1, 056 Likes 18 Dislikes
Discover the 6 big dropshipping mistakes the new Aliexpress dropshippers make (w/ Dan)
►► Free $10,000/Month ebook: http://wholesaleted.com/4-step
►► Why Long Shipping Times Don’t Matter: https://youtu.be/sBuiN-CVxE4
***OTHER LINKS REFERENCE IN THIS VIDEO***
►► Ecom Dudes: https://www.youtube.com/channel/UCpXfskk3Yg3_jCTXQVM-B3Q
►► Dan Dasilva: https://www.youtube.com/user/redcutmarketing
►► Sales tax video: https://www.youtube.com/watch?v=8MQFY9XI-ag
Dropshipping Mistake #1: Pricing Free + Shipping Items Too High
If you are doing the free + shipping model, do not be greedy and price your items too high.
When you sell an item and put a price on it, it is often ambiguous what the true value of the item is, because the customer has not manufactured the item themselves. They don’t know the true cost of the time/materials/expertise in creating the product. That means you have a lot of flexibility in the price you can put on an item.
But when you use the free + shipping model, the true shipping price is not ambiguous. Visitors to your site will have sent items in the mail before, they know how much it truly costs. They’ll give you some leeway for handling fees, but if you try and charge $20 for shipping, they’ll know they aren’t getting the item for free. A good, safe pricepoint for free + shipping is $9.95.
Dropshipping Mistake #2: Not Building a Brand
Most new Aliexpress dropshippers are focused on making a quick buck: their focus is simply on the initial sale, and not on any follow-up marketing, which is why they don’t focus on building a brand.
But this is a big mistake, because it’s going to hurt your ability to come back and market new products to your customers since they won’t have any trust built in you: they only bought your item off of initial emotion. You want to make sure that you have consistent branding (consistent colours, consistent images, a consistent message) in every interaction you have with the customer to build not only your brand, but their trust in you.
Dropshipping Mistake #3: Selling to Customers Outside of the USA as a Newbie
Here at Wholesale Ted, we recommend that new dropshippers focus on the USA market, and then expand out from there - EVEN if you live outside of the USA. The reason we recommend this is for the following reasons:
1) It is a HUGE market. There are over 323 million people that live in the USA. What that means is that there are tonnes of niche subgroups within the country that are interested in lots of niche things. It makes creating a targeted audience much easier.
2) Epacket shipping to the USA is very reliable and trustworthy. The ePacket shipping option that the USA has is handled by the United States Postal Service, unlike the ePacket shipping option to other countries which is mostly handled by China Post.
Other countries can be very lucrative - but as a newbie, it’s a lot easier to start in the USA, and to expand to other markets from there.
Dropshipping Mistake #4: Forgetting About Your Previous Customers
Something that both us here at Wholesale Ted and Dan have noticed is that new Aliexpress dropshippers are often very focused - almost obsessed - with getting new customers, and they don’t think about all of the opportunities at remarketing/upselling their current customers. This is a huge mistake because getting a pre-existing customer to buy from you again is a lot easier and cheaper because:
1) You already have their contact details/have pixeled them.
2) They have trust already built up with you.
So don’t forget about your previous customers. Keep marketing to them after the sale.
Dropshipping Mistake #5: Being Afraid of Taxes
A lot of people ask the same question: “What about taxes? I can’t start dropshipping because I don’t know how to handle taxes.”
Well, believe it or not, when you’re dropshipping with Aliexpress suppliers, your sales tax obligations are very simple. That is because your suppliers are based offshore in China. That means that you only have to collect sales tax in states that you have a big physical presence in, which for many viewers will only be the state they live in (and if you don’t live in the USA, the chances are you won’t have to collect and pay any sales tax on USA-based sales!).
In addition, whether you’re selling with Woocommerce or Shopify, collecting sales tax is easy, as both platforms have settings which will collect sales tax automatically for you. So don’t be afraid of this part - it’s really simple.
Dropshipping Mistake #6: Not Having a Plan on How to Upsell Customers
Finally, remember: the front-end products you sell are just the beginning. Think about additional products you can remarket/upsell to your previous customers to get them to buy more. This is what separates 5-figure stores from 6-figure & even 7-figure stores.