Drop Shipping really work in 2019 or 2020? This is what I get asked. A lot of people think, “Hey, is drop shipping going to end? Is my online business going to stop? Is it a trend? Is it just going to just not work anymore? This is a fear that a lot of people have, and I kind of get it. Like, you think that, “hey, it’s going to end. My business is kind of just going to turn to junk and I’m not going to make any money.” So, what I want to do is go over this and answer the following questions. Is dropshipping worth it in 2019? Can dropshipping make you rich? Is drop shipping really going to work? Will dropshipping die? I know that plays in the back of a lot of people’s minds because it’s scary. You don’t want your business to end.
Now, if you don’t know what drop shipping is, I will leave some links at the end of the article to videos on my channel, and you can go and check out what drop shipping actually is. In a nutshell, you basically take a product from a website, from a supplier, you sell it, and then you take some money and you pay the supplier and they send it out to your customer. That’s drop shipping in a nutshell.
So, before we jump into this, we need to actually go over one critical thing which is drop shipping in general. So, people think that drop shipping is new. It just happened. It isn’t. I first started drop shipping back in 2009 from a website called www.chinavasion.com. They actually started drop shipping back in 2004. We didn’t have ecommerce platforms or Facebook ads back then to do it with. So, what we did is, we sold these products on eBay and similar auction websites. Therefore, drop shipping has been around for a super long time. It’s not a trend. It hasn’t started trending in the last couple of years.
How To Make Money Dropshipping on Shopify With AliExpress?
Now, drop shipping with Shopify and AliExpress has trended. But the thing is, it’s a good thing. Drop shipping really exploded when AliExpress came along and people had more options. They had better access to suppliers and so on. That is a good thing. It gives us more options to scale our business. It gives us more options to find better suppliers, more suppliers, and everything kind of evens out. We get better technologies. Even though people think that drop shipping is dead or might die in a few years. It’s actually not because everything is levelling itself out. As more people come into the industry, we get better technologies to do better things, and it becomes an even playing field. I’ve been doing drop shipping for years, and it’s not slowing down anytime soon. In fact, the thing is, a lot of people think it’s saturated. That’s what I get all the time -Franklin it’ saturated; it doesn’t work. I got millions of student results that says otherwise. In 2018, thousands of retail stores closed because of ecommerce, and drop shipping falls into that. Drop shipping had a big part of this, not the entire part of it. It did have a part of all of these stores closing down because of all of these stores didn’t want to adapt to the online industry. They either didn’t want to sell online, or they tried to sell online and they didn’t do it properly. They were competing with a way different market to just general retail, and they have big rings to cover and stuff like that. With drop shipping and just general ecommerce online, you don’t have big rings to cover, except for brick and mortar store. It’s just a whole different ballgame.
Also, saturation can be a very good thing because it means there’s a big demand in the industry. There’s a demand. I like affiliate marketing. I love that because people say it’s saturated, but there’s so much demand. People wouldn’t be doing drop shipping and starting drop shipping stores, if it wasn’t profitable. One of my students just hit 3 million dollars in earnings. He wouldn’t be doing it, if it wasn’t profitable. No one does business, if they’re not making money. Saturation is a good thing. Now, is drop shipping saturated? Not really. Drop shipping as a whole is not saturated. Some niches can get saturated of course. Some niches I don’t really mess with anymore. But in general, drop shipping is not saturated, and I haven’t noticed any big change in the industry when it comes to saturation, apart from specific niches that are saturated. So, my opinion, it’s not saturated.
In, 2019, yes you can still make money in drop shipping. So, let’s jump in, and I’ll give you some tips and tricks on how you can actually keep making money or start your own drop shipping business. First of all, you must educate yourself first. This is so critical because what people do is they see a video like this and they say, “I’m going to jump in and try drop shipping now”, yet you don’t know what you’re doing.
Why Drop Shipping Doesn’t Work For You?
You need to get the necessary knowledge!
It’s like a lawyer doesn’t just go and go to court, and say, “Hey, Judge, this is my first day. I haven’t done university.” They go and educate themselves first. They go and get a degree on how to be a lawyer. So, I recommend you go and watch videos. You go and read blogs. Go and get yourself a good course. I’ve got a good course in the list of links below. But, if you dive headfirst into drop shipping without knowing what you’re doing, you will fail. What people don’t seem to understand in business is that drop shipping has a big fail rate. Every business has a big fail rate – online and offline. If everyone had a 100% success rate, the world will be complete mess because everyone would have businesses. But, that’s not how the world works. Everyone thinks that online is a scam because they fail. You probably will fail. Not everybody’s going to be successful at drop shipping. Not everyone’s going to be successful starting a plumbing business, a building business, becoming a lawyer, or working at McDonald’s. Some people weren’t successful at that. They get fired. Not everyone’s going to be successful, but you need to educate yourself to give you a better chance of being successful with drop shipping. This is really critical.
What Type of Store Should You Start? General Or Niche Down?
Now, what do you do when you first start? Once again, if this is foreign to you, I’ll leave some links below on how to get started with drop shipping. What I highly recommend you do is to start a general store. A general store is going to give you more flexibility. So you can play with all types of niches, all types of products, and you can do it without starting multiple stores.
What I found with a lot of my students was, some of them were starting all of these stores in different nations. It was costing them a lot of money and was wasting their time, when they should have just been starting a general store. General stores can be a little bit tacky, but later on, you’re going to move into a branded store. That’s the next thing. So, if you already have winning products, start turning a store into a niche store, and get more products from the niche to focus on as well. It’s very important to eventually start branding yourself and you become an authority.
There are two reasons why I like to do branding. The second reason you’ve probably never thought of. Number one is obviously, people start to trust your brand, and you need that in 2019 especially. Number two is Google starts to love the crap out of you. What I mean by that? Google start to see you as an authority in your niche, and they’ll start to rank you in Google for specific keywords and stuff. You start to get organic traffic as well. Basically, free traffic that buys from you. This is why I love to make my stores branded stores because Google starts to see you as an authority, and you start to get more traffic and stuff for free. So, those are the general stock you’re starting, if you already have products expand into a branded store.
Product Research For DropShip is Important and Key to Success
Now, the product is very important. Choosing your products to test with, is the first step in your journey. You must get this right. So in 2019, it’s going to be really important to choose the right products because even though I say drop shipping isn’t saturated in general, there’s little bit more competition out there. But, obviously you can study the competition as well. What I do is, I use something called the triangle of profits or profit triangle. What I do is, I go and find products that are selling. That’s my number one criteria. That’s at the top. I want to line that up with either the other corners – one of the other corners, or both of the other corners – and make a triangle. What I mean by that is selling is my number one thing. It needs to be a product that’s already selling. Is it a problem solver? If I can get a product that’s selling, it’s a problem solver, I’m definitely going to test that. If I can get a product that’s selling and it’s in a passionate niche, I’m definitely going to take the test that as well. But, if I can get a product that selling, it’s a problem solver, and it’s in a passionate niche, that’s the ultimate. I’m definitely going to be jumping on to that one. So, that’s my triangle of profits. This is what I base all of my product research on. I’ve got it inside my course and my students get more in depth on that sort of stuff as well. But, that’s what I base my product research on.
Now, when you are actually finding products to sell, I recommend choosing at least 10 products or more, and test aggressively. Cut the ones with the numbers that don’t add up for you. Out of 10 products, you should at least get a winner. It might not be a big winner, but you should get a product that does become profitable for you after 10 products. So test 10, and cut aggressively. What I mean is, if you spend $30/$40, and you get no sale, cut that product. It’s probably not going to make you any money. The next thing that a lot of people don’t really do, I see this all the time, and you need to change this in 2019 or you will fail at drop shipping, before you even upload products to your store, you should list your product margins and what you want to sell each product for. It’s important to have products that a good profit margin. I see people selling products like a $1 profit margin; what’s the point? You have to sell hundreds of thousands of them to make good money, and it just creates more work for yourself. So, I would recommend selling products for at least $15+ profit. More like $20 or probably $30, but you got to have a little bit of leeway because some products you can’t do that with. But, at least a $15 profit; and that’s after Facebook ads cost, product – that’s after everything’s taken up for cost for product and ads. This is profit after everything. You want to be doing at least $15+ in profit because if you sell 1000 items, it’s $15,000. That’s a good chunk of money after selling only 1000 items. If you can’t do high margins, what do you do? It’s simple. You use applications, and bundle apps to improve your Average Order Value (AOV).
This is going to be your most important metric. I’m not going to sit here and name a bunch of apps because there’s so many, but I will leave a good one in a link down below, from a good friend of mine. His works very well, and it increases AOV on the on the store. So, you can use something like that to increase AOV, if you’re selling products at a bit of a lower margin. Either way, I recommend you add something like that to your store to increase profits.
How Many Products Should You Have in Your Drop-Ship Store?
This next one is a question I get asked quite often is, how many products do I upload to my store? The thing is it’s not really how many products you upload, it’s how trustworthy your store looks. I recommend getting a nice, clean free theme. The venture theme is good. I also have my own paid theme I’ll leave below, which is quite good as well. We’ve optimized it for conversions and stuff. But, the venture theme is great and it’s free. Upload about 10 products or more to your store. You don’t have to be selling them. Just to fill it out. But, what’s more important though, is how the store looks. Put a little bit of effort into making a store look nice with quality images and stuff like that. That’s going to be really important when you are selling in 2019. Remember, you want to be building yourself into a big brand, and with branding comes quality. Eventually, you want to become your own big brand. Now, something no one ever covers, is store speed. Right now, your store has to be fast or people are going to bounce. It’s so critical that your store is quick. Under three seconds, I recommend at least.
So, don’t use apps that you don’t really need. What I mean by that is, I’ll go to stores, there’ll be a pop up for an email, another pop up for an email, a chat box, a band – get 10% off – another thing popping down, and all sorts of crazy crap all over the page. Only use apps that you need because they slow down your store. That’s so critical. Just stick with the upsell apps and stuff like that, and compress your images with a website called tinypng.com. 99% of the time, loading issues are always the images, or the garbage apps that people upload. I’m talking apps that are coded badly, apps that just pop up all over the place and they’re not needed. Trust me, I know everything about speed because we have our own theme, and speed is really important. I have coders; we know everything about speed. That is the problem 99% of the time; images and garbage apps.
Make sure your image is good. You don’t use unnecessary apps that you don’t need. So, limit your apps to the important ones. That’s what I’m going to say on that topic. Just limit it to the important one. So, use only apps you really need. You don’t want many apps on you site, but more importantly, you want to give the user a good experience as well. So when you have all these crazy apps popping up, it’s not a good user experience. Like I said, the app that I recommend for upsells, is below. I only recommend you use upsell apps that increase value on your store.
Types of Traffic For Dropshipping 2019, 2020
Facebook ads – what’s working? Test weird things right now, that’s the key. So, Facebook was always bringing out these new things, like landing page clicks and all this sort of weird stuff. Test that stuff out. We had a student that just did that, and he went from I think $15,000 a day to over $100,000 a day, or something like that. He’s three times his income, because he went and click one of the Facebook’s new things they had – features that popped up – and just blew up as one of his ads. So, test all the weird stuff Facebook brings out. Sometimes it works. Sometimes it doesn’t. But, using product videos is super important. I recommend testing products with images. Then when you find a winner scale with video, it’s much easier to scale out using video, and it grabs people’s attention. The first few seconds of the video is the most important. Don’t be afraid to spend more to make more. What does that mean? Facebook loves it when you spend lots of money because it can get you data faster. So, when you’re ready to scale, don’t be afraid to put in lots of money because the faster you get the data, the faster Facebook and optimize, the more money you make in the future. This is not a fast race. This is a slow race, and it becomes fast once you start to optimize. Facebook is becoming strict on skeleton sites and ads. Facebook doesn’t like sites that are garbage and they don’t like ads that have no value – like a picture and one word; buy my product; here’s the link. That’s not going to cut it in 2019, and that’s a promise that it isn’t going to work.
Google Ads. We’re increasingly finding Google ads to be more beginner friendly because of the cost and ease of use. Google is a lot easier to use. There’s not as many options and the cost is cheap now. Everyone used to use Google ads, now they’re going to Facebook. So, Google ads have become quite a lot cheaper. There is less competition, depending on the niche, of course. They have less advertising options, but sometimes that’s a good thing – keep everything basic. They’re not strict like Facebook, and the cost is a little bit lower, like I said. Google Ads is not that strict.
Now, this is really critical because everyone always messes this up. Everyone that I talked to asks when to scale. Just chill, sit back before you think about scaling. Some products are just not scalable. They will never be able to be scaled. That’s part of the game. You’ll get sales and then they will stop. There’s no point in trying to scale those, if you’re a beginner. If you’re advanced, if you’re a bit of a pro, you can scale them. But, sometimes productions can’t be scaled. The right time to scale fast is when you have a product that’s getting 10+ sales a day and it’s consistent. The most important thing here is consistency. If it’s consistent, it’s ready to be scaled. But, just as long as you sit back relax and don’t scale too soon, you should get that ad to keep it profitable, and you should never scale it up more higher and higher.
Will Dropshipping work in 2019 2020?
That’s really it. I just wanted to answer the question: is this going to work in 2019 or 202? It is. Drop shipping is not dying. It will not die. It pretty much can’t die because there’s always going to be people who want to buy products. We’re getting lazier and lazier, and we’re online all the time. Just remember to pick the right products and do videos on Facebook ads. It’s really important now. Just remember that drop shipping has been around for a super long time. It’s not a new story trend. It’s not some big trend that’s going to die off. That’s not what’s happening with this. It’s not like Bitcoin. Bitcoin went up and went down. It turned to garbage and lots of people lost money. It’s nothing like that. It can be a sustainable business, but you want to jump into branding and more white-label products as you grow your business if you really want to make money with dropshipping!
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