Top 10 Mistakes Beginner Dropshippers Make (Shopify

 what's going on guys today i'm going to

be going over the top 10 mistakes that

you need to know before you start drop

shipping

literally all of these mistakes are so

crucial because if you just make one of

them

then your entire drop shipping business

could be completely destroyed

everything that i'm going to share with

you today are actionable tips that

you're going to thank me later for

and if this video does reach 4 000 likes

i'm going to release a document of 10

viral winning products

that are making thousands of dollars per

day right now

so make sure to smash the like button

and subscribe

but without further ado let's get into

the value

all right guys so the first and one of

the most common mistakes that i see

newbie drop shippers make

is not checking the shipping times for

countries that they're trying to

advertise

to if you go on aliexpress and you check

the shipping drop down

you're gonna see there's tons of

different options and it's very specific

on each country that you're actually

shipping to

so if you're wanting to advertise the

united kingdom make sure you actually

check out those specific

shipping times and a lot of the times

you might have to find a different

supplier for one country than another

country

and the reason why it's so important

that you actually check these shipping

times is sometimes united states will

have 14 to 17 days shipping

and then you'll check out the shipping

to canada and it will take up to two

months and you guys

don't want to be sending products out

with two month shipping because if you

actually run into that scenario

then you're gonna have tons of unhappy

customers and trust me

that's not how you're successful in drop

shipping you're gonna have a ton of

refund requests

a ton of chargebacks and overall that's

just bad business so definitely make

sure you do this one

now mistake number two is setting

realistic goals

i get tons of dms every single day with

people reaching out to me thinking that

this is a get rich quick scheme

and telling me that they want to make 50

000 or 100 000

in the next few months now i hate to

break it to you but this business model

does take time and it does take effort

so if you're a beginner getting into

this expect not to make money right off

the bat

your primary goal should be coming into

this learning absolutely as much as you

can

because in my opinion the hardest part

of this business model is

actually going over that initial hump to

where you actually get

sales once your store's actually getting

sales then you can turn up the knob

with advertising bring more traffic in

and it's relatively

simple to scale but trust me don't

expect to make hoards of money in the

next few months because you're gonna be

very unhappy

when the money doesn't come in instantly

and you're gonna quit

much faster you guys see me on this

channel

sharing some insane numbers but keep in

mind i've been at this since

2017 so it definitely didn't happen

overnight

you guys aren't seeing the sleepless

nights the times i've almost went in

debt

and all the trials and tribulations that

actually came with my success

now number three is to actually start

out with a realistic budget

and i think this is one of the biggest

achilles heels of newbies getting into

drop shipping

they see this business model and they

want to start out with a hundred or two

hundred dollars

and while that might be sufficient to

get your first store off the ground

if that's actually the only money you

have you're gonna lose it relatively

quickly and you're gonna think that this

business model doesn't work

i suggest that you start with a two or

three thousand dollar budget

completely dedicated to actually testing

products out

because this will give you a high

likelihood of finding a winner

now if you don't have two or three

thousand dollars yet

i wouldn't really start out trying to

build a business i would try to get a

job

because the thing is to take a hundred

dollars and turn it into a thousand

dollars you're gonna need to 10x your

money

which is pretty difficult but it would

be much easier if you just spent about

30 or 40 hours

working at a job taking that money

putting a thousand dollars in

and 10xing it and turning it into 10

000.

now mistake number four that i see tons

of newbies actually make

is not focusing on viral products that

solve

problems a lot of you guys dm me your

stores

and i see these odd little trinkets you

guys are trying to sell

and different jewelry and fashion

products and while these

do sell these are some of the most

competitive niches

and it can actually be harder to

convince someone to buy a fashion

product

than something that actually solves a

problem the method that

i teach in drop shipping is actually

finding products that fill a gap

in the marketplace so for example not

too long ago i shared a video

showing one of my 100k products and what

this product is

is a knee brace that actually helps you

walk better and it takes off weight

from your upper body which solves a

massive problem for anyone who has knee

problems or trouble walking

in general now the reason this products

much easier to sell than random trinkets

is because it solves a real world

problem and when you actually go on

facebook

and you advertise this to people with

knee problems

they're gonna be much more likely to buy

this as an impulse purchase

than your random trinket now mistake

number five that i see tons of newbies

making is starting out with the general

store approach

if you don't know what that is basically

it's a store like amazon

focused on selling any product under the

sun

and the reason why i don't advise of

this method is because right off the bat

if you add tons of products and you're

still completely new to this business

model

you're not gonna spend enough time

merchandising the products you do have

and you're gonna think it's quantity

over quality but in reality

that's actually flipped around i like

focusing on fewer products that we

merchandise much better

because it gives us a much higher chance

of actually getting sales on our stores

so if you're starting out i recommend

you start off with a niche store

or a one product store a niche store is

focused on

one market so for example workout gear

and a one

product store is literally only selling

one product so for example this massage

gun

and by doing this we'll be able to

dedicate the time needed to properly

merchandise our product

and create good product descriptions

work on good graphics and get good

facebook ads plus when customers

actually visit our website they're gonna

look at our website as a very reputable

brand

because we're very focused on their

problem that we're trying to solve

now mistake number six is to avoid

selling any copyright or trademarked

products

now this could be a little bit difficult

to understand if you're a beginner

but one big piece of advice that i

recommend to you

is don't sell any products with any

characters or

any references to any other company so

for example a spiderman costume

an mba jersey or something related to

pokemon

now this should be common sense but i

see far too many people get into this

business model

and get their store shut down because

the thing is that company could actually

come

file a report on you and shopify will

take your website down

immediately and on top of that you could

also face some legal implications

if you actually did become very

successful selling that product

all right guys so mistake number seven

should seem like common sense

but i see far too many people get into

this business model

start scaling their products and they

don't actually truly

understand the profit that they're

taking home each day

now this is pretty simple to figure out

there's a couple apps that you could

download on your store

like life timely or order metrics where

it actually tracks real time your profit

every single second so you can integrate

your facebook ads your google ads your

product cost

and your shipping costs and any fees

that you're actually paying with shopify

or any external apps so every single day

you're able to look at real sales

numbers

and you don't have to add it up or

create any spreadsheet so it's going to

take a lot of time off your hands

and one really beneficial thing of

knowing your exact profit

is you can know when to scale if you

know you have a 30

profit margin you know you can spend a

little bit more money on ads and this is

going to give you a higher chance of

scaling quicker

keeping more profit and actually being

successful in your drop shipping

business

all right guys so mistake number eight

that i see tons of drop shippers

actually make

is they're spending tons of money on

their debit card or they're paying with

their ads through their bank

or paypal now it's completely fine if

you're doing this but if you're actually

spending quite a bit of money

you're going to want to think of a

couple different credit cards you can

use to leverage points for your

ecommerce business

now of course if you do this you're

going to want to be paying your credit

cards off every

single month but the benefit of actually

using credit cards

is you're able to bank out off these

reward offers

over the last few years i've managed to

make over twenty thousand dollars from

rewards from these companies

because specific credit cards like the

chase business inc

and the american express business coal

card will give you

three to four percent cash back on

marketing

up to a limited amount every single year

so potentially you could be walking home

with an extra

ten or twelve thousand dollars every

year just by capitalizing on these

rewards

and with these rewards you can do tons

of things like book airbnbs book flights

literally almost anything you can do

with these cards so if you're scaling

definitely check this out

alright guys so mistake number nine that

i see beginners make is not

actually setting up a legal business

entity and this is really important once

you actually have some revenue coming in

that you decide what type of business

you actually want to create

when you first get started you could

start a sole proprietorship

but as your business starts to scale up

it's going to be more tax advantageous

to run something like an

s corp but i definitely recommend

talking to your local cpas

because the information that i'm sharing

with you is only relevant in the united

states

and of course i'm not a legal or

certified tax professional

but you definitely want to think about

this once sales are coming in

because this is going to help you out in

the long run and if you do have a

corporation

then you can take some of the liability

off yourself in case

anything happens to your business now

mistake number 10 is staying

up to date on your books and making sure

that you're actually properly paying

taxes so i remember when i first got

started with e-commerce and drop

shipping

i was making quite a bit of revenue but

i wasn't focusing on taxes or anything

like that

and at the end of the year i talked with

a tax professional

and they let me know all this different

stuff that i had to do

in order to file taxes and i only had a

few days to get all of it together

and it took me hours and hours and it

was one of the most stressful processes

so in order to combat this once you

actually start getting sales

talk to a certified tax professional let

them know about your business model and

they're gonna help structure your taxes

so you're actually doing this correctly

and you're gonna wanna make sure you're

keeping your books up to date until you

meet with your tax professional

so you can actually download something

like quickbooks where you can import

your bank transactions

every single day and all you need to do

is click a couple buttons

and they're going to import into

quickbooks and this way you're going to

be able to stay

up to date on all your books so at the

end of the year

you can just submit this profit and loss

statement to your accountant

and they're going to be able to do

everything super simply

because your accountant's not gonna go

through your books or your bank

statement

and look through everything and give you

this pretty number

that's not how most accountants work

unless you're paying a bookkeeper so i

just recommend you do it yourself and

save yourself

a lot of trouble alright guys so there

we go i just went over the 10 most

costly mistakes you could make as a

beginner

literally all of these mistakes are some

of the biggest hurdles that i see

beginners make

and i truly believe that if you do take

this advice

implement it into your drop shipping

store you're gonna be much more likely

to have a successful drop shipping

business