Hi guys, it's Mark.
So today, I'm going to be paying different people on Fiverr
to create all the parts of a dropshipping business.
And I mean everything from the Shopify store
to the logo, to the social media advert.
Then I'm going to throw it all together
and see if we can make some of that sweet profit.
I'm super excited for this video
because when I was growing up
the internet unfortunately didn't even exist.
And mobile phones were the size of a house brick.
We certainly didn't have modern day methods
such as dropshipping,
which can be done from anywhere you like
with nothing more than a laptop and an internet connection.
So I'm currently standing in one of my warehouses.
And as you can imagine, these have huge running costs.
The beauty of dropshipping
is that you can let somebody else
handle all of that for you,
which is really, really great
'cause you can concentrate on making the profit.
But if it's so great,
why do I have warehouses?
Well, I'll give you my opinion on that
a little bit later.
Now with that said,
let's get back to the studio,
jump on the laptop and get this show on the road.
After some research,
I've decided to sell these oversized blanket hoodies
as they're one size fit sold, pretty unique.
And they're perfect for summer barbecue nights
when things get a little bit chilly,
but you still want to stay outside.
I also bought a couple for my family at Christmas
and they absolutely loved them.
So I know they're a good product.
They all sit around nice and cozy
while I'm sat there shivering.
So I think the right price to sell these for is $45.
And every time we receive an order,
I'll purchase the product on AliExpress for $18,
leaving us nearly $27 in profit.
Of course, minus any advertising expenses.
If we want this store to be really successful,
we need a catchy name.
So I've come up with Cozee Comfort.
I've also had to spell it in this way
so I can secure the dot com domain name.
There are tons of great choices here.
I've been comparing prices and service quality
for the last 20 to 30 minutes.
And I think I've narrowed it down to three choices.
I'm going to give this all in one package a shot.
As he claims,
he can create a converting one product Shopify store,
and that's exactly what we're after.
$175 is a very good price for a website.
However, for my first Shopify dropshipping store,
I think it's a pretty steep investment.
But I believe a good website can last for years to come.
Now we need a logo for the business.
And I found this woman that creates
really clean and simple logos.
And I think $25 is fairly cheap for a logo
as they stay with a business for years
and sometimes even forever.
Let's see what she can do.
Lastly, we need some video adverts
and this guy says he can create a dropshipping video ad
and this is exactly what we need.
$20 is a fair price for a few high quality adverts.
And these can also last for months, so not bad investment.
So I've placed the three orders
and they should be ready in the next few days.
We'll check back once they're complete.
- [Announcer] One week later.
- Right, all the orders have been delivered.
I'm really excited to see how it's all turned out.
Let's start off with the logo.
I've actually been going back and forth with the designer
for a few days now.
This was the first design that she sent me.
Personally, I'm not really a fan of it
as it doesn't really get across the feeling of quality
and comfortable hoodies.
To be honest,
it looks more like a street wear brand.
I asked for a few changes
and this is the first time I've looked at the final version.
Well, it's better,
but I don't think it's really what I'm looking for.
At the end of the day,
we only paid $15 for this.
So, let's keep it as a backup option
and move on to the other orders.
Next let's check out the video
we're using for our main advert.
If that isn't enough to scratch,
potential customers are just going to scroll past
leaving us zero chance of actually securing any sale.
(upbeat music)
Do you what, I actually really like that.
I think he's picked some really great shots
as everyone seems really happy.
And the hoodies are shown both indoors and outdoors.
Another trick I've seen a lot of people do
is purchase the item for themselves.
Then they can take a more unique video and photos
than the ones that are available online.
This can be a great way of getting ahead of the competition.
Now it's time for the big one,
which is the Shopify website.
The effort's great,
but the website doesn't look professional and trustworthy.
We'll end up paying to get customers on the website
that never actually buy anything.
The customer could even go on
to purchase the same product elsewhere.
This means that our marketing would benefit our competitors,
and we definitely don't want that to happen.
So let's load up cozeecomfort.com.
Well, I think he smashed it totally out of the park.
The images look really high quality
and that's important as it means people are far more likely
to trust the site and part with their cash.
I also see that he's created a logo as well,
which is really nice.
And it's definitely more the style I'm looking for
as it looks premium quality.
I'm glad he's added photos of both men and women,
as it opens us up to both demographics.
Meaning we have far more potential customers
and therefore a higher chance of profitability.
Let's fire up the app on a mobile
to check out if everything works smoothly.
This is very important
as if we are going to be advertising on social media.
It means most of our customers
will be visiting the website via their phones.
I'm not going to completely forget about the desktop version
of the website,
but it's certainly less of a priority.
Having these reviews is important.
And I'm glad he didn't just use the five star ones
and included four star ones as well.
As personally when I buy something,
I look at the reviews and if they're all five stars,
then it looks a little bit odd to be honest.
It's also great that he crossed out the old price
and put the product on promotion.
This makes it more appealing to customers
and should lead to higher sales.
After speaking with Sara Finance
on my last dropshipping video,
I learned that it's very important
to put your product and advert to the test.
A perfect way to do this is through paid promotion
from influencers and large theme pages
before jumping onto Facebook ads.
I managed to find a few large Instagram influencers
in the fashion space.
Unfortunately, many didn't reply
and someone had over $500 for a 24 hour story post.
I did get a reply from Sophie.
She offered to post our advert
on her Instagram feed and story for $150.
But you know me,
I had to haggle a little bit and get her down on her price.
And I managed to secure a $100
by making payment upfront.
I made sure to use PayPal goods and services
just in case something went wrong
and I wanted to get my money back.
I'll get the hoodie sent off to her
and I'll check back once the ads are live.
(upbeat music)
So it's been a little over 12 hours since the ads went live
and I must say, I'm extremely happy so far.
But before we jump into the results,
I want to address something.
We may have overpaid for the website and the adverts,
which is going to make it harder for us to hit a profit.
However, a good website can last a business for years.
I once purchased an entire business
because their website was so good.
And I still use that website to this day.
And my return on investment has been sky high.
The same goes for social media adverts.
These video ads can often be used for months
to generate far more revenue
than I've been able to do in just one day.
Now, I'm really excited to share these results with you.
I think the marketing strategy really paid off
as we got over a 1,000 visitors to the website.
This definitely shows we made the right decision
to use a social media fashion influencer
to promote our products.
So she obviously had the right audience.
So in total we received six orders
which came to $550.
I'll just hit the refresh button
so you can see it's all legit.
0.54% is a pretty good conversion rate
for a Shopify dropshipping store.
I think on the surface,
these results seem pretty great
but the real question is,
did we make any profit.
Let's crunch the numbers and find out.
For each unit sold we make on average
$26 and 30 cents in profit.
So using quick math,
I make that out to be $315 and 60 cents gross profit.
I totally didn't use a calculator for that.
(eerie music)
But seriously, $315 in gross profit is fantastic,
but we haven't yet subtracted our expenses.
So let's add it all up.
We paid $175 for the website, $15 for the logo,
$20 for the video adverts.
And lastly, a $100 for the paid Instagram promotion.
I'm not going to include the Shopify plan in my expenses
because Shopify provides all new users with a 14 day trial,
which is pretty good for us.
So our total spend comes to $310,
which isn't anything too crazy.
This only leaves us with a total profit of
$5 and 60 cents.
I know this doesn't sound like a lot,
but the one-time expenses are now out of the way.
We have a great website that can generate sales
as well as a catchy social media advert
to drive traffic towards us.
And I can't really help but wonder
what the results will be like
if we trialed this for a week or more.
To be honest, I didn't even expect this to be profitable,
but this definitely leaves the question,
is dropshipping a sustainable business model?
I personally think it can be a great side hustle.
However, if you want to take it to the next level
and build a sustainable long-term business,
then I believe it's important to take the leap
and physically stock the products yourself.
But Mark, you said products require costly warehouses
with loads of other expenses.
At the end of the day,
stocking products will give you full control
over your business
and ultimately provide your customers
with the best experience,
which is the most important thing.
Happy returning customers spreading the word
is the best kind of promotion you can get.
I see dropshipping as a gateway business.
Is a great way to get a taste for business
and develop an understanding of how things work.
A great example of this is Ben Francis who owns Gymshark.
They started out by dropshipping back in 2011
while he worked at Pizza Hut.
Fast forward 10 years
and this business is now valued at over 1.3 billion
with distribution centers all over the world.
This really goes to show that anyone from anywhere
can start a business.
If Ben can start from his bedroom
then so can you.
So I'm going to leave the next video right up there,
but don't click on it just yet.
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