negatives of dropshipping
Published on: February 2 2023 by pipiads
Table of Contents About negatives of dropshipping
The UGLY Truth About Dropshipping That No Guru Will Tell You
in this video, i'm going to answer the most commonly asked questions about drop shipping, including the questions that most people won't give you a straight answer on. so here's the ugly truth about drop shipping. now, drop shipping has a reputation for being a get rich quick scheme because it sounds way too easy: you don't need to store inventory, you don't need to ship or fulfill orders, you don't need much money to get started and you can run a dropship store from anywhere in the world. now, while all these statements are tiknically true, a common misconception is that running a successful dropship store is easy. but in reality, success with drop shipping has many pros and cons and isn't as straightforward as you are led to believe. so in this video, i answer all the in-depth questions related to drop shipping to provide you with a complete view of what it takes to run a profitable dropship store. now, what is drop shipping? drop shipping is an ecommerce business model where an online store does not carry inventory for the products it sells. when an order is made, the online store purchases the products from a wholesale supplier, who then ships the order directly to the end customer. so, as a result, the online store owner does not have to deal with physical inventory or perform any shipping and handling. there are no upfront inventory cost because all products are purchased on demand. now is drop shipping legal and legit? it is 100 legal as long as you use legitimate dropship suppliers. so, for example, if you sell disney merchandise on your online store and your supplier dropship's fake disney merchandise on your behalf, you could be liable for fraud. as long as you're careful about who you work with and only use officially licensed distributors for the brands you carry, drop shipping is legit and safe. now, does it require a seller's permit and a business license? well, in the us, you absolutely need a seller's permit in order to legally sell online. now, most states require you to charge sales tax to customers where you have economic nexus, and drop shipping is no exception. if your locality requires a business license, then you must get a business license as well. remember, drop shipping is simply a method of order fulfillment. your drop shipping business is a real business and must be registered as such. now, how profitable is drop shipping? well, because your supplier is doing most of the heavy lifting when it comes to fulfillment and inventory. the margins for drop shipping are much less than other e-commerce business models, so typical margins for drop shipping are between 10 and 30 percent, compared to 50 to 66 percent for private label and traditional wholesale, which makes drop shipping far less profitable. now, the best products of drop ship are higher tiket items that yield more revenue per sale. now is drop shipping worth it? well, despite the low margins, drop shipping can be a great way to get started selling online. for less than three bucks, you can start a fully featured ecommerce business that carries hundreds of products, and drop shipping is worth it for product research as well. without any upfront risk, you can list many products online just to see what sells and then, based on your own sales data, you can private label or carry inventory for your best selling products and keep more of the profit. now the best part is that drop shipping can be automated, except for the customer service. now, most established drop shipping suppliers support edi, which stands for electronic data interchange. edi is an electronic system that allows your website and your suppliers website inventory to automatikally stay in sync. so, for example, if your supplier runs out of stok on a partikular product, your website's inventory will automatikally be adjusted. in addition, all orders placed on your website are automatikally transmitted to your drop shipper for fulfillment. however, even though order fulfillment is automated, you are still responsible for answering questions and performing customer service. now here's how drop shipping from your own website works. now, if you use a well-supported e-commerce platform like shopify, bigcommerce or woocommerce, setting up drive shipping is a straightforward process. here's exactly how you drop ship from your own website and how it works. a customer places an order on your site and you accept payment. the customer's order is electronically transmitted to your drop chip supplier, where you are charged the agreed upon wholesale price for your goods. your drop ship supply then ships the order to the end customer and you pocket the difference in cost as profit. now you don't have to drop ship on your website. you can also drop ship on amazon, and here's how amazon drop shipping works. you list your products or sell on amazon as a merchant fulfilled seller, and then, when an order is placed on amazon, you electronically send the order to your drop ship supplier, who then ships the products to the end customer. now, overall, amazon drop shipping is a much riskier business model than drop shipping from your own site, because you have to follow amazon's terms of service to the letter. first off, you must source your products from a legit wholesaler. you are not allowed to drop ship your products from another marketplace like aliexpress, ebay or walmart, otherwise you're going to get banned as a result. aliexpress drop shipping on amazon is expressly prohibited. amazon also imposes very strict requirements for shipping and fulfillment that must be met. if you have a series of late shipments or inventory mishaps, your account's going to get banned. but outside of following amazon's terms of service, drop shipping on amazon works much the same as drop shipping on your own website. you can also drop ship on ebay. you simply list your products for sale as an auction or store listing and then, when an order is placed, you electronically notify your supplier who fills the order and similar to amazon. you must source your products from legit dropship suppliers and not marketplaces like amazon or walmart, otherwise you're going to get banned. so, as a result, get rich quick. schemes like buying products from amazon and drop shipping them on ebay at higher prices is prohibited. now you're probably wondering how drop ship payments work. well, when you sign up with a drop shipping supplier, you'll be asked for a form of payment and typically you can pay by credit card. your supplier keeps your credit card on file and simply charges your card when an order is placed. you can also use ach or direct transfer. this is where your supplier keeps your bank information and automatikally places a transaction at the end of the day, week or month for all products purchased. the best way to pay a drop ship supplier is through payment terms. some suppliers will offer you payment terms, which means that you don't have to pay for your products until 30 or 60 days later. now, whenever an order is placed on your website, two payment transactions occur in the background. the first transaction takes place when you accept payment from your customer and deposit the money into your own bank account. the second transaction takes place when you pay your supplier for the raw cost of goods and any related drop ship fees. now where do you find drop shipping suppliers? there are four main ways to find suppliers. depending on your budget and the types of products that you want to sell, and by paying a fee, you can perform a search and instantly have access to hundreds of pre-vetted suppliers. you can also use a drop shipping company. a drop ship company acts as a middleman who automatikally connects you to a dropship supplier. you simply list the products that the dropship company offers and they handle the entire fulfillment process. as a result, you do not have to find or interact with any suppliers. you can also go to a drop shipping trade show. by attending local wholesale and drop shipping trade shows, you can form drop shipping arrangements face to face. you can also use a print-on-demand com.
Exposing The Truth About Shopify Dropshipping..
i'm gonna be honest with you: drop shipping is not as great as people make it out to be. now don't get me wrong. hit is a great way to start making money online and it has changed my life in so many ways, but the business model is just not sustainable in the long term. but by approaching this business in a slightly different way, in the last few years i've generated multiple seven figures and, as you can see, this year i'm on track to do over two million dollars in sales without drop shipping. so in this video i'm gonna be exposing the raw truth about drop shipping and why i moved on my exact approach that's generating me over a hundred thousand dollars a month consistently, and we're even going to be toking to one of my friends who has built an empire on shopify with multiple brands worth over 250 million dollars, to get his opinion on this. so let's break down the three biggest problems with traditional drop shipping. this first problem is the main reason why drop shipping stores don't succeed in the long term. most traditional drop shipping stores provide a terrible customer experience. we do not care when you're drop shipping directly from aliexpress. you have next to no quality control over your products. you have zero control over the shipping lines your supplier is using, which causes your customers to have to wait an extremely long time for a product that might not even be that good. it's not all bad, though. there's still a decent amount of good suppliers on aliexpress- though it's the lack of control that's the issue and almost always leads to a poor customer experience. i want to take a look at one of the biggest aliexpress drop shipping stores of all time. this store actually shut down a couple months ago because of this exact reason. so if we take a look at the reviews of this store seconds, you can see that they have a ton of reviews. they have over a thousand reviews- and this single-handedly killed their business. people are complaining about the exact things that i just mentioned. they're complaining about slow delivery times, low quality products, six weeks to arrive. these are the exact issues that you're gonna run into when drop shipping from aliexpress. if this store made this small change that we're gonna tok about later in this video, they would still be thriving and making sales to this day, but, as you can see, the poor customer experience pretty much just killed the opportunity. let's tok about the second biggest problem. it is extremely easy for somebody to come and steal your winning product. as long as they come in and apply the same tweak that i'm using, they're gonna be able to kick you out of the marketplace and outscale you on your own product. i've seen this happen time and time again and i've done this to drop shipping stores using my method. competition is okay and it's actually really healthy, but you have to build a business that makes it difficult for people to come in and compete with you. think of it as if you were building a castle and trying to keep people out. the best structures always have a gate, a bridge and a moat, making it extremely complicated for somebody to break in. you need to approach building your business in the same way, and we'll tok about how to do that very shortly. and the last problem, which gets super annoying when you're scaling, is that everybody wants to shut you down. paypal and shopify payments do not like it when you dropship at a high level because, since people have to wait a really long time for their product, a lot of times they will do a chargeback, which really hurts their reputation with the banks, which makes shopify and paypal look at you as an unsatisfactory client, which usually will end up with them holding a portion of your money or even shutting you down entirely. so for these three reasons, i'm out, but there actually is a way to use drop shipping to build a long-term business. it all comes down to using it for the right reasons. drop shipping is extremely good for one thing, finding your first winning product, since you don't have to order inventory. it's pretty simple to try out a bunch of products until you find one that's selling consistently. and once you find that product, you should transition as soon as possible to this. this is exactly what the top 100 companies on shopify are doing. let me explain. instead of focusing on making as much money as possible with drop shipping, my goal is to build a long term brand with real value. i simply use drop shipping as a means to an end. once i had a product that was selling consistently and had potential to grow, i decided to build a brand around that product immediately. by the way, if you need help with that testing process, i made a detailed video on how to get started, so make sure to check that out. but for making this simple change, i immediately saw a higher conversion rate, much cheaper ad costs. people were spending more money on my store and the word started to spread, which brought in more repeat customers. this simple change took my business to the next level. if we look at the graph from day one of starting this business, you can see exactly what i'm toking about. so in the first month of testing products, i made around seven thousand dollars in sales. in the following month, i made around sixteen thousand dollars, and this is when i found that winning product and i transitioned it into a brand. at the end of this month- and you can see the following month- i almost 5xed my revenue just for making that simple change, and by the end of the year i had surpassed over a hundred thousand dollars a month in sales, and have done that every month ever since. so now i'm going to share with you three simple steps to transition your drop shipping store into a brand. the first thing i did was completely redesign my store to focus entirely on this product. now there's two ways to do this. the first way would be to fill your store up with a bunch of products that are similar and go hand in hand with your winning product. so this store actually started by scaling this product and since then they expanded by adding a ton of other products and selling those to their list. as you can see, this brand is bringing in over 500 000 monthly visitors, and they're absolutely crushing it. the other way is to build out a store entirely for that product itself and build out a suite of products that you can use alongside it. so, as you can see, with one of the biggest shopify stores, snow teeth whitening, they have the teeth whitening kit, whitening wands, serum, toothpaste and floss. it's all really solving the same problem and they go hand in hand together, and this store is making millions of dollars a month, and they even made it on ellen the other day, which is really cool. the second step is to work with an agent in china to brand your product, order inventory and provide faster shipping for your customers. now, i've made a whole dedicated video on this topic, so if you want to check that, i'm going to put it in the card up above. once you have a winning product, this process is extremely simple. these companies are excited to work with you and they're going to do what they can to get you the best price and the best experience for your customers. though, be careful, because there are some untrustworthy agents out there. though, i can recommend you a good one in the description down below. and the third step, which literally cut my advertising cost in half, was taking that new branded product and making custom content with it. so instead of using ads with footage i found online, i shot my own ads with my iphone and some friends, and this literally sliced my cost per purchase in half. i also took nice and clean photos with our branded product, which really helped with our conversion rate. these three changes alone will allow you to take that leap from running a drop shipping store to building your own brand. of course, there's a lot more that goes into it, but these changes alone will set you apart from 99 of people that are trying to sell the same product, which will all
More:⭐️ TOP 10 PRODUCTS TO SELL IN MAY 2022 | Shopify Dropshipping
Pros and Cons of Dropshipping
drop shipping products is a great way to start selling online. however, it does have its pros and cons, so that's what we're gonna be toking about in today's video. we're gonna be toking about the pros and cons of drop shipping and what to look out for along the way. [Music]. hi, I'm Alma can, owner of curious seems web development studio in Nashville, Tennessee, and we've been Shopify experts for over five years now. so, as I mentioned, drop shipping is a great way to get started quickly with an online business, and there are three pros that I want to start with in this video, and then we're going to switch to the cons and some ways to avoid some of those cons as well. so the first Pro that I have for you is that it is very easy to get started fast. you don't have to get a business loan. you don't have to do all of the, the business plan and all that stuff. you can really get started in a day or a weekend. however fast you want to move, you can get started creating your own business and finding products to sell. that's definitely a huge plus, especially since you hear stories of people working for months to try and get their business started. think about what can happen if you just got started today. so the second Pro is that you don't actually have to have a lot of inventory upfront. the way that dropshipping works is whenever someone places an order on your site, then you can instantly purchase the product and get it sent to their address. so you're not actually having any kind of inventory in your garage or a warehouse. you're not sitting on money that you could be selling in case the product is a dud and isn't selling very well. so it's kind of a nice way to remove the risk of having all that money up front for start-up costs like inventory, warehousing space and kind of still figuring out which product works the best. so that kind of goes into the third Pro and that's that you can start testing products. so again, you don't have to purchase you know a thousand of them at one time and then find out that no one really likes it. you can start testing out the products with no risk for you of having all that cost and inventory and seeing what people are gravitating to the most, running ads and setting them up on your site. so you can kind of easily find your winners and then push those more for more traffic and sales. okay. so those are all really nice pros, of course. so let's switch to the Hanz and see some of the downsides of starting a drop shipping business. so the first con has got to be that there's not really a control over quality. so because you're ordering it from someone else, it means that you're not actually getting to see it, to hold it in your hands and make sure that it's up to your level of standards. you want to make sure that the products good and that it's shipping to the correct people, but whenever you outsource that and you're letting someone else do it, you've really lose a lot of control. the key to really kind of fix and solve this solution is to first order some samples of the products and ship them to yourself, not only so that you can see the quality and make sure that it gets there nicely and it looks good, but also so that you can then use those products to take photos and put those photos on your site and use the photos for ads as well, okay. so the second con is about the long lead times for shipping. so a lot of products that you'll see online are being shipped from China, which, from China to the States, can be three to four weeks lead time, and in Amazon's fast culture of fast 2-day shipping, then it kind of makes people really annoyed when products aren't there in a week, so let alone three, four weeks. you're gonna have some irate customers and that's something that it has to be factored into it all, which is the additional customer support that you're going to need with those longer shipping times. now there is a great way around this and we'll be toking about this more in this video series that we're doing all about drop shipping. so if you haven't yet, make sure to subscribe to this channel to get notifications whenever we add new videos. but the best tip for this is to actually drop ship products from the US or from Europe, and we've got an app that is amazing and doing this, and we can't wait to share it with you. so I kind of already went into con number three already just a little bit, but that was about needing more customer support because of those longer lead times. also, if the quality's not there, you're gonna get people asking for refunds, so refunds can tend to be a lot higher for dropshipping businesses than if you were actually seeing the products and shipping them out yourselves. and then I've got one more con. so my fourth and final con, which is that there isn't really any discount for bulk ordering. so, in general, if you order a product in one quantity or a hundred, whenever you order it a higher quantity you're gonna start getting a discount on the overall price, so it saves you more money and it lets you make a little bit more profit. but with drop shipping, since you're ordering it one off, you're not getting that huge bulk discount like you maybe used to if you're using a warehouse or fulfillment center. although there are a lot of cons in starting a drop shipping business, there's also a lot of pros as well and, as I said before, you can kind of get through some of those cons through different means so that you can still have this great drop shipping business, but you're negating some of those cons and some of the downsides to it, like, as I mentioned, the longer shipping times. I am excited to showcase an app called spa kit that will take you through the process of drop shipping and setting it up super quick on your site, but you're able to find verified products that are in the US and in Europe and ship them- still the same process of drop shipping, but it's gonna be a lot faster. I have a shipping time as well as their verified, so you know that it's a good quality. so make sure to stay tuned for more videos where we actually go into this pocket app and set it up for Shopify. so, as I mentioned, I am doing a series on setting up a drop shipping business. in the next video, we're gonna be covering the top Shopify apps for drop shipping and again highlighting some of our favorites there. so make sure to subscribe and stay tuned for that video. also, make sure to comment below and let us know what kind of products you're interested in drop shipping, or maybe you already have a drop shipping business setup and we would love to hear any kind of feedback from you on that as well. thanks so much for watching and I'll see you next time.
More:How TEENS Earn $250 EVERY DAY! Make Money Online (EASY & Beginner Friendly)
👀 What You NEED To Know Before Dropshipping
you know what, despite the several successful dropshipping case studies on this channel, i still occasionally get people leaving comments like drop shipping is dead, if it was ever properly alive to begin with. increasing e packet rate- it literally kills drop shipping. it's too late for this business. most businesses fail. i will never waste my time and money trying to start a business ever again, and if you're smart, you'll do the same thing. hmm, yeah, well, okay, obviously, i strongly disagree with those comments, because here's the thing: a lot of people will say things like drop shipping is dead or it's too late, or businesses don't work, and the reason why they're saying these things is because they are making several assumptions that are all wrong, and so, if you are looking to start a store, it's crucial, then, that you understand what these assumptions are before you start drop shipping so that, unlike these people, your store can be successful, because, no, it is not too late. one people won't buy from you. they'll just buy from amazon instead. but wait, sarah, you ask: why would anyone buy products from me if they can buy products directly from amazon themselves? now, it is absolutely true that if you head on over to amazon, that you will find lots of products that can be purchased directly from aliexpress, sitting on amazon's digital shelf as well. and, of course, if customers were to purchase your products on amazon, they would then get to take advantage of their prime two-day shipping. so how on earth could drop shippers successfully dropship these guitar coffee spoons with two to three week shipping via china's cheapest, fastest shipping option- a packet, when a customer could come and buy them on amazon with two-day shipping? i mean, come on, sarah, just think about it. amazon is only growing. in q3 2019, their product sales were up over 17 from the same time in 2018.. won't amazon steal away all of our sales? no, no, they will not. you see, here's the thing. there is some truth to these comments. amazon is arguably the better deal for usa citizens. it is better for the consumer to purchase the products on amazon. so if they figure out that the product that you are selling them is indeed on amazon for purchase, you can bet that amazon will take that sale away from you. but you know what? we literally don't care. and you know what? drop shippers never have the sorts of people who see a product and decide that they're going to research the absolute best deal, for it were never our customers in the first place. nope, it's the 44 of people that impulsively purchase products online that we are targeting and, of course, as shown by how millennials are even more prone to impulsive purchases, with 80 of them impulsively buying products, the overall percentage of impulse e-commerce purchases for us to target as drop shippers is only growing and growing. you see, successful drop shipping stores are built around that target customer, the type of customer that enjoys impulsively purchasing products. it also means that the successful drop shipping stores are usually built around selling products that spike an emotion in a customer that makes them think: i need to buy this right now. it's why this aliexpress dog caller has made hundreds of thousands of dollars. the advertising dropshippers used spike fear and dog owners pointing out how many dogs dying in car accidents each year from not being seen. that is why, when recently, i saw this comment from this viewer asking why their online store wasn't successful, i pretty much instantly knew that the store would be selling extremely boring products. and lo and behold, i was right. now, of course, this is actually a print on demand store, not a drop shipping store, but the exact same principle applies. why would somebody want to buy this hoodie when they can go to amazon and find cheaper hoodies and shirts with inspirational messages on there, because here is the reality. typing vision in a plain white circle is not exciting. so let's compare this hoodie to this hoodie. what is the difference between the two? well, the difference is that one hoodie is very boring and the other is extremely interesting, unique and unlike anything people are likely to have seen before, which is why this hoodie's facebook advertising campaign made so much money for the successful aliexpress dropshipping store. freaky pet. and, of course, if you're ever wondering, this exact same answer applies to the people that ask the question: why would customers not go directly to aliexpress themselves? well, again, it's because good aliexpress drop shippers sell products that trigger emotions on people and get them to impulsively buy their products, so that they never even think to go check if a product is on aliexpress, because they see and go. that's so amazing. i must buy one now. and, by the way, if you've learned something from this video and you would like to learn even more about starting a successful drop shipping store, then be sure to subscribe and click that little notification bell next to it so that you don't miss out on any of our videos. two, dropshipping is a scam. i just want to quickly address this because these comments are really dumb. you know, you might have notiked that earlier in this video i freely admitted that it would be a fast, superior financial choice for a customer to buy this hoodie on amazon with two day shipping for a fraction of the price compared to what they would pay for it on freaky pet. and so what do people say to that? oh, the customer can get it cheaper, elsewhere, quicker. that makes your store a scam. nope, it does not. number one: if it weren't for your facebook ad, the customer would never have known about that product that they really enjoyed getting in the first place. people really love this hoodie and we're really grateful that it was advertised to them and they bought it. you had to pay for that advertising to do that, which you pass on to the customer. amazon doesn't advertise products. customers have to find them themselves. and number two, as an entrepreneur, you are in no way obligated to offer your product for the lowest price. here are two coffee shops around the corner from my apartment. they are across the road from each other. i walked into coffee shop a and bought my favorite coffee, a long black, for three dollars- and yes, i know that overseas the phrase long black might conjure up some different thoughts, but here in new zealand, and over in australia too, a long black simply refers to pouring an espresso shot over 100 to 120 mls of boiling water to create a stronger version of an americano with creamer. next i went into coffee shop b and again order long black, but this time it cost four dollars- completely different prices for an extremely similar product. and you know what? coffee shop a's three dollar coffee was the best. would you say that coffee shop b is a scam for charging a higher price for a worse version of this coffee? no, you would not. pricing is entirely subjective and is actually determined by the customer, not you. you present the customer with the price and it is up to them to decide if that price is worth it or not. and at the end of the day, if freaky pet are able to create a marketing campaign that gets people to purchase their hoodie for a higher price while being entirely upfront about the shipping times, then they 100 deserve that sale. 3. drop shipping is saturated. perhaps the most bizarre of all the claims is that drop shipping is dead and it's over since. well, it's saturated. and the truth is when i see comments like this, it blows my mind, because this comment literally makes no sense. here is what market saturation literally is. it's when a product has been maximized in a market, in other words, when all of the people who would want that product have bought it already. and here is what drop shipping is. drop shipping is when a customer buys a product that you've listed in your store for a markup price. when they do, you go to the manufacturer and you purchase that one product for the wholesale price and then have the
The Truth About Dropshipping In 2022..
it's a new year and i don't want to hear none of that new year new me stuff. if you want to see some results this year, you got to put the work in and do things properly. there's more opportunity than ever to get started, but right now you have to do things differently to get the most out of it. so today i'll share with you everything you need to know to succeed with the dropshipping store this year, and i'll be bringing on a friend of mine who has made over 70 000 in one day using a brand new strategy to get his advice on the new year. but first let's tok about the biggest change of the year. dropshipping has been hot for a while now. it's nothing new- i mean, your grandma probably knows about it- which means there are tons of new people getting started every single day, and this isn't really a bad thing. but it means if you want to run a business like this, you've got to be on point. long gone are the days of testing hundreds of products and hoping to hit it big like the lottery. nowadays, the only way to win is by focusing on becoming the best marketer and finding a high quality product that people actually want to use. let's break this down. becoming a good marketer in this game requires four main skills: copywriting, video editing, website design and running ads. everybody that crushes it with dropshipping has each of these skills and is continuously improving them, and most of the time, beginners will try to outsource each step of the process, and this is going to hold you back so much. everybody that i know that's successful with dropshipping has each of these four skills, and the beginners that focus on learning and improving these first typically see much faster results. when i was first starting, i didn't necessarily focus on this. i had some of these skills from the past, but i didn't focus on sharpening them and, as a result, i was randomly testing products, wasting thousands of dollars on ads, and it made it extremely difficult for me to feel like i was making progress when i first started. feeling like i was progressing is when i started putting the work in to learn these skills, especially video editing and copywriting. these are the skills that allowed me to sell my product and really create value in the eyes of the customer, and i see a ton of people that try to outsource all this stuff when they start their business, but i promise you, this is going to hold you back so much because you don't even know what looks good and you're never gonna learn those skills for yourself. so how can you learn them? my favorite method so far has been to find a good example of a store or an ad that is performing well and try your best to replicate it. instead of coming up with an entirely new website template or ad template from scratch, you can just study what's already working and use that to your advantage, but just don't blatantly copy and paste their entire ad word for word. this is going to teach you nothing. look at what they're doing and try to make it your own. rearrange the footage, get new footage, find new angles and selling points about the product. i'm telling you this is the fastest way for you to learn how to market and sell products online, and you can always use youtube for extra help. there are tons of tutorials on how to build stores- i've made them- and videos on how to edit videos on all different types of apps. there's no excuse for you not to go out and learn these skills. when it comes to learning to run the ads, you don't need a complicated strategy at all. the most important thing to focus on is the product and the advertisement itself. if these areas are optimized, then running ads won't be that difficult at all, and, again, you can use youtube to learn the basics on any ad platform you want. when it comes to finding products, i pretty much approach it in the exact same way. the only products i like to sell are ones that are already selling and have lots of good feedback and positive reviews. the golden opportunity is to find these products that are already doing well, that have areas for you to improve, and that is where learning those skills comes into play, because you can use your skill set to improve where somebody else is lacking. let me show you an example. so here we have two stores selling the exact same product. one of them is wildly successful with over 18 million views, and the other one has a thousand views. if you'll notike, they launched these around the same exact time, this one on december 30th and this one on september 24th. so why did this ad completely flop while this ad popped off and did extremely well? if we just play the first couple seconds of these ads, you'll see exactly why this happened. as you can see, this ad starts out. it's really boring. there's not that much going on, the text is kind of ugly, whereas this ad, right when it opens up, you can see a quick benefit: discover stronger hands- in minutes you can see the glove up close, the ads- very high quality, it's easy to read or while sleeping, to wake up fresh. it sells the product much better. because this store focused on their skill set of creating ads, copywriting and selling this product. they were able to compete with everybody and, it looks like, become the top sellers of this product. if we go to their website, you can see that years later they are still selling the same exact, simple product, because they focused on creating an amazing website, creating a high quality product, and they have a ton of great video ad content as well, and this is the main thing that i focus on. it is the sole reason why i've been able to sell almost two million dollars worth of products on my brand is because i focus on improving my skills and providing the best experience across the board. once my product started to grow consistently, i improved the product quality, the shipping time, i took a bunch of custom photos and kept making more and more ads content, and now i've had this product running for almost two years and in the process, i feel like i've built a real asset. so for the highest chance of success this year, you have to focus on developing your skills. there is no other way around this and i know if you focus on this, you will make money. but that's not the only thing you should focus on in 2022. there is a golden opportunity that is slept on by so many people: tiktok. tiktok has exploded for e-commerce and there are new products going viral every single day. as a matter of fact, one of my friends- his name is leo- scaled his store past 70 thousand dollars a day with just tiktok ads. so let's give leo a call and see how he did it. so, jordan, how you doing, doing good man. the first thing i'm trying to understand, bro, is like: what is the key? what do you feel like is the key to succeeding with tiktok ads? i think the biggest key for me is definitely thinking like the algorithm. so let's look at tiktok. where is it at? why is it there? it's video optimization. so the creative is the number one key aspect within 100. what does that look like for you? a viral tiktok creative? go on your 4u page, take 10 scrolls and look at a sound that would fit the audience that you're trying to get, like, use the trending sound and that trend overall for your product. exactly okay, got you. what do you think is a successful tiktok product? like you, can have success with any product, but relative to my own, really, all it is is a product that you know anyone from 18 years old or 55 plus can have absolute value in it. so most products will work on tiktok, but you prefer to go for the most broad products that could apply to pretty much anybody, right? so one of the biggest reasons why i found you is because i saw a youtube video of yours where you scaled over seventy thousand dollars in a single day. how'd you do that? yeah, so i had a partner on the store and you know, on my channel i have a lot of strategies that i implement with tiktok. everything i preach is relative to my own success. feel free to check out my boy leo's channel down below. he posts really valuable videos about tiktok. appreciate it, jordan. have a good re.
Amazon FBA VS Dropshipping | Which One Is Better? Pros and Cons
i'm gonna cover the pros and cons that come with drop shipping in amazon fba. [Music]. what is up? everyone, welcome back to my channel. if you are new to the channel, my name is pat harris and i'm a full-time amazon seller. on my channel i share tips that help with my own amazon business, so i could help others out. i also like to share videos related to the stok market- investing, making money online. so if you like this type of content, make sure to hit that like button, hit the subscribe button and hit the bell icon. i know i say it in every video, but it really does help out with the youtube algorithm and just by liking and commenting on my videos i do a giveaway at the end of every month, so keep an eye out for that. i give away my amazon fba course or a hundred dollar prize, and i announce it at the end of every month in my videos. but let's get into the actual content of this video. so in this video i'm going to cover the pros and cons that come with drop shipping in amazon fba. i get a lot of people asking me: should i do drop shipping first? is it easier to dropship than do amazon? so i'm going to cover both of them and hopefully answer all of your questions so you can decide which business model you want to go with. so if you don't know my background, a couple years back i started with retail arbitrage. i went store to store. i was scanning items and trying to resell them on amazon. but i didn't like the experience. i don't like shopping. i was going to different stores and i could only find a couple things that i could resell and i wouldn't make that much profit. so i started looking into drop shipping and amazon fba and i chose amazon fba. i've been doing it for over a year and a half now but i've never done drop shipping. but i did learn a lot about drop shipping and i've toked to other people that drop shipped and i'm gonna go over what it is. so drop shipping is where you have a storefront, either on shopify or another website, and then a customer will go to that website. they buy the product and then that product links to a manufacturer in china from aliexpress and that supplier will ship out that order once you get a sale on your storefront. there's software that linked the two, but the only problem is customers have to wait one to two weeks to get that actual product and if you're like me, you don't want to wait a long time to get products. a lot of people are impatient, so that's one of the downfalls with drop shipping. another negative thing about drop shipping is you have to do a lot of advertising. you have to get influencers, you have to run facebook and instagram ads and you're gonna spend a lot of money trying to get customers to go to a website that they've never heard of. if you think about it, when is the last time you went to a website that you've never heard of and actually bought something from that website? i know i have never gone to a random website and purchased anything. i always go to amazon because i have an amazon prime membership. amazon has all the products that i need and it only takes one to two days to get my products. so those are a few things. with drop shipping. you're gonna have a random storefront that nobody's ever been to, you're selling random products that will eventually die out, different trends will die out, and then the customers have to wait one to two weeks to actually get their products. that's why i never went with drop shipping. i went with amazon fba, because you have to buy the products, where in drop shipping, you don't actually have to buy the inventory. with amazon fba, you buy the products in bulk and you ship them directly to amazon's warehouse and then, when you get an order, amazon handles all of the orders for you. they do the shipping, the customer returns, they pack your products. so that's why i love amazon fba, because they do all of the work. even though you have to buy the inventory, it's still a great business model and the main thing is there are millions of people on amazon every day buying products, and i'll put a chart right here, but you can see how much sales come from amazon us. so all you have to do is run your ads in the amazon platform and then, once that product is in front of a customer's eyes, they might buy that product. if you have a good product and a good listing where, if you drop shipping, a customer might not even go to your website because they've never heard of it. everyone has heard of amazon, nobody has heard of your website. so that is the main differences. amazon has a lot better platform for selling and the shipping is only one to two days. but the only downfall is you do have to buy the inventory in bulk. and then you do have to pay amazon storage fees and fba fees. so some people will say the fees are way too high and it sucks. but then, if you think about it, when you're getting sales at home and you don't have to do any of the work, i would rather pay amazon all of those fees to handle the orders rather than handle all of them myself, having to pack and ship the products, drive them to the ups store. if i sell 50 units in one day, i couldn't even imagine packing and shipping 50 units. i would have to buy a truck. so that's why amazon fba is great: because they store all your inventory. you don't have to have a warehouse. drop shipping could be good for you if you're really good at marketing or you're a big influencer and you have a lot of followers that might buy the product. but you have to run a lot of ads to get customers to go to your website where amazon millions of people are searching every day. if you look around on youtube, you'll see a lot of videos saying drop shipping is dead. and that is because drop shipping had a huge boom a few years back and then it slowly died out because everybody was opening up these shopify stores selling random products, and a lot of people like me don't go to random websites to buy products. i just jump on amazon, buy the product and i get it fast. so now i hope you understand the difference between drop shipping and amazon fba. it's up to you on which business model you want to go with. i prefer amazon fba private label. i've been doing it for over a year and a half now and i love it. even though there's a lot of fees with amazon, it still beats having to do all the work, so you could sit back and relax as you get orders on amazon. you do have to run the advertising, but running ads on amazon is a lot easier than running facebook ads, trying to get customers go to a website that they've never heard of. all right, so i hope you like this video. if you want to learn more about amazon fba, check out my other videos. you could join my amazon fba facebook group. i also have a discord and that is it all right. so i hope you enjoyed the video. i will see you in the next video. goodbye you.