EXPOSING Dropshipping! The UGLY Truth About Dropshipping 🤮

So you heard about E Commerce. You want to get rich? You're considering dropshipping. It's the holy grail. It's the easiest way to get rich. Buy these cheap products from China. Drop ship them from the supplier straight to the person and charge them 20 times the cost of the product. Genius, right? Today's video. Four reasons why dropshipping from China is the worst route to take. If that is what you actually want to do. You want to buy from China, that's great. Buy from China. Buy toys from China. Now, reason number one, dropshipping from China is just an endless cycle of starting over and over and over and over again because you're not building, building real business. When you're selling cheap, crappy products from China. You should appreciate. I appreciate her getting us a present, but I didn't know it would be like that. And you expect people to love them and spread the good word, which is, by the way, the best way to make your business grow. I know that's not what people want to hear. They're like, oh, I'll just run ads. Well, it's like you make money by selling good products and having good service, and that's how you make tens of millions of dollars, which, you know, if you're okay making like $6,000 a month, by all means, go, go drop ship from China. All those gurus that you see on YouTube realistically from their dropshipping stores are probably not even making that much. But, you know, I don't want to throw shade at anyone, okay? But it's an endless cycle of starting over because what's going to happen is you're going to find a product and it's going to sell well. It might sell well. And then, you know, you do like $10,000 in sales, and off of that, you know, you make 2,500, maybe $3,000 profit, right? And then the product stops selling because people have found out that, oh my gosh, it's a scam. And you've sold the most gullible people. Like the ones who haven't realized that buying these really weird, cheap as seen on TV products on this random Shopify store. Are you tired of the same old boring meal? Then you need the flavor pro. Like, they haven't caught on to the whole dropshipping thing. They're getting scammed yet. Right? And, you know, I understand not all drop shipping is a scam, but drop shipping cheap products from China is literally ripping people off. And, you know, I'm not ashamed to say I've done It before too. Goodbye. That was my start in E Commerce. And since then we've made tens of millions not doing that. And I've realized the way that is correct. Sip some crab into that one. Hmm. But you know, you might make good sales 30, 45 days, maybe even you find a real good winner and it lasts a couple months. But people will catch on, the product will stop selling. And then guess what you have to do. You basically have to start your business over from scratch. Now there are some people who move over their fulfillment center to the USA and then they stop drop shipping from China. And sure, that's fine, go at it, right? But if your plan long term is to not build a real business and it's just a drop ship, cheap crap from China in perpetuity forever, you're gonna have to start over and over. And you find one product that wins, you make a couple thousand dollars profit. Then you have to find another product that wins, you make a couple thousand dollars profit. You know what's easier than that? Building a real brand. Like, see people think that, oh, drop shipping's the easy route. I don't want to build a real brand. I don't want to build a real business. Drop shipping's the easy route. Well, let me ask you this. Which one's more difficult? Building a real brand? That sure, it might take like a lot more work upfront over the first six or 12 months, or having to start over from scratch, find new products, try to find new audiences, try to figure the whole thing and over and over and over and over and over and over again. Right? Because I played that game and then I switched over to print on demand. Just like apparel. Building real brands. You can go look@paws pawz.com, one of our dog apparel brands, right? Stores done over $40 million in sales. And it's just doing the work up front to build a real brand to connect with your target audience instead of. Because let's be honest, what drop shipping from China is, is trying to pull the wool over someone's eyes, hoping that they' smart enough to realize that you're selling them a two to three dollar widget from China, China, and that you're trying to sell it to them for 30, 40 bucks. Like your whole goal with drop shipping from China is hoping they don't realize that literally hoping they're stupid enough to buy this product from you at a ridiculous markup that's going to take a month to arrive and then when they get it, it probably doesn't even work. So yes, bad word of mouth is going to happen. People will stop buying from you. Your products will die out. Because this is just the nature of drop shipping from China. It's not a real business. It's like a. I mean, there's no other way to put it. You're ripping people off and waiting until enough people catch on and it stops working. And then you take your little gambit and you move it on to the next winning product. Which brings us to the next point about winning products, is drop shipping from China is actually extremely saturated. Now, I'm not a person who's going to tell you, oh, my God, it doesn't work. It's too saturated. Like, you will find products that win. And it's actually a good thing if a product is somewhat saturated, because if. If it's not saturated, that means no one's selling it, which means it probably doesn't sell very well. Because all that stuff you see on AliExpress, Alibaba, Temu. But like, all that stuff that you see, it's been sold before people have sold it. There's nothing, basically nothing that's untested on there. And the issue with that is because drop shipping from China is ripping people off, right? You're selling them a cheap junk product and you're hoping they won't realize that and they'll pay you a ridiculous price for it. And because of that, and because people have been doing this for a while and because people are starting to catch on to the scam. Like, people are scared to even use Shopify checkouts a lot of the time, which, you know, Shopify is still the best. But people understand that a lot of dropshipping stores are scams. So because it's saturated and because people have been catching on, it's harder and harder to sell these products because people are like, oh, my God, you know, I bought something like this from a store like this before. And first of all, it took two months to arrive. I forgot about it. By the time I got it. Oh, I got it, it was 18 sizes too small because it was Asian. S. That's the right fit. Nah, it's just the cut. Or it just didn't work altogether. You know, like, what are you going to do? And keep in mind, like, I used to do drop shipping, so I get it. But there's so much saturation, there's so many people trying to sell the same exact products as you that it's really easy to get knocked off and it's really difficult to stand out. And again, if you look at our store. Paws P A W z dot com. This is like our apparel store. And you can't knock this off. And it's, It's. I mean, it's so simple because it's literally just logo. It's our logo. We're selling our logo on T shirts, on hoodies and stuff, right? But you can't knock it off because it's a brand. We're not selling some, like, gimmick that anybody can sell. We're just selling our logo. We're selling an idea. We're selling a feeling. We're selling a mission, right? And it was a lot more work at the start, but because we put in the work, we built a real brand. We get to reap the benefits. And instead of starting over and instead of having to deal with other people selling the same exact product as us, nobody can sell our same exact product because the logo is trademarked. And, you know, people will try, but it doesn't matter because people realize who the real pause is and who's not. You know what I'm saying? So it's just difficult. It's saturated. You got tons of competition. And then because there's so many people selling the same exact products as you, a lot of people have been ripped off by those exact products before now. Like, can you still do it? Yeah, you can do. I think it's the best idea. No, absolutely not. I think that almost any method of E commerce is better than drop shipping from China. China. And the third point I want to make, ladies and gentlemen, you don't really get return customers if you're dropshipping from China. And if you do, oh, my God, someone call President Trump in 2024 and tell him that we need to, like, have you head their policy or something. Or, like, do the pr. Because if you can have people come back and buy from your store after you took two months to deliver and you delivered a really cheap, crummy product like, yo, dude, you should be doing PR for the biggest people in the world. Because I don't know how you could get those people who have qu. Possibly had a terrible, awful buying experience for me. Because let's be real, like in the day of Amazon, people are used to being able to return with ease and they get their product overnight or same day. Like, most of the time I'm looking for same day delivery. And obviously, like, when you're running your own stores, you know, like, pause, we don't offer same day delivery. And that's fine. But what I am saying is that taking Two to three months to deliver something. And even if it takes like two to four weeks, people don't like that anymore. The attention spans are so short now. I have a very short attention Spanish that as two, once two weeks have passed, people have forgotten they've even ordered, they don't even want anymore. And they'll get it in the mail. They're like, oh, what the fuck is this? Oh my God. And they don't come back and buy from you again. And this is actually a really big issue because a lot of the times the profit is not made on the first sale, it's made on the follow up purchases. And I've shared this in the past. Videos, please put it up on the screen, on pause. You know we have a 40% return customer rate. That means like if we get 100 customers, 40 of them come back and buy more stuff from us again either through their own choice, from following us on social media, from emails or from sms, right? And we don't have to pay ads to get that. They just come back because they like the products, they like what we do and that is huge profit for us, right? Sometimes they say huge. That is like the main source of our profit. Because the reason we can afford to get so many customers and generate so much money is because we know we can lose money on the front end if we want. Which I know like you're starting a business, you're not okay with losing money on the front end. And I get that. And you don't have to like, we don't have to lose money on the front end either. But if we really want to scale up and we know that people are going to come back and buy from us again in the future, we can lose money on the front end. And because of that we will always defeat people who can't afford to lose money on the front end because we can outbid them in the marketplace and drive them out of the marketplace. And it should be starting to make sense to you why, like this is not a good long term model. What I recommend is yes, you can do drop shipping from the usa. I would try to get away from drop shipping as quickly as possible. If you're gonna do drop shipping, like Do3PL, which is when you ship it into a place. Like an easy example that everyone would be familiar with is just Amazon's warehouses, right? And then Amazon delivers the packages for you. You're still not delivering them. Amazon is. Or you can go with third party logistics companies that deliver for you. But it creates like a really Good reliable experience versus drop shipping from factories that like don't give a damn about you, they don't give a damn about your customers and you can get relationship with suppliers and stuff like that, but chances are unlikely. But you want people to come back from you and buy from you more often. And the only way you can do that is by creating a good experience. And it's basically impossible to do that if you're dropshipping from China. It's just not going to happen. And you know, if you really want to get your feet wet and like do the least amount of work possible, sure, dropship from China, but it's not going to benefit you long term and a lot of the time will be wasted. Which brings us to my fourth point too. Like even if you do decide to do this, there's the morality question. Like do you want to have a business that the whole business model is like people you're hoping that they're too stupid to realize that you're overcharging them significantly and you're selling them cheap junk. And if you're saying like I don't give a fuck, I'm just trying to get rich, God dang, oh, then you know, I think you're a bad person. Simple as that. Like business and wealth, right? True wealth, making millions of dollars and a lot of profit. And this isn't always true, there's always people who are going to game this, but the best way to do it is by creating value for others, not by taking value away from them because it never works in the long term. And my goal for everyone who watches this channel is for you to make long term wealth so you can retire, have an awesome life with your family, get the cars you want, the houses you want and never have anything come back to bite you in the ass because like karma is real, right? So the morality question, like can you actually sleep well at night knowing that you're receiving all those emails of people pissed off that you took their money? And let's be real, like in today's economy where people don't have a bunch of extra money to spend, like you might be taking some of their last dollar because you promised them this amazing life changing like beauty product that's drop shipped from China, that's really just like a bunch of cheap plastic. Take this back. The best thing to do guys, if you want to do e commerce and I'm obviously my opinion is swayed by what I do, but it's print on demand. Selling apparel, selling hoodies, selling mugs, T shirts, Hats, like all these different things. It's really great. You can add value to people's lives. You can have missions that you believe in and you create clothing brands. Like, dude, we had a political brand that we sold. I would see people wearing it. Everywhere we'd go. I'd go down the street, I'd see people wearing it. Go to a different state, see people wearing it. An $18 million a year store that was amazing. People loved it. People shared it. Our profits were huge. Huge. Dude, there was a day where we did over $100,000 in sales with zero ads because someone tweeted one of our products. A big influencer. We didn't ask them to, but it's because we created real value. We created products that people love. And when you do that, you can make millions of dol and it is easier. The only reason people think dropshipping is easier is because you can get started with nothing, right? But it's actually much harder. And you'll start to find that out three months in, six months in, a year in. And you're not going to get rich in that first year. So, like, you might say, oh, well, you know what, it's fine because I'll be rich in the first year. That's probably not going to happen. Go with something that creates value instead of taking value from the world. That's how you make much money anyways. Like, comment, subscribe. See you guys in the next video. Peace.