Shubhankar Paranjape

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Hello there,

I recently did two posts on E-commerce/Dropshipping (linking below!) and received a common question- Is E-commerce/Dropshipping business model Dead?

Post 1- https://www.blackhatworld.com/seo/shopify-based-dropshipping-with-fb-ads.1147476/

Post 2- https://www.blackhatworld.com/seo/7...-dropshipping-business.1154428/#post-12378774

So, I see a lot of talk going around in the industry about how the whole E-com/Dropshipping business model is now dead and too saturated.

And while many of these people are busy complaining about how E-com/Dropshipping is now dead - there's many people making five or even six figures/day with it.

Like literally, one of my friend is making close to $300k per month on a niche-based store (completely unsaturated and rarely touched!)

Here's a few tips to build and grow a successful eCommerce/Dropshipping Business: -

1. Don't rely completely on Chinese Dropshipping - Use it only to test products or for small scale businesses. If you're going long-term, opt for anything but Chinese. Indeed their rates are less, but quality and customer satisfaction matters too, right? Focus on making your customers happy, you'll eventually succeed.

For some reason people seem to confuse the E-com/Dropshipping model with Chinese Dropshipping and use both terms together when describing the downfall of Dropshipping.

Although it is recommend that you test products using Aliexpress or Alibaba before you actually warehouse them, etc. One thing to know- E-commerce doesn't mean Dropshipping. Dropshipping is a subset of E-commerce.

Dropshipping is somewhat of an unreliable business model to scale your business, test products and then instantly move on to better business models like Private Label, Manufacturing etc.

eCommerce includes multiple business models such as Print On Demand, Private Labeling, Wholesaling/Warehousing, Manufacturing your own products, etc.

All in all - if you use the Internet to sell products, its eCommerce.

2. Merchants were making around $870k/minute and did a total of $1.5 billion + in sales in One Weekend!

During the Black Friday weekend last year, merchants on Shopify were killing it.

So - eCommerce/Dropshipping is definitely not dead!

Heck, we made six figures selling a simple collectible item too.

3. Funnels are always helpful as a landing page and for highly boosting your conversions.

If you can build the right funnels and leverage them, you can scale your business to the sky.

The E-com Businesses that will survive moving forward are not the ones that solely rely on one product or businesses that try to make a huge profit with one product and a cross sell.

The businesses that will survive are those that will be the best at building strong customer acquisition systems and having a solid back end to up-sell these customers on other products.

Dial in the front end and the back end products and then pump fuel into your business (Traffic) - this is the new age way of growing your business.

Facebook Ads have gotten slightly more expensive and they also survey your customers to see if the product was delivered at the right time and was in a good condition - if you're a pure aliexpress dropshipper, get ready to start seeing some major damage done to your facebook ad accounts too.

This is much easier done with using funnels for your business than Shopify alone.

4. Have Great Customer Service.

The Frequency of Purchase of Customers is very important.

You want to give your customers amazing customer service!

Here's the deal- You want your customers to buy from you again and again.

Not just once...

Not just twice...

But multiple times!

Deliver great products on time, make great offers and treat your customers like someone valuable to you and this will be/make you feel more than easy to do.

5. Increase Frequency of Purchase.

A Majority of the Sales during the Black Friday/Cyber Monday weekend last year came from Email Marketing!

I'm sure a majority of these lists of Buyers too!

Another great tip to make people buy from you multiple times is to make great offers and run a ton of re-targeting ads to these offers.

Which brings us to to the next point....

6. Demolish your Competition.

We can all agree that that's way too many selling the same exact products.

How do you separate yourself from the competition?

Strong Offers/ Angles!

If you and 10 others are selling a simple product - you want the customer to buy from you - not anyone else.

How do you do this?

Here's a few ideas: -

Offer #1 - Sell it at the cheapest price.

If everyone else is selling it at $20, sell it at $10.

I wouldn't recommend this angle if you're just getting started though.

Once you get your numbers down and have a strong back-end offer - you can afford to lose money on the front end just to acquire a customer because you know you'll make it back with the back-end offers.

Offer #2 - Build out a Niche Store.

The Good Part about Niche Stores are that a lot of times your customer trusts you higher compared to the general stores.

They assume that you are the manufacturer.

General Stores look like a scam - build out a great store that looks trustworthy and build it to conquer a niche and you automatically erase half of your competition.

I have many more ideas which I'll cover in a future post but I hope this post helped you!
 

syryls

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Ecommerce is growing day by day, but people want to get order very fast. They don't care if shop has dropshipping model or not
 

donsr

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Drop-ship not dead right now globally china and america trade war is on going thats the main issue
 

tianbo84

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Great post, thanks for the usefully tips. I think developing a niche website and becoming an authority with that product is a great angle. Plus that way you have your build up of list/people if you want to add or change products in that niche.
 

Shubhankar Paranjape

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Great post, thanks for the usefully tips. I think developing a niche website and becoming an authority with that product is a great angle. Plus that way you have your build up of list/people if you want to add or change products in that niche.
Indeed. Well said (y)
 

ThopHayt

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Dropshipping is no different than any other sort of e-commerce, just your profit margins are lower than if you were to warehouse the goods yourself. The key is all about your ability to get eyeballs on your site. Do it through SEO, do it through PPC, do it through Facebook... doesn't matter how.

I think the problem that a LOT of blokes here run into is they are going super low end and super low quality on their dropshipping attempts. They have shitty sites (or use Amazon/eBay/etc), sell cheap crappy products, don't put enough thought into WHAT to choose to sell, don't put any effort into product photos and descriptions, and have very poor customer service. Not to mention many cheap out on traffic funneling methods.

Truth is dropshipping is a lot like SEO in general... it still works, but requires a lot more quality and money to do correctly today compared to five years ago.

-ThopHayt
 

William702

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Exactly. It's still got tremendous scope which people tend to overlook.

True that!

Indeed. Well said (y)

Haha! :D Ya Platform var navin ahe so recognition sathi ani lokanchya najret yayla thodi value post karat basloy kahi divsaanpasun. Connect vhaycha ekmekala?

Looking forward to reading more of your posts but please remember to use the multi quote feature like I have done with this post. That way you only need to make one post to reply to everyone in one go. Good luck with the thread.
 

Shubhankar Paranjape

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Dropshipping is no different than any other sort of e-commerce, just your profit margins are lower than if you were to warehouse the goods yourself. The key is all about your ability to get eyeballs on your site. Do it through SEO, do it through PPC, do it through Facebook... doesn't matter how.

I think the problem that a LOT of blokes here run into is they are going super low end and super low quality on their dropshipping attempts. They have shitty sites (or use Amazon/eBay/etc), sell cheap crappy products, don't put enough thought into WHAT to choose to sell, don't put any effort into product photos and descriptions, and have very poor customer service. Not to mention many cheap out on traffic funneling methods.

Truth is dropshipping is a lot like SEO in general... it still works, but requires a lot more quality and money to do correctly today compared to five years ago.

-ThopHayt

Totally agreed.

Looking forward to reading more of your posts but please remember to use the multi quote feature like I have done with this post. That way you only need to make one post to reply to everyone in one go. Good luck with the thread.

Yes, actually I didn't know about this feature or basically, how to do it. Turns out to be quite simple lol.
 

mantinis

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OP, thanks for insights! Dropshipping business is not the same anymore.. Now you need more than Facebook ads and Shopify account. You have to provide quality products with fast delivery. Sadly, many new people in this business do not understand that..
 

Shubhankar Paranjape

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OP, thanks for insights! Dropshipping business is not the same anymore.. Now you need more than Facebook ads and Shopify account. You have to provide quality products with fast delivery. Sadly, many new people in this business do not understand that..
Exactly. That's why those 80% are led to thinking that the entire business model is dead.

Thanks for your ideas
My pleasure :)
 

LogGutsy

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Dropshipping comes down to your marketing skills nothing more. How fast can you build social proof and social media accounts and good reviews/word of mouth. Thing is that people see all the flashy stuff on youtube and from influences that want them to get hooked : "it is that easy to earn mollions" , "live your dreams", "you can start with only 500$". They need people hooked to create a funnel and sell their services/courses or earn from affiliate links. Today everybody can become a GURU.

People think it is easy and when they hit an obstacle they think it does not work. Of course it was probably much easier if you've done it years back, but this does not mean it is not profitable when many people will rather by online and wait for the product to be delivered in front of their door than to go outside and buy the item, if they are not in a hurry and if you can present them like it is an awesome deal.

Good Read OP
 

faxingberlin

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not dead
oz3a27
oz3a27
,sorry i dony know how to insert image with code
download.png
oz3a27
 

Shubhankar Paranjape

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Dropshipping comes down to your marketing skills nothing more. How fast can you build social proof and social media accounts and good reviews/word of mouth. Thing is that people see all the flashy stuff on youtube and from influences that want them to get hooked : "it is that easy to earn mollions" , "live your dreams", "you can start with only 500$". They need people hooked to create a funnel and sell their services/courses or earn from affiliate links. Today everybody can become a GURU.

People think it is easy and when they hit an obstacle they think it does not work. Of course it was probably much easier if you've done it years back, but this does not mean it is not profitable when many people will rather by online and wait for the product to be delivered in front of their door than to go outside and buy the item, if they are not in a hurry and if you can present them like it is an awesome deal.

Good Read OP
Exactly. All those giveaways or 90% knowledge on google/youtube is filled with hooks/magnets or affiliate links. No one tells their insider secrets so easily. Watching those people do it, the amount of "Gurus" out there is increasing in all aspects. I've personally talked to so many of them who barely had any knowledge except for the outdated stuff or what they read in courses/YT content and such. It's pitiful. Also, thanks!

not dead
oz3a27
oz3a27
,sorry i dony know how to insert image with code
View attachment 120249
oz3a27

It's fine. You can just upload it on some platform and hit the image button above and add it or maybe send an imgur link or something. Here's my post about one of the stores that we recently sold nearly a month back (we did over $210k in it).

https://www.blackhatworld.com/seo/shopify-based-dropshipping-with-fb-ads.1147476/
 
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