Why I prefer eCommerce over other types of Internet Marketing...

by 381 replies
483
I think the eCommerce subsection of the Warrior Forum was created about one month ago now.. I was excited when I first saw it go up because I've made most of money via eCommerce and I think it's the best way to make money online... I was looking forward to speaking to others who feel the same.

Unfortunately it seems that there aren't all that many people posting in this section.

While the Main Internet Marketing forums here typically have thousands and thousands of members discussing how to make money online, this section usually has less then 100.

I thought I would share why I prefer eCommerce over other types of internet marketing (which I still do participate in).

Hopefully this will help other members see why this is a great way to make real money that many members here are missing out on...

So why do I prefer starting an eCommerce business over any other type of online business?

• You can get started with a very small out of pocket investment
• You can manage the business in your spare time
• You do not need years of schooling or experience to succeed
• You will be building a real business of great financial value that you can sell for A LOT of money in as little as 12 - 18 months
• The techniques you learn for building your business can be repeated over and over until you reach your target level of income
• What you learn in eCommerce can be applied when starting other types of Internet Marketing businesses if you want to expand your income channels

I will tell you right now most of the preconceived ideas about starting an eCommerce business are totally false..

• You do not need to pay a web designer thousands of dollars to build you an online store
• You do not need to invest thousands of dollars into SEO and PPC campaigns
• You do not need to purchase ANY inventory to get started
• You do not need to sell a unique product with no competition

If anyone has ANY questions please ask me.

If anyone has already found success in eCommerce please post about it.

Let's get this eCommerce section filled up with people who are making some REAL money online.
#ecommerce sites, wholesaling & drop shipping #drop shipping #ecommerce #internet #marketing #shopify
  • Great post Alksense! I agree I'd love to have more people on here!

    Ecommerce is one of my favourite things to do online too. Like most people I make money a few other ways like internet marketing, web development and seo services but I'm focusing a lot of attention on my own ecommerce business because it's snowballing in growth.

    I love reading success stories, they motivate the hell out of me. I'm far from driving a Lamborghini but I'd say I'm a fair way ahead of most people on this forum in terms of ecommerce. So here is my story......

    I started my first ecommerce store in 2008. I ran it for about 18 months before selling it. I worked a full time 9-5 job the whole time. It was selling around $3k per month and almost double that in Dec for Xmas. I did a lot of things wrong which equated to making basically nothing, but I learnt heaps. I pulled roughly $3k out of the business for the whole 18 months and I put a lot of man hours in.

    Since I did not have capital I would accept orders on my site, then roughly once per week I would place the order with the supplier and ship it to my house. I would pack orders of a evening and post them on my lunch break at work. While the profit margins on the product were quite good it took a lot of my time and the double shipping was killing most of the profits.

    It came to a point where it got far too busy to meet the demands of the business in my spare time, but it wasn't making anywhere near enough money to live off - so I sold in 2010.

    I had a break for about a year and got back into it with a like minded business partner (my bro). We started a few stores and only drop shipped. It made some money but not much since it wasn't our main focus, we both had other things on the go.

    This year we decided to ramp up operations significantly all while creating a scalable business model that runs (mostly) on autopilot. Before entering a niche we research it thoroughly. We only drop ship. We setup a store, drive traffic, conversion rate optimize, outsource order processing and customer service and move on to the next store. We have built a team of employees who handle jobs like writing, adwords management, customer service, data entry and web development. We have documentation and systems in place so everything is getting easier and faster. When can have an ecommerce store setup in under one day including all products added, design, shipping pages etc.We are just using WooCommerce now - it's so damn easy and cheap.

    So I don't really want to disclose specific figures but we have been experiencing double digit growth for most months of this year. Our work mainly consists of growing as the stores essentially run on their own once set up and running - we just oversee everything and manage training/workers.

    I think anyone can be successful with ecommerce but you have to treat it like a real business. It seems most people have just 1 or 2 stores and make a little bit of money. They treat it like a hobby. If you want to make big money you need to get serious. Hold yourself accountable and focus your efforts on the bottom line (growing revenue and profit). Don't stuff around on the little tasks - you can outsource these to very skilled people for very little money. You don't need to be a professional website developer, adwords gun, or customer service guru. You need to focus on the bigger picture.

    Anyway I'll leave it at that, I've gotten carried away with this post but hopefully this motivates/educates someone about how good ecommerce can be!!
    • [ 25 ] Thanks
    • [1] reply
    • You use woocomerce
      before that how many ecomerce cms tested ?

      I will try now Woocomerce, I hope it works fine on SEO and Multilingual stores.
      I Work a lot over Joomla, but is to many time consuming.
      Magento and prestashop look fine, but if you need a SEO-Multilingual Store,
      Really I dont Know how Magento or Prestashop gonna work :/

      What do you Know about it ?
      Best SEO-Mutilingula Store, With a Nice convertion % ?


      Sorry about my english Iam native spanish spoken XD

      ---

    • Banned
      [DELETED]
  • @pavv

    Thanks for sharing your story!

    I started in a similar way almost seven years ago... I didn't drop ship but I brought in products directly from from China to the US and sold them online. I then discovered the power of drop shipping and learned that I could still make HUGE profits while eliminating 90% of the work I had been doing!

    I immediately cut all ties with my overseas manufacturers, started ONLY working with drop ship suppliers, expanded to over 50 different niches, and put all my stores on autopilot. Now I just start new stores and oversee the operations to make sure I keep getting paid!

    The best part is the cost of building each new store is next to nothing when you compare it to potential profit.... and once you learn how to identify hot niches and find drop shippers you can repeat the processes over and over (just like you and your brother are doing).

    I'm glad the two of you found success and I hope there are many more to come!

    This business really is a lot easier then most people think AND there is a ton of untapped potential out there.
    • [ 6 ] Thanks
    • [2] replies
    • Thanks for your kind words. I agree this can be done by anyone they just need to jump in. You can read and learn as much as you like but until you start taking action, making mistakes and learning from them you are going nowhere. It's all about the journey.
      • [ 2 ] Thanks
      • [1] reply

    • Congratulations on your success, I too love EComm sites, making decent money, just wondering aren't your profits smaller buy just dealing with drop shipping companies as opposed to buying from China? I'm from Australia and I don't think we have drop shipping here I might look into it, but just wondering how much do drop ship companies in the US markup the prices on products?

      Also what tool are you using for finding niches? I am using Ultimate Niche Finder, but I still have to have an idea on what specific area to work in, it doesn't do all the work completely like coming up with the Niche from scratch, please share some thoughts, since we are not in the same geographic market.

      Feel free to PM me if you do not wish to discuss some methods on here, thank you.
      • [1] reply
  • Great thread. I have a dropship store that does around $150 to $300 in terms of net profit every month, but I really can't scale it up much because its a tight niche. Having said that, I am planning on doing some PPC to try and divert some of the traffic that would otherwise land on other stores by hopefully outbidding them on some carefully chosen words.

    I really want to scale my dropship business and move into the other niche areas. I would really appreciate the help if you can tell me where I can source products to dropship to the American market, particularly in health and skincare. For my current store I was lucky in the sense that one of my 'competitors' offers reseller prices. So, effectively, I just buy from him and mark the prices up a bit (enought to ensure I make at least $10 to $20 an item) and sell on. All without actually 'buying' since I only do that after an order comes in and I then email dropship partner, who then sends the item out. I don't physically need to get hold of the products which makes my job much easier.

    By the way, which store scripts are you guys using? Though I am not using Wordpress for my only store, I am thinking I might use for other stores I am planning on building. Would WP Store lack the professional look? What you reckon? There should be some themes around.

    Do you think I can manage 10 stores all by myself in terms of SEO, Adwords, email management with dropship partners, customer service (email help)?

    I think building an email list is a good idea where people can opt into receive information in the future. The opt in can be done in the store and also as part of the buying process.

    My main stumbling block is not knowing where to source dropship partners.
    • [3] replies
    • This is a big bottleneck in my business. I can do everything else much faster than I can find good reliable suppliers in niches that are profitable and not over saturated. I think it's something you just need to find yourself though. Do some Google searching and make some inquiries. If you like at Alksense other posts he writes a fair bit about finding suppliers.

      Also, once someone finds a good supplier it's unlikely they will want to share (me inclusive) as that will just increase their competition!
      • [ 1 ] Thanks
    • "I would really appreciate the help if you can tell me where I can source products to dropship to the American market"
      - What I do is actually LOOK for competition. I brainstorm niche ideas that meet certain criteria and then I look for people who are already selling what I want to sell. I look for other online retailers who only sell for drop ship suppliers. Those who do not have warehouses, retail stores or showrooms.

      "By the way, which store scripts are you guys using? Though I am not using Wordpress for my only store, I am thinking I might use for other stores I am planning on building. Would WP Store lack the professional look? What you reckon? There should be some themes around."
      - I have tried almost every eCommerce CMS out there but at this point I ONLY use Shopify. They have the best customer support, the smallest learning curve and you will save a ton of money if you upgrade features of your store by using plugins from their "app store". Many off their apps that costs $20 and less would cost hundreds to have implemented into other eCommerce platforms.

      "Do you think I can manage 10 stores all by myself in terms of SEO, Adwords, email management with dropship partners, customer service (email help)?"
      - Yes, I run dozens at any given time with the help of a call center. Once you learn how to automated your businesses and choose niches that are not "customer service intensive" things will become much easier and require much less "hands-on" work.

      Signed,
      Another Anton
      • [ 4 ] Thanks
      • [2] replies
    • Banned
      This part is the most time consuming part for me. I can get a dropship store up and running in no time, but finding the best wholesalers/dropshippers is the trickiest part. I don't want dropshippers that compete with their resellers, so I eliminate them right off the bat. It takes a lot of digging until I'm happy with the products I'm selling.

      But other than that, I love ecommerce, certainly more than any other type of Internet Marketing.
      • [ 1 ] Thanks
      • [1] reply
    • Banned
      [DELETED]
  • How do you ensure your prices are competitive? These days many web shoppers use price comparison sites just before purchase, and even when you Google a product quite often one of the results is a price comparison between different stores. As a dropship store, quite often your prices need to be slightly more than competitors in order to make a profit , so how do identify a price that won't tempt people to leave your store to and go elsewhere?

    But I do think dropship is a great way to build up an internet business. If done scuccessfully its actually better than marketing to email lists who you always have to keep 'warm' to ensure they won't go cold on you. Not to mention, many people won't open the email in the first place.
    • [1] reply
    • "How do you ensure your prices are competitive? These days many web shoppers use price comparison sites just before purchase, and even when you Google a product quite often one of the results is a price comparison between different stores."

      I use these price comparison websites myself. That is how I get the majority of my traffic!

      You will notice if you search on price comparison engine it may say $1,343.52 from 76 stores.

      This isn't because the 76 stores magically priced their items the same.

      It's because their drop ship suppliers MAKE THEM price them the same. This protects every retailers profit. It is called MAP pricing (Minimum Advertised Price) and all legitimate drop ship suppliers enforce it.

      They are the ones you want to sell for.
      • [ 1 ] Thanks
  • @Anton543

    You just need to experiment with pricing. You can get a good idea from competitors but there are other reasons people will buy from you like guarantees, site design, branding, product quality, social proof, product reviews etc.

    One of my stores is in a fairly high margin yet competitive niche so we are able to be one of the cheapest and still make a solid profit. We also get a lot of sales because of it. We also clearly communicate to customers that great prices and great customer services is what we focus on.

    Another store I have the margins in the industry vary a lot. Some competitors are MUCH cheaper but these products are not dominated by big brands so it's hard to differentiate products between stores. We sell at quite a high margin but we still get sales even though our competitors ads are right next to ours. We offer things like free shipping, great customer service (live chat, fast communication) and quality products.

    The thing you have to think about is if you drop your margin how much more do you have to sell to make the same or more money? If you drop your margin from $50 profit to $25 then you have to sell twice as much.

    You are better off selling 100 orders at $50 profit ($5,000) than 180 orders at $25 profit ($4,500).
    • [ 2 ] Thanks
  • That helps. At the beginning I think I will to build up two more stores, one focusing one higher margin goods and one on lower (but not too low) as those are very frustrating. I mean if yous ell something you want to make at least $15-$20 from it.

    Do you employ someone for live chat? I don't think I will need to that at the beginning, but through great product descriptions and store Q&As, I think that process can be eliminated at first since people will probably find answers to any questions they have.

    With fewer and fewer people shopping on the high street, I think its a great time to to get on to eCommerce. But the biggest challenge is finding dropshippers.
    I suppose that will be my task for the next few weeks.

    Even though I am in the UK I only want a store selling to American customers. The international shipping costs often make it prohibitive. However, my current store, a UK based one, I offer free shipping to the UK and small fee rest of the world. Of course, my dropshipper takes care of everything in terms of sending it out, returns and so on.
    • [ 1 ] Thanks
    • [1] reply
    • "I mean if yous ell something you want to make at least $15-$20 from it."
      - I personal want to make at least $40 off each sale from my drop ship websites.

      "Do you employ someone for live chat?"
      - I do now, but in the past I've handled it all myself. You basically get the same questions over and over and it's easy to train someone to answer them.

      "Even though I am in the UK I only want a store selling to American customers. The international shipping costs often make it prohibitive. However, my current store, a UK based one, I offer free shipping to the UK and small fee rest of the world. Of course, my dropshipper takes care of everything in terms of sending it out, returns and so on."
      - If you want to sell to US customers you can open a store that is targeted to US customers. I work with people who live all over the world and do business in the US. To get started you would however need a US corporation, a US bank account and a US merchant account.
      • [2] replies
  • But the country where i live, I can't able to start eCommerce business. It is good for US/Canada/Uk. I live in the third world country. So it's hard to start. Do you have some tips for Asians/African?
  • alksense, great post.

    Ive just started this type of business lately and so far what I do is buy in bulk at low prices, take the cheapest shipper possible, mostly free 90% of the time (I dont mind waiting 2-3 weeks to get it and not pay for shipping), then I put all the stuff in my basement and do the shipping to the customers as the orders are coming in.

    What I sell is quite small so it doesnt take much space in my basement. I dont think it would be viable or as much profitable to dropship in my case because Im selling in Canada mainly and my products are bought overseas, delays and shipping fee would kill this.

    I use this business mainly as a learning bacon since I had no experience in this field before so I dont mind losing some profit or putting tons of effort into this, im learning so much!

    After reading your posts, I might consider going for dropshippers and with higher priced item for my next projects but I wonder if this would be a viable alternative in Canada since the dropshipers will probably come from the USA and the random custom fees and shipping delays might become a pain at some point.. I dont think dropshipping from overseas to Canada is a great idea either... which is why I prefer getting the stuff by myself right now.

    In other words, the best thing would be to open an eShop in the USA right? Is is hard to get the US merchant account, papers, numbers, bank account?

    Thanks for your time !
    • [ 1 ] Thanks
  • Hey Justin,

    I've never actually went through the process of setting up a US bank account and merchant account for a non US resident so I personally don't know how hard it is or what it costs but I know it's possible.

    I've worked with people from the UK, India and even Israel who set up drop shipping businesses in the USA.

    It's great that you independently starting taking action. I'm sure you're learning a lot.

    Obviously, I would recommend you get into drop shipping because you will have the potential to make A LOT of money and you will never have to ship anything on your own again!

    Have you ever thought of starting a drop ship business only selling to Canada (from Canadian suppliers) to get started?

    I actually have some drop ship suppliers who are located in Canada and I ship their items to my customers in the US (as well as in Canada). I' would think they sell through a lot of Canadian retail websites as well.
    • [ 1 ] Thanks
  • [DELETED]
  • My mistake, I thought you were from the UK.

    Thats a good point, I might start looking for dropshippers in Canada and maybe limit my online store to what they have to offer and see from there what can be done, then I could find and add dropshipers from the US.

    Im currently using Prestashop and WooCommerce for another store, did you ever give those a shot? What is it you didnt like ?

    I'll take your words and give shopify a try

    Thanks for you help, this is serious business.
    • [1] reply
    • I actually have used WooCommerce and I personally didn't have any problems with them. There are tons of other great eCommerce solutions out there that work great as well... it's not that I dislike them, it's just that I like Shopify more.

      I said it earlier in this thread but I'll say it again; they have the best customer support, the smallest learning curve and you will save a ton of money if you upgrade features of your store by using plugins from their "app store". Many off their apps that costs $20 and less would cost hundreds to have implemented into other eCommerce platforms.

      I like them because they save me money long term and because I can launch highly converting stores with them in just days. No waiting around for programmers and designers who I have to keep paying for updates. Just a solid infrastructure that's easy to modify.
      • [ 3 ] Thanks
  • Excellent, I'm gonna give it a try in the next days for another project.
  • Thanks for making me aware of that. I must admit I never even thought about getting into eCommerce, I don't even know why.

    Maybe my subconscious mind told me that is way too complicated and expensive to set up even one shop.

    So at least you got me started to learn more about eCommerce though I still read it and tend to say, sounds nice but how would I do that?

    I always thought best is to make money from real things like a commission for peoples' purchases from amazon, however, never thought about selling myself.

    Cheers
    Dan Hower
    • [1] reply
  • I saw this thread and decided to join the conversation. I've been in ecommerce for a little over a year now and learned a lot. I am trying to get to $100k/month in sales but its damn hard to scale that much, so far my best month was $45k.

    I can tell you one thing about prices though, they don't matter. You could sell at additional 10-20% markup over your competitors and still get majority of sales. You know how? Reviews. What matters is your reviews and customer service. Once you get good amount of positive reviews syndicated into your comparison shopping listings, as well as those star ratings... It's on.

    Alksense, I've read your ecommerce starting guide, it's quite good. Thanks for sharing.

    I almost think there should be a system/website/marketplace where this whole dropship dilemma/bottleneck should be addressed. Hmm, maybe that will be my next startup
    • [ 3 ] Thanks
    • [1] reply
    • You're absolutely right! There are companies out there that try to make drop shipping easier for newbies but in opinion all they do is hurt their customers by not leaving enough room for profit.

      To help, I've created my course (which getting AMAZING feedback!) and I'm working on a BIG project right now that puts seven years of drop ship supplier sourcing into one resource.

      Stay Tuned!
      • [1] reply
  • On the bigger note, I feel like eCommerce is going to replace a lot of physical shopping. I believe I heard this on Bloomberg the other day that traffic to the malls is decreasing thanks to online comparison shopping.

    any thoughts?
    • [1] reply
    • I completely agree. This is why a lot of big box stores are going out of business.

      Customers get their ads and even sometimes go to their stores to test the products, then they jump on google with their smart phone and buy at the store with the best price.
  • Alksense- thanks for your story...I have read about this business a while back but never took part in seeing what it was all about, but now you have me wanting to get more information. Your a life saver!
    • [ 1 ] Thanks
  • alksense,

    How do you take care of returned items from your dropship businesses, particularly product that are physically big in size. Do you have your customers return the item directly to yourself or have them return to your dropship partners who then deal with the returns? Wouldn't this involve extra costs and you customers finding out that another company was actually involved?

    For my own store, my dropshipper has any returned items sent straight back to him. But we are talking about small items here and he doesn't put his own label.
    • [1] reply
    • I only work with drop ship suppliers who accept returns. With that being said, every supplier has their own return policy and their own terms. I make the return policy on my stores basically a summary of my suppliers polices to protect myself.

      It typically works like this:

      If the customer receives their item(s) and are unhappy with them for any reason they have 5 - 10 days to return them (this varies on my sites based on my niche and based on what my competition is doing).

      If a customer wants to return any item they have to first email my company for an RA# (return authorization number).

      To return an item is has to be repackaged the way it was received.

      I provide my customer with the drop ship suppliers warehouse information for the return and obtain return shipping labels from my suppliers to send to my customer.

      If the customer does decide to return the item they are responsible for actual return shipping charges and their calculated refund is issued once their item(s) arrive at my suppliers warehouse. (this is also when my suppliers refund me or provide me with credits towards future orders).

      Regarding the customer finding out another company is involved; it's no big deal. If you go to Best Buy tonight and buy a 70'' Sharp LED TV that you have problems with they are going to tell you to call Sharp about it. We are not branding the products we sell as our own (at least that's not what I teach).

      Hope that helps!

      Thanks,
      Anton
      • [ 1 ] Thanks
      • [1] reply
  • One of the main reasons I like eCommerce over any other type of marketing is because I own the customer, and they're on my list.
  • Interesting points, OP! I'll have to think about this more.
  • World Wide Brands is where I get all of my dropshippers from. Also, I like the MAP pricing to keep the competition from pricing too low. I was trying to sell on Ebay but there are a ton of people on there cutting the prices to the bone so I couldn't make any money.
    • [4] replies
    • This has been a great thread so far. I've been dabbling in IM for the last 4 years, but have always thought about getting involved in e-commerce. It seems more stable and the kind of business you can truly sell at a later time.

      Thanks for the info!
      • [1] reply
    • It's not easy to find a product that isn't being hawked and sold with razor slim margins by hundreds of other dealers.

      In the last two years I have found three. It took me a lot of trial and error. However, those 3 product lines are putting a lot of money in my pocket this holiday season.

      But I spend several thousand dollars and three months before I made a dime.
      • [1] reply
    • MAP is a huge part of being successful in this business. I will ONLY sell for suppliers who enforce it and if I see competitors who are undercutting it and find out the suppliers are not taking action I remove all of their products from my stores immediately.

      Think of it like this; If sell for suppliers who don't enforce MAP policies all you are doing is advertising for your competitor who is willing to make the least amount of profit.
    • Need to have a niche on eBay these days. Simply trying to make a buck consistently over time now takes a much more business minded approach than the average seller cleaning out his closet. eBay has mad a lot of changes that have been frustrating to many but at the end of the day it's because they needed to clean a very dirty house and slow down the invasion of it's customer base that migrated to Amazon for their purchases.

      Again, it does take a bit more work but the long term benefits will really kick in and you'll have something worth while where all your no longer competing with so many sellers that had the same excuse for abandoning eBay.com as a sales channel all together.
  • Banned
    [DELETED]
    • [2] replies
    • can I ask if your niche is big or not? 3 suppliers in a year, seems super low

      How would you go about checking if MAP is enforced. Would you email your rep and ask them "wtf is this?" type question? Is there a way to find out if they enforce map policy without having to upload thousands of products and spend a bunch of time signing up with suppliers?

      Thanks!
      • [1] reply
    • How is it that having a dropshipping site can be successful, when most people have not established trust with your site ? Isn't it easier for customers to just go to Amazon and shop from there ?
      Looking forward to your feedback.
      • [2] replies
  • yes , im can started with little investmen
  • Online business gives you access to the largest market available, with billions of people currently connected and that number growing on a daily basis. One of the greatest advantages of e-Commerce is cost. It simply is the most cost effective way to open a business that is opened 24 hours a day.
  • I'm also glad there's an eCommerce section now, I've always wanted to create one.
  • Normally how many products you should put up in your ecommerce store for making decent amount of money monthly?
    • [2] replies
    • It depends on how many I can find in any given niche... It can be as low as ~100 or well over 10,000. My average is probably around 3,500 though.
      • [1] reply
    • Banned
      I've got 3 ecommerce sites with about 1,000 each that I put in manually. Got another one with 10,000 that is fed by a datafeed.
      • [ 1 ] Thanks
      • [1] reply

  • I have always been little surprised more people are not doing ecommerce. Maybe its cultural and people think pure blogging is either easier or quicker way of making money. But I agree with you...ecommerce is not only more profitable its the direction of future internet marketing. I will take it one step future...being the manufacture of the your product, setting up ecommerce site with parallel blog gives you total control from top to bottom and 100% of the profits.
    • [1] reply

    • Two reasons. One, stocking your own items and selling is a lot of work; secondly, if they go for the dropship method its not easy sourcing businesses that will do that for you.

      The former is more profitable but carries with it greater risk and more more work.

      It does mean barriers to entry is higher in ecommerce compared to blogging, which in my opinion is not a bad thing as it means less competition for people who do it well.
      • [1] reply
  • Great thread especially on the subject of drop shipping. Speaking from the other side of the floor I recently started manufacturing my own candle accessory and am struggling with the cost of shipping. Sales to date estimate the retail value around $15, cost is $3 but I can't find ground shipping for less than 7 USPS and 9 for FedEx. What can I expect a reasonable profit margin to be for an eCommerce site? How much would you charge the customer for shipping or would you offer free shipping?

    Thanks
    • [1] reply
    • Banned
      Either tack the price of shipping onto the price and offer "free shipping." Personally, it's just not worth it to me to offer products in that price range.
      • [1] reply
  • just wanted to know what MAP is

    and for those using dropshippers what happens when they don't deliver and you lose money/customers which will in turn tarnish your (business) reputation
    • [2] replies
    • MAP stands for Minimum Advertised Price. Reputable brands (who drop ship) enforce these policies to make sure that retailers don't lessen the value of their brands by selling their products for cheap prices. This protects the suppliers brand and protects the retailers profit margins.
    • Banned
      The MAP question has already been answered, but I've only run into the dropshipper problem once and that was with Aliexpress. Fortunately, it was a test purchase and I'm the one who didn't get the product. You need to choose your dropshipping companies carefully and choose companies with good reputations.
  • I'm officially jumping into discussions on this forum. I do about 2 million right now between sites and amazon. No dropshipping.

    Currently struggling with generating targeted traffic and growing my email list.

    My niche (just 1) is growing more competitive by the day which is why we've branched into our own brand as well.
    • [2] replies
    • Do you drop ship for other online retailers? If you set up a drop ship program you could contact all of your competition and try to get them to carry your brand...
      • [1] reply

    • what is your niche
      • [1] reply
  • If you have distribution part figured out, branding products is the single best thing you can do. I made an automotive brand and sold it couple months ago. When you brand stuff just make sure you trademark your logos, so that you can send cease and desist letters to everyone piggy backing off your product on amazon and everywhere else...

    It's madness out there but it's worth the stretch.
  • hello,alksense.can i take a look some of your ecommercie websites?I also added you on my skype.thanks
  • @shuwangyan

    Sorry, but no. Most people here are looking to start an ecommerce business so I'm not going to give away my niches.
  • That is what I really like about eCommerce sites. Anyone can do it.
  • This is a great thread! In the past I have toyed around with the idea of e commerce as an income stream - bought a WSO by Sam England and learned tons. Put it on the backshelf as I did some other things. Lately been working a couple of Amazon sites - still new so not much activity.
    AS to the poster in his 50's - so am I. I agree that this and other vehicles on "the net" can make for a great retirement income so keep at it.
    Alksense - I see you are in NY - me too. Where abouts? Would love to chat over a cold beverage with you! PM me if you don't want to disclose here or don't if you want to keep it a secret.
    I will be reading this section more and more as time goes by.
    • [1] reply
    • Banned
      Sam's ecommerce WSOs are great. Got one myself.
      • [1] reply
  • Alksense, very excited to come across this thread. I have not ventured into ecommerce as yet, but was always thinking to venture in that direction. I was made very aware of it recently because of coincidence via connections, in this case my cousin. I know about a launch taking place next month - a new software that allows for professional online shops to be created automatically within minutes with over 50 000 000 products to choose from. Templates provided with script license. I know about this as my cousin is the creator (joint venture with his business partner) and I was asked to create the video that will go on the website. I have received a license for free and will keep you posted how it works for me. I am looking forward to learn much from you as you are already experienced in this field
  • Alksense and others, do you feel it is important for ecommerce stores to have a favicon up in the address bar?
    • [2] replies
    • I don't know how much of a difference it makes but I add them to all of my stores.

      I just take take my logos and have them converted to .ico files here:

      favicon.ico Generator
      • [1] reply
    • This would be an item included on the ridiculously long list of "things that have almost no impact on sales which I will get to when the important stuff is done."
  • Hello All

    This will be one of my first posts on warrior forum.

    I want to talk about the experience I've had being a newb and trying to start my own ecommerce website.

    I have ALWAYS wanted to get into ecommerce, as I've always been the tech geek, coupled with a crazy imagination and lots of ambition. It's essentially the perfect combination for success, in my own mind.

    When I got married, I started getting onto my wife on what she would like to sell. She's brazilian, and loves lingerie (lucky for me). She knows of a small town in her home state of rio where they do nothing but make lingerie, and sell it to distributors. But you can go to this town yourself and buy direct for insanely good prices, on very high quality apparel. So being that I had some money to invest, we bought a couple grand of stock with the intention of selling it online.

    I tried to go big right from the start. I didn't want to invest too much money, but I knew people want to buy from "reputable" sites. So I designed a web page using magento, bought some themes to spruce it up, and paid someone to do logo design etc. Then, I put up some shared hosting. Then, I decided I should give buyers the option of paying by credit card without using paypal. So I jumped through all the hoops I needed to get a merchant account, got a legit business license, etc.

    Do you see where this is going?

    I was investing serious amounts of time, energy, and money (okay, not big money, but for a side business $5,000 is not fun to just throw around). Once the website went live, I knew I needed some SEO, but with all the money I'd spent, I realized even if I sold all the stock I bought, I wouldn't even break even, and then I'd still have to go through the bullshit of having to constantly restock with the distributors in Brazil, pay for SEO, etc etc.

    Fastforward a few months. The website is still alive, but not a single sale was made. I cancelled the business license, ditched the merchant account, and moved overseas due to my primary career. I still have all the stock I purchased.

    I have no idea what I should do from here.

    I want to get rid of my stock, but reading this forum, I was going about it all wrong from the beginning. **** trying to do it all myself, carrying a large stock and handling every single detail. Even if the business was "successful", the amount of time and energy required to make it work wouldn't be worth the potential profit.

    Hope to get some inspiration for my next venture.

    I'm hungry, and I'm ready to do what it takes. I just need some damn direction. Jumping in head-first without any research wasn't my brightest of ideas.
    • [ 1 ] Thanks
  • and I want to be clear that ecommerce is where I feel I should be. I tried like hell to get motivated to do affiliate marketing, especially seeing how many people were making huge paydays. But it's just not my thing. And if your heart is not 100% in it, you'll never truly be successful at it.
    • [1] reply
    • I've contacted 5 different drop ship companies... They all say I need a brick and mortar store before I can sell their stuff online or they have too many drop shippers or only deal with large websites.

      It's very frustrating.

      I guess I'll try to visit some random trade shows and hope to get lucky.
      • [1] reply
  • This post is great information!

    I have sold on ebay and amazon and by far these are the easiest and quickest ways to make long term money online. It does take some time to build up but once you get it going you can really make some bucks.

    Proper research online can help you find products and items that will fly off the shelf.
    I would recommend you spend a good chunk of time doing so because it can be the difference between making or loosing money.

    I typically use alibaba as a source for finding products and sourcing. Just starting off with an idea or products you can sell and working backwards can give you some really great ideas.

    I have never tried droppshiping but may invest some more time into that route.
  • Those of you who do dropshipping, how do you know whether a niche is going to be profitable before you know what the suppliers prices are?

    There seems to be a bit of a chicken & egg element to it, because before a supplier will accecpt you as a retailer, you need to at least set up a website to show that you can sell their products, but surely you don't know what kind of margin you can make until that supplier accepts you and sends you a price list? Are people hedging their bets, or is there something I'm missing?
    • [2] replies
    • I always set up my websites prior to contacting drop ship suppliers in whatever niche I am entering and you're right, I personally don't know what my profit margin will be prior to getting approved for accounts and seeing price lists.

      From my experience the average NET profit on my stores is ~20%. I have some stores where it's as high as ~40% and some where it is as low as 15%, but it's typically averages out to be right around 20%.

      To have the best chance of getting yourself into a profitable niche you have to put most of your work in PRIOR to building you first store while doing your market research.

      There are a lot of things I look for prior to choosing a new niche to enter but the main things that I need to find are at least 30 suppliers of whom all enforce MAP policies.

      Hope that helps!
      - Anton
      • [ 1 ] Thanks
      • [2] replies
    • Banned
      I don't always know what the pricing is before I'm accepted by a wholesaler, but I do know that if they are too high, there's no contract that says I have to sell their stuff. There's often/usually at least several if not more, wholesalers for a good niche. I use more than one and won't hesitate to drop one if I can't make a profit from them.
      • [ 1 ] Thanks
  • I used to dropship for 3 years and trust me, there is more workload involving Ecommerce than IM.

    The price changes, shipping updates, client's complaints, missing items etc.
    You dont have any of those problems with Internet Marketing
  • cool stuff
  • Hey Guys,

    I am really glad WF finally has an e-commerce area.

    I need some help. I have two stores that combined do about 2-3k profit per month. My traffic is 90% paid advertising. I have about 5 different areas where visitors come from.

    Lately the profits have dropped about 20% and I can't keep paying all the paid advertising as I was before.

    So I was hoping someone could help me out with recommending someone trustworthy that has ecommerce google analytics experience to help me set up my sites to track a visitor to sale/abandonment.

    I would appreciate any help or suggestions.
    • [2] replies
    • Which eCommerce platform are you using?

      It's typically very simple to install the tracking code... you should just Google "your eCommerce platform + Google Analytics for eCommerce" and try to find installation instructions.

      Good Luck!
    • Are you listing your items in the various shoping feeds? That's where I'd start. Make sure you're using every one of them.

      Another quick question - do you do any content creation to supplement your products? that could be a good way of attracting visitors using more traditional SEO principles. I've worked with folks who published "how-to" guides for their products, and put all their instructional material online and that's been helpful. If you could create content based on how to get the best use out of your products, that would help too.
  • I must admit, that drop shipping attracts my attention much more than IM does; but I find IM challenging and fun in some odd fashion. I have done SOME IM, but no drop shipping and I surely want to, so this post is a great starting point for me. I have dug into information on it before and just set it and rested it when I probably shouldnt have. I know this question is doing to seem off to the subject, but with IM I was never interested in selling and promoting books from Amazon or another venue. I am interested in actual physical products from Amazon other than books (although I do enjoy IM clickbank products). So let me ask you this: say you see a product on Amazon ( like a piece of exercise equipment for 899.00 bucks). Would you go out and make an entire website dedicated to that product and solely that product? This is where my mind gets a bit confused and how to marketing Amazon products other than books. I can write an entire website based on a book and its contents as I will have alot to say, but when it comes to a product how can I write about that other than "heres my review" and making it a one page site? See my confusion?

    Also, where are you finding the companies that allow drop shipping at? Once you find the drop shippers that you want in your niche, you would make a website and then apply ( I get that part, even add in chinavision to have some products already on there to sell), but how is everyone finding these companies??
  • @alksense Hi, It could sound a very dumb question, but I am very new to this and have no idea at the moment. Right now, I've an amazon affiliate site(3 months old) which is still very new so just 4 sales until now. I am interested in eCommerce. What I know about this is that in eCommerce we need to find suppliers, create a site, get orders and forward the shipping details to the supplier and that's all what I know. I am not sure who receive the payments? Me or supplier? And another thing, if most of the customers are located in a specific country(say USA), then do I need to find a supplier within USA(to reduce shipping cost)? What if I find a good supplier outside that specific market(country), how to manage things then?
    • [1] reply
    • Hi,

      With a drop ship business you receive the payments directly from the customer. I use a merchant account, PayPal and Google Checkout to give my customers the most options as possible at checkout.

      I own some stores that ship internationally but by far the majority of my sales come from the USA (with Canada being a distant second).

      I've never targeted overseas markets but if you're planning on doing business in the US I would 100% recommend sourcing suppliers from the US.

      Hope that helps!

      - Anton
      • [1] reply
  • A great read indeed. I have a pretty good start in the eCommerce world with my one site, and I am building my second next week in a great niche market. I have a strong social media following but am developing that further. No SEO on my site right now.

    However---my downfall is I really have one supplier---now I can get my product from other suppliers--but I choose to just work with one. I am adding a second next week for different products. The issue I see ---if I have customer John Smith order products A, B and C and they are all shipped from different drop shipping companies? What do I do then? That is a lot of shipping?

    My big question. I am planning on adding my products---some niche products too--but I am worries about the shipping issue. I do ship from overseas, but new source is USA--as well as developing my own brand.

    Thanks!
    • [1] reply
    • I mostly sell large and expensive items items online so I am able to offer free shipping and absorb the cost myself.

      Most of my sites sell for 20+ suppliers so it's common to ship from various places. I can tell you that customers do not mind this at all. You just need to keep them informed and send them tracking info for each individual piece as it becomes available and you will not have any problems

      - Anton
  • Thanks for sharing ! I totally agree with what you said about Ecommerce and that why im trying it out. Im about to launch my first ecommerce site and facing many problems.. but i will take them down one by one.

    It seems like i know nothing about dropshipping....shame...
    • [1] reply
    • The first time is always the hardest

      The good news is you can take all of information you are learning by correcting your problems now and then use that knowledge going forward entering more and more niches.
      • [1] reply
  • @Hisma

    Lingerie is super competitive and highly saturated. I have a website in that niche, but it's branded/designer. If you want to be in that niche, you have to heavily invest in branding/pr/etc to differentiate yourself from the drop ship sites, chinese sites, affiliate sites, etc., If your merchandise is unique, you may want to try selling on Amazon.
    • [1] reply
    • I am still stumped by this question that another user asked:

      ":The issue I see ---if I have customer John Smith order products A, B and C and they are all shipped from different drop shipping companies? What do I do then? That is a lot of shipping"

      I was thinking about that last night.If someone comes to my site and say they grab up five products which happen to be from five different suppliers, and the shipping is 5.00 a piece for example, I doubt they are going to be happy paying a total of 25.00 shipping and would probably leave my site to go to another site. So there is absolutely no way around this other than keep the customer informed?
      • [1] reply
  • Yes--that is where I guess I just break even on some items? Or dont make as much profit. I need to actually run those numbers as I am adding ...slowly....more products from different makers.
    • [1] reply
    • So product variety is important to attract customers?
  • Hi Anton,

    Let me get this right, I stock up the web store,
    then contact suppliers. After contacting them all,
    isn't there a distinct possibility none of them drop ship?

    Is there a way to minimize that possibility in my research phase?

    Thank you.

    Best,
    Ewen
    • [1] reply
    • Banned
      I don't stock up a store until I've been accepted by the wholesaler and know that I can make a profit from their products.
      • [ 1 ] Thanks
      • [1] reply
  • Just have to chime in here to say that Anton (Alksense) is the man when it comes to ecommerce. I was one of the first to buy his course (well worth it!) but his site is full of a ton of great free info.
    • [ 1 ] Thanks
  • Hi,

    what an great ecommerce millionaire thread!

    Anton for me, its not easy to find europe dropshippers (I'm from europe) and when I have it understood right, as an dropshipper you can not sell on amazon, then you must send these products first to their amazon store before amazon sell it for you, so you must buy these products first. or you not buy and sell it on ebay.

    In europe I have found 1 serious supplier, but you must pay 70$ to get their csv,yeah I think the most suppliers want money from you first, so how I find serious dropship suppliers without spend an investment? That is the big quiz show millionaire question.

    And notice, these one europe dropship supplier I must pay weekly per bank account direct debit, but he makes not an fix datum with me as dropshipper, so I don't know the weekly day he makes the bank account direct debit, that is very fatal if you not have an bank credit line,when you bank account has not parallel turnover coverage. And then?

    All that together does scare me off to make business with this supplier.

    So the other option is to make money as affiliate, you must not buy,you must know to write good content,backlink and seo. It is not possible selling on ebay as affiliate, please correct me if I'm wrong.


    best wishes
    marco005
    • [1] reply
    • Big Thanks to Anton

      spent a full day reading this thread, only clicked on it to find out the best way to SEO e-commerce sites, as an SEOr I have been getting a ton of requests lately from local businesses to seo their e=commerce sites like local jewlers etc, so copied and pasted a lot of the methods you guys have posted here, but been thinking on building my own e-commerce site since reading the 4HWW by Tim F a couple of months ago.

      And I guess on the time and money it would cost me to SEO some other persons e-commerce site, I would be better building my own e-commerce site,and start to dropship...

      I will have to politely say goodbye can't do it, businesses with ecommerce sites think you are way to expensive because the joiner down the road got a page 1 listing for a couple of hundred quid. (uk)

      Anyway enough of the rant. If I have understood everything correctly, I can source U.S. dropshippers sell to U.S. and Canada etc, but because I am from the U.K. I won't be able to get a U.S. bank account set up, so I would have to use paypal and Google pay etc ?

      Has anyone outside the U.S. done this successfully ?

      best Mike
  • @marco005

    I wish I could be of more help to you but all of my business is done in the US and I really don't know how the wholesale/drop ship system is different in Europe (if it is at all).

    I can tell you that I've never had to pay to be approved with a supplier but again, things may be different overseas.

    I typically set up "pre pay" terms with all of my suppliers, meaning that I pay them (via credit card to build up rewards) every time that I place an order with them. They also offer credit terms but I love to travel so I take advantage of being able to build up lots of flight miles very quickly

    Being an affiliate is a totally different ball game. I do A LOT of business as an Amazon affiliate through my Amazon stores BUT I do not use the same traffic techniques as I do with my eCommerce sites because affiliate links are usually not allowed.

    @mikeb1

    I just replied to your PM.

    My friend from Israel was able to set up his US based LLC and bank account while he was living in NY for the summer. I also have a course member from Singapore who isn't planning on traveling to the US anytime soon who took a different approach to this (see PM for details).
    • [2] replies
    • Thanks for the very helpful info.
    • Hi Alksense,

      Could you share the info on how your Singapore course member set up his account? I'm from Malaysia and am interested in getting into dropshipping.

      Thanks.
      • [1] reply
  • Thanks for your helping information.
    I will not give up and look for dropship suppliers in europe.

    But I be little little afraid with ebay business and paypal, hm, there are enough sellers who paypal has freezing their account/money, so you not can pay your dropship supplier, but I as an sole priorship, has unlimited liability to pay the dropshipper..........this is a risk with paypal.

    marco005
    • [1] reply
    • Yes, that is true.

      In 2006 when I first started doing big money with PayPal (tens of thousands of dollars/month) they locked our account BUT I was able to have it resolved very quickly.

      It was basically my fault because my business partner and I were not entering all of the tracking information into PayPal so we were flagged for the liability on their end. I had to enter tracking information for about 20 shipments or so and once PayPal confirmed everything was delivered (about a week later) they unlocked our account.

      Another thing to consider with PayPal (and some other merchant accounts) is that if they think your business is even the least bit "risky" they will attach a rolling reserve to your account.

      In my situation they told me it was based on volume but I have a 7% 90 day rolling reserve on mine. Meaning they hold 7% of every sale from my company and deposit it into my account 90 days after the sale is made.
  • Hi,

    ah, I think when I hold every month 10-15% of my sales income in paypal account as reserve for chargebacks, then paypal will be satisfied with me (my theory).

    marco005
    • [2] replies
    • curious if anyone who recently started this can update their progress. I am going to start next week with 4 days off. What is your monthly cost when starting. Let me know if I missed something:

      Monthly cost:
      1) Shopify - $30
      2) Shopify transaction fees
      3) Paypal transaction fees
      4) Advertising ??

      One-time Fixed Cost:
      1) web-design

      Annual cost:
      1) Domain - $10


      Thanks
      Carl
    • I believe once you hit a certain level, you be assigned an account manager. Everything will be a breeze then. I got a 5% rolling with a 75 days rolling reserve(down from 10%, 90 days). Every business model is different. You got to speak to your account manager. They will help you to resolve most issues you have.
  • Could you scale up 1 (or 2) shops max to make you good money every month? Or does it have to be 50? lol^^ I'm talking about effective branding.
  • Just an FYI--if you pay Shopify all at once for the entire year, you have no fees.
  • Very nice thread .Finally something what is really profitable like e commerce and much more real than IM as tried many things and nothing has worked as i wanted so far,There are so many people telling you how to make£ 1 mln or how to make 2k$ in week ,day or seconds.))
    The e commerce conversion is much higher than IM things.Iam selling on Amazon,i have around 1200-1500 views a day with around 60-80 items sold and profit around 200-300£ a day.That makes more than 35000 view on my pages.

    Many street retailers are already out of the game because of the more online buying customers especialy in UK and USA.Lets say some Jessops (some of the biggest ),Comet(also big chain) etc etc
    The bright future is for those who realize all that))
  • To be honest--I even find myself shopping online more and more. And I am one who never did. It is just so much more convenient.
  • I would like to make my own website but dont have any experience in web design or control panels etc.Is Shopify the best solution for me.Also,at the moment iam selling on amazon and have chinece supplier .Iam happy with him and do a good business but i would like to find droppshipers .Would you tell me if its good idea to deal with Chinece droppshipers or not.Thanks
  • Sounds like a good reason to use eCommerce.
  • Ah thanks for this paypal tip.

    marco005
  • Love these types of threads! always learn something new!
  • E commerce increasing your products worth and easily available for internet.e commerce easy to understanding and easy to using for any purpose .
  • Not sure if anybody mentioned Shopify, but it won't have any fees attached to it!
    • [1] reply
    • Only Shopify Unlimited has no fees. The other ones have transaction fees.
  • I am very new to this forum but I have been very successful with ecommerce and I have had my biggest month being 55,000. I sell Ewaste that I get sometimes from many companies for free and some I pay a little of nothing for . I have found 3 solid Platforms to move my products and since my overhead is so low I have been able to do really well. However I am here to learn affilate and Cpa marketing and if anyone is wanting to learn some trick and secrets of success with ecommerce I will be glad to trade information . Im not looking for a guru and I am not a super noob as I have been studying affiliate and Cpa 2 years I just havent put together any rteally successful campaigns and I would like to. HBO HELP A BROTHER OUT . Thanks Warriors!!!
  • IMO, the reason this forum has been a little slow on the draw is that most IM's don't jump into ecommerce is because it does require a bit of investment on your part. The higher the threshhold to entry - the fewer will enter... Another great thing about ecomm is that Google loves em! Most anyone that has done kw research will notice that 60 to 80% of the top 10 are ecomm sites..... I started my first ecomm site over 1 yr ago, unfortunately it has bombed!!! However I have learned a great deal about website construction, seo, market research, kw research....So now I'm starting my 2nd ecomm site that should really perform well. Thanks to Alksense and Pavv for the great contributions!
    • [2] replies
    • You're very welcome! and congrats on applying your knowledge and taking another shot at eCommerce.

      There definitely can be a steep learning curve if you just jump into this business blindly... That's how I got started and when I look back now I can't believe some of things that I did wrong in the beginning! I had no clue about SEO or any type of advertising but I took a chance and modified what I was doing as I grew my business. This just goes to show that you don't need to know it all to get started, but you need to get started to have a shot at making it work.

      Good luck to you on your new venture. If you ever have any questions I'd be glad to help.

      - Anton
    • So what would you say you are doing differently know in round 2? I am a totally newbie and bought a website from someone---yes, i am actually making money---but I am still not sure if I can make it off of this. I am pretty sure I am making mistakes left and right---but I just need to keep reading and learning.
      • [1] reply
  • I've been doing e-commerce since 2005 and I'm always curious why people consider it to be "too much work" when compared with running a content site. Once the initial setup on the sites is done, I do less work than any other content sites I've managed. And if you want to avoid over-reliance on certain traffic sources (like Google) ,then selling e-commerce products is the way to do that i.e. earning more per visitor so that you need LESS traffic to hit a certain income target.

    In terms of how many products you need, my most successful site is very niche and only has 10-15 products. That site does over $650K per year in revenue with 40-50% gross margins. But that's a specific niche where there aren't a lot of additional products needed. Other sites that I have will have closer to 1000 products with the top product accounting for 6% of sales, 10-15 accounting for 1-5% of sales, and the remainder being under 1%. So it's all 80/20.
  • How about Magento eCommerce shopping cart?
    • [1] reply
    • What would you like to know about them? I personally use Shopify as the platform for my stores but there are a lot of people on this forum that use Magento who would be able to help you with any detailed questions...
      • [2] replies
  • Such a great thread, read through all the thoughtful comments.

    Was wondering if there is a WSO ecommerce any of you would recommend, that focuses specifically on how to get traffic to ecommerce sites?
    • [1] reply
    • Congrats on getting started with eCommerce! I'd be glad to answer any questions you have and as you can see there are A LOT of people on these forums who have valuable information to exchange with everyone.

      Hey Cynthia,

      What type of eCommerce sites do you currently own/operate? Do you sell for established brands or sell unique products?
      • [1] reply
  • Banned
    [DELETED]
  • Well said, yes it is very rewarding having such a business especially when getting a positive return.
  • [DELETED]
  • Banned
    Been moving towards ecommerce myself quite a bit recently starting with focus on ebay dropshipping but am creating personal dropshipping sites now.
  • I'm currently in Toronto, Canada and our taxes here are absolutely ridiculous. I was wondering if opening a corporation and doing business out of Panama would be problematic at all for shipping to the United States, through drop-shipping or setting up links with suppliers? I personally, don't see why not. Any advise?

    Panama deals largely with US Dollars and they are the hub of international trade.
    • [2] replies
    • I ran into a guy here in NZ who set up these entities (Foundation in Panama), and I would not recommend it. You will eventually get nailed - sooner or later. I believe in paying taxes, as the government creates the infrastructure in which you live in - roads, hospitals, military, libraries, police, etc.

      Dolce / Gabbana got busted for this type of structure:
      Dolce & Gabbana Fined Millions For Tax Evasion - Forbes
    • I wouldn't try to avoid taxes... especially with today's climate. Most the Euro banks that were used in U.S. tax evasion are changing their laws so the customers name can be given. And plus, you'll still have to pay taxes on your income.
      • [1] reply
  • I have been looking for this type of forum for a long time. It has been a roller coaster the past couple of years, especially with the new Google algorithm a year ago. We dropship products from a very reputable company (lucky to get an account) and we handle all of the fulfillment, calls, and customer service. We were ranked #1 for 4-6 high volume, low competition keywords, with no SEO competition, and projected to do around profit per year. Then Penguin came along and wiped it all out. We had to start over with a new brand and website.

    Since we tried every avenue possible to get sales (Facebook Ads, Adwords, Affiliates, SortPrice, funneling, etc), the only thing that has worked for us is high Google rankings. I'm sure that there are other ways, but we have been unsuccessful as of late. Our customers are very fickle, and take (an average) of 3 months to make a decision. The average price for our product is around $850.

    We were able to jump back onto the high rankings last November, but they have slipped lately. I'm always loosing sleep worrying about the next Google update, and having our income evaporate.

    My background: Web Developer/Designer for 15 years. Owned my own Web Development company and it crashed and burned because my partner was a dope addict and had been stealing from the company - lost everything. Moved to New Zealand and started over (with my web business). First time I have had a successful business - since everything is so low stress here.

    I use OsCommerce, since I have experience with it, and I can build something custom over the top of it.

    I love HostGator as a host - they have been the best by far. DreamHost, BlueHost, JustHost, etc are junk.

    If you want to be walked through the whole ecommerce business, you can try out StoreCoach.com. He is pretty good at walking you through the whole thing, but I left after a short amount of time, as I already knew most of what he was teaching.

    I would welcome any guidance on how we can diversify our income. I am a very quick learner and a very fast implementer (I am a doer, not a slacker). I would welcome some help on how I can start doing other dropship businesses.

    Alksense - thanks for starting this thread. Sorry I arrived late. I really like what you have done. Hopefully I can build some trust here, and perhaps move past my comfort zone and do what you have done.

    • [1] reply
    • Storecoach seems quite pricey. Have you tried it?
      • [1] reply
  • What is Dropshipping by the way and anyone knows how it will be helpful to establish eCommerce business in Sweden?
  • Good tips man, much appreciated for putting the efforts and time to write it up!
  • Banned
    Great story!

    I myself have never tried eCommerce. At the moment, I'm concentrating on affiliate marketing but I might give it a shot in the near future. I know some IM'ers who are doing eCommerce and they are doing really well. If I were to enter it, I'd rather do it with digital products over physical.
    • [1] reply
    • Anton, forgive me if this has been answered in this thread or on your website (I have done my best to read through both), but won't the suppliers want references as part of the application process?

      How does one get over that initial hurdle and get approved for accounts without any references?
      • [1] reply
  • Very helpful thread. Thanks for sharing all this information.
  • Hi,

    alksense, how do you rank your ecommerce pages?
    Do you make long product reviews with 800 words or so or lesser,say 250 word product descriptions?

    What payment options you offer? pre payment (bank withdraw), paypal and more???
    For europe when you will use "fofortüberweisen.de" you must pay for this module.

    Build an ecommerce store with oscommerce is free.
    I think to load your store full with hundred of items, you need the csv file from your dropship supplier?
    My experience with europe suppliers is that they charge extra money for a csv file.

    And does it brings lot of sales when you list your items in google base and other free comparison sites, does this alone brings enough traffic and sales, when I list 100 items as example?

    Is the shop platform you recommend only for the us market or can I use it for the european market too?

    best wishes
    marco005
    • [1] reply
    • Hey Marco,

      All of my product pages rank very well for supplier name, product name and SKU# search inquiries. I typically do not have unique descriptions created but instead use those provided by the supplier along with all other relevant product information that they send to my company.

      I think the main reason my product pages rank so high is because of the meta tags I use. I have great page titles, meta keywords and meta descriptions for each product and this usually allows me to outrank the majority of competition.

      I've never been charged for a CSV file before but I don't know if things are different overseas... I've only ever done business with companies from America and Canada (while drop shipping).

      I can't answer your question about 100 products and free shopping engines being enough to generate sales because there are wayyyyy too many variables from product to product and from niche to niche. You really need to spend the bulk of your time research different markets before entering a niche. It can be annoying because you don't make any money at this point but if you get started on the wrong path then it's likely that you're store will never be successful no matter what you do.

      Shopify (the eCommerce platform that I use) works in just about every country in the world and is available in almost every language.

      Hope that helps.

      Thanks,
      Anton
  • [DELETED]
    • [1] reply
    • Hi,

      @alksense; thanks for your great reply!

      But how I find out which niches/products sell good list on free comparison sites?
      How I find that out?

      PS: If I understand you right,products who are in demand, I should list more than 100 items on free cmparison sites to see good results, also 100 items are not enough?


      best wishes
      marco005
      • [1] reply
  • I have never used ecommerce to make any money simply because it has always seemed more difficult and harder to manage than other internet marking techniques, but the way you talk about it and explain how successful you have been makes it sound quite easy...

    I currently use Instant Payday Network to make my income online and a few other things (such as being an affiliate) and make very good money doing these few things, but I would like to try to get into ecommerce and give it a shot after reading the posts here!

    Glad everything is working out for all of you!
  • Hi,

    @alksense; thanks for your great tips, i will try this ecommerce method, in europe are not so many dropshippers who gives free csv file,but I have found 5 suppliers (5 different niches), or I make 1 ecommerece shop with these 5 different niche products to have a bigger store similiar method you use.

    I think with free comparison sites or google base it is so; more products listed, more traffic =more sales.

    Damn that I can not make this method with amazon products (here I have a good method to find good niches with less competition), but with amazon products it's not possible to build an own store, or I must deep search in amazon in these niches to look at the suppliers and then look at their website to see if they are make dropshipping for resellers.

    best wishes
    marco005
  • Hi,

    most europe dropshippers are scammers; they want money for their webshop abo, or an extra charge for the csv file and such unserious things.

    And important, some of them use dropship with you the reseller, only with enhanced direct debit payment!
    This is against all dropship rules! For this you must have an bank credit line,without this payment method is not possible, to start with zero/less money.

    Shame that some of them do such criminal things;

    charge for webshop abo (you must use!)
    extra charge for csv file
    only accept payment via enhanced direct debit

    This is all against dropship rules!
    Shame of them!

    marco005
  • Great Post. I've just started my e-commerce business and I can see that there are lots of benefits and much more waiting for me. I share your opinion and would love to see more participants here in this e-commerce forum.
  • Hi,

    I hope google base is free now...

    But is there a way to build an store with 1000's of products without have an csv file?
    Plugins or scripts who do that?


    best wishes
    marco005
    • [1] reply
    • Hey Marco,

      If a supplier does not have a CSV of their products to send you there are always other options... one would be to extract the data from their site and/or catalog manually (which is a nightmare but usually pays off), another would be hire an outsources of freelancer.com or a similar site and have them extract the data manually for you for cheap, and another option would be to hire someone with scraping software to automatically extract the data from your suppliers website.

      Hope that helps!
      Anton
  • Hi,

    Great share and a good business idea,but for me, the most european product portals include google base, are not free,they cost money based on cpc pay model.
    You need big money to list there 1000's of products,you don't know before how much clicks you must pay for 1 sale.

    This is a game only for the big boys, the big shopping companys with huge capital, not for the small business beginners, they will be eaten up by the big boys.

    marco005
  • Isn't dropshipping like an affiliate program?

    From what I see, you are affiliating yourself with a dropshipper's products. Then you build a website and start promoting these products through IM which is like affiliate marketing but with a checkout box instead of a link. Where is the value added coming from in this model?

    Please explain.
  • hi, great thread I've learned a lot...by get on google shopping do you mean start an adwords campaign?

    Also I wanted to ask how you handle business licenses and reseller permits for wholesaling, is it necessary?
    • [1] reply
    • Drop shipping is just one of many ways to make money via eCommerce. Basically; instead of purchasing inventory in bulk and then creating an online store to sell the inventory you are selling inventory for wholesalers who warehouse the items themselves.

      I promote physical products as an affiliate as well (mainly as an Amazon Associate) and although there is some overlap between running an affiliate store and running an eCommerce I can tell you they are very different business models.


      Back in October Google Shopping switched from free to a PPC model so now you do have to link your Google Merchant Center account to your Google Adwords account if you want your Product Listing Ads to run.

      It's very easy to do. You can set up your account here: www.google.com/merchants

      Regarding your second question; some suppliers will approve you with just an EIN# which is how I got started. Once I started making money I had my accountant open an S Corp for me and I got my sales tax certificate.
      • [3] replies
  • Great post, very informative.
  • Hi,

    To run an own dropship ecommerce store, the prices on the price/product search enginges are not cheap. You must pay 1000's of $$ when you have 1000's products on your store for 1 product search engine!

    Or you make seo to get seo traffic that is in buyer modus,then you will make sales with free traffic .
    This is a business who will work but you need capital for that especial for the price/product search engines who are not cheap.

    best wishes
    marco005
  • Hi,

    then seo is the only one possible option to make money with an own dropship store when most or all product search engines are not free and costs money.

    Is free seo traffic good enough for sales?


    best wishes
    marco005
    • [1] reply
    • Hey Marco,

      I think you meant to say is that the only possible way to make money with a drop ship store without paying for advertising is SEO traffic. I'm editing your statement because there are a lot of paid advertising sources that bring in a lot of highly converting traffic and obviously you can make money with paid traffic.

      If you're only looking for free sources of traffic then some that work well are:

      - On site SEO
      - Guest Blog Posts
      - Niche Related Forum Posting
      - Social Media
      - TheFind.com
  • Hi,

    Alksense, that sound is hearing good that this free options are good enough (when it is niche target) to make sales with an dropship store.

    Thanks for the tips.



    best wishes
    marco005
  • Hi,

    I look for an plugin who shows a product comparison grid from different affiliate networks and scrape the products from them.

    Like this site (a german site example) :Preisvergleich - Rabatt99.de
    They scrape prodcuts from different sites like otto,ebay,amazon etc,etc,etc........

    Can you recommend me such plugins who show such a grid comparison table and scrape products from ebay,walmart,amazon and so on..........?


    LOL last notice; most european dropshippers you must pay for their csv file....
    and remaining whoelsale places are not free, you must pay heavy membership fees 1 year payment before you can buy items......

    best wishes
    marco005
    • [1] reply
    • Hi Marco,

      I don't use any plugins like that. I would recommended asking for advice in the main forum here. Maybe someone can help you out.

      That's too bad about suppliers in Europe. I only do business in the US so I have no expierence with your market.

      Thanks,
      Anton
  • Hi,

    Ok alksense, you don't use plugins, but how you build your big stores only with 1 dropshipper and csv file from them?
    Yes this is sad about european suppliers I don't understand why they do that that is nonsense.

    best wishes
    marco005
  • marco005 have you checked out this forum: www.dropshipforum.co.uk

    That's a UK forum but there's discussion about drop shipping in elsewhere in Europe too.

    I don't think you have to pay an honest drop ship supplier in Europe either to be able to sell their products. It sounds like you have found some sort of a middle man.

    The drop ship supplier catalogs etc. that are sold in Europe are usually worthless. There's no room for profit. Only the guy selling that catalog or membership is making any money.
  • Oh, thanks for this tip alksense!


    best wishes
    marco005
    • [1] reply
    • haha, thanks but someone else actually shared that tip (another person named Anton). Hopefully it helps you figure out how to do business in your country. Good Luck!
      • [1] reply
  • Hi,

    But for the US market you will need an US bankaccount or something similiar recommend account to do this business?

    best wishes
    marco005
    • [1] reply
    • You don't really need a US bank account. You just have to be able to pay and get paid. Paying suppliers is very easy, I have never had any problems paying American suppliers with my European credit cards.

      There are many ways to accept payments online. Maybe the best thing to do is first study the differences between payment gateway, merchant account and 3rd party processor and then decide what option is best for you. There are many options available for people outside the US too.

      A US bank account would probably help in some situations when doing business in the US but it's definitely not a must.
    • Banned
      [DELETED]
  • Having a US business entity, bank account, merchant account and debit or credit card certainly makes things easier, but I agree that it's not 100% mandatory. Many US suppliers will accept international credit cards or even PayPal to pay for products.

    That said, at bare minimum I would get a US business entity just because it opens you up to a lot more suppliers. Most US based suppliers won't care how they are paid, but a lot of them WILL want an EIN and seller's permit to set you up with an account.

    Getting a US business entity set up isn't all that hard or expensive either. Here's a step-by-step guide that we have published on our site. The steps published are to get a Delaware LLC, but I would recommend getting a New Mexico LLC instead. The process is a bit easier in NM and they don't have an annual fee like Delaware does. See a full explanation of why New Mexico is better here.
  • Hi,

    Wow, thanks for the helping tips.

    @anton433; aht type of "modules" or so you recommend me to handle the payment process with the supliers and the shop consumers? What type of modules shopify has for european dropshipers to handle payment process in the us market?

    Then the shop consumers pay me first and then I pay the dropship supplier(?)

    best wishes
    marco005
    • [1] reply
    • I'm sorry I don't use Shopify so I can't give you any hints. But I know there are always options.

      Just two examples:

      - 2Checkout is a very popular 3rd party processor and available almost worldwide.

      - Authorize.net is a very popular payment gateway and you can get a European merchant account to go with it.

      No one in the states will ever see any difference when making a payment.

      But you really need to do your own studying and find the best option for you. It depends on many factors.
  • Ecommerce is certainly the way to go. what I find though is all your knowledge from internet marketing gives you an edge. I can take any physical product, choose relevant keywords and rank them to drive traffic to my website. Someone with no SEO knowledge would struggle in this regard.
    IM knowledge also means you can start your business with very littke capital because you can do a lot of things yourself.



  • Hi ,

    @anton433; can I here work with the payoneer card, or moneybooker card, with them I have an virtual us bank account so people can make payment through them and I have my money and can pay the dropshipper supplier?

    ??

    And these two payment systemns you recommend like 2Checkout and Authorize.net, does they cost me money to use it with shopify system also one time payment "install fees" or such things? And how the payment process works with them for non us marketers?

    How handle returns with this business model as non us marketer?
    I think use it as an affiliate is the best, shipping and handling is work of the product supplier.

    Build this business as an affiliate store-is this possible?


    best wishes
    marco005
  • Hi again,

    @alksense; how you do handle returns from consumers?

    And how I handle that as an non us marketer (when this is possible)?
    Or is it for non us marketer better to build only affiliate stores?

    best wishes
    marco005
    • [1] reply
    • Sorry for the delayed reply. I've been away from the forums for awhile while traveling around Thailand...

      To answer your question; each supplier you work with will have their own return policies. I typically only work with suppliers who accept returns back to their own warehouses.

      It's very important to read all of the policies that you are agreeing to when applying for new supplier accounts. Other things to look out for is who's account they will ship on (yours or theirs) and if they charge restocking fees.
  • Hi

    Question again please; How I handle the csv file from the dropship supplier? HO much I must work/adjust them before uploading to my store.- each of the 1000's products manually in the csv file?

    Are there free alternative Shopsystems like Shopify for beginners?

    best wishes
    marco005
    • [1] reply
    • You basically want to pull all the columns and move them into a templated spreadsheet that shows all the column names your particular cart of choice uses. For example, a column in your supplier's feed may be called 'Name' and you will want to copy & paste all of the cells in that column into the 'Title' column in your cart's templated feed file. Once you have all of the desired columns in place you can save and upload the feed file.

      As far as how much customizations/changes are required, it depends on how unique you want to make your product pages. The more unique content your product pages have the easier it will be to get indexed and ranked well in Google. In today's Google, pages that contain no real unique content and pages that are extremely thin on content are tough to even get indexed.

      I recommend learning the concatenate function in Excel (or OpenOffice). It's a powerful function that allows you to create generic "templated" product descriptions and then snag portions of the data from within other cells in the spreadsheet. This allows you to create one solid product description for each product type, and then customize all simultaneously by using concatenate to pull in data elsewhere on each product row. Very powerful stuff!
  • never found any products i could actually sell
    • [2] replies
    • To brainstorm ideas for new niches I usually think of things that I've recently bought online, I ask family and friends what they've bought online, and I check business brokers websites to see what "big money" eCommerce sites are being sold (not the small time ones on flippa).

      I then research all of these niches and try to "reverse engineer" the businesses to see if I can compete.
    • My recommendation is always to figure out what YOU would be willing to pay for, and then sell that.

      Ecommerce is ultimately a way of selling people things that solve their problems. Start by identifying a problem that isn't being solved the way you want it to. There are definitely people out there who have the same problem as you.

      This seems to be how a lot of the biggest and best stores started out.
      • [ 1 ] Thanks
  • Hi,

    is that not a google ranking problem with an dropship store, when you have the same pictures and descriptions as the drpship supplier?
    Or do you change some item product titles-manually when you have hundreds of products?

    best wishes
    marco005
    • [2] replies
    • E-commerce is certainly the way to go,al the information from online marketing gives you an advantage. I can take any actual product, choose appropriate search phrases and position them to targeted visitors for a website.
    • I find that I can still rank very high with supplier provided content as long as I have unique page titles, meta keywords & meta descriptions.
  • Ecommerce is great because it can be done without leaving your computer. There are also countless forums (such as this) that have tips and pointers on how to better run your business. When you have the software that gives you features that no one else has and a solid business plan, the sky is truly the limit.
  • [DELETED]
  • What is a good way to stand out when contacting suppliers to get them to want to sell their products through your store? Right now I'm using the "I have a business license and resale certificate and expect revenues of 5k a month within 6 months" angle and nobody seems to be biting. Are there any special tips or tricks you have to get noticed by a supplier and improve your chances of sealing the deal?
    • [1] reply
    • More than anything suppliers (the ones you actually want to work with) are looking for retailers that they can trust.

      As soon as you are approved to sell for their brand (whether it be on a drop ship model or buying inventory) you now represent them. They want to work with companies who will not only bring them sales but who will also protect their brands value.

      This can be done by knowing that you will enforce their MAP policies, hearing that you will feature their brand on your store, and by explaining to them why your customer service is great.

      The last thing a supplier wants to deal with is a retailer who sells for their products and then leaves their customers in the dark because where do you think the customer will go calling if the retailer abandons them? Straight to the supplier...

      It's not as easy as just calling and saying "hi, I want to sell your products". You're developing a very REAL (and hopefully very profitable) business relationship. It doesn't have to take a long phone call or email chain but you do have to assure them that your company is legit and that you are in business to make money but only while also offering great customer service and trying to raise the standards of shopping in whatever niche you're in.

      Do you already have a store set up? That's the first step I take before contacting any suppliers when entering a new niche. I have the entire store built and I upload "demo" products to it so suppliers can see it before it approving me. I also show them what spots on the site where I will feature their brands products. This really helps.

      Good Luck!
      Anton
      • [ 1 ] Thanks
  • How do you deal with shipping from multiple sources when you have many drop-shipping suppliers? Who pays for the double shipping costs? The customer certainly won't want to!
    • [1] reply
    • I actually offer free shipping on all of my eCommerce sites and I sell for drop ship suppliers so my shipping costs are often built in to my wholesale cost.

      If a customer buys two or more items from the same supplier on one of my stores then I make more money because I save on shipping.

      If a customer buys two or more items from multiple suppliers then I make the same amount that I would if two separate customers ordered the items.

      - Anton
      • [ 1 ] Thanks
  • Hi all,

    Can someone provide me an opinion on the question I posted here:

    http://www.warriorforum.com/building...-products.html


    Thank you!
  • I've been doing ecommerce sites for 3 years. I have the Stores Online platform. I have seen it go up and down along with the Google changes. I use dropshippers. One of my niches has 7 dropshippers which makes it less profitable when someone orders 2 different brands - not sure how to tackle that issue.
    • [1] reply
    • Took me a little bit but I have read over all the posts and responses in this thread and I have questions for Alksense, Dave_Hermansen and anybody who has been running the ebiz game. It seems that both of you are very familiar with eCommerce and especially dropshipping. I have worked in IT for over 13 years and with eCommerce software for over 7 years. I am by no means calling myself an expert maybe just a little bit more seasoned on the technology side.

      I was a little surprised to see some of the low margins on some of the ecommerce stores discussed here. I have been doing research for a couple months now and the niche that i am looking at the margins seem to be in the 40%-45% range. Could this just be because of the market I am looking at or just luck? I am looking to use dropshippers but I am also wanting to include wholesale inventory and eventually buying from overseas.

      What are your thoughts on ways to increase margins such as personalization, gift boxing, etc..
      • [1] reply
  • My ecommerce store is not necessarily a specific niche, but rather offering a wide variety of unique homeware gifts. I will utilize dropshippers where I see fit, but my ultimate goal is not necessarily running my business on auto-pilot or catering to a specific niche.

    Not that doing so is not a good business strategy, but I would like to focus more on servicing my customers rather than letting others.

    I'll be honest, I have seen a lot of discussion in this thread and many others about finding dropshippers/wholesalers and one place to start would be Amazon. If you look hard enough you can usually see who other businesses are sourcing their products through. Google is also another good way, but you have to look for common keywords or phrases that most wholesalers have on their websites. Another way is skimming them from gift/consumer trade-shows. Just look for a vendor list and you can get a bunch from them.
    • [1] reply
    • I use pinnacle c a r t, but i am planning to move to magento. I have heard great reviews about it. I also want to try out woocommerce but i am not use to word press., any suggestions on which is better? Any feedback or suggestions shall be appreciated.

      my current website is oneluvsmokeshop.com
  • let me guess...o.p sells a course on this?
  • I used to have eCommerce store awhile back, thought I sold it in 2011. I started from my apartment and grew into 3000 sq fit office within few years. It was fun but exhausted, really. I had a helpers but still this business took all my time. My brother setup for me eCommerce site and did all necessary settings, he didn't use any WP plugins or themes because he told me that that so far eCommerce never been hacked, the last thing you want to see is your site hacked and all hard work has gone. I did have subscribers optin box, but from my experience people who buy online doesn't really care about emails, they looking for physical stuff.

    Anyway to keep it short I found many suppliers, manufactures and drop-shippers here:
    aliexpress.com

    They will normally ask for higher price but if you send PM they will give you better price, just ask.

    Enjoy
  • I am brand new to ecommerce and just starting out. I have located suppliers in Brazil for unique beauty and skin care products. Currently, in the process of negotiating exclusivity agreements for US distribution. In this case where I am not in need of product, would you recommend still using a drop shipper or handling fulfillment myself ? Also, should I start on eBay and Amazon in addition to spending some SEO $$ on Google and FB ? I can afford a decent ad budget.

    Any response, greatly appreciated.
    • [1] reply
    • No problem. I've just sent you a PM

      Hi Mary,

      Glad to hear from someone else who has also had success with eCommerce. I've sold quite a few online stores myself.

      I've never used aliexpress (I've heard mixed reviews) but I'm happy to hear that you've done well with them.

      I tried WooCommerce once and while you can build a nice looking store with it I really prefer using a hosted eCommerce platform. Not just because I wouldn't want my site hacked but also because I prefer having them store my customers CC information rather than have any of that on my servers. To me it's well worth the monthly hosting fees.

      The only thing I know about that industry is that it is HIGHLY competitive. Does the brand you are working out a deal with already have recognition in Brazil or anywhere else in the world?

      - Anton
      • [1] reply
  • aliexpress could be complicated if using as they pitching you. What I usually did is look for "contact details" and mostly all sellers have listed they main web addresses, and most of them offer dropshipping on they main websites.
    For SEO purpose layout of eCommerse site shouldn't be changed otherwise Google will cut PR. I used move categories, change layout of main page quite often in the beginning and its affect my PR. My main page didn't go higher than PR3 within 5 years, but pages that I didn't touch since setting up store went up to PR5 and 6.
    For advertising most effective in my opinion was Google PPC and FB ads, after couple of month my PPC dropped to 0.5-0.2c. Newsletter increase sales but I usually sent email twice a months not more, otherwise people start unsubscribing.
    I had unlimited dedicated server due to high traffic and large inventory, I wouldn't suggest shared. Also I would advice match name of eCommerce site with products you going to sell for SEO purpose. Pages such T&C, About us, Privacy, Contact us should be on the header or bottom of each page for Google trust.
    If you can afford decent budget, hire programmer who will setup .php eCommerce site for safety purpose and also this site will be unique for Google.
    • [ 1 ] Thanks
  • dcap,
    If this Brazilian Brand famous in Brazil I would suggest you go for franchise because they already famous enough to enter US market. But if they unknown brand, I would suggest don't go for dropship until you have a good respond from your local customers, go for fulfillment by yourself. It will require purchase and store inventory in your own county, custom clearance, shipping charges, health certificates...etc. Its a lot of work, kind of build this Brazilian brand on your own in your own country. If that what you going to choose I would ask this Brazilian brand for exclusive distributor ship in your country with your own logo on they product. Register they trademark in your own country and become sole distributor.
    • [1] reply


    • Thx Mary. You and Anton seem to agree on the self fulfillment issue.
      • [1] reply
  • A lot of people don't get in to eCommerce because of their fear of failure, and the issues it can bring with it. A lot of people on the WF work in relatively safe industries, i.e. Affiliate promotion, where you have practically zero risk, and can make some money from it.

    Going in to ecommerce, you suddenly have to invest real money - something that terrifies plenty of marketers.
    • [1] reply
    • You are exactly right.

      The real money is, and always has been, in eCommerce - not affiliate marketing. My eCommerce clients will gross between $25k and $100k per week with their online stores, and that's pretty standard for an eCommerce site, but you throw those numbers out here and no one believes them because they try to think of it in terms equal to Amazon commissions. You'll never get those kind of numbers out of simple affiliate offers.

      But yeah - it's work. Anything worth doing is. The people who just import products from a dropship supplier and launch a site then kick back are never going to be successful. The "autopilot" model will always fail. But if you're selective about your products, and actually make an effort with the design of your site, writing your own descriptions and taking your own photos, and know how to drive some traffic you'll win every time.
      • [ 1 ] Thanks
      • [2] replies
  • Before you test out AdWords, make sure it makes sense for your products and margins - PPC Revenue Calculator
    • [1] reply
    • Let me just say, I have tried a few PPC adword campaigns and never broke even. Now I see why.

      I am bookmarking your calculator. It is fantastic!

      Bottom line: with the current cost of clicks and average conversion rate, it is tough to make any money.
      • [1] reply
  • link to one of these?

    • [1] reply
    • I don't disclose who my clients are here, but this is pretty much an average revenue point for any serious small to mid-sized eCommerce site - brand owners on the high side, and sellers on the low side. You just gotta disconnect the "affiliate mindset", because eCommerce gives you more control over your product selection and that makes all the difference in the world. Most of the people here who are "doing ecommerce" just have pages of dropship products, and that's the worst way to do it. You need to have a real relationship with suppliers directly in order to get good pricing.
  • I really only like Facebook for retargeting...

    I would recommend testing Google Shopping (PPC funded via Adwords), TheFind (Free) & Amazon Product Ads (PPC but they give you a $75 credit to start).

    Make sure you enable Google Analytics for eCommerce prior to sending traffic to your site so that you can see which sources are converting for you.

    - Anton
  • 1) For Paypal payments you should know that they can suspend your account at any time for investigation, so I would advice have 2 Paypal accounts in case one will be temporary closed. From my experience about 50% customers prefer using Paypal and 50% prefer other Payment Gateway. If you just starting Paypal would be fine, but latter on include other payment option.
    2) For driving traffic my advice: Google simply love long tail names. For example: instead giving name to your item "Nike Sport Shoes for Man" name something like this "Sport Shoes, Nike Flyknit Ultralight Second-skin fit High breathability Running Sport Shoes for Man"
    This is for SEO purpose. For people put the most beautiful photos you can find or make your own preferably with white or black background.
    3) Don't worry to much about adwords and promos in the beginning, at first you should get Google's trust and if you make right settings for store and inventory you can get visitors next day. Facebook ads work better for me.
  • Banned
    [DELETED]
  • Great thread! Hey guys do you think is possible for someone that doesn't live Stateside to create an ecommerce site (drop shipping) and sell items to the US market?
    • [1] reply
    • Definitely. People are doing it everyday. Some suppliers will only require an EIN# and I know a lot of people that are getting approved for accounts with US based suppliers while using their foreign business info.
      • [1] reply
  • Banned
    [DELETED]
  • Brand new to this site just wanted to say Thank You for all the information!!! Definitely will be looking into this further as I have just spent the past 3 hours reading all of these posts in regards to the e-commerce. Very excited to get the ball rolling now with all my new info!! Thank you all again for your questions and answers!!!
  • Hi Anton,

    I hope I am not out of line asking you a question about your new supplier directory in this thread. I received your email and have been to your website. You have a very good reputation here so please don't take these questions as derogatory, rather just honest questions.

    The question I see asked most often is how do we compete with the likes of Amazon, EBay, Walmart.com, etc... The answers I see (from you and others) most often are, you have to go straight to the manufacturer, get unique products, and do business with companies the require MAP pricing. So my questions are; are most of these suppliers the manufacturers, do they require MAP pricing, and is this the same stuff we will already see on Amazon, etc?

    Also, when you have been asked to see one of your websites you typically say no and I don't blame you for that at all. I would not want to give out my niches or vendors as well. So then why would you give us the list if suppliers you use? Are we buying at the same prices you are?

    Thanks in advance for your answers.
  • Banned
    Hi alksense, Could you PM me the link to your course? I would be interested in learning from you. Sent you a PM too just in case.
  • Very interesting stuff
  • I would like to get started in eCommerce using drop shipping since I travel a lot. How can I find real products (not fakes or low quality) to sell at a price that won't be beaten by Amazon OR provide something in addition that makes people chose my store over Amazon?
    • [2] replies

    • Spend years researching the markets; spend thousands testing various product niches and work about 11 hours a day, 7-days a week.

      That's what I've done.

      It works.

      No quick fix.

      Making money is serious business for serious people who face serious obstacles and competition.
      • [ 1 ] Thanks
    • Research and take the time needed to set up something unique about your supply chain. Google and the phone are a good place to start. There are a lot of ways that you can approach building healthy supplier relationships.

      I like to think of the acronym "READ" when thinking about the supply side of my businesses.

      Research
      Evaluate
      Apply
      Develop

      You'll spend a lot of time early on in the first 3 stages, but how I've gotten pricing that beats amazon in the past is by building great personal relationships with my suppliers. Get to know them personally, take your time, ask them about their goals, give before you get.
      • [1] reply
  • Banned
    [DELETED]
  • Great info here, I'm really learning a lot!

    Do you have a "how to" of sorts available for what you look for when picking your niches/keywords or analyze competition?


    Thanks,
    Michael
    • [1] reply
    • Yes, but I don't know if I'm allowed to post a link to my blog on here.. PM me if interested.
  • @DraculaIM: I would use the fact that you are traveling a lot as an advantage. Stroll around local markets in cheap manufacturing countries and you will find a lot of great products. Often enough the producers doesn't even have an own homepage and probably didn't even think about selling overseas.

    @yet: I have been struggling a lot with getting good product pictures. It will safe you a lot of time if your products comes with pictures. Otherwise you need to have light box (can be self made in a few minutes, you will find many tutorials) and edit them on the computer. Not sure, if there is an app. I did just became familiar with GIMP and have it automated as much as possible. For example you auto set the size in that you want to crop it and can use recent configuration for color and light settings. That said, spend one day taking pictures of as many products as possible under the same light and camera condition. Then the next day find the perfect GIMP setting for the first picture and then just use them on autopilot for all the others.
  • Hi everyone
    This is an interesting tread, thanks a lot!!
    I quit my job about a year ago and I have been doing great with affiliate marketing. The problem with this business model is that Google can shut you down and the companies you work with own the traffic. I will look into this model and I have one question for experienced e-commerce's - Do you also have problems with Google algo updates or do you make it because of your brand and your own products ?
    Kind regards
    Anders
  • Why do you think that less people post in this forum? Is it because drop shipping is more difficult? What is your theory?
    • [2] replies
    • I don't think drop shipping is a particularly good strategy personally but as for ecommerce in general... its work. Its the difference between a real business and a "passive income". My observation has been that many here are expecting a WSO to reveal the magic formula they "just haven't figured out yet".

      The sad part is if those same people would stop screwing around with CPA offers and affiliate programs and focus that energy into ecommerce they could be making a real full time income instead of scraping for commissions. If two guys that run a tire shop can make 15k a week selling auto parts online, anyone can.
      • [ 2 ] Thanks
    • I think a lot of people assume that eCommerce has a greater barrier of entry than other ways to make money online. I also think people assume it's easy to make quick cash other ways online so they spend their time trying to learn them.

      However, since I've posted this thread back in December I can see that this section of the WF has been growing with people who make money via drop shipping that actually know what they're talking about
      • [ 1 ] Thanks
      • [1] reply
  • How about the future of ecommerce? Because of the low barriers of entry?

    How can you protect your business when some one can come in and copy you for less then $100?
    • [1] reply
    • You build a brand. When was the last time you saw a cheap copycat unseat the leading brand?

      It never happens.

      How many Fiverr clones, Twitter clones, Facebook clones, etc. have you even heard of much less actually making a dent in the original? Heck, even in retail you can get generics of every product on the shelf and not one generic has ever over-taken the big brand it was copying.

      You can do this with eCommerce too. That's why sites like ThinkGeek and Zappos are successful selling the exact same products you can get on Amazon and other sites, and everyone who tries to copy their model with nothing but a dropship supplier and a $100 website fails. Minimal input = minimal output.
      • [1] reply
  • Very great post, i never tried the eComerce industry but its seems to be interesting.
  • Yes creating a brand would be more of an end game goal though. Getting from start-up > repeat buyers w/o getting copied or knocked off is what I'm concerned about.

    I might just be over thinking things... either way I'm still launching a store next week. I guess that's the only way I can find out for sure lol.
    • [1] reply
    • I think you're under-thinking it... this is one of the reasons I say to always build a brand.

      You could copy Zappos and call it "Hexiussos" - copy every product, every image, every description, every everything, and you will still never have the prestige they do. Know why? Because they're freaking Zappos - you're just a guy who copied them.

      That's the power of being a brand.

      Don't worry so much about the copycats, no matter what you do people will copy your site layout and tactics... but they can never "be you". So your job is to make "being you" mean something to buyers. That's the difference between being "just another eCommerce site" and being an authority.
      • [ 1 ] Thanks
      • [1] reply
  • Definitely focus on the brand from the start, you want to be recognizable, trusted, and recommendable, a brand makes that infinitely easier!
    • [1] reply
    • Killer advice from Ron Rule here. Branding is everything in ecommerce, and is really the key to ranking organically in Google these days as well. Building a brand goes hand-in-hand with building authority in Google, and the more authority you have the more organic traffic Google will send you!
      • [ 1 ] Thanks
      • [1] reply
  • I've read through every post on here. I must say its very good info going back and forth in here. Thank you to all who contributed!!
  • I would be interested in knowing about selling the business. I have an ecommerce site that I've been running since 2009. I sell physical products that I buy from about 6 or 7 different distributors and manufacturers with one being from overseas. Right now, I get about 8,000 visitors to the site per month. Conversion rate is about 1%(was 3% for 2010 and 2011 and 2% for 2012 due to google algorithm updates), so currently I'm getting about 3 grand every month from customers. About 25 to 30% of that goes to shipping.

    I spent about 10 grand(which I saved from the business earnings) on getting a custom site back in 2011. Now, I'm wondering about how much I could get for it.
  • Do a proper valuation (the same way you would do it if you were going to do a Series A funding round) and that will tell you what the business is worth, but that doesn't mean that's what a buyer will be willing to pay. If your revenue is down from years past, and is primarily search driven, it will be harder to sell - every serious buyer will believe you are trying to unload a sinking ship. But if your revenue is up from previous years and you have an established customer base that tends to buy more than once, you have something of value that will be attractive to a buyer.
    • [ 1 ] Thanks
  • I know this was posted two years ago...but i just saw it...wanted to ask you...why do you say that you dont need to use SEO or PPC campaigns? How do you do it?
    • [1] reply
    • I think PPC is more important than SEO; That doesn't mean ignore search engines completely, but there's a difference between making pages that a search engine can understand and rank properly, and "optimizing" your pages around keywords. I always make sure sites are naturally conducive to what search engines like to see, but I don't waste time with stuffing keywords into product descriptions or link building.

      To me, PPC is cheaper because my time has value. If I want traffic from a search engine, I'd rather just pay what I'm willing to pay for a visitor to be sent to my page than try to create multiple landing pages optimized around different keywords and then constantly worry that a competitor will step up their game and outrank me, or Google will change something that pushes me down, thus undoing everything I just did. It's also instant gratification; if I bid on a keyword today, I will get visitors today. If I optimize a page for a keyword today, it may be weeks before I see how well that keyword is performing organically when if I had just paid for traffic, I would have already been making sales.

      Your most valuable asset is your name recognition, and your second most valuable asset is your customer database. If you utilize those two properly, it doesn't matter what page you're on in Google.

      Google has never made any retailer famous.

      If Google disappeared tomorrow, sites like Amazon and eBay would make more money than ever and sites that rely on search engine traffic to stay alive would fade away into history.

      The largest site I run currently does about $5 Million a year (~$15k a day) in sales from organic Google traffic - most people here would consider that a dream come true, but frankly it scares the shit out of me. That's a huge chunk of that business that we have absolutely no control over, and could disappear tomorrow because some decision-maker at Google decided to change the way they score relevance. That revenue affects everything from what products we stock to how much employees are paid, and the last thing I want is for a Google change or aggressive competitor to upset that balance. So while I appreciate the "free traffic", I don't consider it stable traffic.

      This will sound crazy to a lot of people, but right now I am actually working on bringing that number down and replacing those sales with paid traffic. To me it's like insurance... I'd rather pay $1-2 million to guarantee I'll continue to get that $5 million than leave it in Google's hands and inevitably one day lose the $5 million.

      But that said, it's the customer database that really brings the most value. It's a million times easier to sell additional products to customers you already have than to find new ones. Having direct access to 2 million past buyers is worth a lot more than Google page one for any keyword.

      But to get there, paid traffic is the way to go. Launch your site, spend all of your money on paid traffic, and reinvest all of your profits back into paid traffic for the first year. Keep nothing in your pocket, and pay nothing in taxes because your company runs at a break-even while you build your customer base. As you're doing this, re-market to those customers. Put new products in front of them. Segment the data based on aggregate purchase histories to show customers products they're likely to buy, and do this until your repeat business exceeds your new business. Even if they never buy another product as a result of your re-engagement, they will remember your name. This is how Amazon makes $80,000 per minute - they literally only profit 1% of that revenue and the other 99% is the cost of making it. But 1% of $80k per minute is roughly $1.15 million per day net, and I'll take that over every other eCommerce model in the world.
      • [ 1 ] Thanks
  • I have read this thread fully and want to thank Anton and everyone else for all the fabulous contributions about eCommerce - brilliant.

    It's timely as I have been intending to start a site online selling one particular item that is unique, and has very little competition. It also obviously has little traffic but I believe this traffic will be highly converting and could grow with some information put out there about this product. I have a supplier who would drop-ship the item with the profit margin being around $400+ per sale. This si the UK market primarily although international orders could also come in I expect as the item is pretty unique.

    My questions are:

    - I am thinking of creating a store that sells other items in the wider niche also. But when looking at the Google results the pages have a lot of ebay and amazon stores - is this ok?

    - The few independent stores there are in the SERPS seem to be manufacturers - long-term family businesses for eg. Is this a good sign or not? So are these manufacturers would then be the ones I approach to drop-ship?

    - The supplier I have is a family concern and does not do drop-shipping I don't think usually. So how do I ensure they enforce MAP if they get approached by others in the future?

    - The domain I have is the name of the main item - let's say. www.bluesuitcases.com but now I am thinking of selling other items in the niche which you could say is 'luggage'. So if I use www.bluesuitcases.com is it still ok to use that for all items in the niche? The thing is that the domain is a gem as it is has the item name which is the main keyword also.

    Many thanks!
    • [1] reply
    • MAP policies are illegal in the European union, for better or worse. In fact, to my knowledge MAP is pretty much only a US thing.
  • Hi,

    For me it is to complicated to handle with these csv files,they are not uniform and each shop platform/cvms system is different.

    Does anyone has an easy to understand guide how do import my products in my shop with an csv file?

    So when my shop has 10 categories,I must split my csv file with large number of products into 10 csv files for each category?

    Or how to handle that?

    What is easiest to handle with csv files shopify or Joomla cms? (using joomla to build a store).

    best wishes
    marco005
  • Banned
    Personally, I think that ship has sailed. Amazon and other big brands are close to cornering these markets.

    So what's you usp here? Cheaper, faster, best support, etc? Easily copied.

    PPC advertising, competing against hundreds of other ecommerce sites. Only going to get tougher.

    Yes there are small niches you could still become a leader in.

    But for me, i prefer bigger b2B deals as opposed to setting up whole customer support to deal with hundreds/thousands of customers. That doesn't appeal to me.
  • Banned
    Vitol > $300billion

  • Banned
    sex products sell very well online. No-one can go into Walmart and buy a 12" dildo etc. This is the edge you need i.m.h.o. (not the dildo)
  • Excellent discussion, I seem to be 2 years late, a few Google algo updates late, but I think its as relevant as the first day it was put up. I am new to eCommerce but one thing I know about business is that if you have a product that you need to sell is that you either move volumes or sell high quality items that don't move fast but have high margins. A Ferrari vs a phone.

    I would rather go for the phone than the car. I think the most important question is how does one join this world. I have researched on amazon selling, amazon fulfillment program, drop shipping but it seems to be mostly different parts of a money puzzle. i dont want to start huge, what I have learnt is start small, make mistakes, not too costly learn and grow...Get to sell 50 dollars a month online, Just need to know that i am selling it in the right way such that if I scale up, its in the right way.

    Any tips to help someone like me start out, it can be a flashback of your time in my little shoes.

    Thanks and regards,

    kaptain
    • [1] reply
    • If you are a beginner in drop shipping and eCommerce sale, you can not cope with the wholesale site, I recommend, that you try slowly, step by step, with the help of experienced in this way of marketing like Wholesale Portal, and see its possibilities as seller.
  • [DELETED]
    • [1] reply
    • Wow, it seems like you've went ahead and tried to create an entirely new platform...

      My method is really much less complex than that. I basically just find existing businesses that are already making a killing and reverse engineer their stores. This method requires much less guesswork and no real investment of capital to get started.

      If you're interested there are a ton of resources online to help you get started but unfortunately I can't help you with the platform that you're trying to create.

      Good luck with whatever you choose!
      Anton
  • [DELETED]
  • How do you stop dropshippers from stealing customer information? The dropshippers have access to your customer's physical address as well as e-mail so what is to stop them from putting their own marketing materials in the box when they ship the product out?
  • Banned
    [DELETED]
  • I agree completely. Not many people realise that Ecommerce is the best way to make money online. I was struggling for MONTHS trying to make money online until I decided to try selling on Ebay and Amazon. It definitely helped to grow my current income..
  • Banned
    [DELETED]

Next Topics on Trending Feed

  • 483

    I think the eCommerce subsection of the Warrior Forum was created about one month ago now.. I was excited when I first saw it go up because I've made most of money via eCommerce and I think it's the best way to make money online... I was looking forward to speaking to others who feel the same. Unfortunately it seems that there aren't all that many people posting in this section.