Dropshipping for Beginners | How To Create A Profitable Shopify Store From Scratch

Transcription:

Hey there, it’s Mike Swigunski here and I’m the founder of global career and best-selling author of Global Career: How to Work Anywhere and Travel Forever.

Today I’ve got a really exciting video. I’m going to teach you how to start a dropshipping store from scratch. I’m also going to teach you a little more about what drop shipping is if you’re a beginner and some of the biggest mistakes people make when getting into dropshipping now. This is something that’s been around since the 60s and 70s. It’s not going anywhere soon. I’ll tell you a little more about how it works and how people have been able to build multi-million dollar businesses with this drop shipping business model so let’s go ahead and dig right in.

You’re probably wondering what the heck I know about dropshipping, so just a bit of background about myself. One of the first businesses I created was essentially a dropshipping business with t-shirts and designs for apparel. I’m going to walk you through a few of the mistakes that we made. If I had to go back to what I would have done differently, and in addition to this, while working at empire flippers, I helped broker more than 100 million dollars worth of online businesses. A big portion of those businesses was with the dropshipping and e-commerce business model.

It is a legitimate way to make money and i’ll show you some of the step-by-step so you can get started today it is fairly easy to get started so there is a lot of competition in some arenas but if you do things differently with the tips that i give you i guarantee you’ll have a lot more success than if you follow what others are doing right now so starting off what exactly is drop shipping it’s as easy as explaining that a customer orders something from your store or your online shopify site and then once that order is received you receive the money you send that order to the supplier and instead of sending the the product directly to you they send the product directly to the customer so it goes like this customer makes an order through your store you send the order to the supplier and the product goes directly from the supplier to the customer it’s as easy as that and like i mentioned earlier people were doing the same business model in the 60s and 70s with ordering things through magazines and on tv so it’s been around for a while there’s been product catalogs when people used to order them through newspapers magazines and on those those really infamous tv shows so it’s not a new business model and it’s not going anywhere because it does work really well.

one of the things to consider before building your dropshipping store is taking a deep look at what’s working well and how you’re going to drive traffic to your website, and how you’re going to gain customers and one of the first things I want to talk about is how you can get started it’s really easy to go ahead and build a Shopify store which is an easy way to create a website that is geared for drop shipping essentially, and there’s a lot of things that makes it really easy really simple to take payment processes to automate your orders through your supplier and the majority of ways the hard part about creating a drop shipping business isn’t necessarily creating the website or the Shopify store it’s finding really good items that you’re going to send from that you’re going to sell on behalf of the suppliers so finding these suppliers finding unique items that are going to do well on whatever way you’re going to be driving traffic to your store or to your website

So one of the biggest mistakes that I see people make, and I’ll go through the top three biggest mistakes here. Number one is they try to find products on Aliexpress or Alibaba. There are thousands and thousands of other people doing this. Hence, there’s a lot of competition, so a lot of people are selling the same exact items because it’s as easy as making a few clicks on your website to integrate these products automatically, so let’s say you’re buying them for a dollar and then selling them for 10 or 15 online. You’re still making a 50 profit margin, which is great.

But there are so many other people doing this it doesn’t have a moat. So if you’re getting new into dropshipping, I would say to try to find more unique suppliers that aren’t necessarily on Aliexpress find something that’s, you know,w a little more unique. You can find stuff on Etsy and make it make personal agreements with them. You can find other countries outside of china or even suppliers in china but try to find something that’s going to be a high-margin big-ticket item. One of the examples I like to use is mattresses. Hence, finding a mattress brand where you can find high-quality products have a huge margin on that you can sell them for, you know, double or triple the price and something that’s a lot of people aren’t necessarily doing and the reason having these big margins and high ticket items are it’s essential to drive traffic either organically or with paid ads.

A lot of dropshipping stores are using the latter where they’re running Facebook or Instagram ads to their products and because they’re able to sell these large items that are some of these items can be thousands of dollars, they have much higher margins to create a sale so instead of having five dollars to spend on Facebook ads they can create a lead or a customer by spending 200 300 sometimes even 500 on Facebook ads google shopping ads or just google search terms it gives you a lot more runway and power to really sell these items and having a high ticket item is going to be essential now.

So just to recap i would say if you’re just starting off try to stray away from those small items like phone cases even jewelry unless it’s gonna be very high ticket items for jewelry uh like over a thousand dollars and i would stray away from aliexpress try to find something unique try to find something that a lot of people aren’t doing it’s okay if there’s three or four other people in the industry or even a few dozen it doesn’t matter as long as it’s not overly saturated and you have to do the keyword research to figure out if this is going to be a good market for you to rank in and then the last thing the biggest mistake i see is people not generating enough traffic for their drop shipping business or the right type of traffic so there’s a lot of ways to test this and i think a lot of people give up too quickly you do need to invest if you’re going to go the paid traffic route you do need to invest you know hundreds even thousands of dollars to really test it out to make sure that it’s working correctly make sure that you’re actually getting and targeting the right people that are going to buy your product.

For example, if you’re running a google ad and you’re selling mattresses, buy a mattress online now will have a lot more buyer intent than somebody looking for the best mattresses in 2020. Something like that is going to be a lot different. Still, the keyword with the higher buyer intent is probably going to be a lot more expensive than the other informational article, so this is something to consider when you’re getting in the dropshipping and how to get started, so just to kind of recap, you’re going to want to build a Shopify store I think that’s the easiest place for beginners to start off you’re going to want to find high ticket products that are going to be able to give you a really big margin to run Facebook ads google ads or any type of traffic to you can also have success with organic traffic. Still, most people in dropshipping have a really good understanding of how paid traffic works and how they can generate an income.

There’s a lot of opportunities and a lot of drop shipping businesses that i’ve seen are spending around ten thousand dollars on advertisements and they’re getting fifteen thousand dollars in revenue but they’re still walking away with five grand in profit they’re generating a lot of frequent flyer points a lot of miles on credit cards so they’re able to travel for free so even with that 5k every month a lot of miles but it can really go up from there and down so you really have to test your success and if you’re interested in acquiring an already pre-established shopify business or drop shipping business feel free to reach out to me i’ll leave some information below there’s a lot of ways where you don’t have to spend two or three years trying to figure this out failing over and over you can start with an already profitable drop shipping business today and you can hit the ground running on just focusing on growing that business instead of figuring out how it works and how to run with it and how to actually get it off the ground.

so if you’re interested in that, I’ll leave some details below, and again thank you so much for sticking around I really appreciate your support, and if you haven’t yet please go ahead and like this video and make sure you subscribe and hit the bell notification to get notified about the two new videos I’m releasing every week so take care and have a wonderful rest of your day.

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