Hey guys what’s up it’s Alex here back with another video and today we’re gonna be talking about why you will lose money drop shipping on Shopify. I feel this is important to make as one of my first videos because I see so many people who try to get into the Shopify drop shipping business without the right tools or the right mindset or the right mentality or the right methods going in so I hope to address all that in this video so let’s jump into Microsoft Word and let’s take a look at the most common reasons why people will be guaranteed to lose money on their Shopify dropshipping journey. Alright so now that we’re in Microsoft Word let’s look at the reasons why you will be losing money.
So the first reason is not looking far enough ahead. Guys, you got to realize, if you’re drop shipping using Shopify running a store online it’s no different then if you’re running a brick-and-mortar store except for the fact that you don’t actually have a physical brick-and-mortar store. You still have to treat it like it’s a business and yes I understand that this is different from creating the next Facebook or creating the next innovative product that’s going to revolutionize a market or an industry well you have to realize that your customers have an expectation of service even if you are selling your products for dirt cheap. They still expect some kind of value in order for them to trust you enough to give you money through your store. So the main thing to take away from this is that this is something that you will need to dedicate a certain amount of your effort and time.
Yes, you can automate some of these processes later down the road. But in the beginning when you’re just starting up your store you have to be 100% focused on your store if you even want to think about succeeding because there are thousands of people who are 110 percent dedicated, who will go through sleepless nights to make sure that their store is all set up properly before they even run their first ad.
They’ll make sure that they have no typos, no nothing, and their site is optimized completely for conversions and they have Instagram influencers lined up and they have Facebook Ads down to the tee before they even release their stores to the public. So if you just come out there and start a store with a million typos… you know… and the products imported straight from Aliexpress with the same titles and descriptions and nothing that would hook your customers… prices that are too high or targeting the wrong market or just looks like a complete scam why, would they even bother going to your store? Why do you even think I even deserve sales? I’m sorry but let’s be frank here. You’re only going to get the results in return for the the quality of work that you do… and the quality of your work doesn’t necessarily mean the amount of time you work on your store.
It’s about the effectiveness of that work you have put in to your store. So in other words, you want to be spending eighty percent of your time doing the things that will give you 80 percent of your sales and only spend 20 percent of your time on the things that will give you 20 percent in sales. So my point here is that this is not just a side hustle… this is not just a little thing you just set and forget it, you know and only work for like one day and then just expect it to print you money for the rest of year. It doesn’t work like that, obviously, you should know that alright but if you really want to reach great success on your Shopify store it’s something you need to dedicate at least… at the very least an hour a day to all right whether you spend that hour tweaking your ads or finding influencers or creating a better croc description we’re adding new products to test or any of that it’s something you have to dedicate time every day consistently in order to reach success why do I notice why am I telling you this well it’s because I used to not dedicate a consistent amount of time every day towards a store and you know what happened I get a spike of sales and then it just tapers off because I’m not doing anything to keep the sales flowing and the main reason for that was because I didn’t have enough automation in place yet because I wasn’t at that stage of my store yet all right I in order to automate more more of your store you would have to get a certain amount of sales consistently in order for your store to still be profitable yes you can hire virtual assistants to make orders for you but why hire a virtual assistant if you only get one order every month it’s not worth it you’re going to lose money so my point is that you need to consistently work on your store every day and not treat it like a side hustle it’s something you need to take seriously and it’s something that you can’t half-ass and expect to make money because there are people who are putting 150 percent of their effort into your consider store so why why do you expect the same amount of success if you’re only putting in you know 50 percent or less your effort alright it just doesn’t compute the second point I would definitely want to hit home is when people try to look for quick tips and tricks instead of proven strategies and methods alright it’s like the people who look at Ponzi schemes in the effort to find a get-rich-quick scheme and then only end up losing all their money and wondering what went wrong well obviously it’s that they’re they’re not in the right mind frame all right the way to successfully make a lotta money is to create a process that consistently gives you a nice large cash flow not something that you’re you’re going to just suddenly become rich overnight because nobody actually becomes rich overnight alright if you ever hear a story about somebody who overnight becomes rich it’s after years of dedication and hard work all right with the exception of a lottery winner but that that’s a completely different topic and usually these people just end up losing all their winnings because they don’t know how to manage their wealth okay so in order to actually be successful you need to look for proven strategies and method to implement on your store and in return it will give you sales consistent sales everyday of similar products that are targeting similar people that would want those products alright there’s no secret you know secret sauce tip there’s no secret you know trick that you could just apply to any store as a blanket method and just be guaranteed to get you sales it obviously just doesn’t work that way if it did why aren’t more people doing this all right yes I do think that this is much easier than people expect and I’m a little bit mind boggled as to why not as many people are doing what we’re doing but at the same time a lot of people who are doing what we’re doing are not doing it correctly because they’re not in the right mind frame because they’re looking for tips and tricks instead of strategies and methods right strategies and methods give you consistent returns in the long run and quick tips and tricks don’t give you anything all right if anything it just gives you a short little blip of some kind of a turn that doesn’t mean anything this is just a one-off return all right there’s there’s nothing you can actually take away from all right which kind of ties into my last point about not looking far enough ahead all right if you’re looking for tips and tricks you’re obviously not looking far enough ahead on your store all right you’re just thinking about oh how can I get the next snail in you know the next five minutes instead of how can I create a community of loyal customers that will keep on making repeat purchases on my store for the next months or years to come another very important reason is that oftentimes what a lot of people do starting out is they’re scared to spend money on things that will give them a higher return on investment in the long run and yes I know a lot of you guys you know young like me you know younger than me you know there’s some people that they just don’t have a lot of savings you can dedicate to a Shopify store I understand that completely but you have to understand that there are places where as long as you spend a good amount of money into it and you know it will give you a nice consistent as well as a large return in the long run then it’s worth it you know you have to analyze it like it’s an investment right you know there are people who will invest large amounts of money more money than they’re comfortable investing because they know that they’ll get a very very great return on that investment because they’ve done their due diligence all right and that’s the key that is the key you have to do your dilt due diligence you can’t just blindly spend the money and expect the high return trust me I know okay I’ve spent $7,000 on Facebook ads that only got me about a thousand dollars in sales because I didn’t do my due diligence okay but now I spend about I would say one hundred fifty two hundred dollars a week on Instagram shoutouts and some Facebook Ads some look-alike Facebook ads and now I’ve already made a hundred dollars in sales just today all right so you know if you’ve Mountain if you multiply that by seven assuming that I get at least a hundred sales or a hundred dollars in sales per week per day that’s seven hundred dollars a week all right so then I’m already up at least for a hundred dollars this week so you have to know how to efficiently invest or spend your money with the knowledge that you are going to get a return on that investment okay and yes you do have to allocate some money for testing and to advertise the people you don’t always have to actually spend money all right you could make sales by organic traffic okay you can do that through search engine optimization you do it by growing an Instagram page organically they can do it by making YouTube videos you can do it through so many methods there are so many ways to get free traffic alright so many ways that I haven’t even implemented yet the ways I want to start implementing you don’t even have to spend a cent it just costs your time alright so it’s about spending your time and your money in the places that will get you a high return on your initial investment and yes I am kind of using terms that you use for investing because you can apply those same types of principles and investing okay you’re investing your time you’re investing your money alright there’s just instead of investing in a stock or Bitcoin or any of that you’re investing it in your own business you’re investing it in yourself okay just because you’re investing in yourself just because you’re investing in a business that you own doesn’t mean it’s not an investment it is an investment okay because you’re expecting a return on madness you’re investing that money into what I’d have whatever you are allocating that money to in order to get a return that is basically the definition than investment and the last reason I’ll leave you guys with is your lack of commitment okay yes that’s right you will not make money because you are not committed alright you will have to pay the monthly fee for your Shopify store you will have to front the money for ads okay you will face hard times no matter what that is for any business ok hard times are experienced by anybody ok it’s about the risk okay it’s about weighing the risks to the rewards obviously you’re starting this because you think the rewards are higher than the risks okay but that doesn’t mean that there aren’t risks that doesn’t mean you will not pay setbacks you will face setbacks okay and you gotta realize the real the real reason why you are doing this it is because you don’t want to work to every day for the next 50 years of your life in the hopes that you will have a million dollars to retire and hope that you will die within thirty years because you will lose you won’t run out of that million dollars if you retire at normal retirement age okay do the math you cannot live for more than thirty years comfortably with just a million dollars you need way more than a million dollars especially now okay in the age where inflation is worldwide in the age where we can face a massive recession at a moment’s notice you have to be prepared you have to have your income secured by your own ends you cannot be dependent on someone else to provide you secure income okay nowadays you have to take matters in your own if you truly want financial freedom that is why you are here right or are you just here because you want to make a quick buck if you’re here because you want a quick buck I suggest that you click out of this video right now unsubscribe close your Shopify store and don’t look back because obviously you’re not prepared yet okay I hope you will become prepared in the future but obviously right now if you had that mentality then you are not prepared all right so you have to realize what is your vision all right where are your long-term goals where do you want to be in five years 10 years 20 years right you want a family right you want to be with your kids you want to spend more time with your spouse with your girlfriend with or your other your significant other whatever it is right everybody has their own goals you want to buy your mom a nice car or you want to pay off the mortgage of your parents house or you want to travel around the world and experience new things that not a lot of people get to experience all right that is the reason why you guys are here right because you want to be entrepreneurs you want to be business owners you want to be successful you are driven okay you have to be committed you have to be all right all right you have to be committed if you want good results on anything your life all right if you want to be fit if you want to have muscles right you have to consistently go to the gym you have to be committed to going to JIT to the gym you have to be committed to eating properly and taking the right supplements and doing the right things you know doing the right workout routines all right let’s let’s say you want to be the top salesperson on in your in your company right you have to be committed to making sales every day you have to be committed to making phone calls that you may not be comfortable making all right you have to be committed all right if you’re starting at Shopify story happy committed to your store you have to believe that your store will work you have to believe that you can create a brand that will resonate resonate with people alright that is the goal you have to think in the long term you have to think about your long term vision your long term goals your long term commitments and you have to stick with it you can’t just you know run you can’t just test the Shopify store for 14 days and knock and sale and then just close a store you haven’t even giving your store enough time to even know if it works ok you have to at least run your store for a month at least okay all right you have to keep on testing and testing and testing the more you test the more you can figure out what works and doesn’t work you can’t just you know start out this shop by store and just spend five dollars total on Facebook ads and know if if your store even works you won’t know you have to be committed you have to be all right that’s for anything in business that’s for anything in life you just have to be committed alright if you want to achieve big goals you have to be committed to achieving those big goals so that’s a note I want to leave you guys with if you guys enjoyed the video please be sure to give me a like comment and subscribe they’ll be much much more content coming out in the very new future so I hope you guys are doing great have a great 2018 Happy New Year I hope you guys crush it Thanks have a great day bye
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