(This post is all about our journey in selling 3 products via drop shipping, primarily based on the guide in Dropship Lab)
Let us portray it phase by phase, so that you may be able to read, comprehend, be prepared and relate to any similar situations.
Phase 1 – Validating, sales, and identifying potential vendors
1. In video 1, we suggested the easiest, simplest and fastest way of figuring out an easy-to-sell product.
2. We ended up choosing a handbag product (and two other products) which we regarded to be potential (refer back to point 1).
3. Spend advertisement cost of $30 per day for second-tier country (as mentioned in module 5).
The purpose of taking this measure was to see if there would be any response from buyers or not.
4. On the first day, we managed to reach 5 units of sold products at the price of $19.99 (without using website).
The obtained net profit was reinvested as the advertisement cost in order to get more customers.
5. In the process of ordering these products via Ali Express, we used 3 different vendors.
6. Ever wonder what for? Surely, this was done so that we could find out which vendor was efficient and convenient to have dealings with.
7. In two days’ time of dealing with the vendors, it came out that we were at ease only with one vendor. They even gave us their email address for further assistance.
Phase 2 – Scaling up (spending and ordering), and establishing a long-term relationship with quality vendors
8. The moment product sales came to reach 10 to 50 units per day, we are not supposed to order alone.
9. We decided to hire a Filipino staff and compensate them with USD200 per month.
Subsequently, turn them into the admin of Facebook pages so that they could accomplish the following tasks:
a) Dealing with prospects and customers via Facebook Messenger
b) Submit sales reports as well as the total amount required to be transferred to vendor in line with the number of gained customers up until 10 p.m. every day.
c) Send customer details to the vendor for them to execute delivery processes.
10. At this particular time, we already tried to negotiate with the vendor regarding price.
After a proper discussion, they settled with much lower prices as compared to the one shown on Ali Express.
11. We portrayed a good impression when the vendor was surprised with the high sales we achieved. That was the reason why they provided special prices exceptionally for us.
12. Having said that, at this phase, we would be tested with delivery problems, product problems, refunding, and so forth.
But no worries, it was not really critical. Let’s continue with Phase 3.
13. Talking about the phase of scaling up (at which budget is increased and abundant orders come in; more than the usual record), we apparently do not have one definite and same way of scaling up for all products.
14. With the mentioned products we had, in this case, scaling up was done by launching more visual customers who previously used the products and were greatly satisfied (refer to module 5).
15. Note that the maximum budget allocated for each advertisement is up to $100 only.
Even so, we preferred to launch 4 to 10 advertisements in one shot by sharing the photos of our customers.
E.g.: $100 budget per day X 10 advertisements = $1,000 per day.
16. Major sales (50 to 200 units per day) undeniably do not take place every single day.
Even from this point, we could see ‘who’ the ones who love to buy our products are.
17. For instance, we would be able to know which country was the most active in buying these products, what sorts of interest needed to be applied in advertisements, and the like.
18. We also no longer used Facebook Messenger to close sales. In order to obtain a great size of order, we would need a specific sales page for these products.
19. With respect to the management staffs mentioned earlier on point 9, they would be assigned to concentrate on dealing with a small number of responses (such as inquiries) on Facebook Messenger.
90% of their time at this particular point would involve the process of providing the vendor with the data of customers for delivery purpose.
They would frequently submit the reports on sales data, number of customers, and already sent the reports to
20. Along this journey, it would be necessary to have another vendor with the same products as a back-up. Well, it is always good to have a plan B.
This stems from the large number of products which could lead into a high risk of defects.
They could be defective in a sense of quality, or perhaps the period of time taken for delivery, and etc. In our case, we somehow had 3 back-up vendors who were selling these products.
21. Oh, yes. Keep in mind to avoid leaving too much money in your Paypal account (should you have one).
Once the net profit has come to reach $2,500, it is a lot better to transfer the money into the your bank account.
This is no other than an effort to avoid any emerging issues like account blocking by Paypal due to the need of investigation (as it would sometimes take too long that rolling can hardly be easy).
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