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Finally a crystal clear video. Unlike many other videos which r very lengthy and not relevant to beginners, this video is very clear to beginners. Thank you very much.
The point she made on people expecting to LEARN at the beginning instead of EARN was so powerful and i think that concept should be applied on all areas of business. GREAT VID great knowledge already subscribed!
Hello everyone, if you plan to make a dropshipping business please listen to this one comment that will possibly save you. be CREATIVE. go NICHE. I made my first store a watch store and that is a big no-go, it is FLOODED with dropshippers already, meaning although i got around 5-8 clicks on my page a day i made no sales at all. Go with something you feel like no one is doing and where marketing will be cheap as hell because no one else is asking for paid promotions in such a niche area and influencers will go cheaper as the idea of making money from instagram is new to them. Watches is one of the most over-done if not the over-done shopify store, so please dont make the same mistake. There are other examples too of no-go areas which is common sense. Want some inspiration? Look at your surroundings. What do you have in your household that is niche enough while also being something people would want? That is a great way of doing it. Have a good day/afternoon/evening and I hope you find success!
Thanks for this awesome piece of advice! We agree, and usually suggest our new dropshippers start with niches. It's easier to target your audience and potential influencers to work with. However, we've seen a fair share of general stores succeed and that's why we never rule out that business model. We certainly agree it's much more difficult though! -Jessica
@@akllls617 Most experts advice will only tell people what not to sell, but never revealing what they themselves are selling. So the bottomline, trial and error ourselves is the best strategy. Not a single "expert" will be generous enough to reveal the secret product that gotten them their first bucket of gold. Why have another competitor? Watches can still be a success if you do up a beautiful store, select quality styles of watches, pricing them reasonably, and target the right audience group. My 2cents
So very refreshing hearing about dropshipping from a more neutral standpoint rather than 'mentors' just looking for money from vids and courses. I think I will reach a decision after gathering as much info as I can get my hands on, and make my own mind up through trials and errors. One thing I learned quite quickly is not to dwell on these things for too long. Yeah do your research. But sometimes the best way to learn is to get stuck right in! Learn as you go! I hesitated too much for my last project and went in 6 months too late while others didn't. Lost out on a ton of money! This is definitely amazing content! Well done!
Mate, they offer courses on their website!!!!! And they also ALWAYS and ONLY show you the benefits of all of this drop-shipping. I never see them talk about negative things. Yah yeah that it is hard to start. But they make you believe that everyone can start there own webshop like this. And that my friend is not the case. 9 out of the 10 webshops that are made NEVER earn a dime, it only costs you money to run it. There are many many many other webshops that you have to compete with., Also they do not let you know that making a brand new webshop will have struggles because people at naturally dont immediately trust the shop. Also they do not mention the fact that Google search engine will NOT show your webshop at the top results if you search for a item, only if you directly search for the webshops name. Meaning if you dont spend tons of money to get a higher ranking in the google search engine, you WILL fail as you will have almost no eyes on YOUR website. There are a lot more costs that you have to make in order to run a webshop, costs that they are not telling you in these videos. For example all the subscriptions you have to commit with like Paypal, Visa and so on. On top of that you pay a x % per transaction in fees that you lose. If the money was send to Paypal and you want to withdraw it, once again you lose money on fees. But that one of the most important things of all. All other webshops with the same (like) products are also competing with you and others. This drives all prices down. Lets be honest: if you search for a specific watch, you will probably type it in google to find the cheapest place to buy, right ? Often these companies buy in these things on large quantities and sell them for slightly above the actual price. Their earnings per item is then only maybe 1 dollar or less. (so the 80 - 50 = 30$ per item what they show in this video is COMPLETE BULLSHIT !!) NO ONE WILL BUY A PRODUCT ON A UNKNOWN WEBSHOP FOR 30 DOLLARS MORE THEN OTHER WELL KNOWN WEBSHOPS THAT SELL IT FOR CHEAPER ! So effectively what you are doing is hoping some STUPID people that does buy it on your website. Often these are children or elder people that have no clue on what they are doing, or how to do it better. Effectively you are scamming the heck out of them and them wallet, of those that weaker on this subject. These videos are made for you to believe that everyone is able to do this, but the harsh reality is that only a very very very small percentage will actually hit success. The vast majority loses. They are just hoping you bite for their online course, for their income, their benefits. Not yours. Just think of this. If everyone paying for this course actually becomes successful, we will see 10000s new webshops pop up every year that are successful. In reality it is only 1 to 10 new successful webshops per 1/3 years. And 95% of all those webshops are BIG COMPANIES ! You WILL NOT have the funds to compete with them. It costs 1000s of dollars per year to get a high (and stay high) ranking in the google search engine. These companies have LOTS AND LOTS more money. Google Ads and the search engine work on a simple basic rule. If person A spend 100 bucks to promote his product, but person B spends 200 bucks to promote that same product, person A will lose and get 2nd ranking because person B payed more. Now i am just talking about persons, a company does not spend 100 bucks, they spend thousands upon thousands for promotion. MONEY YOU WILL (as a average person) NEVER HAVE IN THE FIRST PLACE !! So please save your wallet !!! And invest in something that actually gives you a chance of succeeding !!!!! With this idea you will just lose money on running cost and promotion, while having a VERY VERY VERY VERY HIGH risk factor on a VERY VERY VERY LOW reward factor !
@@TheGremlinsParadise How long have you been doing this ? I have a reasonable level of skepticism revolving this stuff myself. Would I possibly be wasting my time and money trying this business venture. Like, what products did you try sell when you start off, how long did you do it for and did you ever make any sales on it ? Also, when and why you called it a quits on it ?
you are totally right about marketing the $250 is for data and once you seen some ads working great and getting a solid ROI you then pause the ones that are loosing money and invest in the ones that are doing good.
Momma Nissy hey go to RU-vid KING COMM he has A LOT of amazing drop shipping content including exactly how to Facebook Market! Just go scroll through all of his videos and pick the areas you want to learn. He is the best I have found in over 3 years!
I haven't started drop shipping yet. Iam going through all the videos first. Research is so important. It will minimise mistakes. Great video and realistic. Many thanks.
However mistakes are meant to be made, so that you can learn from them. I am going to start now as I have gathered alot of data. Once I have made my mistakes I will learn how to avoid them
When you’re thinking of starting or growing your business, most videos don’t add the $$amount to them. Thats why i like this video. Gotta put a pencil to a plan. Kinda like the show Shark Tank. They wanna see the numbers. Helps you focus and plan
Thank you. You gave me a starting point of numbers to work with. The answers I have always gotten on how much to spend on FB to start out is “whatever you want” or “whatever you can afford” which is not helpful. Thank you as always!
For those with little spare cash. You can scale up. It can take time but it's doable. Start with what you can spare and work at it as a side job if needs be. Make a little money, let's say €£$100 . Put that 100 into advertising. Make another 100 repeat. Now you are at 200. Repeat.. Repeat... Repeat. Until you hit what you wanted to make from it. Obviously this is a very simplistic explanation of what is a months long process.
Great attitude Aaron! Step-by-step is the best way to do it. Once you spend the first $100 on advertising, you can analyze the data and see what you did wrong. When you're ready to invest again, you'll be much more knowledgable and your ads will perform better! -Jessica
My problem is since aliexpress delivered between 3 to 4 weeks, won't my customer find out that am drop shipping from aliexpress?Since is going to take 3-4 weeks before it will be delivered to them
What about the cost of an accountant. Accountancy system. Tax. COGs. Company registration. VAT registration. So many things missed out which you must do!
Great video. What you also need to put into context here is the fee that shopify will charge for sales, so from my calculations, it will be cheaper to start a wordpress site and set it up yourself, not that difficult, and you can excape alot of fees.
Thanks for the video, a lot of helpful information, but I still you're missing out an important cost which is paying for orders , it takes days or weeks for people to release the money of the client and for bank it takes days as well, so the dropshipper can't wait until receiving the money to pay the supplier and send the client the order confirmation and shipping details , so I think it's the biggest cost in the whole process, can you advise on that !?
When I clicked on this video and saw it was made by Oberlo, I thought it was going to be another poorly made video just for advertising purposes made by a company, but this video was actually surprisingly good! Liked & subbed :)
Setting up a budget for your dropshipping business did not ever seem this easy. Thanks a lot to this fantastic video that has taught a lot regarding the budget setup.
Finally, someone who breaks it down. And thanks to person here who suggested Google ads. I've been locked out of my FB ad account for two months and can't get help. If anyone has a customer service number would so appreciate your help.
Another great idea for advertising is using RU-vid. I'm not talking about RU-vid ads, I'm saying that a dropshipper or anyone who is looking to advertise products should start a channel where they are demonstrating and reviewing their product(s). This type of channel not only brings attention to the product, but also to your store, and you can monetize your channel which brings revenue back to you. RU-vid is one of the most popular social media sites and this idea is a win, win for you, for advertisers, and for RU-vid.
This was a awesome video. I am looking to start a online business and I have yet to see someone break it down like this. Very good value. I would love it in a PDF or DOC format. Trying to launch in January 2019.
It’s going. I launched a affiliate website for a CBD business. Also got a podcast and RU-vid channel. Trying to find my voice as well as learn this big game of network marketing.
@@MubeenKhan-dz3lw good luck to you as well on your journey. it has been a long road to this point for me but i finally feel like i am doing something that i like.
The key is to choose the right products. Instead of selling random knick knacks you can find at your local Walmart, sell problem-solving products with a passionate audience. In regards to budget, the more the better. This way you're not panicking when you out spent your $250 budget. I allocated $2000 for my dropshipping business when starting out exclusively for marketing costs for Facebook ads. You also have to consider that Facebook ads is a very lucrative skill to learn. Sure, it's more expensive than Google Shopping Ads or Instagram influencers, but once you learn Facebook ads it not only helps your dropshipping business, but you can sell to local business providing another stream of income, affiliate marketing becomes hell of a lot easier, you can sell courses, the possibilities are endless with Fb ads despite its significantly higher initial costs.
I really liked this video! Thank you ^^ It was very helpful to get an honest estimation of what it is like in the beginning, now I´m more convined that it might be worth loosing money at first before I actually learn what the customers want. ^^
Very nice video! Something we get into dropshipping without knowing how much it will cost and think that we ll make it with 5 bucks lol. And the optimization point is very important!
And most dropshipping gurus will not tell you that you have to fulfill orders with your own money since most payment gateways will hold out money for some weeks
Great video, thanks! Was helpful to know my budgeting is on track - I'm soon to launch my dropshipping store with a budget of £500. I set £300 aside for marketing, £100 on samples and the rest for my web infrastructure and any oversights.
Hey Nathan! I have the same budget as well and will launch my store soon! Please do keep me updated on how it goes for you - would love to be in touch and help each other out if you're keen, my IG is vanessaxpereira :) all the best
@@nessbraithwaite Hey Vanessa, great to hear from you and best of luck with your store too. I'm not a big Instagramer but I'll follow you for sure. Be great to see what it is you'll be selling x
I have challenged this when you post it on instagram as well. %1 conversion rate is a losing conversion rate, if you're making profits your conversion rate is between 2-4, seasoned dropshippers can even hit between 5-10. I hear you said it's about collecting data. so please should throw almost $400 to collect data on 1 product? it could just be a dead product which data can do nothing to bring it back. Testing 1 product is not a start. Success in dropshipping is about market and product research. so i don't think there was ever a guy who learned enough from marketing 1 product to begin with, let alone succeeding with it. So the key is test at least 30 products to find a winner if you're just beginning. Yes, you lay a calculation as a starting budget but $250 marketing on 1 product is not how you start. If you're on a budget you test a product with $5/day for at least 3 days, but max 5 days before killing the ads. so it's $15 for marketing and 450 if you test 30 products. and you don't need apps for starters because you will get those apps once you find a winner to increase sales and profit. if you know what you're doing, you can make it work and find the winner product in 3 weeks, which is still in the trial period if you ask shopify customer service for 1 more week, which they are happy to grant. hence no store or app cost to see if you're able to generate sales. Only $450 for testing 30 products with $5/day budget for 3 days. Testing for 5 days is even better, so 750. and believe me if you cant make it happen with $750, it means you need to study more, otherwise throw 10k in the game, you'll still lose.
Thanks for your personal insight Burak! Although everyone's journey is different, many dropshippers do just sell one product at a time. Once you've got an eye for it, it's easier to identify a strong product for testing (instead of a group). Check out our video with Scott (bit.ly/2CI2IVq), he's living proof that a single product does work! -Jessica
Burak Kaan Kızılkan I wasn’t exactly able to follow everything you said . Still I think I got it . 80/20 rule . I was in Retail fashion for a long time .I saw the 80/20 principle work when buying stock . Only roughly 20% of the stock I bought were winners . I only made profit from 20 % of my stock . That’s why it was hugely important to recognise the winning garments straight away and buy up big until their popularity waned . I also put the price up immediately as market showed me that a product was very popular and would be popular at a slightly higher price ....hence more profit .
Those prices are still the same. There's no good reason to pay a film crew, actor, editors and post production to just say the exact same thing. This was a fiscally responsible decision by Oberlo.
A more useful video would answer the question: what are the minimum realistic budget AND time needed to to become profitable with dropshipping? Or at least to break even. Because spending $500 to get 5 sales is just very discouraging.
It gets profitable over time as your Facebook Pixel learns about your ideal customer, but you have to constantly be switching your strategy to see what works and what not.
Can you answer this. Money makes money and coversion rates are ROI. For what its worth. Domains are cheaper @ namesilo around $10. Always remeber every time a product goes through an affiliate the price goes up. Amozon is the king or all affiliate sites but also has a fullfilmenet center to boot. So still the best. For start ups on a budget. Take a look at builderall covers everthing needed and you have a 7 day trial start up budget of 0$ only $10 domain plus you can build funnels mailing list capture pages and build your brand for 4 months and build videos like this one for 100$. Then you have a business for 29$ a month and you can build an app if you want. An onle business for 365$ per year, hows that...??? A business for 1$ a day. (No affiliate links here)
Can't argue with that! There are many ways to put an online business together. It just depends on how many moving parts you want and what your skill sets are. Thanks for your comment! -Jessica 🙂
I wish I had known about this a lot earlier. I got caught with 4 companies coming at me on the phone from an old site that I had up. By the timer I got done, it was over a year now, and $35,000 out of my pocket with things still not right to market. I will be paying for this the rest of my life. Don't take phone calls from anyone telling you that they can make you a website to get you up and running for a business. Too old too to go back and do it again too. Thanks for the info. Much needed! ~MZ~
Ok, so I am just starting out and learning more each day, I have still to make a sale but starting to get my head around FB advertising, but need to target better, I have over 500 hits so far but no sales. :-(
Hey there! Sometimes it takes that many visitors to make sales. You need to give the Facebook pixel enough time to learn what traffic is valuable to you. Also, pay close attention to your sales funnel/customer journey, make sure to fix any glaring errors or things that might interrupt the process! -Jessica
God send! I was wondering what I could expect my marketing costs to be based on my goal - turned on my laptop today and there was my answer. Thank you.
I Am Creator after you start making 3-5k a month revenue, you should google “CPA near me” and look for someone to do them for you. It will save you money and time believe me
Completely agree!! Its difficult to crack it in initial stage but constant learning , experimentation and perseverance will lead to success eventually.Thanks Jessica.
The items that you’ve purchased to test could be sent to smaller Instagram influencers in the same niche as trade for shout outs to further test products eh?
This was by far one of the most valuable dropshipping videos I've seen thus far. There are too many youtubers out there who are going on amd on about how you can start a successful Shopify dropshipping business for less than $50. So not true. SUBSCRIBED!!!
Hi Jessica- im not good with internet and all so although I am eager to learn unfortunately I am like a year1student. So my question is in relation to the budget, I can follow the explanation up to the ordering of the product samples but after that I was lost already- so would oberlo help me with setting up of all those apps and marketing as I don't think I have a clue on how to do them (bashers would probably say- since I seem stupid I should not be in here). So would oberlo guide me on what to do and all setups?
Hey there! As a basis, you will need $29 USD per month for the Shopify monthly account fee. Otherwise, you can use the Shopify domain and focus on free traffic until you get sales rolling. Here's an entire eBook we dedicated to free traffic (bit.ly/2LVuxiG). -Jessica
@@Oberlo that's not true. There's a Shopify lite plan at $9.99. It allows you to use some essential features of shopify and sell through Instagram and Facebook for those who don't want to scale up to an online store.
Hey there, Jitin! You're absolutely correct. The plan also gives you access to Buy Buttons so you can embed them on an existing website you may already have. That's not something we're looking to skirt around, we often suggest it. In this case, the most common setup for an online business using Oberlo is the one we featured above -- often because many people are new entrants and do not yet have an online store elsewhere. So for simplicity, that's what we suggest. In addition, it's important to build your online assets both on social media and off. So we value having a website right out of the gates. -Jessica
Great video, thanks for sharing. I think you provided a great starting point for people who have zero up from information or learning. Just like there are many different budgets, there are also many different way to start an e-commerce store.
ur probably alone on that... although if she'd said *_20,000 sets of eyeballs_* that would've been more accurate. I think the math was more important than satisfying countless pedants on YT.
@@svetlinsofiev6729 lets just say.... you are right. Like the gold rush most people fail. Only the suppliers gain. Domain names, hosts and these people through adds... Good luck?!
Im more confused now after watching this then when i was before... No one is giving any substantial useful info thats cause no one that does well wants any competition So therore no video outthere tells u what u need to know - The Truth.
I recommend you watch the channel Wholesale Ted. She's extremely informative and she basically holds your hand and walks you through all the steps you'll need to know
SUPER INFORMAL!!! Really weighing the pros n cons in an easy to understand-breakdown. Thank you, I know I'm not the only one who was wondering about this!! :-)
She has no idea what she's doing. she mixes one-off costs, annual costs and monthly recurring costs into one total! Nonsense. They need to be dealt with separately or normalised to monthly or annual costs! Beware!
