This week’s video is dropshipping for beginners including not just what I believe after 20 years of selling online to be the #1 secret to building digit dropship businesses fast, but also, the same secret that the majority of the current top performing dropship sellers and also believe to be the number one secret.
I’m also going to share with you how the power of one $50 item can lead to $65,280 in profit per year.
Transcribe of “Dropshipping for Beginners | The #1 Secret”
Hi guys, Neil Waterhouse. This week’s video is dropshipping for beginners, including not just what I believe after 20 years of selling online, to be the number one secret to building dropship businesses fast, but also the same secret that the majority of the current top performing dropship sellers also believe to be their number one secret.
How the power of one $50 item can lead to over $65,000, in profit per a year
I’m also going to share with you how the power of one $50 item can lead to over $65,000, in profit per a year. Now, as anybody who follows me regularly would know I’m in the middle of writing my next book. And for this new book I’ve been interviewing and collecting more case studies for many of my dropshipping students who’ve built or gone from scratch to build six and seven digit dropship businesses.
What is one piece of advice that’s helped you succeed
One question I asked them all in these video interviews is what is one piece of advice that’s helped you succeed that you could pass onto somebody who’s beginning their online dropshipping journey. And this week’s video. I’ll share this secret with you, but before I get started, make sure you hit the subscribe button to the no fluff, ad-free free channel.
secret the power of one
That puts out weekly videos teaching step-by-step how anybody can build a 70 to online business from their home using eBay and Amazon and using less than a hundred dollars. So let’s launch straight into it. I call this secret the power of one. Most beginners, way over-complicate dropshipping. If you want to build a dropshipping business, that can be automated, so it runs by itself.
It must be kept simple
It must be kept simple. The main part about building a drop ship business is all about learning a repeatable strategy for just two tasks. The first task is learn how to find one drop ship item that’s already selling over and over and at a profit. We call this a proven item. The second step is to let have list optimize and sell that one item.
Doubling down on what’s already working
If you learn these two repeatable steps, it’s simply just a matter of doubling down on what’s already working. That’s how I started that. I started with one product. Everybody starts with one product. Then you double down, double down. Yeah. If you new to this channel and don’t have these two repeatable steps, which are shared in previous week’s videos, I’ll again, share a link for it, at the end of this video.
Building a dropship business should require absolutely no guessing
Building a dropship business should require absolutely no guessing. It should follow the same step-by-step procedure over and over. Just like when staff put together a big Mac at McDonald’s, the staff follow a step-by-step documented methodology. It’s the same with dropshipping.
The same step-by-step methodology
It should be the same step-by-step methodology. Each time to find proven items and the same proven step-by-step methodology to list, optimize and sell the proven items. Sure you can of course, continually split test new strategies. And that of course is how we continually improve. However, those split tests should be going on in the background and it should only be implemented once there’s enough data to prove a new strategy is better than the previous.
What we call control strategy
What we call control strategy. I’m a huge fan of split testing myself and my team. We’ve been split testing now for over 20 years, but we don’t implement any new optimization strategy or technique until we’ve got enough data to prove that the new strategy is better than the existing control strategy.
Statistical significance
In the industry, this is called statistical significance, but you know, getting back to basic or basic dropshipping for beginners, if you learn the procedure to find one proven item and then learn the procedure of how to sell the same one item, you’ve got the code to building a seven digit dropship business.
I only sell ten items a month
It amazes me how many times I hear beginners saying I only sell five a month or I only sell ten items a month. I always think to myself, all you have to do is double down, on what’s already working. And you don’t even need to do this yourself.
We’re all blessed to live in a day and age
Today, we’re all blessed to live in a day and age where it’s never been easier to outsource almost every task with dropship business to overseas, low-cost virtual assistants, which you can get from $1 an hour. I’m not going to go into how to outsource these staff right now, as I’ve done that in previous week’s video. But again, if you miss it, I’ll put a link on the screen and below.
They have all different size businesses
Before COVID-19, I used to do a lot of live seminars and in the breaks, I’d speak to many people, who’d be telling me that they have all different size businesses. Some people with hobby sized businesses, which would be selling just 10 products a month.
Other people selling a hundred products a month
Other people selling a hundred products a month, other people, many thousands of products a month. Well, these people were talking to me, I couldn’t help but imagine if 10 of those people who were just selling say just 10 products per month got together and bingo. Now they’ve got a business that’s selling a hundred products per month.
Double down on what’s already working
All that most of these people need to do is double down on what’s already working. Now eBay, as an example has thousands and thousands of these hobbies, high sellers who are selling less than $50 a month. Last year base turnover was just over a hundred billion dollars.
The professional sellers
And this a hundred billion dollars in sales comes from thousands and thousands of hobby sized sellers as well, of course, as the professional sellers. Over the last 10 plus years of teaching people, I’ve received literally thousands of emails from people telling me they’ve just sold their first item or first few items.
Congratulations, this is the first sale
I love hearing this and it never gets old, but I always reply back to them saying, congratulations, this is the first sale or sales of many thousands of sales to come. I really mean this because if they’ve learned how to find and sell one or more items, all that many of these people need to do is double down on what’s already working.
The difference between a small business and large one
After all, the difference between a small business and large one is simply just how many proven items you’ve got listed. That’s it! You know? Yes, of course there’s other issues about staff, et cetera, as you get bigger, however, these problems are good to have.
It’s never been easier to outsource to overseas local staff
And as I’ve mentioned a moment ago, it’s never been easier to outsource to overseas local staff than it’s ever been before or software. We always use software first. If we can’t use software, then we’ll outsource it to local services stuff. Here’s an example of the doubling down strategy with dropshipping.
Doubling down strategy with dropshipping
Let’s say you’ve got one drop-ship item that sells for say $50. And it sells on average just once per week and makes $10 profit per sale, every time it sells. At one sale per week, that’s $50 in revenue times if fifty two weeks, which equals $2,600 turnover or $520 profit, which of course is $10 profit times 52 weeks.
How to find one proven product and sell it
Now, if you can learn how to find one proven product and sell it, you can then double down on what’s already worked. And now you have two proven items. Using the same figures, if we go from one product to two, yearly turnover goes to 5,200 and profit goes to 1,040.
Double again to four items
Double again to four items. And turnover now goes to $10,400 and profit goes to $2,040. Double again to eight items. And turnover goes to $20,800 and profit goes to $4,080. Double again to 16 items. Turnover now goes to $41,600 and profit goes to, I just round up to $8,000, $8,160.
Double again to 32 items
Double again to 32 items. The turnover goes to $83,200 and profit goes to $16,340. Double again to 64 items. Turnover goes to $166,000 and profit goes to $32,000. Double again to 128 items and turnover goes to $332,000 and profit goes to $64, $65,000. I hope I get this right at $65,280.
How many times do you want to double the size of your dropship business
So 60, call it $65,000. It’s purely up to you, how many times do you want to double the size of your dropship business. Everybody has got their own, their own limits and expectations. This is also how eBay and Amazon grew from zero to where they are now.
How eBay and Amazon grew from zero to where they are now
With eBay for example, the first item ever sold on Ebay back in 1995, when Ebay was called auction web was a broken laser pen, which has sold by the founder, Pierre Omidyar. After that broken laser pen was sold, another seller sold one item.
Sales add up to just over a hundred billion dollars for the last 12 months.
Then one more item, then one more. And now all these individual sales add up to just over a hundred billion dollars for the last 12 months. Same with Amazon. And the first book sold and Amazon back in 95 was Douglas Hofstadter’s Fluid Concepts. Shortly after that sale, Amazon got a second sale and now Amazon sales revenue for the last 12 months is around $108 billion.
Comprised of individual sellers like you and me
Again, all comprised of individual sellers like you and me. Same with Shopify. Shopify first started selling snowboards back in 2004, when it was called a snow devil, yes, snow devil. Then two years later, it was renamed to Shopify where it became a platform before creating online stores.
Shopify where it became a platform before creating online stores
Today it’s online stores turnover over $5 billion. Again from individual sellers like you and me. There’s some fun, grab your partner and a bottle of your favorite brew. Sit down together and map out how your life could change by doubling down the pair of one.
How to build a dropship business in detail from scratch
If you want to know more about how to build a dropship business in detail from scratch using less than a hundred dollars, I’ll put a link on the screen below to a free step-by-step course. I hope this video helped you with dropshipping for beginners.
Dropshipping for beginners
You need to know about dropshipping beginners. Please leave me comment below and make sure you hit the subscribe button to the no fluff ad-free channel that puts out weekly videos teaching step-by-step how anyone can build a 70 to online business from their home using eBay and Amazon, and using less than a hundred dollars. Until next week, stay safe. List more, sell more. It’s Neil Waterhouse.
How and where to find overseas staff from $1 per hour Click Here
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