How to Dropship on Shopify in 2020 (Interview with Kamil Sattar)

Our guest on the 8th of June, 2020,  on the sellerboard show was Kamil Sattar, “The Ecom King”. Kamil is an e-commerce entrepreneur and a mentor in dropshipping.

We talked about:

  • How to pick profitable products
  • How to attract traffic to your Shopify store and get sales
  • How to increase the average check
  • How to optimize your ads

Watch the full video here:https://www.youtube.com/watch?v=n9z8RPqNVAE

0:07 Hey everybody, welcome to the next episode of the sellerboard show. My name is Vladi Gordon. And today, we’re gonna talk about Shopify, specifically about dropshipping through your own Shopify store. We have Kamil Sattar with us the Ecom King. And he’ll walk us through the process of picking the right product for dropshipping. Like setting up your store and setting up the advertisement, and this is the most interesting part actually because you need to get traffic to your store in to make it in a way that you have some profit left for every sale. So how do you attract customers and stay profitable? I hope you like it, it was very interesting for me and a relatively new topic. And by the way, we have a couple of Shopify products coming up. So one is the Shopify profit dashboard. As you know, guys, sellerboard is the profit dashboard for Amazon sellers with a lot of other tools. But this is kind of our key focus. And a lot of customers have been asking ourselves if we can add other channels like Shopify, because some Amazon sellers are also selling on Shopify. And this is why we built the Shopify profit dashboard. And it’s going to be available for beta testing in a few weeks. So make sure you get yourself a free trial from the link in the description. And by the way, sellerboard is only $19 A month after the free trial. So make sure you give it a try.

1:43
Before we start, don’t forget to subscribe to our channel releasing these videos regularly. And give us a like, if you like this content and let us know what you think in the comments. Let’s start the show.

2:00
Hello, Kamil, how are you? I’m very well. Thank you. You doing great. Thanks. Home Office.

2:09
Yeah, it’s crazy out there at the moment. So tell me tell us about yourself.

2:16
Yeah, so my name is Mohammed Kamil Sattar. I’m 21 years old. I was born in 1999. I started my e-commerce journey back in 2015. When I just quit my job and left college. And for the first year of quitting college back in 2015.

2:34
I started doing buying and reselling buying high-end brands selling them online eBay, Amazon, Amazon, sorry, eBay, D pop brothers online selling platforms like that. And then after around about two years a year, I got into drop shipping in 2017.

2:52
And my first product that I sold that did while was an iPhone privacy screen protector. And I did $25,000 with that. And then a year after I was able to do $1 million in revenue. And then a year after that we’ve now done multiple million dollars in revenue. I’m now I’ve now been established on Forbes Business Insider Inc magazine for all my accomplishments.

3:16
And now I have a YouTube channel where I teach people my success and how I got there. Well, and that all is based on dropshipping that was all based on dropship. Okay, so that’s very interesting. Let me let me tell like our audience, our Amazon sellers, so when they hear drop shipping, they mostly think about dropshipping on Amazon. But um, as far as I understand you, you don’t do Amazon, right. I’ve personally never done Amazon FBA. I know a lot of people that have I know a lot of people that do Amazon FBA, but then transition into Shopify dropshipping because the profit margins are higher. So the times lean over.

3:57
Okay, so your base completely off Amazon or Shopify? Or are there any other platforms involved? Like market? Yeah, we just primarily use Shopify or WooCommerce. We don’t use companies like Amazon or eBay as hosting and marketing. We solely do it all ourselves. Okay. Very cool. All right. So let’s dive into this and basically discuss every every step of the process and, you know, understand how somebody can can build something like this. So let’s start with geography actually is it doesn’t really matter where you’re selling like geographic, yeah, so a lot of people feel like if you’re from a certain country, it’s better but honestly, anywhere is fine. At the end of the day, your supplier is going to be in China.

4:38
So they’re going to handle the logistics in terms of what’s the main reason for you to be located where you are, can be just based on corporations like people think you need an LLC to do while it doesn’t matter where you’re from, as long as you can set up a business. You can have a payment gateway, you can just do but you’re selling in the US mostly or worldwide. Yeah, the main country, yourself.

5:00
As the US the top five countries we call them which is Australia, Canada, New Zealand, United Kingdom, United States and Ireland that are the main countries you normally get your sales from. Okay, and and your supplier, so that a local or overseas so you we, we, we recommend most beginners start with aliexpress. And then once you find a product that does well, you can then find a local supplier in the country that you have majority of your sales from.

5:29
And you can have local suppliers in Europe or us. Okay, got it. So you start you basically dropship from AliExpress. Yeah, through your Shopify store to the end customer. And then once you find what we call a winning product, a product that gets a lot of sales, then you reinvest the profit into getting a local supplier. Because obviously, when you scale a product, you don’t want to make lots of money, lots of sales, but then get lots of returns on the shipping.

5:55
Yeah, okay, cool. So let’s start with the product. So suppose I want to dropship from AliExpress. Sounds good. Everybody can buy on AliExpress?

6:08
Let’s start with the product selection. Right. So well, what what makes a good product? Yeah, so what makes a good product and what we call for evergreen products, products that will sell every year all year? are products that have a wow factor products that have a convenience factor? Does this product solve a problem in somebody’s life? And does this product? Is this product sold online and only online? You can’t find it in your local department stores? Does the products have an emotional effect effect on people? Will it get people to feel emotional because as a sentimental value to it, and they’re the kind of products that do well. The most ones that do the best are in terms of industries or the beauty industry, the pet industry, the kids industry, they’re the ones that make the most money and dropship them. And it’s just, it’s just products that you can get a good video for that has a really satisfying watch to it. The other products that tend to do while and products are priced on the 2999 or 2999 have a higher chance of doing well because obviously the conversion rates going to be higher because the buying rates a lot lower in terms of having to convince them to buy. So you mean the end price? 2990. Yeah, so if you can sell a product for 2999 or under and retain a $15 profit margin, they are the best products to sell. Because obviously if you find cheaper products, it takes less for people to convince themselves to buy it. And so that’s really the main reason.

7:36
Okay, so you mentioned $15 profits, what’s the like? rule of thumb on that? So do you need

7:45
to make a $15 profits because obviously with dropshipping, with Shopify, it’s different to Amazon. on Amazon, you have what we call search intent marketing, people are searching for your products on the website. We’re Shopify drop shipping, you’re paying advertising platforms like Facebook, Google, YouTube, to put ads so they can see your, your product that’s called explosive marketing. So we have to pay in advertising costs. So if we’re not making at least $15 after transaction fees after marketing costs, you might not be left with anyone. So etc. So like, let’s suppose it’s a $30 product, right? What should it cost on AliExpress. So let’s say it’s a $30 product you’re buying it for $4 when you add $15 to that you sell it for 1999 It depends on the perceived value if the product has a high perceived value, you might want to charge even more. Okay so but in general it’s like he said after subtracting the cost of goods shipping and marketing fees, you need to have 50% Cost of Goods you got your transaction fees which is a payment gateways like if you use stripe or PayPal, they take a fee of every transaction okay? You’ve got you’ve got things like again your marketing costs, you’ve got your taxes, you’ve got your app costs, you got your website costs so after you put that all into consideration, you need to make sure that you know how much you’re you’re making. And like for let’s take this three bucks product for example. So if you pay for a product, this is like what shipping costs are about? Yeah, we normally is normally what what what most people use is what they call the E packet. During this current situation obviously it’s not a good option to use but before and after. This situation then they use e packet which is normally free. isn’t free. It’s between one and $2 sometimes $3 Okay, so you need to make sure like if you’re selling for 30 and there are no additional shipping costs on that you need to make sure like the product and shipping cost under $6.

9:47
Yeah, so shipping costs and product price. So we Shopify drop shipping, we tend to add the shipping costs into the product costs so that you get free shipping. Yeah, so if the dollars if the products $4 and then it costs $2 for shipping.

10:00
Going on $2 on four, which is $6. And then you had $15 on to that. So you sell your product for 2299, obviously, depending on the perceived value, okay, but like the marketing, I can imagine that bringing traffic to your product or a shop is very expensive. Yeah, cost per result cost per purchase, you want to try and get it between five, five and $8, if you sign products at that price. All right. Okay, so I’ve got six products shipping and five to $8. And the rest is, is your your profit. That’s nice. And it’s certainly like to hear more about this.

10:36
But maybe let’s start high level, like, how do you get traffic to your website? Yeah, so you got paid traffic and you’ve got organic market and paid traffic’s where you’re paying to get traffic, but their organic is where you’re putting your time and effort into it. And then obviously, you can seek the rewards. Now the main way most successful dropshippers that myself have done it is with paid traffic like Facebook advertising, Google Shopping, ads, YouTube advertising, they’re the main sources of traffic we use to get sales. So on these like one time customers mostly or do you have some like a brand or? Oh, yeah, we’ve we’ve drop shipping, the key is to build CLV customer lifetime value. The key is the customer lifetime value, which is with text, message marketing, email marketing, social media marketing. So as you know, for us, it’s very important that we keep our existing customers reoccurring customers because it’s a lot cheaper to turn someone that’s already bought from you into another customer than it is to go out there and buy a basically create a new customer. So it’s very important that we do get reoccurring customers, because that means we’ll be a lot more profitable. But you’re still making money on the first sale. Yeah, so in terms of how much money you really make on the first sale is nowhere near as much as what it will be if you make another sell off the same customer. So you might only make 15 to 30% profit, instead of making potentially 60 to 80% profit. Okay, what is your still profitable, like, you don’t need to be profitable on your first sale? If you’re doing it right. But it’s just nowhere near as much as it won’t be in the customer. Yet another one, recurring customers are Okay, got it.

12:16
Cool. And I’d like to talk to you about traffic in a minute. But maybe one more question about sourcing? Are there any other like, parameters regulations. So for example, I know if you ship into the EU, or injure to Germany, the product shouldn’t cost more than 23 euros because otherwise, the customer needs to pay VAT and go to the customs and collect the product. And yeah, it’s a very, very complicated scenario, depending on certain countries depend on the import taxes and stuff like that. So every country has a different rate. And it depends where you’re currently living and where everything gets set off by but majority of times the supplier will pay the fee. And if not, sometimes the customer has to pay it. But it is very complicated. Now, it’s not something that I would discuss on here because it’s just so much detail that I will go into. So I definitely recommend the viewers on here if they’re interested. There’s a lot of videos on YouTube highlight in every single country. But like do you even care or is it basically they say like okay, doesn’t matter if they buy a product for $300 and they need to pay an import tax that’s basically the problem of your customer. So this is you should strategize before you start so before you start a product you need to ask the supplier look will you pay for me do I pay customer pay and then once the supplier tells you if you need to pay it, then you pay it which means you need to know so whatever that charge would be you’d add it into the product costs so you know that you take a hit if the supplier is paying for it you don’t need to worry about it if the customers paying for which I don’t ever recommend you do only ever those two options some people make the customers pay but it’s not a good experience hmm okay and what like think they can in the worst case they can claim their money back or does it work like in terms of What sorry? I mean if a customer says okay I need to pay an import tax I’m not happy can they get them like on Amazon for example they can get a refund you know Amazon refunds them immediately no questions asked like

14:20
the input actual although the whole product the whole product like I mean if I order something and then I get a letter from the customs and they say okay, you need to pay Texas or whatever. As a customer can I say I don’t want to have this enough. Please give me all their money wait we can do is we would say to the customer look, we’ll pay that will pay it for you and then we’ll just get straight to the house. We will

14:45
completely back from you. We’ll just pay it. Okay. All right. Got it.

14:54
Okay, cool. So, can you make a couple of examples like what can I mention as a good product or

15:00
Maybe as a bad product or a standard product for dropshipping, you don’t need to tell us any secrets, but just know. So okay, so there’s a few guidelines. So in terms of bad production want to stay from, you want to stay away from things that are trademarked. So things like Marvel, DC, things like that. You want to stay away from things that are digestible things that you put into your mouth and digest. And you want to stay away from skin, putting things on your skin in case allergic reactions. You want to stay away from products that have patterns, Payton’s whatever you want to call them copyrights

15:32
in terms of products that are really, really good, or you worried about products that are good at the moment, or just in general?

15:40
In general, for me, I mean, if you can share an example of a specific product, that would be that would be great. Okay, yeah. So there was a very, very successful product, I’m sure you are aware of it the back partial product?

15:53
Or what what’s that? Is the posture corrector brace where you put it on? I know, yeah. And it lifts you back off. Okay, that was a very successful product in dropshipping.

16:04
It was extremely successful in Amazon as well, I know.

16:09
That wasn’t a good example of a good product. Another product is the pet grooming glove. So it’s a glove upon your hand, and you groom your dog, and it takes the hair off. Okay. Oh, nice. So that’s another really good one. Again, it’s a convenient product, it’s there for ease of use, it gets good results for the dog. So that’s another example of a good product. An example of a bad product would be a product that bad quality doesn’t have much. So it doesn’t have good videos online doesn’t have good pictures.

16:38
It doesn’t have many sales, it has too much sales. So you don’t want a too saturated product. And you don’t want a product that’s too new, because it’s got no proof of concept. There’s a lot of variables that go into identification. How do you estimate your sales? Like you said, they don’t want to process too few sales or the meaning.

16:59
Like, I like to go to aliexpress. And I like to know that the products got between 1000 and 5000 orders. Okay. Anything over 20,000, in my opinion is just too saturated. Hmm. Okay, cool. So that’s the kind of market research right on AliExpress? because it tells you how many orders are shipped? How many orders how many daily orders is getting everything. Okay? Do you need like any tools for this, or there’s something called the drop shipping center in aliexpress. And when you get drop shipping centers completely free, you can get the URL of the product page on AliExpress paste it in there and it tells you the whole analytics. Okay. Oh, very cool. And this dropshipping Center is a sample official like they want people to be able to drop ship based on this or Yeah, express are basically endorsing promoting drop shipping, because that’s how Holley Express make a lot of money. Oh, nice. Okay, so how do I find this? Can I google look like a drop shipping AliExpress dropshipping center, and it’ll take you there. Okay, so what do I need to like, do to get access? Is it like for everybody? Or is a component? Yeah. For everybody, you just have to sign up like with an email password. That’s pretty very easy going. Okay, cool. Very, very easy.

18:18
Okay, so tell me like, you mentioned that the price should be motional right? So I can imagine

18:26
like, that must be some type of price. Yes.

18:32
Very, very good example of this. So we sold something called a pregnancy seat bow and what the pregnancy seatbelt does is it’s a way the seatbelt goes across the woman’s

18:44
legs so if they have a car crash it doesn’t affect the baby. Yeah. With the pressure of the seatbelt. So when you mark it that you could get very emotional and say look, you do not want to be this X amount a number of people a year that lose their babies because of not having pregnancies. Mm hmm. Nice. Yeah. Makes sense. Yeah, absolutely. I think like it’s rather sudden like this that maybe something like a screwdriver I don’t know. Unless it’s a very cool screwdriver. Right? So it is it like is it like an emotional buy that they are doing like emotional buy because if a woman was to see that ad and see a video see pictures see proof see five numbers they’re gonna think oh my god one’s if I’m the next person that’s in a car crash when I’m pregnant. Yeah, potentially. You know, so let’s blame it brother spontaneous. What you mean by spontaneous like you are browsing through once I bought a gadget on probably on such a website. It was like a very cool little tool. You can open bottles with it and oh, and then once for me was completely spontaneous. I was like browsing Facebook, and it showed me an ad in the sun. Okay. I want to have

20:00
Listen, you know, is it is it more like this or people that are thinking or looking for something? Yeah, so like I said, with drop shipping Shopify style is not search intent. So when people look for those products, they’re not searching on Amazon or Google those products is what we call explosive marketing. So we target a certain category on Facebook, the ad will show on their timeline, and they’ll look at it and think, Oh my god, so it’s what we call exclusive marketing. We’re not looking for it, but we show it to them without them knowing that it’s going to be okay, let’s talk about marketing because I think I can imagine how to set up a Shopify store and so on. So suppose if they’re marked as marketing is the key here, right? So um, you said Facebook, Google Shopping.

20:46
What else? YouTube things like Instagram influencers, YouTube influences, tik tok influences, YouTube ads, Bing Ads, you got loads and loads and loads. So what’s what’s the channel that you would recommend for For starters, to start with? I think it depends on your budget. Now, if you’ve got a budget between let’s say, 200 and $500, I would say Instagram influences tik tok influences. If you’ve got $1,000, then I’d say Facebook advertising.

21:14
Okay, it was very, very expensive. But like you said, you will be making money on every sale, right? So why why don’t need so much money up front. Because you’re not going to make money straight away when you spend on advertising. So you might spend on advertising for a week, but you might not make any money. Because with Facebook, you have to collect data. So the more data you collect, the better your marketing becomes, the better quality it becomes. So it might take you two weeks to make money. But if you haven’t got any money to put in at the start, then it’s not Yeah. Okay. Got it. So how do you make ads on Facebook in terms of, of the ad itself? Like, do you need video or picture? Yeah, I’d recommend 100% videos because videos have a higher watch rate or higher watch time, they have a higher click through rate. So videos, and with videos, you can get the point across better you can show it in real life examples. People can connect with it. So definitely videos. That’s that’s the best way of advertising with Facebook. How do you make a video? Or do you find parts which already have videos? Yes, so the way you can find videos for your product as the AliExpress supplier tends to have a video anyway. And but if they don’t, you can go onto YouTube, find other people have had the product made videos on it, you can go onto Amazon, Amazon sellers have videos, you can go onto places like Facebook, look for other competitors and looked to see how they got their videos. Or you can pay a service to make videos for you, there’s a lot of services, that’ll do it for you.

22:51
Or you can get your product sent to a filming team to get it professionally. So what’s what’s your recommend for the beginning rather looking for product videos, want to at the beginning, you want to take content from lots of different places, chop it, chop it into lots of different pieces that because if you just take one video away, you can get known for copyright. But if you take lots of different videos, chop them up in every five seconds, then technically, you can’t get done for copyright. So that’s why we recommend doing it that way. And then once you get a product that does really, really well and it makes money reinvest the profit into getting a real video on your own made as a part of that way, you’ll have no copyright issues when you scale a product. So tell me like if I want to maybe earn $1,000 per month, pure profit and revenue will profit.

23:40
So how many products do I need? Is it like, dozen? Or typically or hundreds? Or thousands of products on your website? Well, using Shopify dropshipping Yeah, so Shopify dropshipping, the method that I teach is one product. So you make a one product store around the product. And then you just saw that one product. And is it realistic to make $1,000 in profit with only one product with one product 100%. Now the reason why is because when you build a one product store, you look more like a brand. And the good thing about a one product store is customer’s attention rates a lot better, they’re not getting distracted by those different things. And the way you increase your average order value is by doing upsells when they check out it will say in the checkout, why not get this with it, you know, so there are great ways to increase your average order value. Now in terms of making $1,000 in profit a month, the average profit margin is between 15 and 25%. So if you do the math, you can kind of work out how much you need to be selling a month to make that so yeah. Okay, but it’s rather like you know, cuz we have

24:54
this private label method on Amazon, where you concentrate on

25:00
few products, maybe even on one pack. And we haven’t you guys are doing wholesale. To make money in wholesale, you need like thousands of products, maybe hundreds.

25:09
But your method is rather like a small amount of products but done really well.

25:15
Yes, you find one product. So this is basically the journey to success. Now, you find a product and one product for you sell it.

25:24
You collect the facebook pixel data based on that audience. So let’s say I’m selling a phone case, okay? Now it’s a phone case that has it’s not just your basic phone cases got something to it that makes it really entertaining. So let’s say I sell a phone case, I target phone users on Facebook, iPhone, users, Samsung users, all of that stuff. Let’s say that product does really, really well, then what I can do is I can then build a niche store around them all phone cases, iPhone screen actors that way, Facebook data to then target one of those people with that date. It makes sense. Yeah, absolutely. So tell me small and then you branch out once you find what works, then you branch out? Yeah.

26:11
Tell me, like my experience with Facebook ads is that they’re expensive. Right? So how do you like make a sale for seven $8 spend in ADS?

26:25
Yeah, so if you want to get a cost per result cost per purchase at $8. You’d have to be on Facebook for at least at least spending money at least a week and a half. Now you normally when you’re selling a product for let’s say $20 $30 $40, you normally spend $30 a day.

26:43
And to get a consistent cost per result that that that number you’re looking for, you’re looking at about a week and a half. But the key to get in a cost per result low is running ads, testing things, testing variations, testing variables, finding what works, narrowing it down, perfecting it, and then you can then make consistent. So what conversion rate, are we talking about two to 3% to two to 3%. Two to 3% of people who see the ads end up buying the product, or just clicking OK. The click through rate is between four and six, the actual conversion from actually buying the product, you’re looking at between two and 3%. That’s average that is average. Now you’ve got people that are doing 5%, which is above average, and new people are doing excellent numbers, which is 10%. Okay, I get it. But like if it’s 3%, that means like one of the of 30 clicks will buy. So

27:40
the way we look at it, I think this is going to really help you. So what we say is out of between 50 and 100 store visits, you’re going to get one sale.

27:50
Okay, and what does it mean for prices? Like? So sorry? For the click price like click budgets to what? How much to spend? Is it like 20% 25 cent per click?

28:03
Cost Per cost per click can range from 20 cents all the way up to $1 50. Okay, and that’s realistic, like all Honestly, it all depends on the product cost, it depends on the competition, because Facebook is a bidding system, you have to pay for the highest bid. So it really does differentiate. So how do you target like, suppose we have

28:25
instead of mentioned a phone case, right? Okay, that’s probably an easy one, because you would target people who have this phone. Yeah, exactly. The one yeah. Yeah, but let’s say they would do in, let’s say we’re selling some gym gym equipment. Okay, well, we would target things like Jim sharp because you can target things like clothing brands, gym shops, a big clothing brand, you might want to target thing like Nike, Adidas, you might want to target things like protein shake brands, US Centers, a protein shake, protein shake protein shake brand, you might want to target things like gyms, 24 Hour Fitness, simple gym, gym, shark gyms, things like that. You might want to target things like physical fitness. So you can target things like interest behaviors, so you can actually target some of these behavior. So there’s loads of different ways you can do it. Okay, got it. And, and basically, a need to learn and test and see what works best and drive fire. So you test loads of different audiences, different ages, different audience types, different genders, different countries. And then after around about a week, you will know what will work and what won’t work. And then you keep refining, keep refining. The more you refine, the more cheaper ads get.

29:38
Okay, so tell me how does Google Shopping work? Oh, what is it in Google Shopping?

29:44
For those who don’t know, we Google Shopping, you have to make a merchant you have to make a merchant account. And then you know, when you search on Google, let’s say for example, an iPhone case and you get those little like little image. price tag on it. That’s how it works.

30:00
And what you can do is, you can basically, let’s say some of your something called keywords. Keywords is the phrase people use to search for something. So let’s say somebody searches for iPhone case, I might want to use iPhone cases as a keyword.

30:15
And I might want my shopping ad to appear for that keyword.

30:20
Okay, and then Google shows them basically my product. It’s not like SEO or normal ad, which leads to the website. But it’s Google knows it’s a product, right? And the other surprise presentation you make you put a Merchant Center, so you can actually upload your products to the Merchant Center. And then once they click on it, it will say visit the website will give it the details, it will give them a little snippet of it. Okay, and to set that up you need. How do you get basically your price from Shopify into this Merchant Center?

30:54
Is there like an automatic? So actually, Shopify,

30:58
Shopify is very, very good. Shopify has integrations with everything. So you get a app called Google on Shopify, and it connects the data together. And as long as you’ve got a merchant account, as long as you got a Shopify account, you download it, and they just think, Okay, cool. So there’s no like, when it’s very easy, very, very easy. And what options do you have there? Like, you don’t get to select keywords other than the texts in your listing, right? What do you mean, sorry? So Google, like, it’s not like a normal Google ad, where you have your ad, and you tell Google, which keywords to show it for. And it’s rather like you say, tell Google Ok, Google, here’s your product. And Google knows themselves when to show it right.

31:45
Yeah, Google have an out everything has an algorithm. Now Google have their own recommendation sing with Facebook, they recommend their own things to you do? I think their recommendations are good. I don’t think that great. I think actually doing your own research is better than listening to what they offer. What like, what do you need to win when you list it on on Google? Right? What do you need to set set up? Or what kind of like criteria? Can you change is just the bid price basically, in the budget? Or is there anything else? Can you change loads of things, you can change, you can change what you want so you can change? What action you want them to take? Do you want them to actually like? What is it you want them to do? Do you want them as a as a click? Do you want them as an impression? What do you want them to be? So you can actually choose the objective of what they do? What works best? Is it the click me personally, I think clicks do the best all the time. I just me personally, I think clicks do the best. It depends what you want to do. Because with it depends because some people might want to do impressions because they might want to do retargeting after which means retarget the people that that that showed an impression. Okay, so

32:51
let’s say we don’t want to retarget which is one of them make money straightaway. And then we don’t need to see this customer again. At least, we’re just starting off. Oh, don’t have any email funnels or so. So what’s the Convert? I assume like the bids will depend on the conversion rate, right. But what’s the normal conversion rate? The bid will depend on the bid all depends on how many people are bidding for the same keywords. So let’s say 100 people have been in the same key word a little bit, so we’ll go higher. Okay, what like, How do I know how much I can afford to bid?

33:27
What do you mean by that?

33:30
Like,

33:31
how much in terms of how much you can spend to bid to make money? Exactly.

33:37
So you need to know your profit margin.

33:40
You need to know all your costs. And then you can work out y’all can spend $2 on this to get a click or you can spend $3. What’s like, what’s the typical conversion rate on Google Shopping? Like on Facebook? I said, it’s between three and whatever we’re saying about one on Google Shopping, what is it?

33:59
conversion rate for buying or clicking?

34:03
for buying? In terms of buying me personally, I would say three to 5%. That’s off my own, again, in terms of my own results, and all the people that I know. Okay, so basically three to 4%. That means you get 20 to 30 clicks until somebody buys, right? So reason why Google has a higher conversion rate is because when people are searching with intent for that, they obviously do action with the intent to buy it in the first place with Facebook, you’re just showing it to people, and then they have to then show interest. So that’s why it’s a higher, okay, but if I know like every third like 20 to 30 Click brings me a customer and I know I have like $8 budget for for advertisement on one item. So I can calculate my bids and then it will be like, Oh, yeah, you can do it. With Google. It shows you as well like the bid history on a keyword it shows you all of that you can get an idea of how much it’s gonna cost. Okay, very cool. So would you recommend

35:00
Anything else like YouTube ads? You mentioned YouTube, YouTube’s a very, very good YouTube ads a very undersaturated very cheap at the moment on the very, very good.

35:12
How does this work? Like, um, then I assume I need to have a video or is it just a better? Yeah, so with YouTube its video because obviously YouTube’s a video platform that people go on to watch a lot of videos now in terms of how you use it as you go to the Google. You go to Google to advertise again. And then under Google, you go to Video as a placement, and then it automatically takes you to the YouTube platform. And then again, you can pick search terms, channels, all of those kind of things to actually use as a placement. How would you target its beginning like rather by channel or by search word, or personally, from results? Me personally, search terms have done better than channel. Okay.

35:53
Very cool. So if somebody’s looking for a pregnancy belt for for women then show them you might want to target things like pregnancy, Pregnancy tips, Pregnancy hacks, things like that. Okay, cool.

36:11
All right. So we’ve got Facebook, we’ve got Google and we’ve got YouTube Anything else? We should Instagram influencers is a big one. Okay, how do you find them?

36:22
So Instagram so let’s say I’m selling a fitness product, again, I might want to go onto a website called Cloud HQ, c. c. l o UT HQ is completely free. And they’ve got a directory center where you can search for influencers based on a certain niche. And then they will show you influences in that industry. And it will show you their engagement rate, it will show you how many followers they’ve got when the account was made, how much on average, it will cost to work with them. Now the engagement you want from an Instagram influencer is between two and 3%. Anything lower than that, they tend to be not very good. But personally, I go for engagement rates between eight and 10. That’s how you get the best results. But basically, you’re just trying to find somebody that has an influence in the industry on Instagram, you send them the product, and then they review it and make a video of it. And then on there.

37:14
Okay, so and like how do you how do they get paid? Do you pay them? Pay them an upfront fee? Or you can pay them based on revenue share? So you might give them 40% of the profit isn’t done through this platform called HQ, or do you need to basically negotiate it with them yourself? You can do it through cloud HQ, but I’d recommend you do it off. You only use Cloud HQ to find the people but then you dm them or email them. Negotiate stuff. Okay, I got it. Interesting. All right, Instagram. Anything else? or pretty much the main ones, there are a few others, but they’re not the main ways to do things. Mm hmm. Okay, so um, got it. So we’ve got our product, we’ve got our marketing, let’s talk about shipping, but basically don’t need any logistics. Right? Your complete Yeah, basically, you have an app that integrates with Shopify, it tells the app. So let’s say you’re doing AliExpress drop shipping, you might want to download oberlo oberlo will automatically tell Ali, so you literally put your app on Shopify, you click orders, you click fulfill order, it’ll take you to the AliExpress, fill out all the details, make the order for you. And notify the customer with the shipping details, tracking numbers, everything. But you do need to click on the order manually every time you do need to go into the app and click one button. That’s it. Okay.

38:38
Okay, so it’s called oberlo, we’ll maybe we’ll put a link in the description. It’s the biggest user friendly free option out there.

38:47
For fulfillment, you can get bulk ordering. So if you got 100 orders, you click one button goes on 100.

38:54
So, like, how many sales a day does a typical drop shipper do if they want to be successful? And are the living? is it like? Again, it’s a hard question, because it depends on how much your product costs. Because depending on if you’re doing high ticket products, you might only need to sell five a day, you know, if you’re doing cheap products, you might need to sell 20 a day. 30 day 40 day 50 a day. But if we look at some of my own analytics, so if I go to my own analytics, so let’s go to Shopify. So you can see on my Shopify dashboard right now, you can see we’re currently at two seconds. I’m just going to quickly refresh this you can see we’re currently at 1000 today. Oh my god. Oh, is it dollar surprise. It stars that is dollars.

39:42
You can see it 1000 a day if we look. Let’s see the month so the month currently we’re at 22,000. Less, is recorded at 22,000. So I’m we’re currently doing $1,000 consistently a day over the 22% profit margin.

40:00
So it’s around about, we’re doing between as I would say, it’s between a day we’re doing between 1000 to 1500. So I’d say 1250 with a 23% profit margin. Nice. And I like clicking these buttons yourself, or do you have a VA, for free. So when you get to a point where you’re getting lots of orders, and things are doing well, you might want to hire vas from Upwork or Fiverr, who will do the customer service for you? It will do the orders for you. Which is important.

40:33
okay so um tell me like what else do I need like do I need to take care of returns or maybe um i don’t know yeah
40:43
So you will always get returns that is always going to happen and how you deal with the returns is you just get the customer to ship it back to the aliexpress seller basically to china yeah basically to China.
41:01
Okay um, are there any problems like disputes on stripe or something like this or Paypal or you’ll either get a chargeback or a dispute?
41:08
So there are two common things that you get how often do you get them me personally most people that I know only get maybe one or two a month and um like how loyal is actually stripe or Paypal?
41:20
Okay are they like amazon as soon as the customer complains they completely block your money?
41:28
So um with paypal i would say stripe honestly is really good and don’t really ever have problems with them they are I feel like most gateways are very biased to the customer, not to the buyer no sorry the became payment gateway is a very uh bias to the people that buy not the salaries you
know or sellers they hate us for some reason they don’t
like us yeah um but stripe honestly don’t really have much problems stripe have something called strike chargeback protection so strike actually offers something now called strike chargeback protection so it protects you from
fraud fraudulent buyers um but in terms of PayPal yes if you get a dispute majority of times you’re going to lose it do they hold your money now PayPal will only hold your money?
42:12
if you don’t update the tracking numbers so as long as you’re updating the
tracking numbers every day you won’t have much problems okay so tell me um how long does it take you to start to launch a new product so you find the product do the research find a good supplier that I can rely on to build the store to actually create the marketing materials I would say probably two-three days two to three days yeah I’ve done a lot I’ve done a few 24-hour challenges on my youtube channel where I actually in 24 hours pick a brand new product and what not oh nice okay so we’ll put a link um to your youtube channel into the description, by the way, I saw you have a course there it’s like a four-hour video uh where you basically explain what minute video which will take you know what the free course is great because all the people that are watching this now that are interested it will take them from right beginning to right end so tell me to commit like you said you’re doing mentoring how does this work?
43:13
Yeah so our company ecommerce mentoring offers mentorship where it’s one-to-one so you get a mentor and specialist that will work with you for a whole month and take you through each part of the process making sure that you don’t make mistakes because you’ve got an expert with you on that and they get on a skype or zoom call with you every other day a screen record and you can record the calls as well um to make sure that the process is smooth and in between calls you can contact them whatsapp imessage whatever works best okay cool so basically um like for somebody who wants uh it faster or doesn’t want to like do it themselves.
43:44
it’s a good option okay got it for those that have a good one to three hours a day that are committed to it look at not looking for a get rich quick scheme looking for a long term, uh model um and one don’t want to waste money on making mistakes don’t want to waste time making mistakes it’s a great
the option here so let me ask you one and all by the way we’ll put the link into the description let me ask you one more question um like how passive is this so suppose uh we went through this process and built them I mean everybody wants to build a passive business and do nothing and just relax on the beach but um like realistically do you need to launch
a new product every other month um because the old ones
dry out or so a product life span is typically between four and 12 months depending on it really depends on averages for 12 months how can how much can you water me on this business me personally 60 is the maximum you can do so sorry what’s that 60 60 is the maximum you can automate you can automate customer service you can automate um fill in products managing customers but in terms of the market in terms of finding the products in terms of managing the main like taxes and all that kind of stuff you should be doing that as the business yeah i get it yeah very nice so thanks so much Kamil!
45:05
That was a totally new topic for our channel and um if you guys have any questions then feel free to post them below or just follow the link in the description go to Kamil’s channel and um watch this video and um yeah give him a like as well and like this video as well yeah make sure you like the video thanks so much no worries I really appreciate you having me on board thanks have a great day bye-bye.
Thank you so much for watching guys I hope you liked the show if so then don’t forget to press the like button subscribe to our channel and let us know what you think in the comments uh you know if you have any questions or wishes uh who we should invite or which topics we should cover or if you’d like to come to our show and
tell your story then also leave us a comment see you next time and good luck bye.