Dropshipping has created a massive buzz over the years because many people have become wealthy using this business model. For example, Anton Kraly has built several online eCommerce businesses himself and now lives the dropship lifestyle. He has also helped his students build wildly profitable (automated) dropshipping websites. Now, here’s the thing, Anton has seen many people fail in business people for eight (8) essential reasons. First, they don’t consider the margins and choose a product to sell which doesn’t make them a high enough profit. Anton only focuses on $200 and above products because each sold nets him $100+ in his pockets. On, and sometimes he sells products which are $300+ through his dropshipping stores. Before continuing, read the following:
How To Build Your First Internet Asset
Part of the first reason people fail is they don’t focus on their audience. Anton says sellers should avoid products that attract the wrong type of people. For example, those people who are cash-strapped because these people will jam up the customer service lines asking for a refund. You see, a futon is a high-ticket item, but college students are the ones who buy these types of products. College students are strapped for cash, so if they are dissatisfied for any reason, they will ring you up asking for a refund. That’s not good. Furthermore, you will slowly decrease your conversion rates, and your business will evaporate!
Secondly, online sellers fail because they work with the wrong suppliers. They work with suppliers who consistently add on fees and taxes because they control them. Some drop shippers sell in the United States but have the item shipped from China which is a logistics nightmare. The shipping delays lead to higher refunds lowering your overall profits. Another common reason dropshippers fail is that they ignore the quality of their store. They have a store which is designed poorly and hard to navigate. Even when the design looks professionals, sellers have a store with broken links and provide a bad user experience which is never a good thing. These stores also have various spelling errors, so the user leaves and never returns. Let’s look at number four…
Online sellers will fail because they focus on getting traffic from the wrong place. For example, these people will opt-in to Facebook ads and ignore Google, which Anton thinks is way more relevant to achieve the ultimate goal….PROFIT! Facebook is good, but as a means to scale up later in the advertising process. What else does Anton have to say about some of the common mistakes?
Fifth, poor customer service can destroy your store. By this, Anton means not answering calls and replying to emails. People will leave bad reviews when this happens, which leads to refunds, etc. To help ensure that everything runs smoothly, it helps to leverage automation. For example, it is tracking updates, order status, etc. Now, number six is NOT understanding your ROAS. It means NOT knowing what ads are working and where your money can be spent better. Keeping an eye on ROAS will allow you to focus your money on the areas that generate the MOST sales. And now the last two…
Number seven is staying stagnant and not trying to scale when you know something is working. Instead, Anton recommends taking 10% to 20% of your net profits and always trying something new with it. For example, you can try a new traffic source, product, or copywriting. Just remember you have to keep involved so you can continue to grow and make money. Finally, treating this business like a hobby. Anton says remember, this is your business, so make sure you remember that so you do not make any of these common mistakes outlined here. In the end, work hard, make the RIGHT decisions, and keep focusing on the bottom line, which is to make money.
I have spent my life reviewing thousands of programs, courses and spoken to coaches worldwide to help you make the RIGHT choice when starting your business. And here’s what I’ve LEARNED and why I HATE many of the programs out there!