How to Succeed in E-commerce: Insights from Drop Shipping Millionaires
👋 Welcome to this article where we'll be sharing insights from successful drop shippers who have made millions of dollars in revenue. If you're looking to start an e-commerce brand, this article is for you. We'll cover everything from how to get started, to marketing strategies, to common mistakes to avoid. Let's dive in!
Table of Contents
1. Introduction
2. Douglas: From Flunking Out of College to Making $1 Million per Month
3. Susan and Steven: From Drop Shipping to Starting Their Own Multi-Million Dollar Brand
4. Jason: A Supplier to E-commerce Brands
5. How to Get Started in E-commerce
6. Marketing Strategies for E-commerce Brands
7. Common Mistakes to Avoid in Drop Shipping
8. Pros and Cons of Drop Shipping
9. Highlights
10. FAQ
Douglas: From Flunking Out of College to Making $1 Million per Month
Douglas is a 24-year-old drop shipper who has been in the business for about 5 years. He got into drop shipping after flunking out of college and being given an ultimatum by his dad to figure something out within a year. He came across a video on YouTube about drop shipping and got obsessed with it. It took him about 8 months before he found any success, but he eventually made it work.
During his first 2 years in drop shipping, Douglas was able to do a little over $3 million in revenue by himself. Recently, he partnered up with a friend and they're on track to do about $13-14 million by the end of this year. Their biggest day to date was $360,000 in revenue.
When asked about his marketing strategy, Douglas said they mainly run user-generated content (UGC) style creatives on Facebook and Instagram ads. They're doing about 80% Facebook and Instagram right now and 20% TikTok. His advice for those looking to succeed in drop shipping is to pick one strategy and stick with it for a while.
Susan and Steven: From Drop Shipping to Starting Their Own Multi-Million Dollar Brand
Susan and Steven started out in drop shipping but eventually started their own brand called Private Paradise. They design everything completely custom-made and have a unique edge in the market. They've done over $4 million in revenue since the beginning of 2021.
Their advice for those looking to monetize their passion is to find out if there's an existing community around it. For example, the BTS and K-pop community inspired Susan's products. They also emphasized the importance of learning how to sell and having a passion for what you're doing.
Jason: A Supplier to E-commerce Brands
Jason runs a business called Saucy, which helps e-commerce brands with their supply chain and product team. He got into entrepreneurship at a young age and started his first e-commerce brand at 14 years old.
When asked about common mistakes in drop shipping, Jason said people often don't do enough reference checks when finding a supplier. He also emphasized the importance of creating a good site experience and unboxing experience for customers.
How to Get Started in E-commerce
If you're looking to get started in e-commerce, the first thing to do is research different niches and industries. Look for holes in the market where you can come in and do something better than the competition. Figure out a way to put in a feedback loop system into the way that you test.
It's also important to learn marketing and how to sell. Pick one strategy and stick with it for a while. Take action by coming up with a hypothesis and testing it. Every failure is a lesson, so don't be afraid to take risks.
Marketing Strategies for E-commerce Brands
One of the biggest trends in marketing right now is user-generated content (UGC). People like seeing marketing that doesn't look like marketing immediately when they watch it. Storytelling is key. Bring people on a journey and sell to them while you're doing it, but do it in a way where it's not obvious that you're selling to them.
Common Mistakes to Avoid in Drop Shipping
One of the biggest mistakes people make in drop shipping is information overload. There's a lot of information online with different gurus teaching you how to do drop shipping. Pick one strategy and stick with it for a while.
Another mistake is not taking enough risks, especially when you're young. This is the best time of your life to take as many risks as possible.
Pros and Cons of Drop Shipping
Pros:
- Low barrier to entry
- No need to hold inventory
- Can be done from anywhere
- Can be very profitable
Cons:
- High competition
- Quality control issues
- Shipping times can be long
- Margins can be low
Highlights
- Pick one strategy and stick with it for a while
- Learn marketing and how to sell
- Take risks, especially when you're young
- Use user-generated content (UGC) in your marketing
- Create a good site experience and unboxing experience for customers
FAQ
Q: Is drop shipping still alive?
A: Yes, it's still very much alive, but it's weeded out a lot of people who are just in it for the quick money.
Q: What's the difference between using AliExpress/Alibaba and a supplier like Saucy?
A: AliExpress and Alibaba have a higher markup compared to what you can get in China. A supplier like Saucy can negotiate better prices, get better shipping rates, and create a better customer experience.
Q: What's the biggest mistake people make in drop shipping?
A: Information overload and not taking enough risks.
Q: What's the best way to get started in e-commerce?
A: Research different niches and industries, find holes in the market, and figure out a way to put in a feedback loop system into the way that you test. Learn marketing and how to sell. Take action and don't be afraid to take risks.
