Section 2: Theory
Don’t Fall into the Dropship Trap
My warning for you guys: Don't fall into the “Dropshipping trap”. This is where you create a general store, copy products from AliExpress and try to run ads for your store. I get countless people asking me for help to build this type of store. The truth is, you might be very lucky and get a tiny bit of success, but this rarely lasts. These stores are destined to fail.
In my years of working in Ecom, a single truth has constantly prevailed: the stores that win (and win big) are those that build brand stores. These are the stores that last years and years and can be sold for millions. Why? Because you're building an asset, not just an income source. General stores are not adding value except for just finding the product before someone else.
As soon as entrants come into the market, you have no competitive edge and you get priced out, lose your margins, and have to find a new series of products and start all over again.
Don't get me wrong, I have nothing against dropshipping as a fulfilment model. The problem is that for many, dropshipping has morphed into a weird cult where these same terrible strategies are taught again and again to beginner students.
Want to know what consistently generates Ecom millionaires? Spending the time and energy to build an Ecom brand that stands out from these general stores.