:08:58 you a warning like hey in one week we're
00:08:56 00:08:59 gonna give you a payment hold they just
00:08:58 00:09:02 kind of do it which is something that's
00:08:59 00:09:04 very bad and I say last year because now
00:09:02 00:09:05 again have us inventory that kind of
00:09:04 00:09:07 eliminates the issues because I have
00:09:05 00:09:09 extremely fast shipping times great
00:09:07 00:09:10 quality control and I don't really have
00:09:09 00:09:13 I've never had a charge back on my
00:09:10 00:09:15 stores so that's great but when I did
00:09:13 00:09:17 have charge backs and I did have issues
00:09:15 00:09:18 that's when I was facing a ton of
00:09:17 00:09:20 difficulties with payment processors
00:09:18 00:09:22 another thing that takes a big toll on
00:09:20 00:09:25 you that I didn't realize when I was
00:09:22 00:09:27 scaling my stores was customer support
00:09:25 00:09:28 can get pretty gruesome if you are
00:09:27 00:09:30 managing it yourself
00:09:28 00:09:32 props to you with a drop shipping store
00:09:30 00:09:34 I manage my brands emails because all
00:09:32 00:09:36 the emails are like oh the product is
00:09:34 00:09:37 amazing I think you know thank you so
00:09:36 00:09:39 much because my shipping time is like
00:09:37 00:09:41 three to five days so customers get the
00:09:39 00:09:43 product same week and I know I'm
00:09:41 00:09:45 mentioning how I have brands and stuff
00:09:43 00:09:46 that have US inventory don't have that
00:09:45 00:09:48 scaring you away from the drop shipping
00:09:46 00:09:48 drop shipping still a great business
00:09:48 00:09:50 model
00:09:48 00:09:52 it makes people so much money I'm
00:09:50 00:09:53 definitely gonna be starting some more
00:09:52 00:09:55 stores myself that are drop shipping
00:09:53 00:09:57 because there's a lot of opportunity
00:09:55 00:09:59 right now but I'm just mentioning my
00:09:57 00:10:01 brand because there are a lot of pros of
00:09:59 00:10:02 having a brand big downside though like
00:10:01 00:10:05 side note is I can't really scale a
00:10:02 00:10:06 product from 0 to 10k a day unless I
00:10:05 00:10:10 have that inventory so that's something
00:10:06 00:10:11 that sucks big time like it really sucks
00:10:10 00:10:13 but customer support
00:10:11 00:10:16 I had it Lasher to wear a brand we
00:10:13 00:10:18 scaled to six figures the store flopped
00:10:16 00:10:20 because again the quality control was
00:10:18 00:10:23 not there for the product and some of
00:10:20 00:10:25 the orders we can even fulfill so it got
00:10:23 00:10:27 to the point where somehow someone found
00:10:25 00:10:28 my personal phone number I don't think I
00:10:27 00:10:30 changed it on the website at the time
00:10:28 00:10:32 and then I was getting probably phone
00:10:30 00:10:34 calls every hour or so of customers
00:10:32 00:10:37 complaining emails were getting blown up
00:10:34 00:10:39 somehow a customer found my Instagram
00:10:37 00:10:41 page and started telling me stuff was
00:10:39 00:10:43 terrible it was a weird time in my life
00:10:41 00:10:44 where I was just like this is horrible I
00:10:43 00:10:46 really don't like this drop shipping
00:10:44 00:10:47 thing right now like yes it made me
00:10:46 00:10:48 stupid amounts of money like I had
00:10:47 00:10:50 profited 50
00:10:48 00:10:52 dollars in a month with one store and I
00:10:50 00:10:53 was like this is awesome but the
00:10:52 00:10:55 downside is where the emails were
00:10:53 00:10:56 gruesome no one enjoyed the product and
00:10:55 00:10:59 so that was something that was bad
00:10:56 00:11:00 because I didn't have good relationships
00:10:59 00:11:02 with my suppliers and they were
00:11:00 00:11:04 providing me very low quality products
00:11:02 00:11:06 which again I should have verified with
00:11:04 00:11:08 my suppliers before doing this and to
00:11:06 00:11:10 recap this video low barrier to entry
00:11:08 00:11:12 you can scale your products really fast
00:11:10 00:11:14 with drop shipping and if a product
00:11:12 00:11:16 doesn't work you can just sell another
00:11:14 00:11:17 one it's very simple to pivot into
00:11:16 00:11:20 another product so drop shipping is
00:11:17 00:11:22 great but there are some downsides you
00:11:20 00:11:24 have slow shipping times quality control
00:11:22 00:11:25 is not in your hands normally it's in
00:11:24 00:11:28 the suppliers hands you have generic
00:11:25 00:11:30 packaging and the competitiveness can be
00:11:28 00:11:32 through the roof at times now with all
00:11:30 00:11:33 that information said I strongly urge
00:11:32 00:11:35 you guys to get started with drop
00:11:33 00:11:37 shipping again very good business model
00:11:35 00:11:39 especially right now so much money is
00:11:37 00:11:42 being spent not only in the US but
00:11:39 00:11:44 worldwide because of all this stuff
00:11:42 00:11:46 happening in this world right now so
00:11:44 00:11:48 again don't let anything I said scare
00:11:46 00:11:49 you just be motivated by the fact that
00:11:48 00:11:51 there's so much money being spent right
00:11:49 00:11:53 now drop shipping again there are pros
00:11:51 00:11:54 and cons with every single business
00:11:53 00:11:56 model it's not like there's one that's
00:11:54 00:11:58 just amazing that everyone needs to get
00:11:56 00:12:01 into and then every other business model
00:11:58 00:12:02 is inferior every business model is good
00:12:01 00:12:04 and bad in some reasons you just have to
00:12:02 00:12:06 pick the one that you can sort of deal
00:12:04 00:12:08 with the most and then go with it so
00:12:06 00:12:09 hopefully you guys did enjoy this video
00:12:08 00:12:10 and got value if you did make it to the
00:12:09 00:12:11 end
00:12:10 00:12:13 smash that like button and click
00:12:11 00:12:15 subscribe below drop a comment if you
00:12:13 00:12:16 have any questions I reply to basically
00:12:15 00:12:18 all the comments I went to something
00:12:16 00:12:22 very weird but other than that I will
00:12:18 00:12:22 see you guys in tomorrow's video peace

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