All right, welcome in everybody to our deep dive.
And today we're going to be looking
at Shopify dropshipping.
More specifically, we're going to be looking
at this fascinating case study by Sarah Finance.
She did this 10-day challenge and documented it all on YouTube.
And let me tell you, she set a pretty ambitious goal
for herself, aiming for $10,000 in revenue.
And we're going to find out, did she pull it off?
What worked?
What didn't work?
What can you learn from her experience,
whether you're thinking of launching your own e-commerce
business, or maybe you're just curious about this whole drop
shipping thing?
Yeah, the cool thing about Sarah's story
is that it shows how drop shipping works in the real world,
not just in theory.
So we get to see her making decisions, facing challenges,
and we can analyze the result that she got.
Exactly.
And for anyone who is not familiar with drop shipping,
it's essentially selling products online.
But you don't actually have to hold any inventory yourself.
So you're kind of like the connector between the customer
and the products.
And then you have a third party supplier who handles
storing and shipping everything.
So Sarah's first step was to focus on product selection.
And she ended up using a drop shipping supplier called
USA Drop to help her find, as she calls it, a winning product,
something that has high demand.
And she settled on this portable LED makeup box, which
sounds like a pretty good choice to me.
Yeah, I mean, product research is absolutely essential when
it comes to drop shipping.
It's not just about picking something
that you think is cool.
You really have to understand your audience, what's
trending, identify a product that's always a problem,
and ideally has some decent profit margins.
And having suppliers like USA Drop out there
is really helpful because they offer a selection of products
that you know are already curated.
And they handle all of that fulfillment stuff.
So you don't have to worry about storing and shipping
everything yourself.
Yeah, makes total sense.
So she's got her product.
What does she do next?
Well, she gets herself a free Shopify trial to build her store.
And she really puts a lot of emphasis
on making it look professional and on-brand,
which is pretty important when you're trying
to build trust with customers.
Right, yeah, definitely.
A website that looks kind of janky
can really be an instant turn off for people.
So having that professional user-friendly design,
that can really build credibility and make people more
likely to buy from you.
Now, this is where it gets really strategic,
because Sarah decides to use a couple of key Shopify apps
to really maximize her sales potential.
First up, she uses this app called UpCart.
And this app lets her create a free shipping bar
on her website.
You know, those things that encourage
you to spend a little bit more to get free shipping.
Yeah, that's such a classic tactic.
It definitely works.
You're a genius.
Yeah, it kind of taps into consumer psychology.
People want to feel like they're getting a good deal.
And it creates that sense of urgency
to spend just a little bit more.
Yeah.
And the cool thing about UpCart is that it also lets her offer
upsells, so it'll suggest an additional product
to check out.
Really smart, right.
But wait, there's more.
She also uses this other app called Aftersale,
which allows her to present a post-purchase upsell offer.
So after someone has already bought something,
she can entice them with another related product.
Talk about maximizing every sale.
Yeah, so she's basically optimizing that whole sales funnel
every step of the way, from getting people to her site
to encouraging them to spend more.
It's all very deliberate.
And it's clearly working.
OK, so the store is set up.
But how are people going to actually find it?
So Sarah decides to leverage a bunch of platforms, TikTok,
Instagram Reels, Pinterest, even YouTube Shorts.
It's smart.
I mean, each of those platforms has a different audience.
So you've got to tailor your content accordingly.
Yeah, and since she only had 10 days for this challenge,
she opted to repurpose existing viral content.
Of course, giving credit to the original creators,
it's a pretty practical way to get content out there fast
without having to start from scratch.
But on TikTok, Sarah had a very specific strategy.
She called it a TikTok hack.
And her belief is that if you post
a bunch of those super viral worthy videos
in the first hour of creating a brand new account,
that that can really help capitalize on TikTok's algorithm.
Interesting.
Yeah, the TikTok algorithm is known for identifying
and promoting content that's already
getting a lot of engagement.
Right.
So the idea is that if you can capture
people's attention early on, you can sort of ride
that wave of virality.
So the question is, did this hack work?
Well, it turned out that TikTok was, by far,
her most successful platform.
One of her videos even got over 100,000 views.
Wow.
Yeah, that just shows the power of understanding
those algorithms.
Right.
So posting consistently in that first hour,
tapping into existing trends, it all helps.
And it also highlights the importance
of choosing the right platforms and tailoring your content.
For sure.
Now, Instagram Reels did OK for her,
but Pinterest and YouTube Shorts, not so much.
So the big question on everyone's mind
is, did Sarah hit that ambitious $10,000 goal?
Drumroll, please.
Well, she didn't quite hit $10,000.
But in just 10 days, she generated $815.81.
Oh, not bad at all.
And all without spending any money on ads.
That's pretty impressive.
And she attributes the success to a few things.
That viral TikTok content that we talked about,
choosing a slightly higher priced product,
and of course, all the strategic upsells
that she implemented.
It really goes to show that with the right product,
the right pricing, and a solid marketing strategy,
you can really generate revenue quickly,
even without a big ad budget.
Exactly.
But revenue is only part of the story, right?
What about the bottom line profit?
So after deducting all her expenses,
things like Shopify fees, PayPal fees, and product costs,
her profit came in at $496.18.
Not bad at all.
Yeah, so that's a profit margin of over 50%,
pretty impressive for just 10 days of work.
So what can we really learn from Sarah's drop shipping
challenge?
Does this prove that anyone can build a profitable business
this quickly?
Well, it's what we're going to be diving into
in the next part of our deep dive, so stay tuned.
All right, so we've seen the potential upside of Sarah's
little 10 day experiment here.
I mean, a 50% profit margin, that's pretty enticing.
But let's be realistic, is it really that easy?
Well, like with any business, drop shipping
definitely has its own set of challenges and risks
that you got to consider.
And one of the biggest ones is finding a reliable supplier.
Sarah seems to have had a good experience with USA Drop,
but that's not always guaranteed.
OK, so what can go wrong with a supplier?
Like, it seems like they're just kind of in the background
handling the logistics.
Yeah, but you've got to remember,
you're essentially putting a critical part of your business
in their hands.
They're the ones getting the product to the customer.
And if they're unreliable, that can cause all sorts of problems.
Like slow shipping times, damaged products,
inventory issues, you name it.
Oof, that sounds like a nightmare, especially if you're
trying to build a good reputation.
Exactly.
Unhappy customers are not going to help your business grow.
And even if you do find a great supplier,
there's still the issue of competition.
Drop shipping is pretty easy to get into,
which means the market can be super crowded.
So it's not as simple as just throwing up a Shopify store
and watching the money roll in.
I wish it were that easy.
No, you really got to find a way to stand out,
whether that's through unique products, exception,
customer service, maybe a really strong brand identity,
or some combination of all of those things.
Right.
You got to give people a reason to choose your store
over all the others out there.
And we talked about how Sarah used social media algorithms
to her advantage, especially on TikTok.
But is that something you can rely on long term?
That's a tough one.
Algorithms are constantly changing.
So what works today might not work tomorrow.
You have to be adaptable and stay on top of those changes,
be willing to experiment and try new things.
So it's not a passive income stream, that's for sure.
It takes work and effort and a willingness
to keep learning.
OK, so let's say someone's listening to this,
and they're thinking, drop shipping sounds interesting,
but where do I even begin?
What advice would you give them?
The most important thing is to do your research.
Don't just jump in blind.
Take some time to understand how drop shipping actually
works, the pros and cons, and all the steps involved
in setting up and running a successful store.
That's solid advice.
Knowledge is power, as they say.
Are there any good resources out there
for people who want to learn more about drop shipping?
Oh, yeah, there are tons.
You can find so much information online, blog posts, articles,
courses, YouTube channels, you name it.
There are people out there like Sarah Finance, who
are sharing their experiences and giving practical tips.
So find someone who's already done it and learned from them.
Exactly.
Learn from their successes, but also their mistakes.
That can save you a lot of time and headaches down the road.
And when you're ready to get started, what would you recommend?
I always say, start small.
You don't need to invest a ton of money up front.
Remember, Sarah started with $0.
You can use a free Shopify trial,
experiment with different products and marketing strategies,
and see what works best for you.
It's all about taking those first steps
and getting some experience.
But it's still a business, right?
So you can't just treat it like a hobby.
Definitely not.
You need a plan, some realistic goals,
and you've got to be willing to put in the work.
Success doesn't happen overnight.
Sounds like patience and persistence are key.
We've talked about suppliers and marketing and all that,
but is there anything else that people should keep in mind
before diving into drop shipping?
OK, so we've covered the potential rewards, the risks,
but what about the actual skills and resources someone
would need to be successful with drop shipping?
It seems like there's a lot involved.
Yeah, there are a lot of moving parts, for sure.
It's definitely more than just finding a product
and putting the website.
You really need a good understanding
of those e-commerce fundamentals,
like how online marketplaces work,
how to manage your online store, process payments,
handle all the shipping and logistics.
Right, so even though platforms like Shopify
make it really easy to build a store,
you still got to understand what's going on behind the scenes
to troubleshoot any issues and make sure things
are running smoothly.
Exactly, and then there's the whole marketing side of things.
We talked about social media, but that's really just
the tinnity iceberg.
Successful drop shipper needs to be savvy
with digital marketing in general.
OK, so what does that actually involve?
Break it down for me.
Well, you got to think about SEO, email marketing,
creating content that people actually want to see,
and maybe even exploring paid advertising, things like that.
Wow, that's a lot to learn.
I'm feeling a little overwhelmed just thinking about it.
It can definitely feel like a lot at first.
Are there any resources you recommend
for someone who wants to learn more about all this stuff?
Oh, yeah, absolutely.
There are tons of resources out there, especially online.
You can find free courses and tutorials on YouTube,
Skillshare, Coursera, all sorts of places.
And if you're looking for something more structured,
you can always invest in a paid course or program.
So investing in your education is really important, huh?
Definitely. Having that knowledge and those skills
can make all the difference.
Makes sense.
So what about the more practical stuff?
What other resources would you recommend for someone
who's serious about drop shipping?
Well, first things first, you need the basics, right?
A reliable laptop and a stable internet connection
are non-negotiable.
You're going to be spending a lot of time online managing
your store, researching products, talking to suppliers.
Yeah, that makes sense.
What about tools and software?
Are there any specific things that can make a drop
shipper's life easier?
Oh, for sure.
Besides Shopify, there's a whole world of tools out there
that can streamline your operations.
Automate tasks, help you analyze data,
all sorts of things.
Like what?
Give me some examples.
Well, there are tools for product research.
Remember, Sarah used USA Drop to help her find winning products.
There are tools for email marketing, social media
scheduling, managing customer relationships.
You can find tools for pretty much anything you need.
Sounds like having the right tech stack
can really give you an advantage.
But even with all the best tools in the world,
you still got to actually use them, right?
Totally.
And that's where time management and organization come in.
Especially when you're first starting out,
it can be really easy to get overwhelmed.
Yeah, I can imagine.
Dropshipping takes a lot of work, a lot of dedication.
So it's not just about having the right skills and tools.
It's also about having the right mindset.
Exactly.
You got to be persistent.
You got to be willing to put in the effort.
You got to be passionate.
If you had to leave our listeners with one key takeaway
from all of this, what would it be?
Hmm, I would say that dropshipping
is a really unique opportunity to get into the e-commerce
world.
You can start with very little investment.
You have a lot of flexibility.
But you got to approach it as a business, not
some get rich, quick scheme.
Right, so invest in yourself.
Build a strong network and never stop learning.
Absolutely.
And always consider the ethical implications
of your business decisions.
That's important, too.
Well, I think we've covered a lot of ground today.
From the basics of dropshipping to all the skills and resources
you need to be successful.
But remember, the journey doesn't end here.
That's right.
The world of e-commerce is always changing,
so you got to stay curious.
If you want to learn more from Sarah's experience,
definitely check out her YouTube channel.
And do your own research.
There's so much information out there.
Yeah, and who knows?
Maybe you'll be sharing your own dropshipping success
story someday.
Well, thanks for joining us on this deep dive
into Shopify dropshipping.
Until next time, keep exploring, keep learning,
and keep pushing the boundaries of what's possible online.