HomeОбразованиеRelated VideosMore From: Start Starting Up - Greg Preece

Drop Shipping Mistake #1 - Pricing Your Dropshipping Product

159 ratings | 16948 views
• Setup your own dropshipping store with Shopify HERE: https://goo.gl/1CuQmC (2-week free trial) I'll be explaining 7 AliExpress dropshipping mistakes that I made in my first attempt at drop shipping, across 7 daily videos. I chose a AliExpress dropshipping product with a retail price that was too low. I had previously explained that a dropshipping product should be selling on your store at between $50-$200. I chose a product that I would sell at $14.99. This price was far too low and significantly reduced my potential total profit amount. The low profit amount also meant that any marketing costs that I spent to drive potential customers to my AliExpress dropshipping store had a significant impact on my final overall profits, and almost made the costs of marketing not worthwhile. All 7 Mistakes I Made With AliExpress Dropshipping: https://www.youtube.com/playlist?list=PLXE2mk0omPu5W6hzKBilrkBFcQwB54LeZ How To Choose A Profitable Dropshipping Product: https://www.youtube.com/watch?v=OBHf0aq7X_A How To Increase Dropshipping Sales: https://www.youtube.com/watch?v=aPqxvWPgACg My First Week Of Dropshipping: https://www.youtube.com/watch?v=ZEBfrQiHNi8 Remember to SUBSCRIBE to the channel for updates on my online business projects, so that you can to learn from my attempts at success :)
Html code for embedding videos on your blog
Text Comments (32)
Qamar (6 months ago)
Do you ship items in UK or worldwide on your website
Sophie Reece (10 months ago)
Hi! Love your vids- very helpful so far. Thanks! I've almost finished creating my first shopify yoga clothing store. And am wondering if you could help me with some slightly off topic questions I have from this video... So I am from the UK and will be soon setting up a UK business bank card and get a UK business mailing address. But my store is aiming to mainly sell in the USA with free shipping (I also have the option for customers to have worldwide shipping for a cost) My question to you is - Is it necessary for me to register my online store as a business in the UK? Even though I will be selling to the US and other countries. And are there any important legalities to be aware of? Thank you!!
Sophie Reece hi Sophie. That’s a tough one. You definitely need to be registered in the UK. There may be sales tax that you need to give to the us for selling there. I really don’t know the details though sorry
J Cooper (11 months ago)
Hey man, if you sell higher cost products, (above £15 like you said in your other video) UK customers get charged an import tax/ customs charge don;t they? Is this the same for other countries?
Prince Agyeman (1 year ago)
lol
B T (1 year ago)
I think one of the disadvantages of AliExpress dropshipping is that you’re reselling products available on AliExpress for 200+ % higher. A lot of buyers don’t know this, but some do. So, they’ll buy on AliExpress instead. Even the ones who don’t know that you’re reselling AliExpress products will find the exact same product on another site for $50 less. Then, it becomes a case of price wars. I’m my opinion, dropshipping is a good place to start with your business. But, if you want to turn it into a multi-million dollar brand (I mean, $25m+/year), then you’ll need to buy your own warehouse and source unique products instead.
I agree completely.
min htet (1 year ago)
pleases, How do you prices?
d s (10 months ago)
This is just superb, been searching for "companies that dropship products" for a while now, and I think this has helped. Have you ever come across - Gonrooklyn Dropshipping Fraternity - (just google it ) ? Ive heard some pretty good things about it and my buddy got amazing success with it.
Exzaf (1 year ago)
I'm 17, been selling stuff online since I was 14/15. Never had any guidance from someone in my life. I just researched and researched, made 1k reselling used stuff. Now I want to make a new business, and honestly if these were your findings then I'm sorry. What you said in this video was obvious
B T (1 year ago)
Exzaf Good for you.
Ahmed Khalil (1 year ago)
good point but most of the golden products are the ones below 50 , those that can pop up any second to thousands of orders , a matter of fact every pricing strategy has its own advantages and disadvantages
+Ahmed Khalil true. My only issue with lower priced products is that you don't have much of an advertising budget before you lose your profits.
TheBomber eRoTeX (1 year ago)
Do you think I should dropship 100$ products? They cost me about 20-50$ and I would sell them for an average of 99.99$. What do you think? And also, shoud I dropship those products or buy them myself and ship them away? I would not make huge amounts of sales in the first few weeks and with an average profit of 50-100$ I would be instantly able to ship more products to my home and ship them on my own to my customers.
In my experience, the higher the cost of a product the better. The higher profit absorbs the marketing costs :)
DanTe (1 year ago)
Question. For selling on FB, most people advice to sell impulse purchase products. but not sure if for that the 50-100 range could work. what's your opinion?
I think that's probably a good presumption. I'm trying to move away from impulse products and move towards necessity products.
Dennis Chen (1 year ago)
It's been about a month since I started my own DS business and I realized from my own price testing experience is that people tend to purchase when prices are between $40 - $70. Any less, and we're seeing less profit, any more and the item becomes too expensive and people don't purchase as well. Also, I found what works is placing two similar items next to each other with one bring cheaper but within that target range. Sales seem to go up because of that.
Alex Tweedy (1 year ago)
GOLD. We do this in menu engineering. Top of the menu is seafood platter at €65....makes chicken seem reasonable at €17!!!
+Dennis Chen sweet! Thanks for the feedback. I'll have to try that in the future.
Victor Barillas (2 years ago)
Great Video!, I just started a DS site but I find it hard in my mind atleast, havent attempted BUT if items are priced $50-$200 some people Might not pay this and will look for a "brand" that is equal that they trust, no.?
Potentially. I think the long term goal is to build a brand yourself that people trust. Getting to this point may be difficult with focussing solely on more expensive products though.
Good point on the pricing products.
Thanks.
Skylar Hinrichs (2 years ago)
Great, informative video man - thanks for sharing your experience. Right off the bat, I'm wondering if customers are more apt to doing price research on a product that they're about to purchase for $50+. If so, that could hurt if a dropshipping store is still a bit over-priced. Have you experienced that being the case at all, or have you found that sales still come with no problem, as long as you spend $XX.xx on advertising?
Stefan Milo (2 years ago)
Good point on the price. The only issue with that $50 target is finding a product that people are willing to spend that sort of money on and don't mind it being drop shipped.
Stefan Milo (2 years ago)
Don't act like you haven't seen it already
+Three Year Millionaire HAH! Looking forward to seeing the prototypes
Stefan Milo (2 years ago)
Facts! I've long believed that sex sells. For that reason I'm only including pictures of my buttocks. "Want shirts? Kiss my buttocks" is the tag line.
+Three Year Millionaire I think making the most effective Facebook ad to maximise clicks is key. Have to get as much value from Facebook spend as possible.
Stefan Milo (2 years ago)
Sure is. With the t shirts atm I'm looking at a 5 - 10 dollar porosity margin, which is obviously very small. We'll have to see what comes from it. I think I'm only going to incest the profit margin of 1 the shirt in Facebook ads a week. So $5 a week let's say and then be really selective with the geographical location to try and maximise results.

Would you like to comment?

Join YouTube for a free account, or sign in if you are already a member.