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How much money do I need for buying $5 products?

by bm2
7 replies
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Please don`t say 5$. If you`re starting out to dropship you are going to need some money, Besides the money for the shop ads and apps. I heard that you need some money to buy products because Shopify in it`s infinite stupidity doesn't allow your money to be yours untill a 7 day period.
So if i get a 5 $ product from ALIEXPRESS how much money do i need to have in my bank in order to cover the first sales for wich i will have no money to buy because shopify dosen`t let you
#buying #money #products
  • Profile picture of the author dave_hermansen
    I think the amount of time money takes to hit your account is mostly based on the country you are operating from. With our stores, it is 3 days from the time an order is placed to when it hits our bank account.

    You can handle this situation either by having $200 available (that's 40 orders), putting the payments to AliExpress on an actual credit card and paying that credit card back when you receive the money or changing your shipping policies to say something like "please allow up to 7 days for processing" (nobody reads that stuff).

    No matter which one you decide to do, surely you would agree that the amount of money you might need to start this business is NOTHING compared to what an actual brick and mortar store would be. And, that's a pretty good problem to have when you don't have enough money on hand to pay for $5 items (meaning you must have a lot of orders). It's a problem that you'll have for your first week only (assuming you don't spend all of your profits immediately).
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  • Profile picture of the author MValmont
    If you know what you are doing, about $100 is all you need.

    As Dave said, which is NOTHING compared to a physical business.
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  • Profile picture of the author bm2
    And they can`t cancel if i put please allow up to 7 days of processing?
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    • Profile picture of the author dave_hermansen
      Originally Posted by bm2 View Post

      And they can`t cancel if i put please allow up to 7 days of processing?
      First, you need to update your shipping policies to state that cancellations can only be made up to 24 hours after placing an order or whenever it ships, whatever comes first.

      Are you assuming that every single person will cancel? A cancellation is pretty rare. If 1 out of 100 orders cancels, I'd be shocked. But let's say it is one out of every 5. Surely the profit you made from those other 4 more than covers the shortfall (besides the fact that the customer will not get a refund until the order has been returned if it has already shipped, so you're out maybe $7 in that case). If it hasn't shipped, you lost nothing on the cancellation.

      There are all sorts of reasons you can conjure up for why NOT to do something. It's the main reason most people are working at jobs that they hate.
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      • Profile picture of the author bm2
        But i can state the fact that we shipped the order and we can`t cancel because the transaction is done. There is nothing shopify or something like that can do in order to obligate me to refund him right?
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        • Profile picture of the author MValmont
          Originally Posted by bm2 View Post

          But i can state the fact that we shipped the order and we can`t cancel because the transaction is done. There is nothing shopify or something like that can do in order to obligate me to refund him right?
          Sorry to be rude be we already answered your question.

          You have to put policies on your website.

          If you want to be successful at this you need to become resourceful. Good luck.
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  • Profile picture of the author MValmont
    You need to invest in a good step-by-step course, you are lost (which is normal).

    You only buy the product on Aliexpress once someone made an order on your store, you have nothing to risk. If the customer cancels like 24 hours after, you simply cancel the order in aliexpress, if they cancel after, you can't refund them.

    If you are just starting at Free + shipping offers are great, and I don't even offer refunds on these, so you have literally nothing to lose.
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