Today I answer the questions “Is dropshipping dead?“ once and for all.
It is super important to debunk this myth because a lot of people online are trying to declare an amazing opportunity as dead just to sell you something.
So today you’ll find out if dropshipping is actually dead or if it’s on the rise like never before.
Here’s what you’re about to discover
- My secret dropshipping product research method that I use to find winning products fast
- some drop-shipping success stories from Europe
- What’s the difference between dropshipping vs. fba
So yesterday I got asked by a friend of mine, is dropshipping dead? Because a lot of people on YouTube and on blogs are telling that dropshipping is an outdated business model or something. And in this episode I'm going to cover exactly why the opposite is true, and what you can do to make the best out of your dropshipping business. So if this is the first episode of this podcast, please go on iTunes and subscribe because it really helps me get the podcast ranked in the iTunes charts and get a lot of people here to this podcast. So if you want to help me out, then go subscribe.
Sam Peiffer: [00:36]
So is dropshipping dead? I don't think so. But a lot of people are telling you shit to sell their courses. For example, these Amazon FBA guys, I found one on my YouTube channel as an in-stream Ad, that's the one that's in front of the video. So let's say you start a YouTube video and then the video that plays on top of the video. And there are some people who are trash talking different opportunities to make money because they want to sell their own, and I think that's unethical and they shouldn't do it, but it creates a lot of buzz and that's why they're doing it. So, dropshipping is not that, actually, it's like business at its core because you buy low and sell higher and that's what business is. So it's just a retail business and dropshipping is actually just the fulfillment part. So you make a sale in your store and then you go with the money to a different store or a supplier or something where you can fulfill the product, and then you buy the product with the money you just receive but put the shipping address of your customer in there.
Sam Peiffer: [01:57]
So you don't ever have to have the product in your hands or ever have to manage inventory or something. And that's basically just the fulfillment side of it. So it can can't die. And actually the e-commerce industry is really huge, it's like four-point something trillion dollars a year in revenue. And with big guys like Kylie Jenner for example, who has a Shopify store and makes over a billion dollars a year with it and it's insane. I have a friend who has a friend, so it's like, I don't know him directly, but a friend of mine told me the story about him posting on Kylie Jenner's Instagram for his Shopify dropshipping store. He paid like a promotion $500,000 for one post on her Instagram profile and then he made back like 6 million. That's with a dropshipping store. And he didn't even have the product because it was drop shipping.
Sam Peiffer: [03:05]
So is dropshipping dead? I don't think so. I don't think so at all. But it comes down to one simple thing and that is product research. Because a lot of people are saying it doesn't work for them. That's just because they don't know how to do dropshipping product research and this is what I'm going to teach everybody who's going into my courses first. For example, in my bestselling German dropshipping course I don't even tell people that I show them how to create a store because it's unnecessary. Everybody on YouTube can teach you how to create a store, but not everybody knows how to do the proper product research, how to properly test the products once you research them and find the winner that's making you a lot of money. And let's face it, not a lot of people know how to scale it really well. And by scaling I don't mean like to $10,000 or something, I mean like 400 grand a month or something.
Sam Peiffer: [04:04]
And my students in the course, some of them are getting like these results. I had a handful of them who are going crazy with it. And that's the thing, it focused on the product research and there's an easy method that you can use right now that I teach and there are a lot of them, but this is like the easiest one you can execute right now without any tools, without paying for anything. And that's just simply going into Facebook in your private profile and not on your private profile, but on your login, in your private section, whatever what is called, and there's the search bar at the top. Type in ‘get yours now' and then hit enter and then go on videos and posts. And then you will find a lot of posts that are really good. Like basically most of them are dropshipping posts, but because when somebody has ‘get yours now' in the ad copy, then it probably means that they are selling something. And a lot of them are e-commerce products or dropshipping products, and most of them use the same copy over and over again because it works. And that's how you can find it.
Sam Peiffer: [05:17]
So think about what people put in the posts to make the advertisements and then type it in, look for seminars and get inspired by it. And that's how you do a really quick product research for dropshipping. And that's one of the easiest ways. So let me know here in the comments what results you get from this. Because it's very easy to find dropshipping products and not a lot of people are doing it because it's too easy and like all the gurus are like the most complex guys in the world and want to teach you advanced stuff when it really comes down to just the basics. Do what's easy, not where it's very complicated. Where I did complicated stuff, I was broke, that's how it goes. And there are a lot of dropshipping BI tools, for example, like, what's it called, add Spire or so. You can use them, they amplify the process, but for just starting out, you don't need them. You go just to Facebook and do your proper research. And you're probably asking yourself, what's the difference between dropshipping and FBA? Dropshipping versus FBA. Because a lot of people get really confused. And for example, as I told you at the beginning of the podcast, there was this one German guy who was going on my YouTube channel and with the in-stream ads and was bashing dropshipping to sell his Amazon FBA course. But basically it's the same thing, but the Amazon FBA stuff has a higher risk because you have to buy inventory in bulk and ship it to the Amazon warehouse.
Sam Peiffer: [07:01]
That's basically the most dangerous part of it. Because when you don't make proper research and you don't know if your product is selling, you lose so much money. And you don't even own the platform and that's very bad. So when Amazon decides to kick you out, floop, you're gone. So when I say dropshipping is dead, no, not at all, even though some Amazon FBA sellers who want to sell them their courses are telling you that, and that's very sad. So what I would recommend you do instead when somebody from the Amazon world is coming to you and saying dropshipping is dead or something, just say, “Can I do both? Can I have a Shopify dropshipping store, for example, sell my products there? And when people go from my store to Amazon to buy it there, I list my product there too? And then they can buy from both sides and I use Amazon for a supplementary income? And that's how the money is made because when you have like a dropshipping store or something and you take a generic name that can be found on Amazon, people would go to Amazon and look for it. So that's normal. And if you want to avoid this, just go to your Shopify store and name your product to a brand name so that it's not generic but it's like very specific and only you have this name.
Sam Peiffer: [08:42]
So don't call your iPhone charger, iPhone charger, but Lightning Fast Speed Charging thing or something. Just invent something. And when somebody is typing it into Amazon, it either finds nothing or your product that you listed yourself, and then you're golden. That's the nicest thing about it. And a lot of people are saying the Amazon FBA thing is easier because dropshipping versus FBA is a very hot topic right now, and for dropshipping, you need to promote everything yourself and the Amazon thing does it for you. So I would recommend you using the dropshipping method because you can control the type of people who are buying your product. And you can scale more as with the FBA and you actually own the customer list and everything. So, that's the big takeaway here in terms of drop shipping verse FBA.
Sam Peiffer: [09:50]
So is dropshipping dying? Again, no. So my conclusion here is pretty, pretty, pretty simple. Don't listen to other people who are trying to tell you that something isn't working anymore because they got no results themselves. So do your due diligence and investigate it for yourself. And I know you're a smart guy or girl listening to this podcast so you wouldn't be here if you're not smart and wouldn't want to build a business. And so yeah, that's it. I gave you my dropshipping product research method, like a very simple one that you can execute right now. I was helping you with finding a quality product fast and we debunked the myth that dropshipping is actually dead. And right now, to be honest, dropshipping is not dead, it's booming. It's like on a high. Type in the word ‘Shopify' into Google keywords manager or something and compare it with the word ‘make money' or something, or ‘make money online'. At least in Germany, it's five times bigger than the entire market. So, the e-commerce thing is so big, it's so huge. And you can just imagine just having a small part of it.
Sam Peiffer: [11:17]
For example, the richest man on earth right now is this Jeff Bezos guy, and he owns Amazon. What is Amazon? It's an e-commerce platform. And he owns the e-commerce platform, so he's making billions of dollars. And imagine a little slice of that, that you can have if you own your own e-commerce platform, for example, with your dropshipping store. And the e-commerce industry, in general, is making trillions of dollars a year. Imagine just having a little slice of that pie. How big is that for you? And it's much better to have a very little slice of a big pie than having the whole pie or a big chunk of the pie that is very small.
Sam Peiffer: [12:07]
So, these are my final thoughts about it. Dropshipping is not dead and that's it. If you want to enjoy a podcast episode where I talked about high ticket dropshipping, that's a dropshipping model where you can make like $300 per sale, I mean profit, not revenue, then go here on the podcast and scroll a bit down. I think it was the last episode I did, or two episodes ago or something, and just listen to it. It's very nice content and it will help you to get a high ticket Shopify dropshipping store fast and earn $300 or more each sale. So, that's it, see you.