Why Drop Shipping Doesn't Work: Become a Successful Internet Retailer

Why Drop Shipping Doesn't Work: Become a Successful Internet Retailer

Table of Contents

  1. Introduction
  2. Why I Stopped Drop Shipping
  3. The Negative Connotations of Drop Shipping
  4. Becoming an Internet Retailer
  5. The Seven-Step Process to Building a Real Business
    • Step 1: Niche Selection
    • Step 2: Market Research
    • Step 3: Creating the Store
    • Step 4: Supplier Approvals
    • Step 5: Conversion Optimization
    • Step 6: Getting Traffic
    • Step 7: Outsourcing and Automation
  6. Conclusion


Why I Stopped Drop Shipping and Became an Internet Retailer

Hello everyone, Anton Crayly here from dropshiplifestyle.com. In this video, I want to talk about why I stopped drop shipping and why I believe you should too. Over the past decade, I have been actively promoting drop shipping through my website and YouTube channel. However, I have come to realize that traditional drop shipping methods, such as sourcing products from China or using middlemen suppliers, are not sustainable for building a long-term, successful business. In this article, I will explain why drop shipping has gotten a bad reputation, the negative effects of referring to yourself as a drop shipper, and how you can build a real, profitable business as an internet retailer.

The Negative Connotations of Drop Shipping

When most people think of drop shipping, they envision a business model where someone sources products from China or uses a drop shipping app to find products to sell on their Shopify store. These methods may seem enticing at first, as they promise access to millions of products and easy profits. However, they are not viable strategies for building a sustainable business. When you use the term drop shipping, suppliers and industry professionals often assume that you are a newbie or an inexperienced entrepreneur. This can lead to low approval rates when applying to sell products from reputable brands and hinder your chances of building a long-lasting business.

Furthermore, payment processors and ad platforms have also become wary of drop shippers due to the negative reputation associated with the term. Many drop shippers fail to build proper customer relationships and provide quality products, resulting in high return rates and chargebacks. This has made payment processors hesitant to work with drop shippers, making it challenging to process payments and run successful advertising campaigns.

Becoming an Internet Retailer

To overcome these challenges and ensure the long-term success of your business, it is crucial to reframe your mindset and adopt the term "internet retailer" instead of drop shipper. By positioning yourself as an internet retailer, you are not only distancing yourself from the negative connotations of drop shipping, but you are also accurately describing your business model - selling products online. This simple shift in terminology can greatly improve your chances of getting approved by suppliers, payment processors, and ad platforms.

The Seven-Step Process to Building a Real Business

To build a successful online business as an internet retailer, it is essential to follow a proven step-by-step process. This process will guide you through niche selection, market research, store creation, supplier approvals, conversion optimization, getting traffic, and eventually, outsourcing and automation. Let's take a closer look at each step:

  1. Niche Selection: Rather than relying on trend reports or top 10 lists, focus on finding niche products that have a high selling price (around $200 or more) and appeal to the upper-middle-class market. Look for products that are not dominated by a few big brands and have the potential for long-term sales.

  2. Market Research: Dedicate time to conduct thorough market research to validate the potential of your chosen niche. Test the price points, analyze competition, and ensure the products are evergreen, meaning they have a long-lasting appeal to customers.

  3. Creating the Store: Once you have identified a profitable niche, create a professional-looking online store that accurately represents your brand. Use stock images and basic product descriptions as demo products during the supplier approval process.

  4. Supplier Approvals: Contact reputable suppliers as an internet retailer, not a drop shipper, to increase your chances of getting approved. Present your store and explain why you want to work with them, emphasizing the value you can bring as an authorized retailer.

  5. Conversion Optimization: Optimize your website for maximum conversions once you have real products on your store. Implement proven tactics to entice visitors to make a purchase, such as persuasive product descriptions, clear pricing, trust symbols, and engaging visuals.

  6. Getting Traffic: Instead of relying on generic advertising methods, focus on targeted shopping ads that showcase your product image, price, and store name. These ads drive highly motivated buyers to your store, increasing the chance of making sales.

  7. Outsourcing and Automation: Once your business starts generating profits, leverage automation tools and hiring strategies to streamline your operations. Outsource repetitive tasks and hire virtual assistants to help manage the day-to-day operations, allowing you to focus on growing your business.

By following this seven-step process, you can build a real, profitable online business that stands the test of time. Rather than being just another drop shipper, you will establish yourself as a successful internet retailer, capable of sustained growth and scalability.

In conclusion, while the term drop shipping may have a negative connotation, it does not mean that the drop shipping model itself is flawed. By reframing your business as an internet retailer and following a proven process, you can overcome the challenges associated with traditional drop shipping and build a thriving business. So, leave behind the old perceptions and embrace the opportunities that come with becoming an internet retailer.

Remember, if you want to learn more about the seven-step process and delve deeper into each stage, I encourage you to register for my in-depth training. Together, we can navigate the path to success and establish your online business as a reputable and profitable internet retailer.