Dropshipping still profitable in 2019? misconceptions for newcomers

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Step1. Do not ship worldwide.
It may sound good, but it is not common issues. You can get these things like import tax. Another thing is many countries don’t support a packet. They only support Aliexpress standard shipping or China Post and those work, but they’re not as good. There’s a far higher chance of them lost in transit. You get a lower conversion rate. And you get more fraudulent sales. You are managing people in different languages. So that’s one of the other big ones you’re going to get all of those issues and also as well even on Aliexpress a lot of that addresses don’t apply appropriately.
Consequently, you end up having to use Google? Google Maps to try and actually find the address and correlate it correctly and I had had that many times when I was doing that, and the solution is to use United start with the United States. That’s pretty much all our market – now the United States at a minimum. You can go to the US and then I would go from the US. I’ll go to Canada. Then I would go you know I Kingdom then I go to Australia. And then I go NewZealand, and I go in that order. Because I like to understand that the proctors well in each of those countries and enhance the experience for each state. And by that, I mean getting the products imported there’s warehouse is all across the world. You want to emphasize on building your brand. And you can get a private supply once you start getting sales.
If you’re getting sales in the US or Canada get a private supplier to find them on up work, and you get faster processing times you get speedier shipping times. And you get cheaper than Aliexpress prices, and you can use tracking software Like after shift to actually track where the order is and automatically update the customer via email via text message or messenger. Ok, It’s going to save a lot of headaches but doesn’t ship worldwide. You’re only going to encounter a lot of problems. I’m going to show you on Aliexpress a bit about this now. So to show you what I mean, we can see here that this product shipped around the world. But there are a few problems 22:37 days, We’re actually talking four to six weeks here And there’s no tracking And I assure you if someone from this country and you’re getting a number of salespeople will be asking where the order is at All that time, And you can see that these other countries a lot of them don’t have to track a lot of these countries You’re not going to get sales But you can get a number of sales from each of these as well as in some countries. Your shipping expenses can be Extremely high even at the cheapest one. It can be quite expensive, so you can see here that shipping will be selling worldwide might sound good But you can see that – a lot of these countries. It doesn’t work. So stick to the big five, if you got something to like here New Zealand. see look at that even New Zealand a Packet is twenty to forty days, and we can actually know that We’ve got China Post which is actually cheap and free in fact, and it has it’s faster and it’s got tracking So I recommend you stick to the Big Five the Big Five have the most significant amount of money to spend, and it’s the easiest to ship items to
Step 2. don’t buy a premade Shopify drop shipping store.
, someone’s going to tell you the problems. They’re very basic. They’re not optimized for sales at all. They are very expensive for the amount of Value you get for them. There’s a little bit a little amount of support from the creator’s because they don’t understand dropshipping at all. You’re likely actually to get scammed from a lot of these. I’ve seen that a lot You’re not learning anything valuable. One of the most critical components of building a store yourself, if you’re casting skills. It’s essential, and you’re just cutting corners Alright, so those are the problems going to have a solution is making this all yourself from articles on how to create high converting landing pages. On how to build a store on how to Integrate the various apps on how to do everything really that you need. There are tons of videos out there learn these invaluable skills long term. It’s going to benefit you that that is going to help you If you’re going to take this seriously, you’re going to have to know how your store merely works as that Use the funds The equivalent funds for like a course or some mentoring or something. it doesn’t matter. Again, you understand the components of your store, and you know what to do with your store when you go when you start getting Sales and scale. Lots of bodies get a premade store, and they actually start getting sales Randomly, and then they don’t comprehend what to do because they don’t understand how their store works all people wonder why they don’t get sales because they got this store But the payment gateways weren’t connected and they didn’t think that you need a payment gateway to get a deal Okay, so I’m going to show you just an example, So he’s just a fiber geek that I just randomly found to use as reference and a lot of people use fiber Because it’s a pretty reasonable way of preparing a task done. But especially for stores. It’s horrible You can see here where you can get a primary store for $37 design your store blah blah with 1 to 20 products, etc., etc And we’ve our have a look at the specifics add your brand logo products slider images Promotional create static content pages use apps to enhance at a chat widget These are all basic things you can do in about and one to two hours Okay, they’re gonna add you know, let’s say with this one to 40 products I guarantee you those products are either heavily saturated or complete products that are not going actually to get you any form of sales Now they’re not going to get you anything at all that Hundred and twenty-five dollars or whatever that is in your currency. You could spend that on actually just getting started and making Facebook ads you can see that. These are bad the number of people that I see getting them. They’re You know go ahead with each of these packages because they want a pre-made store So then they can ideally focus on getting sales does not work, okay Those products you would be lucky to get sales from those products.
Step 3, don’t drop ship eBay or Amazon.
Okay, so eBay is hugely competitive. Amazon is insanely competitive. There are fees for each platform for every sale. There’s a percentage of the costs that go to them of course. There’s the marketing for each of them is ever increasing. The amount of competition as well you do not own that audience at all Amazon. Cannot you do remarketing at all? You cannot control the traffic You’re in a field of hundreds of people so you’re on literally a website with hundreds to thousands of people potentially in that one niche one product for instance and You cannot brand the same as you would your store So you’re always you might find a number of products that sell well, but you know You don’t have the amount of income streams. You can make by owning your store The solution is to make a Shopify store Solution is to use Facebook ads or Google Ads as much as people may not want you can create an audience around your store I’ve seen it time and time again my students and people and including myself You build an audience of people that are going just to come and buy from you time and time again you cannot really do that on Amazon or eBay and So you basically this branding you can set up things like email marketing text marketing messenger marketing Facebook and Instagram lives and And that will allow you to continue to dropship what using your audience you can set up remarketing Whether it’s on Facebook, whether it’s on Google, whether it’s on Bing, whether it’s all your different forms of apps remarketing. It doesn’t matter Okay, and the other important thing is you can import and manage your products, So you own the entire experience more by in by that is so with Amazon you sent them to like in a fulfillment center From Amazon right with this you have you can use your own fulfillment centers, and you can control it, even more, You know what’s going on? You can manage the centers you have complete control, and I forgot to include a system visible one, but your margins are much Larger, you can make your margins much larger

step 4. Do I need a company LLC? Immediately the end, you know, the answer is no.
Okay, So the problems are you’re going to have an additional expense straightaway. It can cost you a couple hundred. It could cost you even more it really depends You have to start paying taxes or at least begin claiming fees in terms of you’re gonna have to then start paying it quarterly half-yearly Yearly whatever that madman arrangement may be you’re most likely going to need an accountant to help you understand your tax legalities and the various laws involved, And there are other legalities based on your country, so every state has their own sort of unique requirements that are going to come into the equation that It’s going to be a problem for you. So you don’t need an LLC straight away You’re just starting the solution is just become a sole proprietor. You can apply to be a sole proprietor You don’t have to actually even do that straight away, but you can and I would recommend it There because you’re gonna need to do that at some point anyway Apply for one in your home country Okay, so don’t worry about applying for one in another country straight away just ask for it in your own country You just need to go to an accountant or depending on how you can’t apply online if you are in the United States However, I do recommend after a short me at a time to make an LLC it’s much easier to Make an LLC But at minimum do sole proprietor, okay? You do this, so you come to the reason that you eventually make an LLC is, or a company is basically so if there are any Lawsuits if there are any claims whatever it’s against the company and not against you, so it’s actually more or less protecting yourself That’s why it’s something there. It’s to consider down the line, but not immediately when you’re first starting and You know, it’s essential as well that you report your earnings Ok say you the profits if you’re using Shopify payments stripe PayPal whatever that may be report those earnings because you are going to have to pay tax on them, and You have to prepared for that Okay the new to end so this again you don’t need a company straight away What you need is at minimum I saw Proprietorship and you can work at making an LLC or company in the future to speak to a tax agent about that.
Step 5. provide X Customer service and I cannot emphasize this enough.
So the problems that are going to happen If you don’t if you’re going to get tons of customer service emails that are going to flood you common things is where my order is? How long is my order going to be here? This product is defective if this product is incorrect Etc. Okay customers will then if you don’t respond to that they’re going to give you bad reviews on your store on Facebook even on Google they’re going to share it and just do anything they can to make it so that they can hurt your business and it hurts that you’re going to get refunds customers will request refunds if they have to wait too long or if it’s Not to the expectation customers will initiate chargebacks so customers that haven’t heard anything from you at all because people try and avoid Doing emails they’re going to launch charge messages. I think they’ve been scammed. Okay, so what can then happen is if you hit over it depends on your merchant provider? Generally, it’s two to four percent chargebacks Okay, so two to four percent, so if it’s four percent then four orders in a hundred can be chargebacks Okay refunds are a bit different They’re a bit more lenient with that believe in rebates there’s a limit as well but with chargebacks it can really hurt Hurt you big time, And you can be temporarily locked. You can permanently lock you could be banned I’ve had a number of people that are being full-on banned where they can’t even make another account with that merchant provider Because I’ve been put on a blacklist Okay, you will spend a lot of time just handling customers anger Okay, so if you don’t provide excellent customer service They’re just going to get very angry, and you’re going to be out.

dropshippingYou will be wasting half your time trying to handle that. And and the big thing is obviously with this is you’re not going to be building long-term income. Okay, so this is something where you just People that take this approach of providing better customer service Show you that their store is going to die, and they’re going just to keep jumping to and from stores to try and make stores That way, and it’s not a sustainable way and not a smart way of making money The solution is one update your customers on shipping types. I do this through the show find notifications. They’re already there, and I use Clavijo, and that’s in an upcoming video I use Clavijo where you can modify those templates, and I’ll show you that in a full article. I use after a ship which is a tracking software one of the biggest in the world one of the best Integrates with Shopify can give your customers updates on where their order is at Via email and text, and you can modify those to provide it with your own. Custom feel and the benefit that further helps build Boost confidence in your business. Okay, that’s really important and will save you a lot of headache with where’s my order? Where’s my order? Where’s my order? Okay, um hire a virtual assistant Okay, essential that even with all of this you need a virtual assistant because you’re going to get refunds which are going to get chargebacks You’re going to get people asking various questions, whatever that may be You need a virtual assistant at least one. You can go on up work. I’m going to show you that now three to four dollars an hour or five bucks and You can get one. And they can work one to two hours a day, and I assure you that one to two hours you can put towards other things and will help you quickly elevate your business to that next level So get them to respond to live chat to your Facebook comments to emails, okay? You know be transparent with your customers on shipping times if we’re drop shipping. It’s usually a two to three-week delivery So that’s why I use the shop for notifications and after ship be transparent as long as you’re transparent It’s better than not knowing anything that’s going only to hurt you long-term Respond to any merchant requests for more information. Okay, so This is a part of customer service because your merchant’s sinners will ask for more information on Who you are what your business does how long you’re around? Are you going to be scaling? Various things such as those. So this is after ship you could just make a URL on your site and give them this and then all of a sudden They can now track their order something as simple as that It’s going to save you a lot of headaches then we got up work That you can just hire a V ace we see here seven dollars four dollars and five kanun alright and so you just need to make a post a job posting on up work get a VA in and Help you elevate your business to that next level. They’re not expensive. There’s plenty to choose from just put a job posting out there hire one train them up and then you’re good to go.
Step 6. Focusing on a single product.
Ok, so problems that are going to come from this is you’re putting all eggs into one basket as simple as that You’re not diversifying your business at all You can waste all your time and energy in a single product. Ok, and the product may not be even scalable you might be at sales, but it may not be scalable, and it may not be a Quality product. Ok, so the solution to this is tested multiple products. Ok So have a store whether I recommend a general niche store So instead of it being everything you do a broad niche, which is let’s say around dogs anything related to dogs But instead of everything under the Sun it’s just everything related to dogs. Ok so then what you do is your final winning product, and you build a store around that product and accommodating items spend fifteen dollars a day minimum on ads Okay, and you want to try and test two products a day? I recommend both of those parks spending fifteen dollars a day each on Both of those products to check and confirm them. Don’t just invest your energy on one thing. Do not get attached to a product. If a product is Stanley its sales and it’s gaining traction, but it’s not profitable Don’t even bother, okay You Tip number.

Step7. Seven know your numbers.

It’s essential that we know this because the problems are you’re going to lose money. You’re unable to scale the product and a missed opportunity to make real money Okay. So the solution is always to sell a product at three times the marker most products. I’ll Express most people sell. Let’s say five bucks. You want to at least sell it for fifteen. I would recommend twenty dollars. So I Always recommend including your shipping in that expense as well So if you’re again marking to the US makes it easy to include a packet So let’s say it’s five bucks plus two dollars seven times three twenty-one dollars Make it twenty-five dollars make of a bit of extra profit. Okay? Always try and improve your average order value I have tons of videos on that actually just go and watch them on how to improve your average order value Always trying to improve your customer return rate That’s significant customers that come back and buy that’s just free money 100% free money Okay and manager ads, so you have a maximum cost per acquisition So if you want to spend only ten dollars on acquiring a customer, okay? It’s vital that you understand that so that you can continue to be profitable forever.
Step 8. Starting on a thin budget.

So you’re going to burn through money when you first start like anything you’re learning Okay, so you’re going to burn through your cash extremely quick if we have a hundred dollars You’re going to burn through that really quick and I highly doubt you’re going to succeed You need to spend money on the shop fire apps and obviously your ads You’re likely going to be very stressed which is going to lead to poor decisions. You’re going to. You cannot even pay for the product that people have purchased. So if you actually get sales Depending on how much you’re Pro prices and how much budget you have. Might you not even be able to buy the products? So how you can you also ship it to them? You’ll get refunds you were going to get returns, and you can’t even process the returns. Okay, because you don’t have the money, okay? The solution starts with a thousand dollars which for starting a business in 2019 online at home on a laptop Isn’t much at all. There’s nothing work a part-time job and save money. I know the goal of this is so that we can be our boss and control that tire. But unfortunately at times there are times you have to take a step back to take two steps forward no more KFC no more coffees No more unnecessary spinning stop buying all this stuff that most people end up buying, and you just don’t need to stop doing I’m All the money you make from sales formerly needs to be just reinvest back in the business more apps giving virtual assistants testing other products Improving your store getting developers in all the money to go back in your store It’s not to go in your pockets to go back into the business Ok Do not take single dollar area and focus on that just grow on the market for 3 months People say that they can start getting sales immediately and make a lot of money very quickly, but that’s just not really true Starting a business takes time and especially if you want longevity rather than short-term cash. This is what you need to do.
Step 9. Procrastination this is one of the biggest ones you don’t ever see any form results.
If you don’t take any action, you’re only going to waste your time that you have right here right now Okay, it’s going to cause you to fall behind everyone else Okay, it’s going to create this never-ending spiral of why are you falling behind everyone else? Because you know you procrastinate okay competition is only going to get more fierce in twenty-nine eighteen twenty twenty twenty-one More people are doing it drop shipping is trending Okay expenses for starting a store is just going to creep up as more at Shopify increase their costs Merchant fees are going to go up against Facebook expenses. Google is all going to go up. Global recognition it’s going to make it just harder and harder more people are doing it solution Start right now create a store right now. Do not fret the small details start testing products right now. Do not worry about the perfect product. Do not worry about the the costing of the costs of testing Okay, even if you’re unprofitable begin with it’s a learning curve It’s like going to do higher forms of education that you pay plenty of money to learn those skills This is the same here, but it’s directly coming out of your pot a pocket. Don’t be worried to lose five hundred dollars think of it as a small weekend trip. Okay. Join my facebook group. Okay, there’s a lot of support there including for myself I’m very active in that community to help you learn and motivate yourself watch motivational videos There are tons of motivational videos even go to the degree reading books and set schedules

Step 10: don’t sell branded products.
Believe it or not. This is not allowed; it can get you sued. The ads can be completely unapproved overnight. You can get banned from Facebook You can get banned from Google you can get banned from Shopify You can get a lot of negative feedback saying from people saying that this is not a legitimate store selling these products. Okay, it’s solution Don’t sell them and just look at them up on trademark u.com Okay, trademark it and type in a general name of the type of product Okay, and just don’t sell so I’m going to give you a couple of examples Don’t sell Marvel products don’t so Disney products don’t sell anything from large brands, you know Is someone else’s product as simple as that that?

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