I Tried Dropshipping on Amazon For a Week (Complete Beginner)

so in this video i'm going to be taking you through my experience of drop shipping on amazon for a whole week i'm going to be completely transparent in this video i'm going to be showing you exactly what i have listed exactly how much i got it for and how much money i make i'm not even going to go through the exact numbers with what i did in sales and more importantly and something that really ever gets shown in all these guru videos that's exactly how much profit i make obviously if i'm spending a hundred thousand dollars a month to make a hundred thousand dollars a month that's worth nothing and in e-commerce we call that vanity numbers and that's really just for sale sometimes you just see these entrepreneurs making a hundred thousand fifty thousand dollars a month but you never actually find out how much actual profit are they making so in this video i'm going to be breaking down all the numbers exactly what i spent how much everything cost me and how much did i actually take home after all the sales were done and then i'm going to be telling exactly what the mistakes i made how can you learn from this mistakes and if this may be something that you would like to start for yourself so make sure you stick around for the entire video to learn exactly what i went through so that you can get a better idea what actually is drop shipping on amazon and guys if you're looking forward to this video i want you to do one thing for me right now and that's scroll down hit that like button to make sure that this video gets pushed to a greater wider audience so that it can possibly help them too for those new to the channel my name is joey gore i've been doing e-commerce and specifically drop shipping for the past three years now i've been dabbled in all sorts of businesses online so make sure that you subscribe to this channel so that you can see more videos in the future and okay let's get into this video straight away [Music] let me start by saying just as a disclaimer all the things expressed in this video of my own opinion they could or might not be correct i might be completely wrong this is just my opinion and my experience of what i've done so make sure that you take that with a grain of sand what the actual hell should i say as a kid i used to buy things and sell them on ebay for a profit and flip them just to make a couple of pounds here and there well i had come across a different model the drop shipping model and for you those who don't know what the drop shipping model is exactly you basically list products online that you find from suppliers just like your local grocery stores like walmart best buy and things like that you list it directly on that website and when someone buys that you go to the supplier you enter in their details and you get it sent directly to them so you never actually house inventory you never even see it basically you act as a middleman you just list it on there and when it sells you buy it and you keep the spread of the difference between your sale price and what you actually bought it for so the first thing i had to do because i had no clue how to do it was to do some research so i started youtubing videos i ended up watching hours and hours and hours of content but the craziest thing is that they never showed me how to actually do it they talked about oh you've got to find the products then you have to list them and then you make the money this way but they never show you if you know is how to actually do them so i was kind of confused i thought about buying a couple of courses but i saw the ones that like a thousand dollars eventually i set for one that was 297 dollars and i bought that so right from the get-go i was down 297 dollars in curt coss the next thing i needed to do was separate amazon seller account which cost another 39.99 so at this point you know i was nearly 300 already down into this experiment but that was fine because i was hopeful that i would make money doing this so after a couple hours of watching this course i figured exactly how to do everything it still seemed a bit iffy a few things kind of just didn't make sense but i was just gonna go and jump in for it so the first thing i needed to do was find products and list them on amazon so back in my ebay days it was pretty easy to find items that you could probably sell profitably on ebay this was not the case for amazon as i soon found out it took a lot longer to find products that you could actually make money on you actually have to do a lot of research and this includes the first step of finding items that are not in prime you can do this i found out by downloading the google extension called prime away or various different other ones so once you download that you can go straight onto the amazon page and you can find items that are not prime sellers the next thing is to go through and figure out which ones are not sold by fba or by amazon either because you do not want to compete with them otherwise you could be facing possible suspensions and you probably won't get uh honestly even make probably a profit on it because you can't compete with people in fba usually on margins so after about three hours i finally came across my first product the first product i could make money off i think it was around 3.23 and what did i find i found a swiffer a special type of swiffer that i could make some money on so i listed that straight away hopeful that i would make some sales on that so waiting for my money to come in problem was by day one i had only listed one product this was taking way long i ever thought it in ebay it was fairly straightforward you could just find sellers that are already selling good products find out where that is and then list that too and compete with them amazon not as easy day two i did a lot more researching i researched for another couple hours to find products i could make on i kept switching between different categories to see if that would help still took a long time and i think that's just the nature of the game this one in this business model you don't look for i guess you know quantity you look for quality and that's the name of the game so by the end of day two i had found another two products that i could sell it was a stepladder and a coffee machine the craziest thing here which i didn't think would actually work is that the coffee machine that i found online and that i actually found later and warmer i could get an 18 profit margin on it so for me i thought uh that's there must be something wrong with it probably won't sell but let's just list it in case because i've been searching for three hours now and i'm so done so let's just list this and get this going so day three comes up i wake up in the morning i check my emails and i've made a bunch of sales i can't believe it i made 311 sales in one night and guess what the swiffer was doing me right because i had sold that thing over five times and it was making me money already five times i already made 15 just by sleeping overnight so i started searching again i started looking up different items and guess what i found another two items that i could list to make money on one was some sort of like weird tube piping for washing machines and the other one was this filter that you could put in your ac unit so in each of those i can make a couple of dollars profit and i thought it would be good and then i would be on my way to being a six figure amazon seller day four so it started picking up like crazy i started getting emails and emails and emails that these things were just selling and the best thing that happened was the coffee machine was selling i was making 18 profit per copy machine and this thing was just selling like crazy just kept selling and selling i honestly had to mute my emails so i kept making so many sales i thought wow this is great nothing can go wrong this is where it happened my first big mistake so i should have started by telling one of the things that i skipped out on just because i spent so much money up front was all the fancy softwares that equate to another 100 150 on top so i thought well me myself i'm pretty good at excel i can just make my own excel spreadsheets and track everything that i list the sales and my listings so that i would be all good i don't have to spend anything else on top of my overhead that i already have well this had already backfired me i saw that my swiffer sold about five times within 10 minutes i thought well that's just crazy maybe i should just start fulfilling right now to keep on top of it so that's what i did except when i got to walmart guess what it was sold out big mistake i had sold out five times within just 10 minutes and in that 10 minutes it had gone sold out so now i was already in trouble and in amazon you can't actually cancel orders yourself that will hurt you really bad and you could get suspended you have to get the sellers want to cancel it first but obviously before you do that because that can be complicated and sometimes sellers don't respond to you you should try to find it from another supplier so that's what i did i came across and it was on target honestly the only other website that i had in stock because it seemed like it sold out everywhere probably due to the nature of the situation that's happening right now so i checked in target i put it into my calculator that i made and everything and it looked like i was going to take a loss so i said to myself you know what i don't want to deal with this inconvenience i don't want to deal with the threat of suspension i'm just going to take the loss of 34 cents per unit remove the item from the listing on amazon and then try to not make that same mistake again and honestly i didn't really care about the 34 cents per unit because i was selling those coffee machines for 18 profit it is so day five i'm making money every single day i'm making sales i couldn't be happier i'm like i might just carry this on off the video because i am i'm honestly making so much money i might as well just make it another side income well this is where i made my biggest mistake and i will take 100 credit that this was my mistake and this might not happen for everyone but this was just my fault and that mistake was the fact that i went on vacation for two days and i thought well i put that i have five days working time so when after two days i can just come back and fill it then it'd be all fine another big mistake the fact is when i came back off that two days off i had so many sales that i needed to fulfill so many to catch up on and i knew it was going to take hours but i was prepared for that i said i was going to do it so i started getting to it the problem is fact that i did go buy it later but the shipping labels didn't get uploaded within five days and on amazon you need to upload your shipping label within the speculated time that you have put down otherwise that goes down as a late shipment again hurts your metrics and you can get suspended so i looked through different forums and the best thing i found what everyone said was to upload a fake tracking number and what i mean by this is not exactly fake it's a tracking number that you already have that's a valid tracking number it's just not the tracking number for that item so that when the actual tracking number comes in for the item that i fulfilled i can then update it with that and i won't have any problems right wrong turns out that those shipments that i had done late got delayed well turns out at the same time that that fake tracking number i uploaded got delivered turns out that i get multiple messages saying where's my ice and where's my item it's been delivered in texas and i live in idaho i didn't know now but this would haunt me later halt my sleep and haul my dreams and every single waking moment doing this challenge so three brain aneurysms later after dealing with all the horrible customer service and everything apologizing i ended up having to give refund to one of the people because they threatened they would open a claim of me turns out they opened a claim of me anyway regardless of the refund and that hurt my order metrics more on that later so what did i do day six and seven well apart from just fulfilling different items that i had to catch up on i actually took all my listings off and that's for one strange reason which you probably are wondering that's because i was actually making too many sales i could not literally keep up with the time that i had with fulfilling all the orders so i had removed all my listings all my five listings from amazon and i was fulfilling orders hours and hours and hours on end dealing with customers complaining again my fault this is not typical but i had to deal with all those customers complaining lucky not two of them were complaining that much i just explained the situation said it was still on its way here's the real tracking number i will upload it when it becomes available we're at the end of the week now i went through it pretty fast but there's a reason for it i promise but first let's go through the bit that you've all been waiting for how much did i make tell them to bring me my money yeah in seven days i sold exactly 43 units the number of ordered product sales was 2 422.58 and the average sales per order that was sold was 57.68 you can see the screenshot attached right now this is exactly what shows from my amazon seller now i made a spreadsheet exactly working out and tracking exactly how much i was making so how much did i make in profit that's a really important thing you can say you're making fifty thousand a hundred thousand dollars a month but when it comes down to how much are you taking home after all is said and done well i'm gonna tell you right now i worked out that my exact profit margin was 17 and this is before cash back is something that i don't count as true profit others might disagree with me but that's just my personal opinion i want to see how much money i take home and not have to rely on every three to six weeks and getting profit from the cash back to go towards the month in that week i made 415 dollars and 24 cents in profit before cashback and 451 dollars after cashback and in my case i'm just going to put this as well i opened up a amex gold delta card which at the time of recording had a bonus of 60 000 miles for spending 3 000 within the first three months which later they sent to six months so i actually used that perfectly i used the whole three thousand dollars up obviously two and a half thousand dollars towards that and then some personal spending to meet that criteria so i got sixty thousand miles which is pretty good value on top of everything else on top of the 450 profit as well so pretty good right probably just going to continue right now keep making money build up to 50 000 miles maybe even 100 000 a month hope you guys enjoy this video become an amazon millionaire if you want see you in the next one no okay guys i have to be honest with you this was not easy as it seems and there are way more things that are going behind the scenes that i'm going to explain to you right now and things that i think that people should be more transparent about especially about this business model in my opinion so let me tell you about a few things that i experienced that you should be aware of before you get into this so on paper sounds amazing right yes i had to deal with customer complaints and i made my own mistakes but in the end i walked away four hundred and fifty dollars i wouldn't have 60 000 miles on top of that that i can use for vacation later sounds pretty good right well here's the thing so i don't actually know if i'm even going to be able to receive this money and i'll tell you why it's because i might be suspended yes just one week i might be suspended how crazy is that well yes you're probably saying right now yeah well you made all this makes that won't happen to anyone i did some more research and i dug a little deeper i went through probably over 20 different forums and facebook groups and everything like that i joined them turns out a lot of people are having problems with suspensions too and one of the biggest reasons why is drop shipping is actually against the terms and services of amazon so many of you might not know that because i feel like a lot of people admit that i didn't even hear that at all like in the course or anything and i went through it i went through the webinar the free webinar went through the click funnels sign up i never heard once that it was against the terms and services so i was kind of annoyed at this point and that leads me to why to think so many people are getting suspended off this platform for drop shipping well you're probably saying well i see so many people making 50 100 000 a month this made me a little bit skeptical there are a number of ways that you can suspend it let me just go through a few of them and some of them how that affects me and why i might be suspended too so as i just said dropship is actually against the terms and services of amazon so what will they do if they find out that you're drop shipping they will suspend you and because of that you will not be able to withdraw your money they will hold your money so that you could be out thousands of dollars so i could technically be already out of over two thousand dollars and i would have to find that myself or try to appeal which is very very uncomplicated it's not for this video but you can do it to appeal to get my account unsuspended that's the first thing the second thing is a lot of people start posting this thing that i thought was pretty weird and that was called the three asin message drop shippers have been getting these messages saying looks like you've been selling all inauthentic items for three basins below acings are the unit tag to amazon items well almost every single one of these people who posters said they weren't even selling these items and even if they were selling these items they weren't inauthentic obviously because it was from a retailer and also they hadn't even sold these items but they just had their account automatically suspended it seems like to me that this is the way of amazon to deter drop shippers away to actually find drop shippers out and just for some reason be like look you can't do that and the only way that you can prove to us that you're not going to suspend it if you provide your receipts and your invoices from your wholesalers that you're getting it from your manufacturers which obviously you're not because you're a drop shipper so you can't even provide those things so there's no way you can even appeal it you just have to take the loss this ties me to my last thing which makes me skeptical about this business model and that's the longevity obviously if you're forever in the fear of getting suspended i just don't see that being a long-term business model like i cannot personally myself live every single day especially if that's your only source of income living knowing that any moment that you could get suspended and you have all your eggs in one basket and all of a sudden you have no money in fact not just you have no money but you owe money because you have all those items still to fulfill and you have all those all those items on your credit cards that you need to pay off i don't see myself living on this in the foreseeable future i'll leave this up to you guys if you guys want to do more research that is fine i encourage it before you get into it i don't want this to be a video of like word of caution word of honor this is my experience a challenge for myself yes i did make money we'll see if i actually get it i will update you guys i'm thinking of making another video in the future where i actually pay for all the softwares and everything i try this for a whole month and i risk my money for a whole month so this was an expensive experiment and a challenge to make so i hope you guys enjoyed this video hopefully this might open up a bigger perspective and this make you do a bit more research instead of just jumping into something like this so make sure that you leave a like down below and subscribe if you really enjoyed this video one last thing amazon please don't suspend me i won my money back you

Channel: Joey Gaule

Views: 1,696,176

Keywords: ebay dropshipping, how to dropship on ebay, dropshipping on Amazon, amazon dropshipping, biaheza, paul j lipsky, ecom tom, raiken profit, how to dropship on amazon, amazon dropshipping tutorial, how to start dropshipping on amazon, amazon dropshipping step by step, amazon dropshipping for beginners, amazon dropshipping 2020, joey gaule, amazon fba, amazon arbitrage, dropshipping on amazon with no money, no bs dropshipping, amazon dropshipping for one week, success with sully

Id: LFZnMMkxbeo

Length: 19min 6sec (1146 seconds)

Published: Wed Jun 03 2020