In this video, I talk about the way I structure and organize my Dropshipping Business that currently makes me 1000€/ Day revenue (my profit margin is usually about 20%).
I start by shortly explaining the term “Dropshipping” and how you can make money from it. The key to make money from Dropshipping is to make more profits by selling products in your Shopify store than to spend on social media advertisement. Social media platforms are great for acquiring new costumers on the internet and provide a huge opportunity.
However, we need to find a product before we can start selling. I talk about the 3 requirements for products that can easily be sold on the internet (“winning products”). Additionally, I also talk about sales funnels which are an extremely powerful way to increase the money customers spent on your online shop.
Finally, I mention some ways to automatise a Dropshipping Business that generates more than 10 orders a day while giving some additional tips along the way.
Before I end this video, I inform you about the legal requirements for Dropshipping which play an essential role and should not be neglected.
- Can be done by using social media platforms
- Social media platforms enable you to reach millions of people and provide extremely detailed tracking and analytics
- The most popular platforms are Facebook, Instagram, YouTube, Pinterest, Google, Snapchat
- The goal is to make more profits than to spend on advertisement
- The goal is to turn every new website visitor into either a prospect or ideally into a costumer
Finding A “Winning Product”
- Winning products are products that can easily be sold on the internet as they grab people´s attention
- There are 3 requirements for winning products: they solve a common problem, they instantly grab people´s attention, they are unsaturated
- It is not easy to find them
- Sales funnels can consist of 3 different components: Upsells, Downsells, Cross-sells
- Sales funnels increase the average order value/AOV (=money spent on your online shop with every purchase)
- They are extremely powerful, but hard to set up
Scaling Your Dropshipping Business
- Scaling a Dropshipping Business is only possible by automating several processes
- The order process can be automatised by bulk ordering
- The customer support can be automatised by hiring Virtual Assistants (VA´s) via Upwork
- Negotiate prices with your supplier outside of AliExpress when you bulk order
- Be aware of your spending and expenses
- Analyse your customers and try to find commonalities
- Find like-minded Dropshippers by joining Facebook groups or attending seminars
- Reinvest your entire profit in tools and education in order to create a compounding effect
- Inform about all legal requirements for importing a product into the countries you are selling to
- Make sure your online shop is in conformity with the laws of the countries your are selling toInform about all legal requirements for importing a product into the countries you are selling to
- Hire an accountant as soon as you can afford one
- Do not forget to include taxes in your profit calculation