Hi guys
These days i saw there is a trend among Sri Lankans about drop shipping. I saw this is laid by youtubers as the easy way to earn money and the new milking cow. Well, I though may be few FAQs are good for our elakiri members to see the dark side of dropshipping as well.
01. Can you really earn money from drop shipping?
The answer is Yes you can. Certainly there are so many people who earn from drop shipping from sri lanka (look at daraz for example) as well as other countries and these are highly successful from them as well.
02. So what is the problem?
The problem is due to very low budget required to start the market, there is extremely high competition. You are competing against reputed sellers who keep the profit margin as a dim because of high sellability and have very good connection with real chinese sellers who gives them soo good discounts that you are in dream to get for. Also the sellers who already are there so much better than you in terms of communication and support handling as they have separate offices.
In event competition they are willing to spend thousands of dollars for advertising and willing to sell goods for no profit at all to beat the competitors
So you have to compete against them. Studies suggest that out of all the people comes to drop shipping 90% of people dropped out due to high competition and low income.
04. Can you really work one hour per day and earn 1000 dollars as they say in the youtube videos?
Simple answer. Its true for a CEO of a company that do drop shipping . You have to handle your customers much better to keep them coming to you. that includes 24 hours support. answering customer questions and manage shipping ASAP to build up the reputation. Also a huge part of your time is require to do the "Advertisement"
05. Lets assume you get lucky and build up an market. What are the other problems?
Handling returns is a big problem. Because return comes to your address and you have to re route them to the Chinese seller or basically you have to get the lose for you and give another item from your own money to not lose the reputation. Also handling paypal disputes. There are scum bags simply get the item and open dispute against you and paypal always almost getting customers side and you gonna lose the money. Also many other problems including shipment loses and everything
06. So what about these youtubers who say its possible and all the courses they post?
Well this is new age affiliate marketing. Think about it. Why someone want to share the market with another person that is highly competitive and a potential competitor to grow. Simply if its that easy and profitable they can use the time they teach others to earn more from it instead of making videos about it right? Always remember
"If someone spend more time on teaching others on how to sell than they are selling it, You are probably the product."
07. So you can't be successful?
Well my honest opinion is this is too much competition for an entry level low budget person. But if you have thousands of dollars of advertisement money or good audience with highly targetted social media account, By all means go for it. But you are new and thinking of earning first 10$ then 100$ and reinvest on earn. i suggest stop wasting money on shopify and start building your social media influence and build an audience for your targeted account. Pro tip- if you plan to get sellers from aliexpress and sell it on amazon then its a wet dream. There are chinese bulk sellers who you can access through 3rd party people because they dont speak english. you have to buy from them and use we chat to communicate.
These days i saw there is a trend among Sri Lankans about drop shipping. I saw this is laid by youtubers as the easy way to earn money and the new milking cow. Well, I though may be few FAQs are good for our elakiri members to see the dark side of dropshipping as well.
01. Can you really earn money from drop shipping?
The answer is Yes you can. Certainly there are so many people who earn from drop shipping from sri lanka (look at daraz for example) as well as other countries and these are highly successful from them as well.
02. So what is the problem?
The problem is due to very low budget required to start the market, there is extremely high competition. You are competing against reputed sellers who keep the profit margin as a dim because of high sellability and have very good connection with real chinese sellers who gives them soo good discounts that you are in dream to get for. Also the sellers who already are there so much better than you in terms of communication and support handling as they have separate offices.
In event competition they are willing to spend thousands of dollars for advertising and willing to sell goods for no profit at all to beat the competitors
So you have to compete against them. Studies suggest that out of all the people comes to drop shipping 90% of people dropped out due to high competition and low income.
04. Can you really work one hour per day and earn 1000 dollars as they say in the youtube videos?
Simple answer. Its true for a CEO of a company that do drop shipping . You have to handle your customers much better to keep them coming to you. that includes 24 hours support. answering customer questions and manage shipping ASAP to build up the reputation. Also a huge part of your time is require to do the "Advertisement"
05. Lets assume you get lucky and build up an market. What are the other problems?
Handling returns is a big problem. Because return comes to your address and you have to re route them to the Chinese seller or basically you have to get the lose for you and give another item from your own money to not lose the reputation. Also handling paypal disputes. There are scum bags simply get the item and open dispute against you and paypal always almost getting customers side and you gonna lose the money. Also many other problems including shipment loses and everything
06. So what about these youtubers who say its possible and all the courses they post?
Well this is new age affiliate marketing. Think about it. Why someone want to share the market with another person that is highly competitive and a potential competitor to grow. Simply if its that easy and profitable they can use the time they teach others to earn more from it instead of making videos about it right? Always remember
"If someone spend more time on teaching others on how to sell than they are selling it, You are probably the product."
07. So you can't be successful?
Well my honest opinion is this is too much competition for an entry level low budget person. But if you have thousands of dollars of advertisement money or good audience with highly targetted social media account, By all means go for it. But you are new and thinking of earning first 10$ then 100$ and reinvest on earn. i suggest stop wasting money on shopify and start building your social media influence and build an audience for your targeted account. Pro tip- if you plan to get sellers from aliexpress and sell it on amazon then its a wet dream. There are chinese bulk sellers who you can access through 3rd party people because they dont speak english. you have to buy from them and use we chat to communicate.
