How is my background on an angle while I’m straight (lol!) – idk, magic. 😏 ✨
A few weeks ago I got a very good question about profit margins and I decided to make a video on that to answer how I maintain high profits.
Profit margins are based on your sales price and your costs per sale – that’s it. You can either raise your profit margins by raising your price or by lowering your costs or by doing both.
In this video I explain how I was able to:
1. Find a winning product that allows me to sell it as a high ticket item + allows me to charge a premium and have a variety of upsells for it
2. How I found a supplier who ships fast (2-5 days) and offers me very low prices
3. How I test my prices with Facebook ads to find the highest price I can charge for my products while remaining profitable.
The devil is in the details – once you find a product that sells you got to fine tune your details in this case with the price, your costs, and with any add-ons or premiums you can charge.
Let me know down below if you have any questions. ⬇️
From HOMELESS to ECOM DOMINANCE – let me teach you how to make a semi passive income with e commerce through my experiences & lessons.
On this channel I talk about my journey running away from home and BECOMING HOMELESS AT AGE 15 to now making 6-FIGURES PER YEAR IN MY EARLY 20’s with shopify dropshipping.
I’ll be sharing my lessons, secrets & strategies related to dropshipping & e-commerce, as well as entrepreneurship, business, money & finance. A lot of the tools, strategies, and terms I use are based on my 6 years of entrepreneurial experiences (way before I started dropshipping and e-commerce), as well as my bachelors degree in entrepreneurship & strategy from the largest entrepreneurship program in North America – if something is unclear please ask and I’ll respond as soon as I can (I check the comments daily) 😊
Outside of entrepreneurship I also sing, write, & act. So, you might find some of my strategies useful if you’re an artist yourself 👊
**BONUS** eCommerce Strategies Explained:
DROP SHIPPING – It’s basically the process of holding no inventory, selling a product to a customer without ever touching or seeing the product; then placing an order with your supplier (eg. aliexpress through oberlo, alibaba, amazon, spocket, walmart, etsy, ebay, cj dropshipping, etc) who fulfills the order and ships the product to your customer. This is NOT A NEW PROCESS – as a matter of fact it has BEEN AROUND for DECADES! Before it just used to be called just-in-time method, marketing arbitrage, etc. Only the term drop shipping is new + the fact that there are no more barriers to entry into the market – meaning your average joe can start dropshipping.
PRINT-ON-DEMAND is similar but involves a design that is usually printed onto a product (eg. a tshirt or a pillow) once the customer purchases the product from you.
DROP SERVICING is the act of selling a service instead of a product – eg. graphic design, then once a customer purchases said service from you, you outsource it cheaper to someone else using fiverr or upwork.
Aside from your e-commerce strategies you also have your PRICING STRATEGY – low ticket and high ticket items which will determine whether or not you are using a cost (advantage) strategy, meaning you are competing with the best and most affordable price in the market, or a differentiation strategy, meaning you are competing with the most unique and best quality in the market.
Then there is your MARKET PENETRATION STRATEGY – are you going to have a one-product store? A niche store? Or a general store? My recommendation for beginning dropshippers is a niche store because unlike a one-product store, you can keep testing different products until you find a best-seller. A one product store has to be rebuild from scratch if you’re facebook ads (or other marketing options) don’t yield results and bring in sales. With general stores it is hard to build a brand image around them and margins tend to be low because the brand image is weak.