Dylan Vanas tells the story of a dropshipping employee who hit $2.2 million in sales, bought a $150,000 car, then lost everything when chargebacks from late shipments wiped him out. He had 30% margins and three partners, but the refunds left him personally liable.
Chapters
Do you guys want me to tell a story about an employee that bought a car that's three times as expensive as my car while working for me? As an employee, he had a dropshipping store that did $2.2 million in sales. He had a cool product. He crushed it. He comes and works for me. He's making, like, an average salary, whatever. A few months go by, and he goes out and comes back with a $150,000 car. And I'm just like, how is this kid doing this? To add insult to injury, he took out a SBA loan during COVID for 150 grand. I said, okay, so how much that have you spent? I spent this much on this vacation. I tried to start a few more dropshipping companies. It didn't work. I'm like, okay, well, at least you got your 2.2 million from the business. You were. He's like, well, actually, I had three partners on that. So what kind of profit margins were you running? 30%. 30% of 2 million is 600 grand. Split that three ways, that's 200 grand each. But then the products were coming from China. He'd never used the vendor before. They were Christmas gifts, but the shipping took so long that they didn't arrive for Christmas, so everyone charged back and refunded. And it was his bank account, not his partner's bank accounts, and so he was responsible for all of it.
