Is dropshipping still profitable in 2019? How to start dropshipping In 2019 and make money?
Starting drop shipping as a beginner in 2019 as opposed to 2018 because a lot of stuff has changed now and we’re coming up to the end of the year, and you need to be doing a lot of things differently in 2019 to stay profitable. Here, I’m going to talk through all the changes that you need to know about and how to ensure that you’re drop shipping business stays profitable in 29 10 courses. I’m going to go through some notes here about how to start drop shipping in 2019 profitably. Um, so there’ll be a bunch of information here for newbies by there also be some more advanced stuff for the people who were more advanced that watch my channel. So the first question that always goes around on like youtube videos and thing. is drop shipping dead in 2019 or is structured been dead like right now?
So drop shipping is never going to die or drop shipping is a business model. And that business model changes over time. So like drop shipping now is a lot different to drop shipping say five years ago. Right? But no, it’s not dead. He’s still able to make a lot of money from drop shipping. So the second question I get asked a lot, and it’s been thrown around a lot in like the aecom space is donated build a brand in 2019 or do I need to build a brand to stay profitable? And like my answer to this is that it depends where you are in your e-commerce journey, like how experienced you are, right? Because building a brand involves creating content for that brand. Like whether it be like creating video content or creating blog posts. And the main thing about making a brand, yeah, it’s building that content.
And if you don’t have like a team, especially a group of vas or any processes in your business, then creating content, like you’ll be wasting your time if you’re doing that. If you’re a Newbie, you should 100% focus on getting sales. So if you’re a newbie and you haven’t found, you haven’t scaled winning products before, the only thing you should be adjusted on is product research and learning. Um, Ad platforms. Whether that’d be like Facebook ads or Google ads, right? 100% of your time should go into that and your first few hires when you do hire va’s should be customer service and fulfillment. It shouldn’t be creating brand content. And I know a cop, a bit of Shit for saying this, but in my view like a brand is more than having just like a branded URL store domain and having like a nice theme on your site, like to build a brand.
It’s creating content, and that takes time. So if you are like experience and you’re profitable, and you consistently find winning products, and you’re scaling them, and you have a va team, right, then 100% yes, I do recommend building a brand, um, to increase your repeat purchase rate. Another thing is that building a brand takes time. It’s not something that you like instantly turn on and you’re a brand, you’ve got to build up over time. And usually, if you’re drop shipping with the general store, you typically have to open another niche store. So you need systems and processes applied to that store to speed it up. So if you have that team of Va’s and your experience in 100%, yes, you should be looking to build a brand, um, hold inventory and create content around that brand. Some of them, so the third question I get asked a lot is drop shipping harder in 2019 as opposed to 2018 a lot of people to say yes, it’s harder, but don’t give a reason.
But I reckon that it depends on what traffic source you’re using to drive traffic to your store. It right? Because the reason that it gets harder is that the ad platform, so, so, so with Facebook ads, we’ll 2019 be harder than 2018 to drive traffic. Yes, it will be. Um, and that’s because of increased facebook ad costs and also stricter facebook policies, which I’ll talk about in a second. But with Google ads, uh, not indeed. Like Google ads costs are rising like any other platform, but they’re not as strict on policy. Right? They don’t do customer feedback surveys and other stuff that Facebook is doing. But I’ll get into that now. I said the reason that Facebook ads is going to be harder is that there are more advertisers are coming on the platform, right? And spending money on the platform and there’s limited inventory.
So there are limited spots to place your ads. Yeah. And the other thing is that there’s stricter facebook policy. So Facebook is getting severe where their customer feedback surveys as to say you’re scaling a product right from and your advertising from a facebook page. So now facebook, what they do is they send out customer feedback surveys to those people who have purchased from your store, from that facebook page and they get them to rate on a range of one to five how good the experience was. Right? So from now on, if your average rating of from the customer feedback surveys is less than one, you’re banned from creating new ad accounts and your business manager. If the score is 1.1 to two, then you get a delivery reduction penalty. So your CPM cost is higher, which means you have higher and saving prices and it’s much more difficult to scale or even to test products.
And then a rating of two to three you get like constant warnings in your business manager. I’m telling you to improve the experience of Facebook are clamping down on advertisers who are giving like bad customer experience, right? So we’ve got some points here and what you should do if you’re using Facebook ads in 2019 so the fee, so this is all to make your Facebook ads cheaper. So to lower the CPM to lawyer ad certain costs, the first thing you should be doing is to go broad, right? Target broad audiences. Ideally, you want to be targeting audiences over a million. Anything under a million, your CPM will be high. And the algorithm right now, it doesn’t respond as well to smaller audiences. If you give Facebook a big audience, you can let facebook’s algorithm do the heavy lifting and pick out buyers from that audience.
So another thing is that you don’t like right now you don’t just want to test in the USA. So checking in the USA is pretty inefficient because the CPMS is so high that if you don’t have like a validated ad creative, the reach is so low that it makes it difficult to test. So what I recommend now doing is combining um, United States with countries that have a packet and also have like kind of like a high GDP. So these are the countries that I’d recommend you test with the USA. And so the reason I don’t test worldwide, I checked these countries instead is because a lot of the times the countries in the worldwide, they don’t have a packet. The product takes way too long to ship to, and you end up getting chargebacks. And also there’s a lot of fraud and some countries like India, Indonesia, and then some other countries as well.
So I test and the United States and these additional countries here that have a packet with a GDP is quite high. So another thing you can do to bring down the CPM is making sure the ad that you’re creating is engaging, right? And the first three seconds has to be pleasant, right? So as an example, I’ll show you. So this is an ad that was in my feed the other day, but the first three seconds is so important and like this here captures your attention because the video is like in slow motion, right? So those three seconds here, like one, two, three, right? Like that stops just scrolling your feed. It’s an excellent thing you can do is make the first three seconds in slow motion or something that draws a person in. And if he brings the person in, you’ll get lower CPM because Facebook thinks that your video is exciting and people want to watch it.
So yeah, if you have a winning ad set and your targeting specific placements, try it. Automatic Placements. So that’s in the ad set settings as well. Um, so like even if you have like shitty placements like audience network that doesn’t convert on cold traffic, even if you just put on automatic placements, recipient drops on all like the right placements, like your Facebook news feed or your Instagram newsfeed. Yeah, the CPM will drop there. So yeah, definitely test out automatic placements instead of just going like the facebook newsfeed, Instagram newsfeed. It’s another thing you can do to increase your average order value and make testing products cheaper is to run automatic upsells on thank you pages. So an example of this is when a customer buys a product, and they’re taken to a thank you order confirmation page, and then they’re showing it upsells here where they can add any of these products to their order.
And what this does is repeat it, it increases the repeat purchase rate and then also increases your average order value. So I’ll leave a link to sign up to this app in the description of this issue and yeah, it is a shameless plug and is my app, but it’s working. Awesome. I’m drop shipping stores to increase average order value and repeat purchase rate. So this is important. So when you find a winning product, especially if you see it on Alley Express, and you start selling like over 30 orders a day, do not scale using Aliexpress, suppliers literally screw you over, they’ll lie to you and say, Hey, we’ve got plenty of stock when they have no idea regarding the stock levels in the actual factory, right? So what I recommend is that as soon as you have a winning product that’s showing potential in selling over 30 orders a day, go into Facebook groups and just search for Chinese fulfillment center and there’ll be lots of posts from private sourcing agents from prep fulfillment centers that will ship your product reliably and get it to the customer in time.
Right? Because another thing is you don’t want the lousy customer feedback rating, right? You don’t wish to like under two customer feedback rating because if you are shipping times are like over two weeks, over three weeks, then yeah, you’ll start to get terrible feedback, and you don’t want that. So second, the last point is don’t put all your eggs into Facebook ads. So Google ads right now, I like, in my opinion, is easier to set up, run and optimize and facebook ads. If you’re a Newbie, um, some people say you should learn one face of like one ad platform at a time, but try facebook ads, then try Google ads. But I recommend you can do both at the same time since for Google ads and you just set it up, let it work for you. You don’t have that much optimization needed. Um, I’ll leave a link to my masterclass that I did on a Google ad, so you got guys can check that out.
And then my last point here is that if you’re if you’re a newbie and you just starting drops running for the first time, or you’re learning about drop shipping, you’re about to jump into it. Like don’t have the mindset of like, I want to, I want to be rich, I want to, I want to get as much money as fast as possible. You know, like the next month I’m looking to make like tens of thousands of dollars because like there’s a lot of stuff to learn and like you need to be in the mindset that the first few months, especially the first three months are going to be unprofitable. Um, but that money is spent on your learning Ad platforms, learning how to do e-commerce. So your mindset when you get started should be like I’m investing in myself, investing in how to learn to do all this stuff and that investment in myself will pay off eventually like drop shipping as a hard game.
And a lot of people I’ve seen on youtube to say it’s like the easiest thing ever. And like you can make money as fast as possible, but it’s not, it’s like a hard game. But if you learn the right methods and you’re persistent, then you will eventually be profitable. So yeah, definitely don’t give up if she has started. Right. So you’d hope you got some value out of this video. If you liked this video, drop a, like if you haven’t yet subscribed to mailing list. Please subscribe now!