What You NEED To Know Before Dropshipping In 2021

today i'm gonna be going over absolutely everything you need to know before starting drop shipping in 2021 it's clear the market has changed drastically so not only am i gonna be going over the new winning formula but i'm gonna be giving you tons of actionable tips that you can go out and implement today so if you guys do enjoy this video please smash the like button and subscribe to the channel but without further ado let's get into the value alright so the first thing i want to go over is the new winning formula and let me explain why if you aren't doing this then you're drastically behind the curve the old winning formula was focused on quantity rather than quality you would build a general store which the sole focus is launching as many products as possible usually these general source product pages aren't done very well and they don't put too much focus into graphics and copy so while this strategy still does work where i'm seeing the most success is with one product stores a one product store's objective is to look like the original seller of that product and immediately you think that they're the inventors and original brand for this product the reason why this gives us an unfair advantage is because these other stores lack personality they're very general and they don't have optimized product pages which allows us to not only charge more money for our product but out-compete any of these general stores another benefit of this approach is i test fewer products because i have a high percentage of finding winners which means less money spent on pointless advertising and also these stores are very easy to turn into private label brands once you start getting some volume all you need to do is go on alibaba order your product with a logo on it and there you have your private label brand and obviously i'm not saying you can just sell any product on your one product store the strategy relies on focusing on products that solve real-world problems for example this posture corrector helps with better posture which could potentially reduce neck and back pain and the reason it's so easy to sell products like this is because we can go on facebook and we can tell them that we're looking for people with back problems and when facebook actually delivers this ad to people on facebook and they resonate with the problem that our product solving then they're highly likely to actually make a purchase i see so many people start off and sell little trinkets like this and wonder why their store is not working at the end of the day you are selling the solution of your product rather than the product so i think far too many beginners forget this fact and go out and test products that look cool rather than might actually give benefit to someone alright so the next thing you need to know before you start is the budget to actually get into drop shipping tons of people message me on instagram and tell me they have fifty dollars to get started and if they can build a six figure per month business with that and i hate to give you guys the bad news but there's absolutely no way it would take years of reinvesting that money to get to that point of course there is advertising methods that are completely free one thing's really vital that we do actually have capital so we can make sure that product gets delivered to the customer so in an ideal world i would recommend over thousand dollars completely dedicated to your drop shipping budget ideally i would budget about three hundred dollars for each product you're gonna test so this would give you the freedom to go out and test about seven products which is definitely a pretty good amount and which will give you a high likelihood of finding a winner and another thing that i highly recommend you do once your store starts getting sales that you reinvest all of that money into your business and one thing i want to touch on is what type of expectations you should have when you first start drop shipping so i actually mentioned this in my last video but expect to lose money in the beginning because at the end of the day you are building a business and there's no specific formula that will actually guarantee results business is not like baking a cake you can't take two ads and mix it with the product page and equal a profitable store there's a lot of factors that we simply cannot control so if you are looking for a guaranteed success story the drop shipping is definitely not it because it takes a lot of hard work and dedication to actually get to the point where you do have a profitable store and keep in mind when i talk about shopify drop shipping i do mention it as a business some people have this weird view of shopify dropshipping as a get rich quick scheme and not actually a business that provides value to the world and trust me if you are taking this business seriously then someone like me definitely will and capitalize off the opportunity another thing you're going to want to know is what advertising platforms are blowing up in 2021 well there's a very simple answer for this instagram facebook pinterest tick tock literally all the platforms are absolutely crushing it right now my recommendation for you is to go out and test multiple advertising platforms because you never know which one's actually going to click for you but with that being said my top picks are facebook and tick tock ads so in 2019 and 2020 people might have gotten away with only solely focusing on paid traffic but in 2021 the importance of organic content and building a loyal customer list is more vital than ever because here's the thing ad costs are continuing to rise and if you aren't doing this then you're not building a sustainable business because it's much cheaper to sell to your existing customer base than to keep going out and acquiring new customers and the strategy to re-engage existing customers lies heavily on sms in email marketing so definitely once you have a product start to take off don't sleep on sms and email marketing because this could at least bring your bottom line by 20 now the next thing you're gonna want to know is customer expectations in 2021 we have officially entered the world of instant gratification where i can get pretty much anything delivered off amazon within the same day so how the heck are our drop shipping stores supposed to compete with amazon i get this question very often and while you can't compete with amazon's insane shipping times when you first start your goal should be creating a profitable business and reinvesting the profits into creating a better logistic process for your customers so definitely expect to invest into a 3pl a 3pl is a third-party company that stores your items and ships out the products for you and the reason we want the 3pl is we're going to be able to deliver to our customers within that same week which i found very important for creating a long-term relationship with your customers another customer expectation i want to go over is refund policy if you don't have a lenient refund policy that lets customers try your product out with much risk then you're losing out on tons of potential customers customers expect a no hassle refund policy and in fact tons of people won't buy from a website if they don't have this so definitely when you're creating your policies you should keep this in mind now the next thing you're gonna need to know about before you get started with drop shipping is taxes and legal stuff and i'm not a cpa so anything that i say should be verified with your accountant but anyways taxes can obviously be a confusing and daunting part about getting started with drop shipping especially if you've never ran a business before so my recommendation would be to start your business and not focus on these roadblocks right now because thing is you haven't even made a sale yet so i would focus on marketing until you start getting some traction then i would reach out to a local cpa in my city and explain my business model and they can definitely help you structure your business so you're in the most advantageous situation now the last thing you need to know before you get started is mindset thing is 99 of people fail with drop shipping and i really don't think it has anything to do with how difficult this business model is i believe that the one percent who actually succeed enjoy the process of growing an e-commerce business everyone wants the rewards of success but at the end of the day who loves the grind enough to struggle to the point of success and this is the one thing that i found in common with all the other successful store owners they absolutely love e-commerce it genuinely might sound stupid too but e-commerce is such a big passion of mine and my life would be completely different without it it's a part of my identity and it keeps me going even when i'm failing in different aspects of my business now obviously i don't love running every part of an ecommerce business it can be extremely difficult managing every part of an ecommerce business so i highly suggest once your business starts taking off anything that you actually don't love doing that you start outsourcing that task to other people who do enjoy that so that's a tip that's going to greatly help you out but another thing that i want to talk about is motivation this is something that i have not seen talked about online in the e-commerce industry but at the end of the day all of us have some type of motivation for getting into e-commerce when i got into e-commerce my motivation for getting into this was getting rid of my job and actually building myself into a successful individual and i'm sure you're gonna have a completely different motivation so one thing that i highly recommend you do is that you actually write out your motivation because it's gonna give you a lot of clarity in your day-to-day and when things actually get hard you're gonna realize that you're not just starting your ecommerce business to give you additional revenue but you're actually starting your ecommerce business to get to that next point in your life i'm a big advocate of writing stuff like your motivation down and even putting your goals on paper all right guys so the last thing that i want to talk to you guys about today is time management and organization this is something i'm so bad at and i always get kicked in the butt unless i proactively try for this not to happen so i'm actually going to give you a couple tips to boost your productivity because the thing is business really isn't that hard but it does take a lot of calibration and groundwork to get a business running so either you're gonna need to get extremely good at managing 50 things at one time or you're gonna need to get extremely organized so i do want to show you guys something that i use in my day to day because i think it's going to really drastically help you out alright guys so this is the daily planner that i use for my organization and i actually made this a few years ago and i actually got such good results with it that i started to give it to my students and they absolutely loved it so i'm going to be giving it to all of you guys i'll actually leave this down in the description for you but basically what this planner does it helps you optimize for what's most important in your day and it's structured very specifically so let me walk you guys through how this planner actually works so the first thing you're going to want to do in this planner is actually fill out your daily focus so let's say if you're trying to maximize your sales for the day you could write that in the daily focus and usually you're going to want your imus complete to match with that daily focus so anything that involves actually boosting that sales up i would put in the must complete and then what you're also going to want to do is you're going to want to break this down into the top three most important things because at the end of the day when you have 50 things going on in your day you want to prioritize the most important tasks because sometimes you won't get to the bottom barrel ones and then you can also put your i really should so stuff that you know you have to do but you're procrastinating on and then the if i have times i really love this section because it gives us a chance to push ourselves if we did finish everything for the day and if we have some notes for the next day we can put it in worries for another day and then you can put your errands your calls emails and texts and all of that good stuff in this document so trust me when i say this but if you actually take this document and you use it for 14 days and be highly strategic in growing your ecommerce business then you're definitely going to make tons of progress and little tips and tricks like this are what really help you move the needle and at the end of the day that's what it's about to get a profitable drop shipping store off the ground alright guys so i know i went over a ton in this video and it was a lot of me rambling but i just wanted to get out everything on my mind that beginners need to know before they actually start drop shipping i really hope this video was valuable and insightful seeing from a seven figure drop shipper what things you need to know before getting started so if you guys did enjoy you know what to do hit the like button subscribe to the channel and i'll see you guys next week peace

Channel: Tan Choudhury

Views: 186,289

Keywords: how to start dropshipping, on shopify, for beginners, how to, how to start dropshipping on shopify in 2020, how to start a dropshipping store, dropshipping, shopify, 2020, 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 2020, dropshipping for beginners

Id: WfOOh7shD7U

Length: 12min 7sec (727 seconds)

Published: Sat Feb 20 2021