Top 10 Mistakes Beginner Dropshippers Make (Shopify)

what's going on guys today i'm going to be going over the top 10 mistakes that you need to know before you start drop shipping literally all of these mistakes are so crucial because if you just make one of them then your entire drop shipping business could be completely destroyed everything that i'm going to share with you today are actionable tips that you're going to thank me later for and if this video does reach 4 000 likes i'm going to release a document of 10 viral winning products that are making thousands of dollars per day right now so make sure to smash the like button and subscribe but without further ado let's get into the value all right guys so the first and one of the most common mistakes that i see newbie drop shippers make is not checking the shipping times for countries that they're trying to advertise to if you go on aliexpress and you check the shipping drop down you're gonna see there's tons of different options and it's very specific on each country that you're actually shipping to so if you're wanting to advertise the united kingdom make sure you actually check out those specific shipping times and a lot of the times you might have to find a different supplier for one country than another country and the reason why it's so important that you actually check these shipping times is sometimes united states will have 14 to 17 days shipping and then you'll check out the shipping to canada and it will take up to two months and you guys don't want to be sending products out with two month shipping because if you actually run into that scenario then you're gonna have tons of unhappy customers and trust me that's not how you're successful in drop shipping you're gonna have a ton of refund requests a ton of chargebacks and overall that's just bad business so definitely make sure you do this one now mistake number two is setting realistic goals i get tons of dms every single day with people reaching out to me thinking that this is a get rich quick scheme and telling me that they want to make 50 000 or 100 000 in the next few months now i hate to break it to you but this business model does take time and it does take effort so if you're a beginner getting into this expect not to make money right off the bat your primary goal should be coming into this learning absolutely as much as you can because in my opinion the hardest part of this business model is actually going over that initial hump to where you actually get sales once your store's actually getting sales then you can turn up the knob with advertising bring more traffic in and it's relatively simple to scale but trust me don't expect to make hoards of money in the next few months because you're gonna be very unhappy when the money doesn't come in instantly and you're gonna quit much faster you guys see me on this channel sharing some insane numbers but keep in mind i've been at this since 2017 so it definitely didn't happen overnight you guys aren't seeing the sleepless nights the times i've almost went in debt and all the trials and tribulations that actually came with my success now number three is to actually start out with a realistic budget and i think this is one of the biggest achilles heels of newbies getting into drop shipping they see this business model and they want to start out with a hundred or two hundred dollars and while that might be sufficient to get your first store off the ground if that's actually the only money you have you're gonna lose it relatively quickly and you're gonna think that this business model doesn't work i suggest that you start with a two or three thousand dollar budget completely dedicated to actually testing products out because this will give you a high likelihood of finding a winner now if you don't have two or three thousand dollars yet i wouldn't really start out trying to build a business i would try to get a job because the thing is to take a hundred dollars and turn it into a thousand dollars you're gonna need to 10x your money which is pretty difficult but it would be much easier if you just spent about 30 or 40 hours working at a job taking that money putting a thousand dollars in and 10xing it and turning it into 10 000. now mistake number four that i see tons of newbies actually make is not focusing on viral products that solve problems a lot of you guys dm me your stores and i see these odd little trinkets you guys are trying to sell and different jewelry and fashion products and while these do sell these are some of the most competitive niches and it can actually be harder to convince someone to buy a fashion product than something that actually solves a problem the method that i teach in drop shipping is actually finding products that fill a gap in the marketplace so for example not too long ago i shared a video showing one of my 100k products and what this product is is a knee brace that actually helps you walk better and it takes off weight from your upper body which solves a massive problem for anyone who has knee problems or trouble walking in general now the reason this products much easier to sell than random trinkets is because it solves a real world problem and when you actually go on facebook and you advertise this to people with knee problems they're gonna be much more likely to buy this as an impulse purchase than your random trinket now mistake number five that i see tons of newbies making is starting out with the general store approach if you don't know what that is basically it's a store like amazon focused on selling any product under the sun and the reason why i don't advise of this method is because right off the bat if you add tons of products and you're still completely new to this business model you're not gonna spend enough time merchandising the products you do have and you're gonna think it's quantity over quality but in reality that's actually flipped around i like focusing on fewer products that we merchandise much better because it gives us a much higher chance of actually getting sales on our stores so if you're starting out i recommend you start off with a niche store or a one product store a niche store is focused on one market so for example workout gear and a one product store is literally only selling one product so for example this massage gun and by doing this we'll be able to dedicate the time needed to properly merchandise our product and create good product descriptions work on good graphics and get good facebook ads plus when customers actually visit our website they're gonna look at our website as a very reputable brand because we're very focused on their problem that we're trying to solve now mistake number six is to avoid selling any copyright or trademarked products now this could be a little bit difficult to understand if you're a beginner but one big piece of advice that i recommend to you is don't sell any products with any characters or any references to any other company so for example a spiderman costume an mba jersey or something related to pokemon now this should be common sense but i see far too many people get into this business model and get their store shut down because the thing is that company could actually come file a report on you and shopify will take your website down immediately and on top of that you could also face some legal implications if you actually did become very successful selling that product all right guys so mistake number seven should seem like common sense but i see far too many people get into this business model start scaling their products and they don't actually truly understand the profit that they're taking home each day now this is pretty simple to figure out there's a couple apps that you could download on your store like life timely or order metrics where it actually tracks real time your profit every single second so you can integrate your facebook ads your google ads your product cost and your shipping costs and any fees that you're actually paying with shopify or any external apps so every single day you're able to look at real sales numbers and you don't have to add it up or create any spreadsheet so it's going to take a lot of time off your hands and one really beneficial thing of knowing your exact profit is you can know when to scale if you know you have a 30 profit margin you know you can spend a little bit more money on ads and this is going to give you a higher chance of scaling quicker keeping more profit and actually being successful in your drop shipping business all right guys so mistake number eight that i see tons of drop shippers actually make is they're spending tons of money on their debit card or they're paying with their ads through their bank or paypal now it's completely fine if you're doing this but if you're actually spending quite a bit of money you're going to want to think of a couple different credit cards you can use to leverage points for your ecommerce business now of course if you do this you're going to want to be paying your credit cards off every single month but the benefit of actually using credit cards is you're able to bank out off these reward offers over the last few years i've managed to make over twenty thousand dollars from rewards from these companies because specific credit cards like the chase business inc and the american express business coal card will give you three to four percent cash back on marketing up to a limited amount every single year so potentially you could be walking home with an extra ten or twelve thousand dollars every year just by capitalizing on these rewards and with these rewards you can do tons of things like book airbnbs book flights literally almost anything you can do with these cards so if you're scaling definitely check this out alright guys so mistake number nine that i see beginners make is not actually setting up a legal business entity and this is really important once you actually have some revenue coming in that you decide what type of business you actually want to create when you first get started you could start a sole proprietorship but as your business starts to scale up it's going to be more tax advantageous to run something like an s corp but i definitely recommend talking to your local cpas because the information that i'm sharing with you is only relevant in the united states and of course i'm not a legal or certified tax professional but you definitely want to think about this once sales are coming in because this is going to help you out in the long run and if you do have a corporation then you can take some of the liability off yourself in case anything happens to your business now mistake number 10 is staying up to date on your books and making sure that you're actually properly paying taxes so i remember when i first got started with e-commerce and drop shipping i was making quite a bit of revenue but i wasn't focusing on taxes or anything like that and at the end of the year i talked with a tax professional and they let me know all this different stuff that i had to do in order to file taxes and i only had a few days to get all of it together and it took me hours and hours and it was one of the most stressful processes so in order to combat this once you actually start getting sales talk to a certified tax professional let them know about your business model and they're gonna help structure your taxes so you're actually doing this correctly and you're gonna wanna make sure you're keeping your books up to date until you meet with your tax professional so you can actually download something like quickbooks where you can import your bank transactions every single day and all you need to do is click a couple buttons and they're going to import into quickbooks and this way you're going to be able to stay up to date on all your books so at the end of the year you can just submit this profit and loss statement to your accountant and they're going to be able to do everything super simply because your accountant's not gonna go through your books or your bank statement and look through everything and give you this pretty number that's not how most accountants work unless you're paying a bookkeeper so i just recommend you do it yourself and save yourself a lot of trouble alright guys so there we go i just went over the 10 most costly mistakes you could make as a beginner literally all of these mistakes are some of the biggest hurdles that i see beginners make and i truly believe that if you do take this advice implement it into your drop shipping store you're gonna be much more likely to have a successful drop shipping business anyways i really hope you guys did enjoy this video and got a ton of value if you did make sure to smash the like button and subscribe to the video if you guys want to see some tutorials on how to start a drop shipping store i'll leave them right here but that's all i have for you guys today peace

Channel: Tan Choudhury

Views: 165,976

Keywords: how to start dropshipping, on shopify, for beginners, how to, how to start a dropshipping store, dropshipping, shopify, shopify dropshipping store, shopify dropshipping, shopify dropshipping tutorial, shopify dropshipping 2020, business, how to start a dropshipping business, beginners, dropshipping with shopify, tutorial, dropshipping shopify, shopify tutorial for beginners, dropshipping for beginners, 2021, dropshipping 2021, how to start dropshipping on shopify in 2021

Id: useEk8f4Uao

Length: 12min 19sec (739 seconds)

Published: Thu May 20 2021