is dropshipping bad for the environment
Published on: January 13 2023 by pipiads
Table of Contents About is dropshipping bad for the environment
Dropship: Scams Delivered Right to Your Door | Corporate Casket
hello and welcome to the corporate casket, a semi-weekly series where bad businesses go to die. we will discuss any and everything, from bad charities, terrible ceos and people that have a lot to hide. i'm the illuminati, and today i'm going to be toking about a type of company that i'm sure most of you are aware of. considering how quickly these types of businesses seem to just multiply. seriously, the only reason i've actually been dreading discussing this is because i know i'm just going to get a ton of ads for them after the research process and visiting their websites. i'm toking about shady dropship companies and, now that i'm thinking about it, some of these may not even be in existence by the time this episode goes live, because they just pop up and crash so quickly. but we're going to be toking about those places that advertise free jewelry and all you have to do is pay shipping, like that special brand of. so let's just get into this and tok about what is a dropship company and how does this type of business actually operate and profit. let's get into it just like any other kind of business really well, except for mlms. there's a few good ones out there, mixed in with the bad ones that can ruin the reputation of the others. now, not all dropship companies are terrible by default, and there's a way it can be done correctly. even the idea of drop shipping itself is a little bit questionable for many, though. so what is drop shipping exactly? well, according to bigcommerce, it's an order fulfillment method that does not require a business to keep products in stok. instead, the store sells a product and passes on the sales order to a third-party supplier, who then ships the order to the customer. drop shipping doesn't require a brick-and-mortar store, and it's basically like adding in a middleman. if i sold, like my soap to you guys, but i wasn't the one making it, i didn't have any products in stok or anything- then it wasn't really my shop. i just would have a third party person sending soap to you that they made and i just kind of branded it as my soap. so that would be a form of drop shipping. now, obviously, that's not the case. i'm going to be making my own soap and candles, because i want to control exactly what's in it, how i make it, how they're scented, that sort of thing. but if i didn't do that and instead had someone else produce it for me and i just sold it, that's kind of what dropshipping is. with dropshipping i couldn't really have control over product quality, and sometimes people just don't care about that. hence why these shops are so popular. but personally i'd be putting my name on the line and yet the quality, storage, inventory, management and shipping of said product would be entirely up to somebody else and out of my control. some artikles call it a get rich quick scheme, while others say those promoting drop shipping earn very little, since most of the money from every sale goes to the supplier and what marketers do earn barely covers their office hours. we'll see it toked about a bit more. but when someone creates their dropship website, they're typically using a cheaper listing from sites like aliexpress or shopify, usually shipped from china, that they in turn upsell to customers. wired says successful drop shippers often solve so-called pain points. perhaps you like to go running with your dog but find holding the lead a chore. a drop shipper finds a hands-free running leash on aliexpress, then targets it via facebook to dog living runners. they'll create a video showcasing its benefits. videos outperform imagery and then haunt you with that video until you give in and purchase the item. at this point you'll wait up to a month for delivery. lengthy order processing times are a drop shipping tell because the item is being shipped from china. but, as i've mentioned, there's also this offer of its free just pay shipping or free plus shipping that many dropshippers advertise. do drop shipping? a site that advertises dropshippers on how to actually run their business explains that. not only does this add appeal, but the free shipping plus model only works well with smaller items like jewelry and watches, for example, since those items cost just a couple dollars to ship. these sites advertise drop shippers to charge 10 or 15 for shipping. that way the item still appears free, but it's actually covered in the shipping cost. one site, enchanted forest, even claimed their moon clip was free, but when i went to check out, shipping alone would have cost me 60 dollars for the supposed free item. so that's a joke. the aliexpress version isn't even two dollars, by the way. dewdrop artikles teach drop shippers how to set up these so called businesses on shopify 2.. and some of the profit margins these kinds of artikles advertise seem way too generous to be real. they make it sound like drop shipping is just sitting at home on your couch waiting for people to buy cheap products from your website and then the supplier does all the work, but there's a ton of issues that come with drop shipping, especially this free plus shipping mentality. so let's start there with these so called free products. quality control and drop shipping is really poor, to no one's surprise, i'm sure, but the argument could be made that you get what you pay for, and if you buy a free watch, then don't expect a good watch. seller deck writes: it's mad shirley. what can possibly be to gain from giving stuff away? well, if you've not worked out so far, it's largely a scam. firstly, the product you're buying- if that's even if you receive anything- probably isn't worth as much as it's made out to. the item, whether it be a watch or jewelry or a t-shirt, is probably made in china for pennies. you're then paying inflated shipping costs, usually around 9.99 or more, for an item not worth that and, because of how these products are produced, they're not environmentally friendly either. ironically, dropship suppliers are so aware of this that they're now trying to promote green drop shipping, which does like the bare minimum to be considered green and just takes a step out of the shipping process like: yeah, i guess i'm saving the environment now because these cheap goods traveled a few less miles and they were shipped overseas like whoopty do. it's pretty disappointing to see being eco-friendly as a niche and a cash grab, but i'm not surprised dropship companies would promote this either. these artikles aren't saying: go green because it's good for the environment and a responsible thing to do. they're saying: hey, call yourself green because you'll get more customers that way. even though a lot of these products seem far too good to be true, people absolutely still fall for them. some customers say they reason that smaller online retailers may try to deplete their stok of cheap clothing, even though once you actually receive the product, it's nothing like the pictures would have you believe. popular youtubers like sophia nygaard and smaller youtubers like call me liz make dedicated videos to buying cheap clothing from sites like wish and other sites that dropshippers use. other youtubers like judy as well as millie t, showed results on one of their halls, which were mixed, to say the least. it's just such a variety in quality which, yeah, i mean you get what you pay for, but i guess i'd rather pay for a higher quality top that's going to last me a while than a shirt that'll fall apart after a few wears, if it even lasts that, and with how horrible the clothing industry is for the environment and how poorly they treat their workers. again, i find it pretty laughable. this drop shipping industry can call themselves green overall. i think how to geek sums this section up quite nicely. drop shipping in of itself isn't a scam, but scammers are using drop shipping. unlike the easily spotted advertisements offering fake ray bans, this ad claims the product comes from an independent boutique. if you click on it, you'll see a website that looks professional. there might even be a backstory or photo of the design studio where the p
Jeff Bezos Explains why Dropshipping is Dying...😱
yes, drop shipping will die and you should not be doing this business model now. most of you guys are familiar with drop shipping. it's a very basic business model and has attracted a lot of people to it for the simplicity of it, because it's sold as being this very simple, very easy way to start making a lot of money fast. now the way drop shipping works is that what you do is you put up a website. you find products from a wholesaler in a third world country- typically- or it's very cheap products. you put these products on your website, you mark up the price. then you market these products to typically a western audience. then, when you make a sale, you purchase the product from the wholesaler and put in the shipping address of the person that purchased it from your website, and then the shipper, the wholesaler, sends the product to the person that bought it on your website. so you have no inventory. there's very low risk. this is a very from the surface appealing business model to start. now. this is where the problem begins. watch this clip. we know customers like low prices, we know customers like big selection and we know that customers like fast delivery, and those things are going to be true 10 years from now. they're going to be true 20 years from now, so we can count on those things and we can put energy into them. now let me ask you this question: how do you make money? the answer: you provide value. money is a result of you providing value to someone. now going back to the clip of jeff bezos here, the typical drop shipping doesn't care about any of these things that jeff cares about. because of that, jeff, with amazon, is going to put almost every single drop shipper out of business, and this, again, is because jeff is focusing on a low price, a lot of selections and fast delivery, which is completely opposite of what the typical drop shipper does, because the drop shipper will sell it at a high price. there will be a very small amount of selection, because the typical drop shipper is focusing on one winning product and the. the shipping is like three weeks to two months. sometimes the product doesn't even arrive if you got a bad wholesaler, and so the reality is you're providing almost no value, and that's another reason why i don't really support this business model is because it's not really providing anybody any value and as a result of this, as a result of you not really providing value, your business is super unsustainable. now there is actually one way to succeed long term with drop shipping and yeah, you guessed it- it's through branding- branded drop shipping. now, a very close friend of mine from canada, who's probably one of the most successful people in the drop shipping space right now, dan vass, made a video explaining why drop shipping as a business model is dying and the only way to sustain is through branded drop shipping. now, that's just the reality of it. now take jay alvarez, for example. he would crush it and drop shipping in brand the drop shipping. that is because he already has a brand. he has a group of people that trust him, that like him, that want to support him, and so if he were to launch- i don't know- a clothing company- which i believe he already is- he could easily dropship that, smack a logo on and sell it to his audience. he's already got a pool of people that are ready to buy. they're not buying because the product is the best in the world, but they're buying because they like him, they trust him, they want to support him. and so if you're in drop shipping right now or dabbling with the idea, don't start drop shipping before you build the brand or if you are doing drop shipping, start branded drop shipping right away. at the end of the day, money comes from a generous standpoint. money comes from actually caring about the people you serve. money comes by you genuinely wanting to help people, and if that's not your approach, your business is not gonna last. so, yeah, that's, that's all i got for this video. if you enjoyed it, smash a like and i will see you, beautiful people, in the next one. [Music] peace. [Music] you.
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Is Dropshipping A Sustainable Business Model?
so is drop shipping a sustainable business model? let's go ahead and spend a few minutes toking about that topic today, and the reason i want to tok about it is, at least for me. what happened with me is i went through a period of i've been in the entrepreneur space for a while. in the first few years i didn't really make any money. i tried amway, i tried primerica, i tried ambit energy, i tried empower network. i tried selling these things called the rainbow vacuum cleaners door-to-door. they they're like water vacuum they're. they use water to. basically they're not really vacuum cleaners, but i tried selling those. um, i tried selling att universe door-to-door. i mean i used to walk around walmart and prospect for people in the mlm companies. i was in and say i would go around walmart and say, hey, you look sharp. do you keep your options open? the reason i ask is my um, the uh, the guy i worked for- because i was like 18 years old at the time so i wanted to use someone with more credibility- the guy i worked for is hot hiring- wanted to see if you kept your options open and then i'd get their phone number and try to get them to a meeting in a hotel or, you know, if it was primarily bring them to an office and, you know, recruit them right. so i tried all these companies and then i went through a period of time where i tried making money online and i tried looking for loopholes. i tried doing some- i don't say black hat stuff, but it was kind of like loophole stuff. it was stuff that would work for a while but then it'd eventually not work, and what i kind of realized is over a period of time, was that i don't want to be grinding it out forever. i don't want to be grinding it out for the rest of my life. what i want to do is i wanna- instead of, you know, every three months or six months having to learn a new skill set or you know, i i want to find a business that i can get really good at and invest my time and once i'm good at that business, i can make money in that business for years or possibly even decades. that way i can. the whole reason i got into the entrepreneur space was to make money and not work a lot. so i had money and time to do the things that i wanted to do, and i see a lot of people on, especially on facebook, especially some of these beginner entrepreneurs. they jump around from thing to thing and they almost spend more time now than they were when they had a job trying to figure out how to make money. and you know, they're not even making that much money yet. so i was like, okay, and that was me for i mean years. right, it was me for years. so i told myself, i want to find a sustainable business model so i can get good at it and then i can make money from from a while. so that's why i want to tok about the date: is drop shipping a sustainable business model? now, what we have to understand with drop shipping is what we're doing is we're basically being a middle person. we were being a middle man, or we are being a middle woman. we kind of know a secret. oh, maybe it's not even a secret, but we are. we have some knowledge and basically we have customers that don't really know about drop shipping or they're not familiar with it, and then we have products we can buy and we're the middle person. then we mark it up. and, by the way, this is how pretty much all businesses work. pretty much all businesses are kind of like: uh, the. it's basically where you're the middle person and you have knowledge or connection that the other person doesn't have, um, or it doesn't feel like trying to figure out how to get. i mean, you know, when i go to 7-eleven and i'm buying a candy bar, i know that the 7-eleven is making money on that. what is a 7-eleven doing? they have a resale license and they contact a distributor or a wholesaler or the manufacturer and they're basically getting candy bars at this price and they're selling it to me and more for this price. if you ever go to a bar club, what are they doing there? and you're buying drinks for three dollars or five dollars or ten dollars, well, the bar club is buying the alcohol for this price and they're selling it for this price. if you go to a restaurant, they're buying the food at this price and they're selling it to you at this price. uh, that's pretty much all businesses work, right? you're just. you're just connecting people to the middle person, um, and there's even companies that do this, where they're like consultants and they will connect you with other people. so if you have a business, you can do a consulting day with some of these consultants and they'll say: okay, you know you're using this company. i got a connection with a guy over here and he can get it to you for two percent less or five percent less, or you can reduce your processing fees or he can give you a better q. you know all these things. so a lot of business is just you kind of knowing a secret or knowing something that the other person doesn't have, and that's all. the drop shipping is right. all drop shipping is is: we are a middle person and we are connecting people. we're saying, all right, we're, we're showing people products that we're drop shipping from a company and when people decide to buy that products, they are making a decision out of their own free will, that the money they're spending on the product, that they find more value in the product than the money that they're spending on it, which gets them to buy it. because when value exceeds price, people buy. so they believe that the value they're getting from the product and, as well as they're buying it from facebook marketplace, they trust facebook. they've been probably had a facebook account for 15 years. um, you know it's protected by facebook's policy, so it's uh, there's some trust and credibility that's built into the facebook marketplace platform as well, all those things go into their decision. so the question we want to ask ourselves is: is drop shipping a sustainable business model, is this a fluke, or is it something that will be around for a while? and what i want to do is: i want to look at the history of drop shipping, and the truth is people have actually been dropshipping since the 60s and the 70s, 1960s and the 1970s- so about 50 or 60 years- and people were doing this with mail order companies and they were taking advantage of mail order catalogs where you would get a- uh, you know, i remember during the halloween season, at my mom's house, i would get a catalog or i'd get like a magazine, and they had all these halloween products and i remember i wanted to buy all of them. right, i could buy all these spiders. i don't even know what i wanted to do with it. they just look cool. i just wanted to buy stuff, right, i just wanted to spend some money. well, they could have been making those products themselves, they could have been buying them from a distributor and shipping them to me, or they could have had an arrangement with the drop shipping company. they say: listen, i'm going to do all the marketing. i'm going to send out catalogs, i'm going to take orders and you guys are just going to make the items and ship them to the customer. so people were doing this for a long time- people- i'm doing this for more than half a century. and what's nice about the drop shipping business model that i really like is, once you get good at it and learn it one time, and learn how to list items in a way where people will buy items from you over the competition, where you can manage um team members if you want to have people work for you right, or virtual assistants. you know how to manage customer service. when you get good at this business model, once you can use it on other platforms. so, for example, i started off drop shipping on amazon. i got really, really good at drop shipping on amazon and last year, in 2021, i made over a hundred thousand dollars in profit drop shipping on amazon. i've been over a million and a half dollars in sales in a 12-month period drop shipping on amazon. well, as you guys probably know from some of my other videos, that business is phasing out. amazon is cracking down on drop shippers more and more and it
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Joe Rogan on Bullshit Jobs
but also if you really think about the fact that we are in a world where people have to go to work to do a job. that, by the way, man, if there is a dude, you need to get on this podcast, and there's a book that you would love. David Graeber wrote this book called [ __ ] jobs. this guy is a [ __ ] genius man. in this book, [ __ ] jobs breaks down the phenomena of how many, many people are working in jobs that don't do anything for the world or the company they're working for. and it's not like this judgemental thing where he's like: yeah, that's a [ __ ] job, you're a bla bla bla. he's one of the. he's like a anthropologist, so he's very precise. but one of the qualifications for your job to be a [ __ ] job is, you know, that it's really kind of a worthless job. it's not really doing anything and, like the companies have gotten so [ __ ] big that they they end up having like departments or people running departments or extra employees that don't really need to be there at all and they have to pretend to be to work. that's what he writes about. he writes it the if you really want to torture a person, not only give them like the job of, like you know, pouring a glass of water and an empty glass and pouring it back, but then add to it that they have to deceive their boss into thinking that they're like doing an important job or they lose their job. so these, not only are these like some corporations and companies scanning your piss to see if you're taking a substance that is allowing you to connect with home, what you actually are, they are also demanding that you spend many hours a day lying to them, that you're doing work that you're not doing, if you're [ __ ] efficient. you know, and this is another thing Graber writes about. forgive me, David Graeber fan, anyway, I'd misconstrue this. I read your writings stoned, but but the, the, the, the other [ __ ] element to that is absolutely atrocious and [ __ ] horrible is that these substances are connecting us to home. they don't want us to be in those states and they're asking us to [ __ ] lie all day. and you know what psychedelic means, the, the etymology of psychedelic? no, it means mind manifesting or soul manifesting, right. so a psychedelic connects us potentially with the truth, what we are, our identity, right. and these companies. they're asking us to lie, to be the opposite of our debt identities, to wear weird a- suitors are some kind of dress code- and to sit in a desk where, because you're efficient, you get your job done in 45 minutes and for the next six hours you got to sit and type and pretend that you're working, knowing you're a person and knowing that this is like unethical you're. but if you, if you like, go and tell your boss: hey, man, I don't really have much to do, you might get fired. the boss might like: in the book he cites one person cuz he did like a survey, and he cites one person who went to her boss and she's like: hey, I can finish my job in two hours. I need can I have other stuff to do. and her boss is like: don't tok about that, stay quiet about that. oh, yeah, man, that's the [ __ ] world were in right now. because of automation, there's less to do. computers are making [ __ ] fat. that's why are we work? we're working the exact same amount of time we were when there were no computers, but you have to be there to get paid and you have to act like you're doing something, or they can you? yeah, so many people right now are doing just that, while they're listening to this a lot, a lot. and, by the way, you've you had a guess what percentage of people are listening right now that are really supposed to be doing some [ __ ] job and they're kind of sitting in front of their keyboard with earbuds on just barely paying attention. try not to get caught looking a port? yeah, I, probably. and all over the planet, over a million, over a million in the workforce, probably. when do you think companies had to put in rules that you can't look at porn at work? like that wasn't a thing in the 70s? who wasn't a thing in the 80s? right, it wasn't a thing in the nine, right. then, all of a sudden, you could just find porn online and people will they have a work computer that's hooked up to the internet. like when did companies start going: oh, yeah, we didn't know about that. yeah, you can't look at that, dude. I mean, I'm sure it started with like penthouse, right, like you. and when they have penthouse, like Penthouse magazine, like you know for sure you could bring, I couldn't bring- your penthouse, your [ __ ] hustler to work, that's true. but the but looking at something online is so much easier than going to the store and getting a hustler. like the access is universal, you're instantaneous, everyone has the the ability to just go and download it. you know, if we're gonna like ask questions that are impossible to answer. it's like, how many people right now do you think listening to the podcast are in their [ __ ] job jerking off the porn while they listen? at least one dude. yeah, sure, that's what dudes do. yeah, I mean kids, they can get away with it. they jerk off, especially a guy with a bad job who could find a way to jerk off somewhere. yes, just keep five minutes in this bathroom with jerk-off. just sorry, I think about the stupid [ __ ] job. dude, come on. like. that's like sexual assault. I don't think you're taking off in an office, none that. what if you scream? if everyone knows you're gonna go? hey, I'm gonna go in there, I'm gonna turn it off. when I come, I scream: that's sexual assault. oh well, that is I [ __ ]. feel like suing you right now, man.
The UGLY Truth About Dropshipping That No Guru Will Tell You
00;00;00;01 - 00;00;01;15. There's some shit I've seen 00;00;01;15 - 00;00;05;23 in Dropshipping that made me want to quit so many damn times. 00;00;05;23 - 00;00;09;08. But I pulled through and I'm here to tell you all about it. 00;00;09;09 - 00;00;10;17. Is Dropshipping for you? 00;00;10;17 - 00;00;12;15. Are you strong enough to play this game? 00;00;12;15 - 00;00;14;21. Do you have the mental toughness that it takes? 00;00;14;21 - 00;00;15;16. And today, 00;00;15;16 - 00;00;16;28, we're going to tok about all these 00;00;16;28 - 00;00;20;25 downsides, so you can make the decision of whether or not it is for you. 00;00;20;26 - 00;00;25;17. The truth is 99% of people that trial dropshipping fail. 00;00;25;18 - 00;00;27;13. It is a struggle to start. 00;00;27;13 - 00;00;30;22. You need to cipher through all the information on the internet. 00;00;30;22 - 00;00;34;17 need to find the right courses, the right YouTube videos, the right people. 00;00;34;17 - 00;00;38;28 to follow in order for you to cipher through the good and bad information. 00;00;38;28 - 00;00;40;17. To be honest, when I first started out- 00;00;40;17 - 00;00;43;22- it was super difficult to get my first couple of sales. 00;00;43;28 - 00;00;46;21, I invested hundreds of dollars into Facebook ads, 00;00;46;27 - 00;00;50;10 and courses, and the results that I got were zero. 00;00;50;11 - 00;00;54;02. I was able to get my first couple of orders after only a few months- 00;00;54;06 - 00;00;57;02. but I know some people that struggled for over a year- 00;00;57;09 - 00;00;59;19- to get those same first orders. 00;00;59;19 - 00;01;00;20. So after you take the time- 00;01;00;20 - 00;01;04;24- to learn so much about Dropshipping and finally make your first sales- 00;01;04;24 - 00;01;08;24- you will have to deal with what I call an emotional roller coaster. 00;01;08;25 - 00;01;13;19. When I started getting consistent sales on my Shopify store, I was ecstatik. 00;01;13;22 - 00;01;16;15. It was the best feeling. I couldn't even sleep at night. 00;01;16;16 - 00;01;19;05. I woke up at 6 am just to check my sales. 00;01;19;12 - 00;01;20;14. It was crazy. 00;01;20;14 - 00;01;24;15. But, as we all know, after the sunshine always comes the rain. 00;01;24;19 - 00;01;26;17- And this is no different. 00;01;26;17 - 00;01;30;06. I mean, it's depressing in the beginning when you're making a good amount of sales- 00;01;30;06 - 00;01;33;24- and then the next day you just stop making sales. 00;01;33;25 - 00;01;36;11. After a few years, of course, you get used to this feeling. 00;01;36;17 - 00;01;40;07. and the highs aren't so high anymore and the lows aren't so low: 00;01;40;15 - 00;01;41;26. So that is a good thing. 00;01;41;26 - 00;01;45;20. But you won't feel as good when you start making good results again. 00;01;45;21 - 00;01;48;23. I personally had a hard time dealing with my emotions- 00;01;48;23 - 00;01;52;07, when my Shopify store got banned, for example, or when I got blocked on 00;01;52;07 - 00;01;56;09 Facebook, and I had to learn how to separate my feelings from my business. 00;01;56;09 - 00;02;00;11- And this is a super important lesson for you if you're in the same phase- 00;02;00;12 - 00;02;03;11. Another negative point about Shopify Dropshipping- 00;02;03;18 - 00;02;08;05- is that the competition can be very harsh. when you find a winning product- 00;02;08;08 - 00;02;11;15- It's one of the best feelings in the world, but one of the worst 00;02;11;15 - 00;02;14;23 feelings in the world is getting your winning product ripped off- 00;02;14;23 - 00;02;18;28- and stolen by other job shippers that also want a piece of the pie. 00;02;18;29 - 00;02;22;07. Sometimes it's fair competition and they just kill your idea- 00;02;22;07 - 00;02;23;17- which can do nothing about it. 00;02;23;17 - 00;02;26;23. But sometimes they go and steal your own ad creatives, 00;02;26;23 - 00;02;30;10 and product pictures, which in some cases, cost you a lot of money. 00;02;30;11 - 00;02;32;27. Of course, you can submit a copyright claim- 00;02;32;27 - 00;02;36;21- but sometimes it just kills your momentum when people use your ad- 00;02;36;21 - 00;02;40;21- Creatives, for example- you will sometimes stop getting results super fast. 00;02;40;21 - 00;02;44;13 on Facebook or tiktok and when people don't steal your resources- 00;02;44;17 - 00;02;48;09. sometimes they just have a bigger budget than you and they can outbid you. 00;02;48;09 - 00;02;51;08 on the ad platforms and you can do nothing about it. 00;02;51;09 - 00;02;54;17. This is why, in dropshipping, you either have to move super fast- 00;02;54;17 - 00;02;57;16- or take the time to build a long, lasting brand. 00;02;57;16 - 00;03;01;13. That will be a lot harder to copy, because you also have people- 00;03;01;13 - 00;03;03;09- that really love and support your brand. 00;03;03;09 - 00;03;04;20. The next problem that I want to 00;03;04;20 - 00;03;08;19 discuss is a problem that I've faced on multiple occasions: 00;03;08;19 - 00;03;12;24 and it is not having enough cashflow to scale or sustain your business. 00;03;13;02 - 00;03;16;17. What I mean by cashflow is the money that you have to support your business. 00;03;16;17 - 00;03;17;13. when you're starting out, 00;03;17;13 - 00;03;20;10- There's no differentiation between your own money- 00;03;20;10 - 00;03;22;02- and the money that you put into the business- 00;03;22;02 - 00;03;24;21. but it will quickly evolve into two separate things: 00;03;24;22 - 00;03;29;06. Most people's goal in Dropshipping is to find a winning product and scale it- 00;03;29;11 - 00;03;33;00. But they do forget about cash flow, which means that they're going to scale 00;03;33;00 - 00;03;36;01 and then they're not going to have enough money to pay the suppliers. 00;03;36;02 - 00;03;39;28. This is very bad for a business because, if it happens, you can get banned- 00;03;39;28 - 00;03;43;14- super easily from any platform and then your business is completely dead. 00;03;43;15 - 00;03;47;19. If you are more careful about your cash flow, you can prevent a lot of issues. 00;03;47;20 - 00;03;51;10. But again, sometimes when you don't have enough budget to scale and Facebook- 00;03;51;11 - 00;03;52;04- some other jobs- 00;03;52;04 - 00;03;56;14- super- with more funds- can just outbid you and take all the market share. 00;03;56;15 - 00;03;59;18. Bans are a dropship buyer's worst nightmare. 00;03;59;19 - 00;04;04;10. Like I said previously, if your customers aren't satisfied, it can lead to bans. 00;04;04;10 - 00;04;08;28 from Facebook, TikTok or your payment processors like PayPal or Stripe. 00;04;08;28 - 00;04;12;02. But you can also get banned from these platforms that you need. 00;04;12;07 - 00;04;16;28 for no reason at all, at least not one that you are aware of. 00;04;16;28 - 00;04;21;08. But in some cases, it's going to take you months to get out of these situations. 00;04;21;14 - 00;04;25;29. and some people just can't afford to lose so much time without making any money. 00;04;26;00 - 00;04;30;09. I personally had to deal with Facebook issues for 3 to 6 months- 00;04;30;09 - 00;04;33;18- before I finally found all the solutions to my problems. 00;04;33;18 - 00;04;37;04- And I just- it is for the people out there that are still dealing with Facebook. 00;04;37;04 - 00;04;38;09, or TikTok bans. 00;04;38;09 - 00;04;40;11. You need to use agency accounts. 00;04;40;13 - 00;04;43;20 And the last downside that I wanted to tok about in this video- 00;04;43;24 - 00;04;47;10- is the legal and administrative part of the business. 00;04;47;15 - 00;04;51;12. That's something that our business owners have to deal with, but it's super. 00;04;51;12 - 00;04;54;25- annoying, especially when you don't have a team behind you that can help you. 00;04;54;25 - 00;04;58;22. So if you choose to do dropshipping, don't forget that you have to deal- 00;04;58;22 - 00;05;02;13 with this side of the business, which can sometimes be overwhelming. 00;05;02;18 - 00;05;05;19 and super difficult to find information on the Internet. 00;05;05;23 - 00;05;07;00. So now that we've seen a lot- 00;05;07.
10 Reasons Your Dropshipping Store is Failing
Shopify Drop Shipping has the power to generate thousands per month, but only when it's done properly. so today I'll be covering 10 beginner Drop Shipping mistakes. Implement everything I'm teaching you today, and this right here could be how your very next store looks. the very first new mistake is not using a proper supplier. so right now we're on AliExpress and we have this 25 mile range military laser pulled up now an AliExpress. one of these costs 9.76 to ship out and the shipping for it is free. but if we go on over to CJ Drop Shipping, we can see that one of these costs 6.87 to send out. so this one 687, AliExpress 976. so it's literally a three dollar price difference and on top of CJ having a better price, it also has 7 to 15 day delivery time, so that way they're gonna get their order faster as well. I get some comments asking about zendrop or de-essers. I don't use any of those. the pricing is just way too high. so if you're looking to get the best pricing possible, I would recommend CJ Drop Shipping. it's literally just an app on your Shopify store, so go download it, create an account. I have an entire video made for it, so if you want to check that out. I'll have it encarted at the very end of this video. beginner. mistake number two: this is just having a bad website overall. so I pulled this page up from tiktok. I found them Drop Shipping my hydro bath. I don't think they're doing insane numbers. they seem to be pretty new, um, so I'm just gonna roast their page real quickly just to give you some perspective. um, first, they only have one product photo and it's on a white background. typically you want to have product photos that show your product in a real environment. secondly, they have my store here. they they could hide this text and delete it. they have a variant, but there's only one option, so it's pointless to have this here. they could literally just delete it and save the space. this is a little nitpicky, but the reviews tip typically go underneath the title, Not underneath the price. his description is honestly okay, like he has some pretty good stuff in here, such as a fake Social proof. I see a lot of people do this. there is some risk involved, but he does have some strategy. another complaint is that his text is all bold. I don't know why it's all bold. I definitely wouldn't have every single word that thick. it does look a little bit spammy. so yeah, just making those simple tweaks to have your website be a little more aesthetik will go a long way. even if it's a minuscule different in your conversion rate, that could be the difference between a couple hundred dollars and a couple thousand dollars. now moving on to beginner mistake number three: that is not pricing your products properly and not getting enough profit margin. so let's use this military grade laser as another example. so one of these costs 687 to send out. so my rule of thumb for maximum profit is going to be your cost of goods. so 6.87 times 3 and and that's going to come to 2061. so I would price this for 19.99 or maybe even 19.95.. now, when it comes to First testing a product, sometimes I'll even do like a 2X or maybe a two and a half X markup. so maybe you're running this laser with Organic and you just set it to 14.95. that's still a two and a half X markup. I always test at that lower price point. that way, if my product isn't getting sales, I know it's because of the product and not because it's priced too high. so starting a little bit lower can just help you validate the product and then you can always increase the price later. Noob. and mistake number four is using the default CJ Drop Shipping description. so a lot of people will just import this product to their store and just use, like this text right here, and it just looks super crappy. this competitor, Hydro bath. they had a pretty good format, excluding their super big text, and if you're wondering the format that I personally follow, I actually have a store launch checklist over in my Discord. it takes, takes you along step by step and I even have pictures to show you what each step looks like. so if you're interested in this, I even have my exact FAQ here that you guys can copy. just join the Discord and you guys can take advantage of that. but to scroll through the product page real quick, if your stores don't look like this, you're just not launching good product tests, and that's the truth. so we have some high quality photos- notike, they're not crappy white background like they're legit stuff. now this product has a sizing chart, so I have that at the very top. um, also, I love drop downs. don't put these little pill selectors, because when you have a bunch of colors and sizes it just looks really sloppy. so for the format, it's headline text. we have a gif now. here we're listing the benefits and we split it up with some high quality product images. we have some scarcity here. we have our FAQ and literally inside of the product checklist, I have a screenshot of the FAQ. so if you want to copy this straight up, just join the Discord. and then, of course, we have our reviews at the bottom. so again, don't be copying this whack CJ Drop Shipping description. you want to put some time into it and actually make it look branded new. mistake number five is terrible product selection. so the first example of this is selling copyrighted items. so a good example of that is like a Marvel product. I would never touch this in a million years. the last thing you want is for the owner of a brand or the owner of an IP to come after you and sue you. they basically have infinite money and it's just not even worth touching. another example of a bad product are these like electronic facial devices. they do very well. they'll actually print you thousands of dollars. however, that's until your account gets shut down, because when you're running ads for these products- Facebook, tik tok, basically everyone- they're super strict with it and if you are running ads, they're probably gonna shut them off eventually for violating their terms of service. even if you're doing everything according to their TOS, they can still be a pain in the ass, so I would just stik away from these. and another example of a product that would be tough on tiktok is this: mainly because the price point is 33 dollars. so if you were gonna sell this thing, you would have to price it pretty high, and that would just make it more difficult on you. new mistake number six is having terrible product reviews on your website. so this Hydro bath started off good. they have some photos, but looking at most of their reviews, it's just five stars and it doesn't even have any context. it's straight up garbage. these could either be fake, maybe they're imported from AliExpress, I don't know, but they look terrible and they're a waste of space. if we go on over to my website, you can see that each of these reviews is quality. I can go through all 75 of these and all of them will have some substance and context. so I would recommend 12 reviews as a minimum and try to get as many photos as you can, but please don't do what this competitor did and import reviews just to have a bigger number. now, mistake number seven is not being open about your shipping policies. so on my product page I always include an FAQ at the bottom and inside of here I have our guarantee. just to give the customer some more reassurance. I cover our refund policy, so that way they're comfortable buying from us, even if they're a little bit skeptikal. I go over customer support, secure checkout and then we have our shipping information. make sure you update this accordingly so that way it matches whatever product you are selling. it's important that the customer sees this and they're aware of it, so I always include this in the FAQ section at the bottom of my product page, literally right above the reviews. now mistake number eight is roasting Hydro bath. once more, they just have the worst logo I've ever seen. if you look at it on mobile view, it takes up like half the website, and if we look at mine, look how condensed my logo is. so the first thing t.