Drop shipping is probably one of the dumbest business ideas ever known to man!
If you’re thinking about doing it..
If you do it, then you should probably stop!
You’ll find out why in today’s video.
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Before all of the angry dropshippers come at me at the comments with their pitchforks saying ‘Why are you now hating dropshipping?’
First understand where I’m actually coming from.
I used to dropship.
I remember the first time I did that was back in 2012.
It was insane because I remember I would post something up on eBay, and the moment I had a sale, I went over to Amazon and then I literally bought it and then ship it over to my customer on eBay.
And as awesome as it was (since I’ve gone far ahead from where I was to what I’m currently working.. things like consulting and dealing with high-end clients..)
There are 3 REASONS WHY DROPSHIPPING ABSOLUTELY SUCKS!
So if you’re thinking about getting into it or if you’re doing it for a while..
You’re gonna be able to relate because you’ve been probably telling yourself, ‘Man, this business model has literally sucked my soul so dry the past couple of years’.
And it’s one of the biggest things that we seldom talk about.
But then I feel like I should talk about it and be honest.
Everyone’s saying ‘Oh you should dropship, earn passive income, live your life, and travel around the world,’ when it’s not really that easy.
It’s not that luxurious and it’s not as lavish as all the online guru say it is.
So let’s actually begin with the first reason why dropshipping just absolutely sucks!
Reason #1 THE PROFIT MARGIN
Understand that the profit margins are very small.
I can’t tell you how many Facebook groups I was a part of.
When someone was saying ‘Hey man, I make $100,000 a month in my dropshipping business’ and everyone’s like, ‘oh, that’s so cool but how much are you profiting?’
Then he said, he barely profit any more than five grand.
So there’s no point in having high revenues and screaming your revenues when at the end of the day, you don’t have $100K/month business.
YOU HAVE A FIVE GRAND A MONTH PROFIT BUSINESS!
I remember when I was dropshipping on eBay, I was making around $40K a month.
Now think about that..
$40K a month for a 19 year old?
That’s a lot of money! I’m pretty sure way back that time, you can do a lot of things with $40K a month!
But guess how much of that I was able to actually keep?
It was literally as little as $1,000 a month!
Now, even though a thousand dollars a month for a 19 year old is a lot compared to most teenage entrepreneurs..
Considering it’s online and you get rewards that gets you to travel around the world..
That’s still not the business that you’d want to have, long-term wise.
I can still remember how complicated it was up to this day.
Because first and foremost, if you’re gonna start a business, you gotta determine its longevity.
How long will you continue to profit and how much headache is the business causing you for the profit that you’ll be making?
I can even recall how little the profit margin was and how ridiculous the customer complaints were.
The headache I got while dealing with returns was just such a grind that it was actually taking more than it was giving me!
That’s why I really didn’t like dropshipping when I was doing it because the profit margin was miniscule.
Can you imagine making $100K a month and only keep $3K, $5k, or $10K dollars a month?
Every guru out there that is preaching on why you should do dropshipping, to me, they’re just trying to sell you a course!
They’re not telling you the real numbers of how much profit they actually created from that business.
So before you actually understand and get into dropshipping or continue in dropshipping, understand that it’s not about the numbers that you make.
It doesn’t matter how much money you make in a month.
As a business owner, the only thing that matters is how much money you can actually keep and profit at the end of the day.
No one really cares about revenue.
You could have a million dollar a month business, but what’s the point if you’re only making $5,000 a month?
Because at the end of the day, it’s how much you’re actually profiting.
Choose a business that has higher profit margin.
Reason #2 THE REACTIVE BUSINESS
It causes you to always be in reaction.
As a business owner, every single day..
YOU ARE UNDER FIRE.
From your ad accounts getting shut down, to customer complaints, and to finding and sourcing products.
Dropshipping was one of the most reactive businesses that I have ever been a part of.
I can’t tell you how many times every single morning I would wake up and just gasp in fear and worry while wondering if this dropshipping business was gonna continue to keep on going.
Understand that it isn’t an actual sustainable business model..
Truth is, there’s so many times that dropshippers, especially if they’re dropshipping from aliexpress, they could wake up and their ad accounts get shut down.
They could wake up and they could get a crazy customer complaint or they could get crazy lawsuits because they’re dropshipping infringed products..
Or some days, they’re selling a bunch of products and then they find out that the supplier has ran out of stock.
So what do you do?
What do you do when you sell 100 of unit A and you have no way to supply it?
I remember the first product that I dropshipped..
This is when the pain points started but remember, I wasn’t thinking about it because I was too busy on making money, that I wasn’t focused on what actually would make long-term money. And I sold one of those leggos on eBay and guess what?
When I tried sourcing it, it was out of stock because it was during Christmas and it was all gone.
And I was like, ‘okay, what do I do?’ I made a sale but I can’t source it.
So then, I had to refund it.
And it was just these little things and these little headaches that I get every single day.
You can’t really run a business that’s gonna last five to twenty years.
How can you pay for your family’s bills for the next 10 to 20 years down the road..
How can you pay for your lifestyle and how can you contribute back to society when every single day, you are constantly worrying if your business is gonna maintain itself or if it’s gonna die.
And that’s because it’s not a proper business.
You’re not really serving a client.
And when Facebook takes away your business, because they find out that you’re dropshipping infringed products on Facebook, they’re gonna have to shut down your ads because they don’t want that.
That’s why all money that you make is gone.
And the lifestyle that you probably bought for yourself from the job, from your dropshipping income, are all gone as well.
Because now you can’t sustain it.
Guys, when you create a business, ask yourself these questions..
Every single year, does it get better and better? Every single year, do I have a chance to scale my income?
You might also hear a lot of people say that with dropshipping, you’ll earn passive income.
Guys, there is no passive income when it comes to dropshipping.
Because if it does, competition is either gonna take you out, Facebook ads is gonna destroy you, or what’s gonna happen is, your product actually hits a point where it no longer is desirable because it doesn’t actually solve a need or a problem or a pain point.
So don’t build the business in reaction..
Build a business where every single day you just wake up because you give so much value out to your niche or your audience or the clients that you serve, that money just flows into you in abundance.
Reason #3 THE WORST SKILLS
It teaches you the worst skills on how to actually be an entrepreneur.
Think about this, when you make money at dropshipping, your income goes up but you don’t necessarily grow as a person.
So when you make money with dropshipping, your income could be high but your identity and how much you’re valued is low.
Because it doesn’t teach you the proper entrepreneurial skills.
What do I mean by that? What does that actually take to build a real business?
It takes two things.
- Finding a client that you can fall in love with that you could serve, and that they have a crazy pain point that you need to solve.
- Networking. It takes building a network for other business relationships with other people that can help serve the same client.
But guess what dropshipping told me to do?
It told me not to network and it told me not to solve the client’s needs.
There’s so many times that dropshippers like sell a product and they don’t actually care about the customer service.
There’s so many dropshippers out there that whenever they get customer complaints, they say ‘oh just ignore the emails, oh don’t answer it, oh just take their money and run’.
At the end of the day that’s no longer a business, that’s a scam.
So here’s what you gotta ask yourself when you’re building a dropshipping business..
Are you actually going to build a business that serves the client’s needs?
Or are you gonna build something that’s just gonna take away from the society, that won’t have any longevity, that won’t allow you to scale?
And every single day you’re gonna wonder, ‘Will I make money today? Or is it just gonna be taken away right underneath the rug for me?’
And that’s because it teaches you poor habits.
I didn’t realize this until I started networking with business owners that were making 7 to 8 figures.
With dropshipping, you learn to be a lazy entrepreneur.
You never go out of your way to solve your client’s pain points.
You never go out of your way to network because you’re afraid ‘if somebody finds out my niche, if someone finds out my winning product, then they’re gonna take it from me’.
That’s why you see a lot of dropshippers, they may make 6 to 7 figures but it’s never consistent because they never built a real big business.
Most of them don’t survive after a year.
Most of them barely survive 3 to 5 years.
What happens is, they’re always going from opportunity to opportunity and picking one problem to solve, one audience to serve, and one business to build for the rest of their life.
Like I said, these are the three reasons why I think dropshipping absolutely sucks and why no one should do it.
If you’re gonna build a business, BUILD A BUSINESS THAT YOU LOVE.
Build the business that you love serving the client, and the customer, that you’re providing and that you are proud and excited to share.
With dropshipping, when someone asks you ‘What do you do?’ What do you tell them?’
‘Oh, yeah, ecommerce..’
Guys, ecommerce is great.
Physical products are great.
But that’s when it solves the problem of the end consumer.
When you’re taking 60 days to send your product to your customer, if you’re taking a long time to respond to customer inquiries, if you don’t actually care about creating value in the world, then the business isn’t for you.
I would recommend just getting a job.
But if you have a skill that could solve a life or business problem..
If you’re good at coaching people and people have already came for your advice, if you’re good at sales and marketing and you could solve somebody’s deep-seated relationship problems. .
Or helping some of the accounting, then you are the people that I want to be part of in this community that I’m building.
If this resonates with you, you can definitely get the free resources below and if you are the rare entrepreneur out there (which very few are), the people that actually have a skill that can solve a life or business problem, that are good at what they do and that actually care about serving their clients..
Then I would recommend to book a free strategy session with my team of sales and marketing experts to help you get to the next level. (link below)
With that being said, what do you guys think about dropshipping?
Do you think it’s going to survive?
Is it gonna keep on going?
For me, I think dropshipping is going to continue to survive but not the dropshipping that we’ve been taught to you in this space.
The only way for it to survive is if you could actually find a good supplier, a good product, and actually focus on the customer, giving them fast shipping times like 2 to 4 days and not 60 days and giving them really good, high quality products and making sure that they enjoy it!
Because that’s the only way you could build a business that could last that pays you, your family, your lifestyle, your dream lifestyle, and everything about that!
I hope that helps guys.
I’ll see you in my next blog!
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