SHOPIFY DROPSHIPPING
Pre Requisites:
· UK Virtual No.
· UK registered address
· UK Pvt. Ltd. company
· UK virtual private server (VPS)
· PayPal/stripe
· Monzo bank account
DROP SHIPPING BUSINESS MODEL:
Supplier product shipped Customer
Middle man
Dropshipping is a fulfillment method (the entire process from receiving an
order to delivering to a client or customer). where a store doesn’t keep the
products it sells in stock. Instead, the store purchases the item from a
third-party supplier and has it shipped directly to the customer. As a result, the
seller doesn’t have to handle the product directly.
A Shopify app or store connects you and your store to thousands of suppliers.
OBERLO is a plugin or extension which is connected to your Shopify store, Once a
customer buys a product, you’ll be able to fulfill their order in the Oberlo app.
Oberlo automates this process. As the store owner, all you have to do is
check that the details are correct and click the “‘order”’ button. The product is
then sent directly from the AliExpress dropshipping supplier to the
customer—wherever in the world they may be.
Reference: GOOGLE)
PROS AND CONS OF DROPSHIPPING:
Pros:
· No Inventory, Warehouse, and staff
· No logistic and Shipping
· No big investment is required
· Takes only 4-5 hours to manage
Cons:
· Long shipping time(MIN. 15-30 DAYS)
· Supplier’s branding
· No recurring customer
TYPE OF STORES:
General store
· Can sell any product
· Test any product
· able
· Avg. profit margin
· Hard to flip(could be sale the shop hardly
Niche/PL store
· Specific market
· Product limitation
· High-profit margin
· Brandable
· Easy to flip
Business scope & expectations
There is purely chance to achieve 1000$ profit.
There is also several Freelancing opportunities i.e.; Product Hunting, Product research,
Digital Marketing
(Source: Session 1 part A)
WHY DO PEOPLE FAIL IN DROPSHIPPING??
a) Low rate of store interaction
The theme should be optimized and appealing to the customer
Boost your theme add to cart, Free delivery, Money back guarantee, Warranty,
how many people are looking now, Low stock scarcity.
Use some Apps to boost the theme e.g.; LOOX (review app)
c) Testing wrong product
Focus on Product research to get a better product to test.
D) Low Bleeding budget
Bleed (invest) to search our winning product.
Low bleeding budget low chance to get target product even if you are good in
product hunting.
High Budget High chance of success
Good earning products at other Shopify stores don’t need to also give you good
earning.
Every Shopify store has a different winning product.
Shopify store’s Testing/bleeding budget should be at least 80% of your budget.
There are some strategies to search for winning products at a low bleeding budget.
(Work smartly)
e) Confused Facebook Pixel
FACEBOOK PIXEL which is available on your website tracks the visitors of your page.
For example, we run an ad of different price products on our Fb page to get traffic, pixel
judge that traffic, and get confused that which could be its target market either it is
low-cost visitors, avg. cost or high-cost target.
Train your pixel.
f) Choosing the wrong supplier
Check the credibility of supplier through DROP SHIPPING CENTRE
Don’t interact with avg. or low logistic reliability (quality attributes of logistic) always
choose a supplier with excellent supplier reliability.
g) Bad pricing strategy
Product price should be 20$ to 30$
If we fix high prices there will be High-risk factors.
Customers can ask for a refund as there is a long delivery time and he can give you a
bad review.
(Session 01 Part B)
h) Bad customer support which can lead to a low Facebook feedback score
If a customer interacts with your page Facebook ask him for a review
Facebook feedback score is between 0-5
If it drops by 2 FB can give you a penalty.
Interact properly with customers to avoid negative feedback.
WHY PEOPLE WILL BUY FROM US??
“Product selection criteria”
· Product cost should be 20$ to 30$.
(Customer will not research this price)
· Product should be unique
(not available nearby)
· Product should have WOW factor
(eye-catchy, engaging to customer)
· Product should not be common/FMCG
(Fast-moving consumer goods are products that sell quickly at relatively low cost. These
goods are also called consumer packaged goods.)
· Product should be socially proven
(it has enough likes, comments,d share)
· Store should be interactive with the customer
· Product should be problem-solving
“Strategy of the first sale”
First run your add at a low like cost countries, e.g.: Pakistan, India, Africa,
Philipines when you get enough likes it will become socially proven then you can
run your ad internationally.
BUSINESS COSTING
· UK company registration
· UK virtual no.
· UK registered address
· PayPal fees
· Monzo fees
· Shopify plan cost
· App cost
· Refunds
· Marketing cost /product (revenue 20% to 30% usually)
MARKETING STRATEGIES
“Utilization of budget”
For General store
· 80% of Facebook ads
· 15% Instagram ads
· 5% Google ads (not useful for general store because if people search for
something then Google ad appears as a result)
FOR NICHE/PL STORE
· 60% Facebook and Instagram
· 40% Google adds (There will be proper branding and SEO)
SCIENCE OF FACEBOOK ADDS
· PIXEL Training (Data-driven) <the data we gave to FB pixel it will act
accordingly>
· Ads scalability inputs to Facebook AI (sales will not increase by
increasing budget for FB ad we train our FB AI that we want to scale <expand>
our business)
· Retargeting (FB pixel retarget different customer categories)
· Bad pricing and customer look alike
If we show low-cost products on our page, FB will always target
low-cost lovers, Facebook makes itself the customer look-alike it will
target those who also search for low-cost products.
ESSENTIAL TOOLS IN PRODUCT HUNTING
· E-commerce operator
· Turbo ads finder
· Ali insider
· Ali Hunter
· Similar web
· Ali express search by Image
· Facebook Pixel helper
These all are Chrome extensions for FREE.
(Session 1 part C)
“End of session 01”
SESSION 02 PART A
PRODUCT RESEARCH
There is a lot of method of product research. Today Product research has become very
easy due to Software (tools) for example ecomhunt, Niche scraper
We will do product research on “Ali Express”
There are two types of products:
a) WOW product factor (we will not search product of daily usage e.g.; shoes, clothes)
b) Problem-solving products (jar opener)
Both will work gook and we research these two products.
“PRODUCT SELECTION CRIETERIA”
· Price limit = 10$<price of Ali express with shipping provided by supplier> (can
be multiple at least 3x and at max.5x.min=20$ max. =30$ range) try to choose
that product which can be sold on 5x profit.
· Product shouldn’t be available nearby
· Should have WOW effect
· Shouldn’t be common use/FMCG
· Should be winning product for other stores
We can check it manually but it is the very time taken.
The easy way to do product research is to check products on successful
dropshipping stores and start our research around that product.
· Product shouldn’t have variations
· Product shouldn’t be Health/Medical/External or internal Human intake
· Should have a video on Ali express
· Should have consistent sales graph
· Supplier rating should be +4.5 and excellent/good logistic credibility
If we visit any shop there should be 30k visitors/month
“End of session 02 part A”
Method no.01:
We will start research from most selling products.
· Go to the URL: shopistores.com
A) Go on the Dropshipping tab. A list of Top successful dropshipping
stores will appear, go on the first shop, and apply a similar web extension
to analyze traffic. Keep in mind we will consider only those shops which
have 30k traffic per month.
Click on a shop there will be a lot of products we will sort out bestselling product
go to their Facebook page See more Page transparency
Ads from this page Go to ads library Change the location to all over
the world Analyse the ads
B) Go back to the shop’s main page apply commerce inspector (tool) you will
see the newest product beside best products. Analyze the newest product
in the Facebook ads library. The newest products mean they are testing
those products.
C) Choose any ad copy its description paste it on the FB search bar and
analyze the social proof of that product.
90% of sell come from the store’s winning product.
Now, we will analyze the supplier
Go on Ali express and paste the URL of chosen product apply the tool Ali
express search by the image we will find all suppliers.
“SESSION 2 PART B”
Shopistores.com-----dropshipping---apply similar web to analyze 30k monthly
traffic----see their best selling products if not appear, apply commerce inspector---
analyze the traffic----go to their Facebook page, if not appear, manually search it in
news feed---see if there any add running by the website through page transparency
method--- analyze the ad if there is strong social proof or not—if there is no or less
social proof but still there is huge traffic analyze its traffic source via similar web’s
website---go on the similar web and search the website--- if there any other traffic
source than Facebook go again to website and search the best selling products by Ali
express search by an image if there are not enough sales go on Aliexpress website and
check it manually how much it is getting sales if it getting sufficient amount of sales we
can pick that product for our store.
There is a website hyfa.com, which makes the top brand videos, we can search there
which products are on top trending.
(END OF SESSION 2 PART C)
METHOD NO. 03
FB SEARCH BAR
Use different search terms on your Facebook search bar like:
● Get yours now
● 50% off
● Free shipping worldwide
● Buy now
Go on videos and analyze the social proof. If a product exists on Ali express search by
image there is a 90% chance that it is a dropshipping product.
There is a rule to check sales of any website that how much traffic it is gained per day
mostly there is a 2% conversion rate.
If similar web doesn’t give the traffic data we will use another website named site
worthy, copy and paste the website URL and get the result. It will display unique
visitors that are visitors per day.
METHOD NO.02
ALI DROPSHIPPER CENTRE/DIRECT ALI EXPRESS SEARCH
This is a tool provided by AE to analyze the product, supplier, and sales volume. ]
Go on Ali dropship center -------> Hot selling
Check on the e-packet and video tab, don’t select Exclusive DS price and Free
shipping.
Epacket is a third-party shipping service in China that is used to ship small size and low
weight parcels.
At Ali dropship center there is a product bar that is suppliers. Search that product that
has high DS orders.
(End of Session 3 Part B)
Now we will analyze the sales performance of a particular supplier if it is below avg, or
low don’t consider it, whereas in logistic reliability of a supplier we must consider Good
or excellent reliability.
We can check the orders through Search volume. We will check their rating and logistic
reliability as well as search volume that should be stable. The reason behind fluctuated
or unbalanced search volume trend is most probably ads run by drop shippers that start
and stop whenever they want or they switch the supplier.
(End of part 3 session C)
Now Go to the store, mostly there are those products that are purchasing by drop
shippers. We can also pick some products.
Apply for filter Orders up there will be a random order and DS order check this ratio it
should be minimum. If there is a huge difference between them don’t go with that
product.
(End of session 3 part D)
PART E:
Overview of all methods.