REACTING To GaryVee Exposing Dropshipping!! What happens now..

Published on: November 27 2022 by Peter Pru - Ecommerce Empire Builders

REACTING To GaryVee Exposing Dropshipping!! What happens now..

REACTING To GaryVee Exposing Dropshipping!! What happens now..

REACTING To GaryVee Exposing Dropshipping!! What happens now..

startTime	durationTime	text
00:00:00	00:00:04	so garyvee was recently asked about what
00:00:02	00:00:07	he thinks about the drop shipping
00:00:04	00:00:13	industry
00:00:07	00:00:13	[Applause]
00:00:13	00:00:16	now what's going on guys my name is
00:00:15	00:00:18	peter prue welcome back to another
00:00:16	00:00:19	episode of the ecommerce empire builders
00:00:18	00:00:21	if you're not already subscribed make
00:00:19	00:00:22	sure to smash that subscribe button
00:00:21	00:00:24	the like button and also turn that
00:00:22	00:00:25	notification bell on today's giveaway
00:00:24	00:00:28	winner is going to be getting
00:00:25	00:00:29	our free ecommerce empire starter pack
00:00:28	00:00:31	course all you have to do to enter is
00:00:29	00:00:31	drop a comment down below in today's
00:00:31	00:00:32	video
00:00:31	00:00:34	make sure you tune into the next video
00:00:32	00:00:34	to see if you're that lucky winner but
00:00:34	00:00:37	guys
00:00:34	00:00:38	today's videos inspiration is garyvee we
00:00:37	00:00:40	all
00:00:38	00:00:41	uh know who garyvee is well he recently
00:00:40	00:00:42	posted this tiktok where somebody
00:00:41	00:00:44	asked him about what he thinks about
00:00:42	00:00:45	drop shipping
00:00:44	00:00:47	and there's been a ton of comments a ton
00:00:45	00:00:48	of likes and shares of this video
00:00:47	00:00:50	i want to share with you guys kind of
00:00:48	00:00:53	how he exposed drop shipping to
00:00:50	00:00:54	a bigger group of people and also those
00:00:53	00:00:56	of you that are just getting into drop
00:00:54	00:00:56	shipping what we can actually take from
00:00:56	00:00:58	this
00:00:56	00:00:59	so let's get right into it guys so you
00:00:58	00:01:00	are seeing my screen right here you guys
00:00:59	00:01:01	can of course
00:01:00	00:01:03	click down below to watch this full
00:01:01	00:01:05	video as well so he was recently asked
00:01:03	00:01:07	about drop shipping let's see what he
00:01:05	00:01:10	says
00:01:07	00:01:11	i'm gonna go with underrated but wait
00:01:10	00:01:12	there's more
00:01:11	00:01:14	i think that a lot of people are in drop
00:01:12	00:01:17	shipping don't realize that they have
00:01:14	00:01:18	graduated to the next step they and this
00:01:17	00:01:20	is huge guys so this is huge where he
00:01:18	00:01:22	said a lot of people in dropshipping
00:01:20	00:01:24	don't realize that they graduate to this
00:01:22	00:01:25	next step those of you that have been
00:01:24	00:01:26	following on channel those of you that
00:01:25	00:01:27	are students those of you in our 10k
00:01:26	00:01:30	club 50 clay club
00:01:27	00:01:31	seven figure club a lot of people there
00:01:30	00:01:33	are complacent
00:01:31	00:01:34	right now what does garyvee mean by like
00:01:33	00:01:35	graduating to the next step well that
00:01:34	00:01:38	means actually
00:01:35	00:01:39	starting a real business and a real
00:01:38	00:01:40	brand you know what i've seen a lot
00:01:39	00:01:42	about drop shipping is
00:01:40	00:01:44	a lot of people get into it because it's
00:01:42	00:01:45	so easy it's so low risk so
00:01:44	00:01:47	low calls literally anybody can start
00:01:45	00:01:48	dropping business with like 50 bucks in
00:01:47	00:01:50	their pocket
00:01:48	00:01:52	but with that people don't realize like
00:01:50	00:01:54	what it actually takes to run and
00:01:52	00:01:55	operate a business to scale it
00:01:54	00:01:56	right and a lot of people especially
00:01:55	00:01:57	i've seen my students have a lot of
00:01:56	00:01:59	success
00:01:57	00:02:00	right they don't move on to that next
00:01:59	00:02:02	level they only stik to their
00:02:00	00:02:03	aliexpress supplier or their overseas
00:02:02	00:02:05	supplier
00:02:03	00:02:06	when they can really take inventory
00:02:05	00:02:08	start branding their products
00:02:06	00:02:10	and this is important because that's
00:02:08	00:02:11	what allows you to really start growing
00:02:10	00:02:13	a real brand
00:02:11	00:02:14	right if you're just stiking with
00:02:13	00:02:16	aliexpress you're kind of on that money
00:02:14	00:02:18	grab which is perfectly fine it's a
00:02:16	00:02:18	great way to test and validate new
00:02:18	00:02:20	products
00:02:18	00:02:22	however once you actually validate those
00:02:20	00:02:24	offers validate those products
00:02:22	00:02:25	and you're getting you know 10 50k a
00:02:24	00:02:26	month in revenue
00:02:25	00:02:28	it's time to start thinking about what's
00:02:26	00:02:30	that next level right how can i brand
00:02:28	00:02:32	this product maybe there's a small tweak
00:02:30	00:02:32	in the product design that you want to
00:02:32	00:02:34	change
00:02:32	00:02:35	up right that's huge and you can't
00:02:34	00:02:36	really do that if you're doing like
00:02:35	00:02:38	aliexpress
00:02:36	00:02:39	drop shipping right you could start
00:02:38	00:02:40	doing that when you start sourcing and
00:02:39	00:02:42	bringing that inventory
00:02:40	00:02:44	bringing it over to the states and using
00:02:42	00:02:44	fulfillment warehouses so i couldn't
00:02:44	00:02:46	agree
00:02:44	00:02:48	more than this drop shipping is great
00:02:46	00:02:50	for beginners because it's low risk low
00:02:48	00:02:50	cost but then when they try and scale it
00:02:50	00:02:51	right
00:02:50	00:02:53	things start to kind of fall apart
00:02:51	00:02:54	because you want to really create
00:02:53	00:02:55	something that that you control that
00:02:54	00:02:56	your competition
00:02:55	00:02:59	really can't touch you so let's keep
00:02:56	00:03:01	going here have skills that could be
00:02:59	00:03:03	starting a brand itself or a company for
00:03:01	00:03:04	them it's overrated because they're
00:03:03	00:03:05	comfortable they're making six figures a
00:03:04	00:03:06	month but they can be building 150
00:03:05	00:03:08	million dollars
00:03:06	00:03:10	yeah and that's huge right that's huge
00:03:08	00:03:12	because i think a lot of people
00:03:10	00:03:15	uh in dropshipping like a lot of us guys
00:03:12	00:03:15	have the talent right to build a big big
00:03:15	00:03:17	brand but
00:03:15	00:03:19	i think oftentimes uh you know grant
00:03:17	00:03:20	cardone says it best it's like
00:03:19	00:03:21	you don't think big enough right and i
00:03:20	00:03:23	think a lot of people drop shipping
00:03:21	00:03:25	think that way maybe they get that that
00:03:23	00:03:27	success they hit that six figure month
00:03:25	00:03:28	and next thing you know they're they're
00:03:27	00:03:30	overwhelmed or they feel like well what
00:03:28	00:03:31	am i supposed to do now like
00:03:30	00:03:33	you know what so i think a lot of people
00:03:31	00:03:34	need to take a step back and be like
00:03:33	00:03:35	okay you know what i've gotten to this
00:03:34	00:03:37	level
00:03:35	00:03:38	right what do i have to do next right
00:03:37	00:03:39	and this kind of goes back to what i was
00:03:38	00:03:41	saying right
00:03:39	00:03:42	drop shipping if you're using like
00:03:41	00:03:45	aliexpress right
00:03:42	00:03:46	that is just a way to test out your
00:03:45	00:03:48	offers test
00:03:46	00:03:49	and validate your products right make
00:03:48	00:03:51	sure you can actually sell there's a lot
00:03:49	00:03:51	to learn when you're starting a business
00:03:51	00:03:53	guys are
00:03:51	00:03:55	advertising marketing sales building
00:03:53	00:03:56	your websites writing copy right there's
00:03:55	00:03:58	a lot that goes into it there's no
00:03:56	00:03:59	denying that
00:03:58	00:04:01	right but you have to understand like
00:03:59	00:04:01	when you as you grow and you learn those
00:04:01	00:04:04	skills
00:04:01	00:04:05	right and validate those offers from
00:04:04	00:04:07	your business
00:04:05	00:04:08	then you can move on to that next step
00:04:07	00:04:10	right where you then can brand and
00:04:08	00:04:11	source your inventory like i was
00:04:10	00:04:13	mentioning
00:04:11	00:04:14	earlier right which is most people right
00:04:13	00:04:16	my rule of thumb is if you hit ten
00:04:14	00:04:16	thousand dollars per month with one
00:04:16	00:04:18	product
00:04:16	00:04:20	it's time to really take back control a
00:04:18	00:04:22	little bit a little bit of that product
00:04:20	00:04:24	brand it source it maybe make some
00:04:22	00:04:26	product design tweaks right maybe
00:04:24	00:04:27	there's a common complaint that a lot of
00:04:26	00:04:29	your customers are having about your
00:04:27	00:04:31	product right make the change right make
00:04:29	00:04:32	the change on your product source it and
00:04:31	00:04:34	brand it and bring it over to the states
00:04:32	00:04:36	you get faster shipping and all those
00:04:34	00:04:38	cons kind of go away with drop shipping
00:04:36	00:04:39	it gets underrated because i think a lot
00:04:38	00:04:40	of people watch this right now don't
00:04:39	00:04:41	even know what it is they're about to go
00:04:40	00:04:42	google which is like
00:04:41	00:04:44	and this is another huge point i think
00:04:42	00:04:46	dropshipping a lot of people think that
00:04:44	00:04:48	drop shipping is some some some new
00:04:46	00:04:49	thing or they don't under they think
00:04:48	00:04:50	it's all you know they tried it or it
00:04:49	00:04:52	doesn't work or
00:04:50	00:04:53	you know they don't know about it and i
00:04:52	00:04:55	think this video is definitely going to
00:04:53	00:04:57	bring a lot of exposure to drop shipping
00:04:55	00:04:59	but here's a big thing to understand
00:04:57	00:05:01	drop shipping will never
00:04:59	00:05:02	die drop shipping has been around for
00:05:01	00:05:05	hundreds if not thousands of years
00:05:02	00:05:06	drop shipping is simply a mechanism it
00:05:05	00:05:08	is a
00:05:06	00:05:09	way and a logistikal way of getting your
00:05:08	00:05:11	products to your customers right so you
00:05:09	00:05:13	don't have to store and ship it in your
00:05:11	00:05:14	own house or your own fulfillment center
00:05:13	00:05:16	essentially what drop shipping is it's
00:05:14	00:05:19	kind of like my supplement on tap focus
00:05:16	00:05:20	right where my manufacturer creates the
00:05:19	00:05:21	product right they create that untap
00:05:20	00:05:24	focus supplement for me
00:05:21	00:05:25	and then they also ship it and store it
00:05:24	00:05:27	for me as well
00:05:25	00:05:28	right so it's just a hands-off way so
00:05:27	00:05:30	you as the business owner
00:05:28	00:05:32	right you're really focusing on
00:05:30	00:05:33	advertising marketing and sales
00:05:32	00:05:35	while your manufacturer handles all the
00:05:33	00:05:37	logistiks getting the product to your
00:05:35	00:05:38	customers and handling all of that stuff
00:05:37	00:05:40	that's a huge distinction because a lot
00:05:38	00:05:41	of people say oh dropship is dead and
00:05:40	00:05:42	this and that
00:05:41	00:05:44	they're mainly toking about like you
00:05:42	00:05:45	know aliexpress that they tried
00:05:44	00:05:46	aliexpress and it failed for them or or
00:05:45	00:05:48	whatnot
00:05:46	00:05:50	right but drop shipping right the the
00:05:48	00:05:52	mechanism the logistiks of it will never
00:05:50	00:05:54	die it's been around pretty much forever
00:05:52	00:05:56	buying a product that you never take
00:05:54	00:05:58	physical control of use logistiks to
00:05:56	00:06:00	create an arbitrage
00:05:58	00:06:01	run ads or do things or lists on amazon
00:06:00	00:06:03	and run that game
00:06:01	00:06:05	and that was one point that garyvee
00:06:03	00:06:06	mentioned listing it on amazon that is
00:06:05	00:06:07	against terms
00:06:06	00:06:09	of service guys so he you know he
00:06:07	00:06:10	probably isn't super well versed in the
00:06:09	00:06:12	in the drop shipping space i don't
00:06:10	00:06:13	expect him to be
00:06:12	00:06:15	and i know a lot of i saw this see some
00:06:13	00:06:16	comments on this tiktok that he
00:06:15	00:06:17	posted
00:06:16	00:06:18	where a lot of people you know where i
00:06:17	00:06:20	said oh you can actually do this on
00:06:18	00:06:20	amazon like you can't do that right you
00:06:20	00:06:23	can
00:06:20	00:06:24	you can do that but it is gonna you're
00:06:23	00:06:26	gonna get your account banned so that is
00:06:24	00:06:28	against amazon's terms of service you
00:06:26	00:06:30	can't go and list the product on amazon
00:06:28	00:06:32	and drop shipping from aliexpress
00:06:30	00:06:33	do people do it yes do people make money
00:06:32	00:06:34	from doing it
00:06:33	00:06:36	yes but is it going to be short term
00:06:34	00:06:38	absolutely yes okay so make sure you
00:06:36	00:06:38	kind of don't have that kind of like
00:06:38	00:06:40	short-term
00:06:38	00:06:42	uh approach with it you might get away
00:06:40	00:06:44	with it for a little bit but you cannot
00:06:42	00:06:45	drop ship like that on amazon you're
00:06:44	00:06:46	gonna get your account banned you're
00:06:45	00:06:48	gonna lead
00:06:46	00:06:50	to a bunch of headaches really cool
00:06:48	00:06:52	thing for people to learn it's a good
00:06:50	00:06:54	skill it reminds me a lot of garage
00:06:52	00:06:56	saleing ebaying flipping sports cards
00:06:54	00:06:57	so yeah and this is another point that i
00:06:56	00:06:59	mentioned earlier guys is
00:06:57	00:07:00	that when you're doing drop shipping
00:06:59	00:07:02	when you're getting started i
00:07:00	00:07:04	don't recommend any other better
00:07:02	00:07:05	business model than getting started with
00:07:04	00:07:06	drop shipping because it's
00:07:05	00:07:08	low risk right you don't have to waste a
00:07:06	00:07:10	whole bunch of money low cost you don't
00:07:08	00:07:13	have to waste a whole bunch of money
00:07:10	00:07:14	right and you can learn skills right
00:07:13	00:07:15	just like gary said here you can learn
00:07:14	00:07:17	skills
00:07:15	00:07:18	advertising marketing sales how to write
00:07:17	00:07:19	copy how to build funnels how to build
00:07:18	00:07:21	storefronts
00:07:19	00:07:23	right how to run ads right there's so
00:07:21	00:07:24	much to learn right
00:07:23	00:07:26	now that's why i would recommend
00:07:24	00:07:27	dropshipping because if you have to go
00:07:26	00:07:29	and spend you know 10 20 000
00:07:27	00:07:30	in inventory and then you have to learn
00:07:29	00:07:32	all these things on top of that
00:07:30	00:07:34	right you're gonna kind of you're gonna
00:07:32	00:07:34	feel a lot of pressure and that's fine
00:07:34	00:07:35	but
00:07:34	00:07:37	i always recommend start with drop
00:07:35	00:07:38	shipping because it's you don't have to
00:07:37	00:07:39	waste a whole bunch of money on
00:07:38	00:07:41	inventory that
00:07:39	00:07:42	may or may not even sell for you right
00:07:41	00:07:44	so always any business that you're
00:07:42	00:07:45	thinking about starting right now always
00:07:44	00:07:47	keep it low risk a low
00:07:45	00:07:48	cost for yourself and most importantly
00:07:47	00:07:49	if you're starting a drop shipping
00:07:48	00:07:51	business
00:07:49	00:07:52	make sure that you're not buying a whole
00:07:51	00:07:54	bunch of inventory or anything like that
00:07:52	00:07:56	get those skills nailed down first
00:07:54	00:07:57	learn the process prove to yourself that
00:07:56	00:08:00	you can actually make money and cash
00:07:57	00:08:02	flow and then move on to that next step
00:08:00	00:08:04	overall i think it's underrated with a
00:08:02	00:08:04	small group that is complacent and their
00:08:04	00:08:06	success
00:08:04	00:08:08	needs to be pushed to do bigger things
00:08:06	00:08:09	because they can and i hope you hear me
00:08:08	00:08:11	that crew
00:08:09	00:08:13	yeah so i think this total uh this
00:08:11	00:08:14	little short little tik tac from garyvee
00:08:13	00:08:16	was to very very eye opening
00:08:14	00:08:17	to a wide range of people those are just
00:08:16	00:08:18	starting out don't even know what drop
00:08:17	00:08:19	shipping is
00:08:18	00:08:20	to those people that are experienced
00:08:19	00:08:21	sellers already and they're feeling
00:08:20	00:08:23	complacent
00:08:21	00:08:25	with their success right you have to
00:08:23	00:08:26	move forward push pass
00:08:25	00:08:28	like if you're stuck at let's say you
00:08:26	00:08:29	know 50 60 000 a month
00:08:28	00:08:31	maybe that's the level you're going to
00:08:29	00:08:31	be stuck at if you're doing like an
00:08:31	00:08:33	aliexpress
00:08:31	00:08:35	drop shipping or something like that so
00:08:33	00:08:36	to get to that next level
00:08:35	00:08:38	you're going to have to move to the next
00:08:36	00:08:39	level meaning like hey you got to take
00:08:38	00:08:40	back control take a little bit more
00:08:39	00:08:42	risks
00:08:40	00:08:43	on by sourcing branding your inventory
00:08:42	00:08:45	diff making any different sorts of
00:08:43	00:08:45	product tweaks as well guys i would love
00:08:45	00:08:47	to hear
00:08:45	00:08:48	your thoughts on today's video drop me a
00:08:47	00:08:50	comment or you'll also get entered in
00:08:48	00:08:52	to win our ecommerce empire starter pack
00:08:50	00:08:53	course completely for free and if you're
00:08:52	00:08:55	just getting started with drop shipping
00:08:53	00:08:56	and you want to learn how to build your
00:08:55	00:08:57	drop shipping business
00:08:56	00:08:59	using our subscription sales funnel
00:08:57	00:09:00	method check the first link in the
00:08:59	00:09:02	description of today's video because as
00:09:00	00:09:08	always have a fantastik rest of your day
00:09:02	00:09:10	and remember your empire starts now
00:09:08	00:09:10	you