I Tried Turning $0 into $10k Online Challenge (Part 4)

this is now part 4 of a series in which I'm trying to start from $0 and build it up all the way up to 10,000 u.s. dollars only using my laptop and an internet connection in the previous three episodes we managed to accumulate over $1,600 if you want to find out exactly what we did and what online businesses we started you're gonna have to watch the previous 3 episodes but all you really need to know is that in this video we're gonna be starting with a little bit over $1,600 and we're also gonna be starting part four of the series with some incredibly unfortunate news we have a huge setback could have been easily avoided where I pay a little bit closer to the attention I'm gonna explain all about it but first we gotta go ahead and flash the intro do the flash transition go ahead be a heads up from the future okay now that we got the intr out of the way we really do have a major problem so let's just go ahead and dive straight into that as you guys know in the last two episodes we've built up a drop shipping store selling these portable steamers over here and it's been doing incredibly well we've been advertising you through Instagram themed pages we've been making good money we're also collecting a ton of facebook pixel data that we were gonna use in this video to go ahead and transition this Shopify dropshipping store into some Facebook ads and there can be very optimized right out of the gate because we've already had all this previous data that we were collecting now the problem here isn't the website it's not the marketing strategy it's not climate change it's not the advertisement but it's the portable steamers themselves they have betrayed us me personally I have previously dropship products that plug into the wall however I've never really majorly scaled these type of products so I don't have much experience with them which is why when the Aliexpress listening for a portable steamers didn't have an option to select which kind of plug you want to come with a portable steamer I completely forgot about the fact that different countries having different wall outlets is even a thing you would change and of course this product did not come with a u.s. plug we're about 40 percent of the orders were made and instead came with a belief in UK plug so we definitely have a little situation here now were there to be an option on the Aliexpress this thing where you select what kind of plug you wanted I would have remembered about all of this and I would have added an option on our Shopify website very easy to do we take like five minutes and I can also sing that with the automation services I was using so it wouldn't be a problem at all but because there wasn't an option on the Aliexpress this thing where I can select the plug type and I don't have much experience drop shipping products that require electricity and that plugin so wall I complete the overlook this it's all completely my fault and I don't want to do bad business here and just ignore this problem so I am gonna refund a lot of these orders and I'm basically gonna cease selling this product as a whole and with all this in mind we're basically back at square one with zero dollars luckily a lot of the orders were international so I don't have to refund those we're not gonna go into the negatives but with the money we're gonna have left over it's probably gonna be like a couple hundred dollars at max so what are we gonna do for the future of this challenge you might ask a great question we have a few options here first option I figured you know what this has been an incredibly high effort series to make I basically failed this point I might as well call it a day and I did here baby at as much as I wanted to go this round because it would be the easy way out that would be a very disappointing ending to the series and on top of that it would be a really bad example because this is what business is all about you're gonna have a lot of failures but you gotta overcome those and I didn't get to where I'm at with my actual dropshipping stores by giving up every time I ran into a roadblock and like you have roadblocks the keys to overcoming second option was just so we started this whole challenge and start back up from zero start grinding up our way back to $1,600 but the problem with that is it took us three videos to get to this point so we're tied to restart that probably be another three videos of us grinding to $1,600 that would get repetitive very quickly and I feel like a lot of people would lose interest in this series as a whole so I went with a third option which is I'm gonna get a clean slate here I'm gonna end everything we have going thus far and spawn back into this challenge with $1,600 I'm not sure exactly but the exact amount that we left off in the last video and basically start over get a second life here a second chance and I'm gonna take that money and proceed to start a branding dropshipping store that I'm gonna advertise solely through Facebook Ads it sucks because we are losing out on a lot of Facebook pixel data that we've collected for the portable steamers that's completely going to waste we're gonna be starting cold on Facebook but $1,600 is enough to go ahead and kick us off and this is enough money to start testing it's gonna take us a little bit more time to actually make a profit but that's showbiz baby I really hope that you guys are on board with this decision you feel like this is a better way to continue this challenge rather than just completely ending it or starting it from zero that said we are gonna have to find a new product building your website added a new advertisement and start marketing it through Facebook Ads this is all very overwhelming so I think I'm gonna have to go for a quick swim to clear my head and I'll be right back so this one I hopped into my 6000 plus pound tax code is section 179 fully tax-deductible Toyota before he said no my name is not Karen and I was not picking up my kids from soccer practice I will set it to my local gym pool for a tie I thought it was gonna be cool swim to clear my head however I ended up being in the water for about three days and eventually washed up on the shore what look like a stranger island in the Pacific I was obviously confused as to what happened so I got out of the water to go look for some coconuts I can munch on since I obviously did not want this workout to go to waste but not getting a post-workout meal on my way to find some food I actually found a little path to that led to a cave I saw a strange rock in the cave so as one does I decided to pick it up and to my surprise underneath it I found the listing for a winning Aliexpress product Wow this was a pretty time-sensitive product research method but it was kind of new and different so I don't mind you're not sure as to what exactly this product is I can't blame you let me explain it's essentially an undergarment the woman can wear underneath regular clothes in order to kind of shape their body and feel more confident when they want to wear a dress or any other piece of clothing that somewhat form-fitting there's a little demonstration here provided by the Aliexpress seller I'll play it but you guys get the point there's different variations of this but the category of the product is called the shapewear this bad boy definitely sells as you can see it's got a ton of orders and a top that I mean Kim Kardashian even sargent her own line of shapewear recently I'm sure the Kardashians have incredibly talented business minded people advising them they wouldn't be selling a product there is in demand for someone with this product here's the website I built forward to be exact here's the mobile view of the product page we got the product itself then we got the price I'm selling it for $13.99 I'm really trying to undercut the market here it's 30 99 but then I'm also charging $2.99 for shipping so the total is gonna be 16 98 for this product and then we got some drop-down menus for the size of the product and also the color I chose to name the colors onyx or beige to make it sound more exquisite and the websites all mechanically sound I can choose beige and this image will switch to beige I can choose onyx which basically means black and I choose switches to black but scrolling down I got the images straight off that Express listing so there won't be any copyright issues there I just had to fix the text on them because the grammar was way up the listing said stuff like still-life new visual experience memory still bone tightness what does that even mean I'm not sure but I'm pretty happy with how the website we got some reviews here imported them from the same Aliexpress this thing it all looks so pretty nice now for the marketing portion I began running some Facebook Ads my strategy here is very simple I test a bunch of audiences the ones that aren't profitable I stopped pretty quickly and the ones that get sales and are profitable I slowly increase the budget on and scale them up so in the first few days I don't expect to be very profitable since I'm testing so many audiences and starting off really aggressively but all of them are gonna be running at $10 per day currently under review Facebook is very strict on their guidelines for all kind of adds a little ow and with the product like this I had to be very careful with the advertisement I put together since Facebook does not allow any before-and-after images and there can be excessive amounts of skin showing but I put something very mild together that should get approved so as soon as these ads are proved we will be live and I'll check back in probably in a few weeks since there's actually a big reason behind why I can't run this store for longer than that and I'm also not really gonna be doing anything exciting just playing with the audiences and budgets here and there so I'll see you guys in a little while okay this is gonna be quite a jump since the last time I checked in I think almost two and a half to three weeks ago but I was away from the stew I'm sorry I didn't check in more times but as you saw from the cool island transition I did earlier I was away for a while then I feel like bringing this bulky camera along with me was really worth it since all I've really been doing is playing around with the budgets on audiences so that wouldn't even be too interesting to watch and record so I feel like it wasn't worth the troubles but that said let me show you guys where we're at with the drop shipping store and I'm gonna be sure to screw neke or this unrefreshing on camera because we are hitting some numbers now okay so for today already [Music] so as you can see I can scroll around on here this is the real Shopify app so we started this story in early January and since then we have accumulated over twenty thousand dollars in revenue I mean Kim Kardashian who but this is all really not nearly as exciting as it seems when you find out how much expenses we have for this or but before I break it down and explain the profits and explain how much we're keeping from this store how much the profit is I first want to talk about why I basically have to stop running the store as soon as I'm done filming this video there's something called the Chinese New Year which is a festival that celebrates the beginning of a new year on the traditional Chinese calendar I believe this year is gonna be on January 25th which is cool and all but it does bring a problem for people who are drop shipping from China the way we're doing it right now and that's because during the duration of the celebration basically everything closes down in China all the factories go and pause everybody goes on a big break and that can last anywhere from a week up to over a month and even after the celebration is done there's gonna be a huge backlog of orders to process so things are gonna start moving pretty slowly and if somebody places an order on your drop shipping store while your supplier is out on a huge break that's gonna cause an issue because the shipping time of that order is gonna be pretty insane which can cause a lot of unhappy customers also it can even cause charge bags okay sorry the camera turned off so I went out to go get a drink of water and I ended up spilling it so can you even see it yeah okay that's gonna bother me I'm gonna change shirts real quick hold on okay that is better but as I was saying you really don't be running your store during the duration of this Chinese year and especially scaling your store during this time which is why we're gonna have to end the store at least pause this store and I finish this challenge off without doing any more drop shipping or theis the regular form of drop shipping where you drop ship from Aliexpress but that said let's break down the profits and show you guys the Facebook Ads manager it's gonna be on my traveling computer here so as you guys can see we've narrowed it down to 11 total ad sets I've deleted the ones that weren't profitable and we've scaled them up to we got 3 running at $75 per day we got some $50 ones $20 ones and then a $10 one down here and the reason I'm showing you guys this is first of all it's proof so let me refresh this okay there we go but then I'm also showing you guys this because of this number right here I wanted to show you how much total we spent on ads as you can see seven thousand six hundred forty six dollars and forty and fifty three cents so that's our first and biggest expense the Facebook ads next up we got the product cost we sold a thousand eighty six units and I found a different supplier who was willing to ship the products with a package shipping and the product itself he came out to 464 for order this isn't the original listing I found a different supplier as you can see I'll put up a screenshot of it but that brings our total product costs to five thousand thirty nine dollars and four cents then we got the processing fees which are five hundred and one dollars and twenty three cents then about $180 from sale tax because some of the orders were made in California and all of that brings us to our final profit for this store which was six thousand seven hundred and six dollars and forty four cents but then remember also didn't just throw 16 hundred dollars of the starting budget right out of the game into the Facebook ads it was kind of gradual so only spend around $800 of that Atilla was a self-sufficient cycle where the Facebook ads you were getting sales and I was funding the Facebook ads and we were making a profit so we still have around $800 left from the starting budget so if I add that on to the profits our current actual official budget is 7,500 and six dollars and 44 cents I'm pretty happy with that number but I think the biggest mistake I made was with the pricing of the product my strategy was to undercut the market and I think I went a little too far with that I should have probably sold this product for like $24.99 I would have made us so much more money but the fact that it was so cheap did Drive a lot of sales to us so I don't know I think I think the move would be to sell this product for more but again I'm happy with a number we do have we won't be able to finish this series using drop shipping but that's okay because it opens up a new opportunity to showcase a brand new online business I think we have to make another to around twenty-five hundred dollars more until we're done with this challenge so if all goes to plan I think the next video in this series will be the grand finale although probably take longer than a week to actually earn the money and create the video so next week I don't think I'm gonna be uploading part of the series just a heads up a warning but you can still feel free to comment on the next video that I upload that you're expecting part 5 and not that video because all comments are good for the algorithm anyways hope you guys enjoyed this video in the hope that you guys have a blessed rest of your day [Music]

Channel: Biaheza

Views: 560,782

Rating: 4.9462094 out of 5

Keywords: shopify dropshipping, dropshipping challenge, make money online, online business, biaheza, dropshipping for beginners, shopify, dropshipping, facebook ads

Id: UjTzOA-SV6s

Length: 13min 5sec (785 seconds)

Published: Fri Jan 17 2020