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Is dropshipping still profitable?
Here is the thing, this is something that everybody knows about, yet something we really need to talk about – its this elephant in the room that is constantly there, getting bigger with no signs of slowing down. Yes, that’s Amazon.
So how exactly can you and I compete with a big corporation like Amazon? That’s the big question that needs to be answered. The biggest barrier you’re going to face is shipping times and prices.
Here’s the thing, Amazon is becoming the AliExpress of same day shipping. So how exactly do you combat this, how exactly do you go out there and make money, stand out and still become profitable in this day and age, when it comes to dropshipping?
The very first thing that comes to mind is that you need a combat this with off setting the price and lowering your price when it comes to Amazon.
If you are a non-branded store, meaning that your store doesn’t revolve around one product or a particular brand, then you’re going to need to undercut generic products on Amazon by at least a dollar. Why? Because people value their money more than anything else. So when it comes down to it, you want to go ahead and play off of that.
If something is selling for $35 on Amazon and you’re getting it for, say, 24.50$ – you can sell it for $34 in your store and people will cross-reference it with Amazon and see that you’re actually cheaper and psychologically they’ll purchase from you.
This is of course, unless they need that item really fast, then they’re going to get it from Amazon. So one thing that you can do immediately is lower your price by under a dollar, undercutting amazon, but a lot of times it might be hard to actually undercut Amazon. So you’re going to actually have to really dive deep into the supplier chain and find a product that meets your margin and your criteria as well.
Use a long-term strategy
Nobody sets themselves up correctly in this stage of dropshipping for a long-term play. This is something that we’ve been really big advocate here at SaleSource and we even go as far as saying that if you’re currently still trying to go after one-off sales, you’re fighting an uphill battle that necessarily isn’t going to ever end up profitable for you. You won’t ever win this battle because of Amazon and other ecommerce giants.
Amazon is this looming giant over all of us that’s waiting for your next move so he can combat you.
The sad truth is that a lot of dropshippers barely break even, because of the fact that they are focusing on one off sales and do not upsell to their existing customers.
Let’s say for example that you have a moderately successful store with a 15-20 % profit margin, if your monthly revenue is $200.000, then you’ll be able to keep around $30.000.There are couple of ways that you can dramatically increase your profits, without that much extra effort:
Firstly, you need to be using stripe – that’s huge. Without doing so, you would be leaving a lot of money on the table.
Secondly, you need to have a proper schedule or proper format to reach your customers that you’ve already acquired. So, if you are able to make a profit from the initial sale, within 7 to 14 days later, you’ll be able to go out there again and make even more money by selling to those same exact customers. The best thing, is that all you have to subtract is the product cost at that point, because you already paid for the advertisement, so it’s a no-brainer, not to mention that results will become obvious almost immediately, within the first month of doing so.
A good app that I would suggest using is SMS Bump
But one that I would really suggest for follow-up is Mail Funnels.
With mail funnels you have the ability to do one-click cart abandonment setup. You have the ability to have a post-sale sequence set up, so your customers get emails after they purchase,
for however many days you want. There is a lot of stuff that you can do.
You definitely want to set yourself up correctly when it comes down to a longer term structure and the person who’s willing to spend the most and who can spend the most on acquiring a customer will win the long-term game of e-commerce. That’s how it works. That’s what Jeff Bezos knows as well and that’s how he scaled Amazon to great lengths.
Over-relying on Facebook
Relying so heavily on Facebook, unfortunately isn’t the best idea – everybody puts all their eggs in one basket, when there are other platforms, such as Twitter, Pinterest, Instagram.
Interestingly, a lot of people don’t also realize is that Bing actually has 33 % purchase rate than Google, more buyers on average compared to Google.
Bing users are more of an older crowd, so they tend to purchase more, even though the traffic isn’t as big, in regards to volume, as it is on Google – Bing has higher buyer traffic. So you have Bing you can use, you know, Google ads still you can use Pinterest you want to start diversifying your traffic sources. Diversifying your traffic sources is very important.
Use different advertising mediums
Everybody knows about advertising on Facebook.
There are other unorthodox methods that some of our clients have been trying. For example, we have clients doing upwards of a million dollars per months running Google campaigns
Pinterest is another great way to run ads that no one else is doing. Pinterest is a platform for discovering new things, meaning that practically of the searches on pinterest are unbranded. This goes to show that Pinterest users are open to new product ideas and it’s a great place to run ads as a dropshipper.
If you want to advertise online, you probably didn’t have Snapchat in mind. The choice of social network is heavily dependant on the audience that you want to target. There is no point to limit your ads to the more traditional platforms like Facebook or Google if the vast majority of your audience uses Snapchat.
Reddit acquired 8 billion page views from over 235 million unique monthly visitors. Reddit has thousands upon thousands of targeted communities that are organised around every conceivable topic. It is the most engaged, the biggest and most influential platform on the web – the self-proclaimed Front Page Of The Internet, so it’s certainly worth exploring.
What I would recommend is harnessing and focusing in on one particular traffic source that you want to learn and master and once you’re done, you can then move to another one. But if you’re constantly hopping around different platforms trying to figure out which one works best, you’re never going to get the best results because let’s face it: You don’t have hundreds and thousands of dollars to burn through to test. So Focus your energy and time on one traffic source and really harness in on learning it and then move on from there.
Dropshipping is done correctly you can make a huge profit. However, if you’re doing what everybody else is doing and just throwing together some random store, running very generic ads, very bland targeting – you’re going to get lost in a vast sea of competition and your ad cost will drown you in a lot of debt.
You should always take a look at cross-referencing Amazon: What’s selling, what the price point is, see if you can undercut or see if you can do something a little better.You also want make sure that you’re diversifying your traffic sources. This is huge and not a lot of people are doing this.
Lastly, not many stores have a long-term proper structure in place, that’s why most dropshipping stores go out of business within first 6-8 months. You want to make sure you’re setting yourself up with a proper structure before have the ability to spend more money than everybody else does to acquire a customer, so you can make more money in the long term. That’s the name of the game in 2020.
Social media is an umbrella term that encompasses all apps, websites, and blogs that allow people from all over the world to interact through the internet. Anyone who wishes to use any social media platform must first sign up and then sign in to view content and communicate with other members of that social media platform. Facebook, Twitter, Instagram, WhatsApp, LinkedIn, and Snapchat are commonly used social media platforms. Social media, like all technological advancements, has both advantages and disadvantages.
Social media has become an essential aspect of life for many youths in today's society. Numerous young people carry on involving themselves with social media without even bothering to consider its effect on them. The consequences may be both good and bad at times. When it comes to the negative impact of social media on teenagers, the majority of the time, they are unfavourable if the activity is not linked with a commercial or professional objective.
Social media has taken on such significance in today's society that it has overtaken other concerns. | Photo by Sara Kurfeß on Unsplash
Social media has taken on such significance in today's society that it has overtaken other concerns. People, especially teens, are addicted to social media and have lost sight of the essential things in their lives like family, friends, physical activities, social interaction, sports, education and much more.
One manner in which social media harms our mental health is through the use of unfavourable social comparisons. Teenagers or even grown-ups who use social media spend a significant amount of time examining the lives and activities of their friends. Continuous comparisons lead to low self-esteem and negative body image in adolescents, increasing depression and anxiety in such people; this includes stalking their achievements, events, their pictures or the events they have attended. On comparing, it makes oneself feel worse about their life.
Teenagers or even grown-ups who use social media spend a significant amount of time examining the lives and activities of their friends. | Photo by Ángel López on Unsplash
We can only see the virtual aspect of a person while we are on social media sites. This means that we can only see the side of the situation that they want us to see. Many people make an effort to present themselves in a way that they are not. Bullying among peers is a common practice, which is acceptable to a certain level. However, when it comes to cyberbullying, it has a significant impact on a person's mental health, as the comments or posts may appear on the newsfeed of any individual and spread quickly. Depression and suicidal behaviour can occur as a result of such things.
Particular teenagers are highly prone to be manipulated. Such teenagers may feel the urge to alter their physical appearance as they begin to compare themselves with every other person they come across on social media. This can result in low-self esteem; also, there is a tremendous temptation to overindulge on social media. Hence, it can become an addiction for adolescents and cause them to get distracted, as already mentioned.
Several studies have found that excessive social media use is frequently associated with underlying problems such as depression, chronic stress, anxiety, or low self-esteem. | Photo by AH NP on Unsplash
Several studies have found that excessive social media use is frequently associated with underlying problems such as depression, chronic stress, anxiety, or low self-esteem. Hence, it becomes a social responsibility for us to keep a check on our and our friends' mental well-being by unplugging our devices, building solid friendships and beginning the search to find our true inner self by meditation, exploring nature and organizing offline get together.
Keywords: negative, unfavourable, friends, depression, teenagers, people, social, mental health
During festivals like Diwali, one shouldn't only pay pay attention to dressing up, shopping and meeting family members; an integral part of festivities includes cleaning and decorating our homes, neighbourhood and spreading joy. But while anybody can clean their homes, designing new spaces can be a tad bit cumbersome. With a restricted budget and high-priced decor products in the market, everyone is always looking out for new ideas that are both cost-effective and can transform your home to welcome Maa Laxmi and the New Year. Don't worry though, the following five budget-friendly ways shared by Niraj Johri, founder & CEO at Casa Decor, help you decorate your home in a manner that makes it unforgettable.
Adding metal accents
Adding brass, silver, or copper accessories in the tiny little spaces inside your home can elevate its overall design aesthetics. Metals are the epitome of elegance and luxury -- they can be moulded to lend an eccentric and dynamic fusion of colours. Due to their unpredictable nature, artisans can find numerous ways in which they can help accentuate every corner in your home.
Folded into intricate forms with beautiful solid colours, metals are an undeniably fascinating material to use in home decor. In fact, they are known for their polished and refined looks that bring together edgy, contemporary, and Victorian styles to the forefront. Such designs can usually be found in handcrafted decor pieces such as metal trays that are perfect centrepieces on wooden tables.
Adding brass, silver, or copper accessories in the tiny little spaces inside your home can elevate its overall design aesthetics. | Photo by Priscilla Du Preez on Unsplash
Flowers, flowers everywhere!
This Diwali one should endeavor to shift to organic decor pieces that make use of fresh flowers elevate spaces like doorways, balconies, stairs, or even put them in vases and let the flowers be the centre of attention. Houseplants and flowers not only brighten your surroundings but also boost your mood immediately. Since Diwali calls for parties at home, flowers can function as a catalyst for good vibes.
You can also make use of metal planters enchanted by unexpected colors and veins. Through their unique characteristics and diverse sets of textures, metal planters enable the preservation of charm and value unique to Indian handicraft traditions and cultures.
Since Diwali calls for parties at home, flowers can function as a catalyst for good vibes. | Photo by Roberta Sorge on Unsplash
Light lights! Tea lights
Tea lights are perhaps best used when they are placed inside intricately handcrafted ceramic casings that combine various traditional techniques practised through time. Each piece exudes a sense of muted culture that find a new life in the nuances of the design work.
Each piece exudes a sense of muted culture that find a new life in the nuances of the design work. | Photo by Sven Hornburg on Unsplash
How about some lanterns?
Lanterns with fairy lights is a very popular idea that can be found in most households today. All you must do is fill the jar with fairy lights and hang them in any corner of a room. They offer an inspiring firefly effect that lends a unique and inimitable look to spaces within homes.
Lanterns offer an inspiring firefly effect that lends a unique and inimitable look to spaces within homes. | Photo by Vladimir Fedotov on Unsplash
Mirror Mirror on the wall
Wall mirrors are another way of adding an aesthetic and elegant touch to homes. One can add different sizes of mirrors on empty walls and change the look of the entire area. A classic mirror will add richness to your home and function as a reflective piece to shed light in each corner. (IANS/ MBI)
Wall mirrors are another way of adding an aesthetic and elegant touch to homes. | Photo by Tuva Mathilde Løland on Unsplash
Following a huge growth in his personal fortune, Tesla and SpaceX CEO Elon Musk has renewed his promise to "extend life to Mars". According to The Star, Musk's wealth has swelled to an astonishing $230 billion. Or a whopping 861 billion Dodgecoin, a cryptocurrency backed by the entrepreneur after he was reported to have invested millions.
Musk is now richer than Bill Gates and Warren Buffett combined, both individuals who had previously held the rich list title. "Elon Musk (with a net worth equal to 861 billion #Dogecoin) is now richer than Bill Gates and Warren Buffett COMBINED!" popular crypto YouTuber Matt Wallace's tweeted.
To which Musk said: "Hopefully enough to extend life to Mars". "Have no doubt you will make it happen," Wallace responded. CEO investments, the creators of Dogecoin, also responded backing Musk's plans every step of the way. The SpaceX Mars programme was initiated by Musk to colonize Mars after he first conceptualized the project back in 2001. SpaceX's aspirational goal has been to land the first humans on Mars by 2024, but in October 2020 Musk named 2024 as the goal for an uncrewed mission. (IANS/ MBI)
Keywords: investments, combined, SpaceX, billion, Elon musk, tesla