(Note: This article was originally published to JamieMcSloy.co.uk on August 21st, 2019. I’m going through an old backup of the site, which has hundreds of posts that aren’t currently uploaded. As I’m working hard on updating the site – and releasing The Vault, letting these old posts be the daily posts for a while.)
Today’s topic is short, due to a conflation of factors:
- I had an idea for a blog post but then it turned out to be ambitious
- I’ve otherwise got to write about my day, which has been quite irritating
- Also, brain fried from getting to work on the next issue of the Direct Response Newsletter which will go out to subscribers nice and early next week
Still, I’m committed to getting something written for this dear, neglected blog.
Let’s get to it.
E-Commerce: Leaving The Shallow End Of The Pool
As stated before on this blog, dropshipping is dubious as a long term prospect. Short term, it’s fine. For research purposes? Sure. In fact, for some people it’s ideal because you might make money on the research and testing.
But at some point – and that’s increasingly close to the start as we move on and competition gets tougher – you’re going to have to leave the shallow end of the pool.
I mean, you don’t have to, but it’s probably best that you do.
So today, I’ve been working on the next step of just that. Results are yet-to-be-determined, but here’s what I’ve learned so far.
There Are Factors You Won’t Consider
When you dropship from China, you don’t have to worry about anything. If you have a Shopify/Oberlo connection, that even places the orders for you.
All you have to do is not mess up the customer support and make a presentable-looking website.
That’s tough enough for some. Hopefully not readers of this blog though.
However…
When it comes to designing, manufacturing, releasing your own brand, and later product line, there are so many things you need to do that the to-do list keeps getting longer and longer.
Ever thought about how a shipment gets from where it’s manufactured to the port it leaves out of to you? And then… if you’re planning to ship it elsewhere, how you’re going to get it from you to the port to a warehouse and how they’ll get it to your customers?
And this is after which type of label you want and “have you got the required certifications, sir?”
With Great Control, Comes Great Responsibility
I’ll be the first person to say that dropshipping is a weak business model because you have no control over anything:
- Shipping times
- Product quality
- Packaging
Even the things you do control are pretty weak; your marketing suffers because you’re selling a product that’s the same as everyone else’s, your customer service is limited by the fact you’re on a 2-3 week shipping time back-foot, and so on.
So, getting control of those things is great.
Except for the fact that, when you have control, you also have to take everything into account.
You Need A Calculator, Pen And Paper
Manufacturers, suppliers, etc. have a range of options. Especially if you’re having an original design manufactured, it’s not a case of, “What’s the price?”
The price depends on what you want.
Then, it depends on how much you want of it.
And then it depends on how you want it packed, when you want it packed, and what that packaging looks like.
Finally, the price depends on when you want it. Which brings me onto the next point.
Nothing Is Instant
In a case of, “How much?” and “It depends?” you’re going to take half a dozen emails to even work out the viability of your idea.
(I’ll iron out the kinks in this.)
Then, you have the design phase based on what you know about the manufacturer’s capabilities.
Then there’s a testing phase where you ship samples back and forth.
And then there’s the manufacturing/original run.
All over, there are lead times for everything. A good supplier will know what sort of timeframe you’re looking at, but still, there are overruns.
The “Copywriting Research” Begins Here
Let’s spin some positives here.
This whole process is “your story” and it sets you apart from the average nineteen year old college dropout whose business is basically, “click some AliExpress links and load it in, then write some copy about affordable luxury.”
Why did you pick biodegradable packaging when you could have got the cheap stuff that kills the planet for 0.005 less?
How many samples did it take before you got it right?
Why the hell are you even doing this when you could just be selling the same stuff at 10x markups everyone else is doing?
And these all boil together to produce…
Barriers To Entry Are Good
When you’re a dropshipper, barriers to entry are bad.
If a guy is outspending you on FB ads, you’re probably dead in the water. You have the same product and similar creatives, (which anyone can steal,) and the guy who can spend $5k a day will swallow the market share.
If there are 100 people running IG shoutouts for your $5 watch, then it’s going to get burned out quickly.
And if there are products selling for $10 on Amazon and you’re trying to sell the same product for $50, then you have a limited shelf-life.
Barriers to entry are bad news.
Not so when you have a unique product. Nobody is directly competing with you. In fact, the more dropshipping guys the better because you can spin their strengths into weaknesses.
Do a side-by-side comparison of a “popular” $5 item compared with your super-improved product, and that’s your marketing spin.