Dropshipping Experiment: Choosing a Product #WatchMe

This is the first in my #WatchMe series. I’m going to try and make as much money in as short a time possible by Dropshipping.

Reminder, I’m going off of this system. So, here we go…

I’ve done two things today. I created a Facebook page for my store. I’m calling it STUFFker. Go there and LIKE it (that’ll help me as I go through this!)

I got a logo created a Fiverr for $6. Unbelievable!

Now, I just need to select a product.

I spent some time (really, not that much) finding a couple products that could work on AliExpress. Somehow I got drawn to baby stuff and socks.

Any of these could work. Which do would you choose?

  • A = Mens Fun Designer Socks
  • B = Unisex Copper-Infused Compression Socks
  • C = Baby 0-12 mths Shoes (Option 1)
  • D = Baby 0-12 mths Shoes (Option 2)
  • E = (Keep Looking)

There are People Making Millions Dropshipping. Why Not Me? Watch Me Try…

Here is the formula:

  1. Find a product on AliExpress. Something under $3. Make sure that it is from a reputable supplier (lots of positive reviews). Connect with them briefly and let them know your intent. They know the game.
  2. Create a Shopify storefront ($29/mo for basic)
  3. Create a post that says something like: “FREE ________, just pay shipping”.
  4. Boost the post or run an ad campaign to a highly targeted audience that drives them to the Shopify product page.
  5. Place the order with the supplier.

Let’s say your cost is $3. You sell the shipping at $9.99. BOOM! That’s $7 profit minus the cost of your Facebook advertising costs. This can be a wild card, yes. But I’m seeing very low estimates in my research to this point.

I’m going to find a couple products and run an experiment. Feel free to follow along and see how much we can make with this system. 🙂

What Will Retail Look Like in 10 Years?

It’s quite obvious that traditional retail, at least in terms of the brick and mortar, is dying. Credit Suisse is projecting over 8k stores will close in 2017, projecting from Q1 numbers.

I went to the mall a couple days ago. That was the first time in (I can’t remember). I went to the Apple store because I had to ask the Geniuses a question.

I don’t like the mall experience. But more so, I feel like mall prices are grossly inflated. I’d say that 95% of my shopping is split between Amazon, Costco, and other local grocery stores. Factor out food and Amazon probably gets ~70-80% of my non-essential purchases. I believe that Jeff Bezos will overtake Bill Gates as the world’s richest person at some point.

Many things are still nicer to touch and feel before purchasing. Even so, how many folks go to a store because to check out a product, only to make the purchase on Amazon? A retailer is paying to be the showroom for Amazon!

A couple big advantages that retailers (brick and mortar) have with their physical presence is the last minute or immediate need, as well as the return/exchange process. Certain categories have higher returns/exchanges, like clothing, for example.

Returning items via an e-commerce purchase is a terrible experience, even if shipping is free. It’s awful. If there is any decent chance for return (doesn’t fit as expected), I am likely not to buy it online.

BUSINESS IDEA: Partner with brands and e-commerce vendors and create a brick and mortar presence to handle returns. This essentially makes it a logistics arbitrage company. It would increase my confidence in purchasing certain things online; that’s good for the brands/vendors. It makes returns cheaper for consumer (not many e-commerce sites pay for return shipping).

At the end of the day, retail isn’t dying, People will always buy things. But brick and mortar needs to evolve. This article, The Death of Retail is Greatly Exaggerated, is right.