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What They Don’t tell You about DropShipping!!

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  • Post last modified:December 16, 2023

I know you’ve all seen the craze around Drop Shipping on YouTube and Tick Tock. 

And yeah, it’s true that lots of young folks, even teenagers, have made big bucks using this business model. 

But let me tell you, there are some secrets they’re not sharing with you. Things they don’t want you to know. 

And trust me, I’ve been there and faced all the same scary problems that can come with Drop Shipping if you’re not careful. 

Lucky for you, I’m about to spill the beans and give you the scoop on how to avoid these pitfalls. 

So pay attention and get ready to learn the real deal about Drop Shipping.

1) Profit Margins

I’ve seen it happen time and time again. 

People falling for those alluring screenshots and screen previews, thinking it’s a surefire way to make a fortune. 

But let me ask you this, how much of that flashy photo is ACTUAL profit? Let’s get real here. 

In the world of Drop Shipping, the typical profit margins range from a measly 15 to 30 percent. 

So when you see someone flaunting their million-dollar monthly sales, do some quick math. 

They’re taking home anywhere from a hundred grand to two hundred grand. 

And listen, that’s not even considering the fact that some people aren’t even making a profit at all. 

It’s a harsh reality, my friends. 

Don’t get sucked in by flashy screenshots that could be just smoke and mirrors.

The key to success in Drop Shipping lies in understanding your CPA — cost per acquisition. 

How much are you shelling out to acquire a customer? Are you running Facebook ads or Google ads? These are what we call paid advertising, and they can make or break your profit margins. 

So before you get caught up in the hype, remember to keep a close eye on your CPA. 

Trust me, it could make all the difference.

2) Paid Advertising

The truth is, when it comes to paid ads, your cost per acquisition (or CPA for short) is bound to be higher. 

Why? 

Because you’re essentially bidding for those coveted ad spots, which means you’re paying for every click that leads to a customer. 

It’s just simple math. 

For instance, let’s say your profit margin is 30%. That’s great, right? 

But then you factor in the cost of acquiring a customer, which could be around $15. 

Suddenly, that 30% doesn’t look so promising anymore. And we’re not done yet. 

You’ve also got those pesky transaction fees, which can eat away at your profits by a hefty 2.4%. 

And let’s not forget about taxes, because Uncle Sam always wants his cut. 

All this number crunching leaves you with a measly $7 to $5 in your pocket. 

But fear not, my friends! 

By being aware of these numbers, you can make smarter decisions and protect your profit margins from taking a hit. 

It’s not rocket science, but it sure is vital information for any business owner. 

So pay attention and let’s keep those profits up!

3) Organic Traffic

I want to share with you a little secret that has been making waves in the marketing world: organic marketing on Tick Tock and Instagram reels. 

Let me tell you, I hopped on this train back in 2020 and it has been one heck of a ride. 

I’ve seen firsthand how this method has brought in a whopping three million dollars in profit. 

And the best part? You don’t have to spend a single penny on ads and bidding. 

That’s right, just create killer content and upload it on your Tick Tock accounts and watch your profit margins soar. 

On average, those using organic traffic have seen a 40 to 70 percent increase in profit. 

Trust me, this is a game-changer for any business looking to maximize their profits without breaking the bank.

4) Payment Holds

Have you ever found yourself in a situation where your hard-earned cash gets stuck in payment platforms such as PayPal, Stripe, or Shopify? 

And worst of all, you may have to wait up to a grueling 90 days to access your funds. 

Can you imagine how frustrating that would be? Especially after raking in a whopping $100,000 in sales. 

But this is not just a nightmare, it’s a common occurrence that many entrepreneurs face. 

And believe me, it’s no walk in the park. 

How are you supposed to cover your expenses like product and advertising costs when your money is tied up? Trust me, I understand your fear because we deal with this issue all the time. But here’s the catch. 

There is a solution, but sadly, for beginners, it’s not practical due to the high costs and technicalities involved. 

I have a solution to avoid payment holds and manage cash flow

First off, always make sure you’re on top of updating those tracking numbers. 

This shows your customers that you are on the ball and will help prevent any payment holds. 

It’s important that you are selling quality products and keeping your customers happy. 

This means communicating with them regularly through email or live chat. Trust me, if your customers start to get antsy, they may file chargebacks, which can be a major headache. 

But here’s the real kicker — if your chargeback rate goes above one percent, any payment gateway can shut you down or hold your money. 

That’s why it’s crucial to stay on top of things and keep those chargebacks in check. 

So my advice to you is simple: focus on customer satisfaction, stay on top of tracking numbers, and avoid those pesky chargebacks. 

Your business will thank you.

4.a BeProfit

now when it comes to handling your cash flow. I have apps on Shopify that are completely free like BeProfit.

BeProfit is a game-changer for online store owners like myself. 

You see, it not only tracks how much money I’m spending, but more importantly, it shows me exactly how much money I’m making. 

And the best part? It’s absolutely free! 

5) Payment Geteway

Now if you’re raking in the big bucks — we’re talking 100k, 50k, even a million each month — you need to ditch those basic payment methods like Skype, Shopify payments, and PayPal. 

They may seem convenient, but let me tell you, they’re actually working against you. 

That’s right, they’re not on your side. 

Instead, you need to get yourself a private Gateway — now that’s some advanced stuff I won’t get into right now. 

But don’t worry, I’ll write a whole another article on it real soon. 

6) Supply Chain & Logistics

Listen up! This right here is the key to your Drop Shipping business. But hang on, let me make something clear. 

I view Drop Shipping as a way to deliver products, not as an actual business. 

You see, Drop Shipping falls under the category of e-commerce, but it’s using that method to fulfill orders for your customers. 

Now, let’s talk tiers. 

There are different levels of Drop Shipping out there. You could go the route of fulfilling orders one at a time. 

Picture this, someone visits your website and places an order through Shopify. 

You then have to fulfill that order. 

But let me tell you, this type of Drop Shipping can bring on a whole lot of problems and scary moments. 

Stick with me here, because I’m about to drop a truth bomb. 

If you’re sourcing your products from popular Chinese Drop Shipping suppliers like AliExpress or CJ Drop Shipping, who specialize in fulfilling orders for one product at a time, brace yourself because here’s the real deal. 

As soon as your product takes off and you start getting tons of orders, you’re going to encounter some major issues.

  • 1) the quality might be terrible. 
  • 2) the consistency might be terrible.
  • 3) they will not be sending out the right item for the right customer.

Here’s the deal: If a customer wants a yellow product and you send them a red one, it’s a pretty big deal. 

And let’s be real, it’s not your fault. 

That responsibility falls squarely on the shoulders of your supplier.

So, before you start doing business with any supplier, make sure to cover all your bases. 

Ask them important questions like: How many units do you have in stock? How do you handle selling different colors and sizes? What is your refund policy? And let’s not forget about the return policy. 

But most importantly, how will the supplier be held accountable if they make a mistake? Because let’s face it, most of the time it’s the supplier who messes up, not you or your customer.


Don’t let them shift the blame onto you. 

Protect yourself and your business by having a clear understanding with your suppliers from the get-go. 

Trust me, it’ll save you a ton of headaches in the long run. So go ahead, give those suppliers a call and get those answers. 

You’ll thank me later.

6) One Product Shipping

The Quick Guide to Product Shipping: Everything You Need to Know

When I first dabbled in this business, I followed the same approach as you all — the one product Drop Shipping method. 

But after a week or two, and once I saw a steady stream of 5 to 15 weekly sales, I leveled up my game. 

I partnered with an agent to secure quicker shipping times and began purchasing the product in larger quantities to send to fulfillment centers. 

It’s all about working your way up the tiers while minimizing risk. 

Of course, buying in bulk brings some added risk, but don’t let fear hold you back. 

I’ve seen too many drop shippers get too scared to take that leap and buy in bulk. 

But here’s the thing — if you keep that mindset, it will only hinder your success in the long run. 

So go ahead and press down on that pedal, take some calculated risks, and watch your business thrive.

7) Building A Brand in Mind

Branded Dropshipping Under $400: A Step-by-Step Guide to Achieving E-commerce Success

Let me tell you something, Drop Shipping is the way to go for building a brand. 

It’s like striking gold in the online business world. 

Here’s the beauty of it: you can test out as many products as you want, and once you find that golden product that’s a hit with customers, you can turn it into a brand. 

Picture this: you hit the jackpot with a phone case that everyone is crazy about. 

That’s when you start thinking about creating an entire iPhone accessory brand. 

Slowly but surely, you can transition from just selling that one product to building an entire brand around it. 

And let me say, that means more money in the bank. 

To really solidify your brand, you’ll want to white label the product, create custom items, and have a logistics team in place for fulfillment. 

That’s how you build up brand equity and become a real player in the game. 

8) Brand Equity

Brand Equity Definition and Importance

If you want to cash in big in the e-commerce game, then you need to understand the power of Brand Equity. 

This is the key to long-term financial success. 

I’m talking about something called customer lifetime value. 

See, it’s not just about making a one-time sale. 

You need loyal customers who keep coming back for more. Because let’s face it, if someone has a bad experience with your online store and never comes back, you’re pretty much dead in the water. 

But, let me tell you, there’s a harsh reality that all Drop Shippers must face. It’s the one thing that can make or break your business.

9) AD fatigue

6 Proven Treatment Methods for Ad Fatigue on Facebook

so let’s say you’re running ads on Facebook, Google, and TikTok. The money is rolling in one month, but the next, it slows to a trickle. 

Suddenly, your ads are being banned or disabled left and right. I

t’s like hitting a brick wall after cruising down the highway. Ad fatigue can come in many forms, and it can turn your profitable month into a break-even nightmare. The sad truth is, if you don’t catch it early, it can completely destroy your business. 

That’s why it’s crucial to be vigilant and spot ad fatigue before it takes over. 

Don’t let your hard work go to waste by ignoring the warning signs. 

Let’s dive in and learn how to recognize and combat ad fatigue before it’s too late.

If you’re looking to boost your ad performance, I highly recommend setting up a company and getting your business manager verified. 

Taking this step will ensure that you have an agency account, which offers custom benefits. 

If you’re not quite ready for this option, no worries — a regular account will do just fine. 

The important thing is to verify everything and use fresh pixels and ad accounts for each product. 

This helps avoid the dreaded “ad account fatigue” which can greatly impact your traffic, engagement, and click-through rates. 

Don’t waste anymore time on tired ad accounts — switch things up and see the results for yourself.

10) Copycats & Rip-offs

there’s also something important I need to remind you of — copycats and rip-offs. 

When you dive into Drop Shipping, don’t just grab a product and use generic content for it that you find online. 

That’s a surefire way to be unoriginal and unengaging. 

Plus, it’s unfair to the original creator and other advertisers. This creates a domino effect of problems, leading to fatigue in your account and ultimately hurting you, your business, and others in the long run. 

So let’s be smart and stay unique, shall we?

You see, i know you are all skilled enough to create your very own videos or even hire someone to do it for you. 

But here’s the thing — most drop shippers don’t place enough value on their products, and as a result, the marketplace is flooded with subpar content that’s been done a million times before. 

And let’s be real, this issue won’t go away anytime soon as more people hop on the drop shipping bandwagon. 

It’s a never-ending cycle of copying and unoriginal content, and it’s hurting the marketplace for all of us. 

Let’s break this vicious circle and focus on creating unique and valuable content that will stand out in the marketplace. 

Trust me, it’s worth the effort.

Advice

So if you made it to this far and you really want to be successful with Drop Shipping and not experience anything terrifying you need to learn to do things in your own thought.

now there’s nothing wrong with watching a YouTube video about how to run Facebook ads or how to create a store. 

but don’t just copy and paste learn to adapt a little bit learn to add something else to it now with the whole chatgbt around everyone’s just using getting copying it 

learn to add your own stuff to your product learn to add value to your business don’t expect to make really good life-changing money if you’re adding nothing new to the marketplace.