Welcome back guys, it's Kevin and the first lesson of the series we're going to talk about the multi-million dollar question is
Dropship being dead and the answer is no and I've got over 20 million reasons why it isn't dead
So why is it that everyone keeps saying that drop shipping is dead?
well in fact
It's just the way the vast majority of people that are drop shipping that's actually dead now to better understand
Let me actually explain the business mechanics of drop shipping
It's quite simple in the past
If you want to start a business, you needed a large amount of capital to start for something called inventory
Let's say you had this idea you want to sell MMA gloves?
Well in the past you'd have to somehow find a factory that could design and produce these MMA gloves
You would then have to go to the factory
Usually in China and get them to produce
These factors would want to make sure that you're actually serious and would ask you to place a minimum number of orders
So let's just say in this case a thousand MMA gloves
also
They asked for a large upfront cash deposit in case you end up screwing them over
The problem is if you were broke like me you couldn't afford deposit or to commit to minimums and even if you were rich you
Still have to take inventory risk in the sense that you're paying for products that you're not quite sure you'll actually be able to sell
then
Everything changed along came this very smart Chinese man
not me Jack mauve he created something called Alibaba or as we know it on the Express a
Platform that would connect Chinese factories that often had excess inventory
They were trying to get rid of with both consumers and entrepreneurs
This allowed for a very magical thing that changed my life and many other lives
entrepreneurs can now place orders only
When they've actually gotten a sale as a result
There's no longer inventory risk and no longer the need for very expensive minimums now
someone broke like me can to participate in the growing world of e-commerce and
Entrepreneurship that's all drop shipping is that's it
There's nothing inherently wrong about drop shipping and there's nothing inherently dead about drop shipping
So what do I mean by the way that the vast majority of people?
Are actually drop shipping the two most popular methods to drop ship is called general stores and single product stores
you've probably either seen or been taught to do one the other or maybe both a
General store is a drop shipping site where there's a bunch of random products altogether
Whether it's Beauty jackets drones and who knows what you all put it onto the same site. Sometimes it's organized
Sometimes it's not and these sites usually feature fake reviews a bunch of countdown
timers fake trackers for how many people have been on the site and other gimmicks
advertisers focus on marketing specific products and drive traffic to the individual product pages
The goal here is to simultaneously push a bunch of individual products and hope that one of them goes viral
If a product does end up going viral, the hope is competition doesn't come in and saturate out the product
So why do people like this method so much?
Well setting up the site is relatively easy
And there's little thinking involved because you're just throwing products onto a site testing all of them and seeing what sticks
once one product goes viral you spend more and more ad dollars driving traffic to that product and once it becomes
Oversaturated you try to find the next bhai. Our product sounds like an incredible plan, right unfortunately
There are some big problems
Number one this method has been overused
So consumers are catching on to this style of website. Here is an example of a general store
You can see where the collections are pretty unorganized
There's a bunch of random products and there's not a lot of cohesion and the products are actually being pushed on this site
Think about it how many legitimate?
Businesses out there in the world sell this many random things aside from Costco and Walmart
Obviously doesn't communicate a lot of trust to the consumer
especially if they've seeing thousands and thousands of this type of website before
Number two once a product starts doing well
Competitors that are also running general stores will also realize and start pushing that same product also
Everyone that's doing general stores generally uses the same type of advertisement
Usually some variation of the video that's often provided by Aliexpress
So from a consumers point of view, it becomes very spammy very fast
Imagine going through your own Facebook newsfeed and seeing different stores
Selling the same exact product in the same way
Not the most reassuring thing to see here's an example of the type of videos that general store dropshippers
Frequently use you've probably seen these all over your newsfeed and you can see how many of them just replace the logo at the top
Right and blast this tab
Eventually thousands and thousands of people are using the same creative
Pushing the same product and all they're changing is a small logo in the video to make matters even worse
the videos created by all the Express are often ones that infringe on the copyright of major brands as of
2018
Facebook has started banning
Personal Facebook accounts not just at accounts personal Facebook accounts of individuals that are violating
Copyright infringement, if you have a friend in e-commerce that magically disappears from Facebook
My guess is not because they're trying to unplug and go on a spiritual journey number three
There is little incentive to build infrastructure like branding products speeding up logistics or even improving product quality
Products come and go so fast that there's no point
despite pissing off
Thousands and thousands of customers around the world
dropshippers continued until in May 2000 19
Facebook dramatically increased its customer feedback standards
Resulting in more and more people either losing their ad accounts or having their ad account performance
Throttled due to negative feedback in case you guys don't
Every single time someone buys a product from your site through Facebook, Ads Facebook
is actually sending out random surveys to ran and consumers to gauge their quality of customer experience and
Facebook has a strong incentive to make sure that their platform is not full of scammers and that their platform continues to be user friendly
Payment processors have also started cracking down
stripe and Shopify payments have stopped working with problematic merchants completely usually
Resulting in massive holes or even getting banned from the platform
This is a big change because stripe and Shopify payments or the staple payment processors for the world of e-commerce
Furthermore if you're charged back rate is especially egregious
Payment processors will even put you on something called a matchless which bans you from processing payments for up to five years
Your social security number your business tax ID will all get linked to every single bank in the United States
So you are no longer to sell anything on the internet. So yes, this style of drop shipping is
Absolutely dead bad merchants ruined Facebook for both consumers and other merchants
It's good that everyone's cracking down once dropshippers realize this they coming up with a single product store in
This situation a site is built around one single product and has very Kickstarter
Startup type of vibe as a result the site looked a lot more professional compared to your general store
Because it's not just a bunch of random crap on a screen and there's actually an incentive to build infrastructure
Once you've found a good product, so these are examples of single product sites
You can see that the marketers are focusing all their attention on these
Individual products and it looks a lot cleaner and more
professional than a general store the problem your whole site relies on one single product and
That brings a lot more problems with it number one
Competitors catching on and saturating out the product even if you decided to slap a logo on your product
even if your product quality is a lot better than everyone else is
consumers will actually still see the physical product all over the Internet or
Consumers actually will get bored of a single product and you just spent a lot of money
Building up infrastructure and then things really suck because you just wasted all your time as this product is no longer
Competitive in the marketplace so you're left with inventory and left with a lot of things that you put together that are no longer useful
number two, there's still a lot of copycatting with
advertisements and a lot of copyright infringement
That go on with the single product sites, even though Facebook police's copyright violations
This isn't prevent individuals from still ripping you off
Furthermore these gimmick style products are usually ones that do the best on single product stores
Whether they're back straighteners or mosquito sprayers or even a moon lamp and these are often stolen
from legitimate sources by all the express suppliers often from Kickstarter
campaigns and you may not even know I've actually had a lot of well-intentioned friends loser at accounts and
Even face legal action because they were pushing single products that were actually copyrighted and stolen ideas
Overall, you're on a never-ending path of trying to find a new viral product taking the risk to build up infrastructure on
These viral products and then praying praying praying that the product doesn't expire
I will admit that single product sites are a lot better than general stores and can
Make you a sizable amount of money, but the problem they're not sustainable
Disagree with me just ask any guru out there that's teaching this method to show his or her
Shopify sales in a long course of time you usually see a bell curve a
Massive amount of sales when the product went viral and then a fizzle out so you might be thinking
Kevin if you're so high and mighty and if you're such a wizard
What do you do and what are your sales look like? Well, I'm happy to show you an example
Here you can see a website that I actually started in August 2018
It was one of my first profitable sites and drop shipping and now you can see that even today
Over a year has passed
It's still generating a massive amount of sales and a very healthy stream of profits. This is what you want a business
That is not only profitable but also sustainable
So what if I told you that there's a way to take advantage of the drop shipping business model not having to take inventory
Not having to allocate a lot of capital and not having to meet factory minimums without
Falling for dropshipping straw backs and this is exactly what I'm going to teach you
And this is the reason why we've scaled so fast in the course of the year because our concepts don't die
This method is what I call the branded niche drop shipping method
I'm going to teach you a way to make a drop shipping site
That doesn't look like anyone else's and won't resemble any of your competitors
In fact, your site will actually look like some of your favorite brands
This is a way to have a store convert across multiple products. Not just one a way to have a store
That's not only highly profitable
But also very very sustainable a way to make a lot of money
While not having to hesitate to build an infrastructure to make customers
Facebook and payment processors happy
This is what I'm going to show you how to create as you can see this site is unlike any general store
Unlike any product store things are branded. There's a feel that this is a legitimate business
You couldn't really even tell that these are all Express products and this makes the world of difference in
2019 and moving on to 2020
this is the approach that maybe 20 million dollars in sales in year 1 and will make me even more in year 2 and
I'll show you exactly step by step
Starting with the next video how to create a site like this just for your business
Thank you guys so much for taking the time to watch this video. I hope you enjoyed it
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