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 talking 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 talk 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 talk 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 talk 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 talking 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 allow you to make a lot more money and run this for much longer now even though i've had some success with shopify there are people out there that are doing much bigger numbers than me one of them is my friend davey davey has built an empire of e-commerce brands worth over 250 million dollars he is someone that has absolutely crushed it with branding so i want to give him a quick call and get his opinion on this and also asking for advice for myself and for all of you out there let's see what he has to say yo what's up bro how's it going yo how are you good to hear from you bro so i think a good place to start would be to tell the people a little bit about you guys so i'm david fogerty i am founder of the hoodie i've also got 10 other direct to consumer e-commerce brands all built on shopify over the past 12 months we've done about 300 million dollars revenue so you know we're acquiring direct consumer ecommerce businesses and growing them that's incredible and you just started a youtube channel as well right just started a youtube channel so a bit late to that party but we've just been a little bit too focused on 13 friends but yeah now it came to our story awesome man what are your thoughts on drop shipping for beginners and people who are just getting started it's such a an amazing thing that you know someone so young with such little money can actually start a business nowadays so yeah i encourage it mainly because you know i've found so many businesses before and drop shipping really allows you to kind of just fail and the only expense is kind of your time in putting in putting together sites so yeah keep keep learning and test with drop shipping and eventually you'll hit that winning product that can you know teach you further but yeah i don't don't recommend drop shipping long term to be honest i suggest you know going into branding and building building a store to be proud of what would you say for somebody out there that is doing drop shipping they have a product that's doing well but they want to take that leap over to building a brand yeah sure so probably it's good to break down what a brand is first drop should be a brand is a good product and a good customer experience so if you already have an amazing product that's differentiated then chances are you might just need to improve the customer experience and get a 3bo and shipping time but if you don't have a unique product that is actually solving the issue and it's just a gimmick or a fad you're going to want to like go back to the product development stage okay you've proven this helps with back pain or something like that you know now then you need to actually either work with product engineers or just even simpler as going through your negative reviews or your competitors negative reviews and saying okay this material is causing a negative review what can i then improve and make my own to therefore make a good brand it's a bit of research and the fact that nobody else does it is the reason why you should do it because then you can you know charge a bit more with your margin and yeah have a have a product to be proud of yeah that's really good just taking what's already working and improving upon and providing the best possible experience i think that a lot of people out there are going to be really inspired by your story and your tips are really going to help them a lot and i've actually become a fan of your youtube channel i've been watching all your videos so let them know a little bit about that and what your plans are for the channel and where they can find you yeah for sure head over to davey foggerty we've just launched four videos now we're going to take people through the entire process of what we do talk a little bit about some really hard lessons that we've had as well like we've got so many failures um really just wanting to you know inspire australians and people in the us to you know kind of kind of follow our footsteps and try to build a brand that that you can be proud of yeah that's amazing man you're going to help a lot of people in the process thanks for your time the people are really going to appreciate this one and yeah man thanks man i'll check you soon yeah appreciate everybody so hopefully at this point you can understand why it's important to not rely 100 on drop shipping it's a great way to get started but it's not the way for the long term thanks so much for watching this video i hope you enjoyed it and found some value in it our family is growing like crazy and we are this close to hitting a hundred thousand subscribers once i hit 100 000 subscribers i'm going to be doing a live stream and do a huge giveaway where i'll be giving away hundreds of dollars free coaching calls and free lifetime subscriptions to my software i'm gonna be hanging out with you guys for around two hours answering any question you may have reviewing your stores and really just chilling with you all because at this point we've built such an amazing community and i want to really connect with you guys the amount of positive and uplifting comments i see on every single one of my videos is so special to me so i just want to say i absolutely love this family we have built and if you're not already a member make sure to click that subscribe button down below stay tuned for that live stream that's going to be happening very soon that's all for this video i hope you guys have an amazing weekend i'll talk to you very soon peace [Music]

Channel: Jordan Welch

Views: 1,686,123

Keywords: shopify dropshipping, shopify, dropshipping, dropshipping scams, shopify dropshipping scams, dropshipping scam, shopify guru, shopify store, shopify scam, shopify case study, dropshipping tutorial, shopify training, dropshipping challenge, dropshipping 2021, i tried dropshipping, shopify 2021, jordan welch, davie fogarty, does dropshipping still work 2021, is dropshipping dead, dropshipping for beginners, is dropshipping worth it, ecommerce, make money online, shopify brand

Id: IX98tiXvN04

Length: 11min 36sec (696 seconds)

Published: Fri May 28 2021