7 months and $5 in profit

[ethan34]

Hello
I'm a 17 year old about to graduate high school.
About 8 months ago I got caught up in the drop shipping from China trend and thought that with little effort I could buy a Lamborghini in no time. So after 7 months of running an online drop shipping pet store, spending $400 in advertising, putting in lots and lots of time, and earning one Starbucks Mocha profit in total, I knew I was doing something wrong. A friend recommended UNSCRIPTED and TMF , and after reading them, it's pretty obvious why my pet shop didn't work. Shocker, spending weeks making the perfect website design doesn't help when the product sucks and the customer isn't valued. When I learn lessons from my next business, I will post them here and hopefully someone can avoid the mistakes I will make.

 

Dislike ads? Remove them and support the forum: Subscribe to Fastlane Insiders.

[Been Machine]

Hello
I'm a 17 year old about to graduate high school.
About 8 months ago I got caught up in the drop shipping from China trend and thought that with little effort I could buy a Lamborghini in no time. So after 7 months of running an online drop shipping pet store, spending $400 in advertising, putting in lots and lots of time, and earning one Starbucks Mocha profit in total, I knew I was doing something wrong. A friend recommended UNSCRIPTED and TMF , and after reading them, it's pretty obvious why my pet shop didn't work. Shocker, spending weeks making the perfect website design doesn't help when the product sucks and the customer isn't valued. When I learn lessons from my next business, I will post them here and hopefully someone can avoid the mistakes I will make.

Pretty much in the exact same boat here, except...
I had the crappy product delivered to my house. A bunch of phone cases. Since I knew dropshipping from China takes forever to ship, I figured why not handle the product myself right?
0 sales.
Then I read fastlane.
Currently still have the phone cases along with shipping supplies sitting in my closet.

 

[2dads]

Removed due to not been clear
2dads

 

[GT988]

A little bit of an idea for you both. You may need a few more $$$ to start or niche it down.

These are my opinions and do not guarantee these websites or methods:

A good site to use too source items:

Hong Kong & China Online Wholesale and Manufacturing Suppliers | HKTDC Sourcing

Source quality products online from reliable China and Hong Kong wholesale suppliers & Chinese manufacturers on HKTDC Online Marketplace, a leading HKTDC sourcing platform connecting global buyers with Asia & China wholesalers and China manufacturers. Try the HKTDC sourcing service now.

sourcing.hktdc.com

Our uncle operates a company between Hong Kong and here in Australia and this is a way to connect with suppliers (he does most of his with his staff in Hong Kong or in person)

Check it out, find an item with a low Minimum Order Quantity (MOQ)which is in demand etc. Order the item, receive the item and sell... now that is the simple version.

The business model you could do is be a supplier/importer - create a list of items that you think people would buy, list the MOQ's and put price as TBA. Show this to local stores (small corner stores) or market stall operators that you can bring these items in. You will soon find out what is in demand.

If some one is keen you middle man the transaction, taking a full payment (doing your mark up and covering all Freight/taxes etc)

I do not have time to go into detail, but this gives an idea - you buy from a source which is Alibaba & deal with direct manufactures (yes in a lot of cases you will still be dealing with a broker but at least you will be getting a decent price.

OLD WAY:

YOU BUY FROM Alibaba - You Sell On EBAY - You get stuck with phone cases

New Way:

YOU OFFER A RANGE OF ITEMS TO SUPPLIERS (customers) - YOU FIND INTEREST (Customers) - Confirm Price / Lead times & Take the money - Have the good's shipped to yourself and you can send them on, confirm quality and qty etc

Just a bit of an insight - connect people and solve problems


View attachment 43105

This is really smart! You wouldn't have to worry about having a room full of product you couldn't sell implementing these ideas. Thank you for this!

 

Dislike ads? Remove them and support the forum: Subscribe to Fastlane Insiders.

[Ernman]

@ethan34 - congratulations for being daring enough while still in HS to try. That alone speaks volumes. Now that you are better armed with the knowledge of TMF and UNSCRIPTED , you have better odds of success. I hope you'll always keep such a positive attitude - we learn more from our failures than we do our successes - if we chose to.

 

[Walter Hay]

@ 2dads Your post offers bad advice.

The business model you describe is vaguely like a real Import/Export agency, but it has a fatal flaw: It requires the outlay of a lot of $$$ for buying and importing inventory.

Here is the opening statement I make in my sourcing and importing book dealing with this subject in the 6 + page Chapter 5. IMPORT/EXPORT BROKER BUSINESS COURSES.
The best business model is one in which you do not yourself buy any product that you will be selling. You should be acting as an agent whose role is as a broker. A broker doesn't take title to the product or service, and does not pay any costs other than normal business operating costs.

I suggest you and those considering your advice have a look at my AMA, because your Uncle is clearly flying by the seat of his pants, and has a lot to learn about Product Sourcing, Importing, and most importantly, acting as an importer/exporter.

See my AMA here: Sharing my lifetime experience in export/import. Product sourcing specialist. and regarding MOQ's, see Post #5.

Walter
P.S. Your uncle is also taking big risk buying inventory of product/s that he has not validated in the market and then hoping he can sell them.

 

[Vinz]

Hello
I'm a 17 year old about to graduate high school.
About 8 months ago I got caught up in the drop shipping from China trend and thought that with little effort I could buy a Lamborghini in no time. So after 7 months of running an online drop shipping pet store, spending $400 in advertising, putting in lots and lots of time, and earning one Starbucks Mocha profit in total, I knew I was doing something wrong. A friend recommended UNSCRIPTED and TMF , and after reading them, it's pretty obvious why my pet shop didn't work. Shocker, spending weeks making the perfect website design doesn't help when the product sucks and the customer isn't valued. When I learn lessons from my next business, I will post them here and hopefully someone can avoid the mistakes I will make.

You already have a great attitude Ethan.
You just started and you have time to make mistakes, plus now you are in the right place !
Keep going

 

Dislike ads? Remove them and support the forum: Subscribe to Fastlane Insiders.

[2dads]

@ 2dads Your post offers bad advice.

The business model you describe is vaguely like a real Import/Export agency, but it has a fatal

I Understand your points (@Walter Hay ) and I want lie my advice it is not a lot better then the whole "drop ship" craze.

This potential bussiness does not meet the requirements in my view but for the OP it may help them think differently or hold bring some value.

I don't think I have explained my uncles bussiness, not that I need too. He has been doing this for many years- not my cup of tea however I do find it intriguing.His bussiness is very much a feast or famine model, he can source any item you want and have your logo or brand put on it. He does merchandising and the likes. Say 1000 usb chargers with your company's name on it. Etc or supply a range of teddy bears for a hospital here in Australia for a fund-raiser.

Once again for any one reading this - this is just the facts I know and take any advice with a grain of salt*/your own merit.

I hope this clears up my original comment

 

[2dads]

@ 2dads Your post offers bad advice.

The business model you describe is vaguely like a real Import/Export agency, but it has a fatal flaw: It requires the outlay of a lot of $$$ for buying and importing inventory.

Here is the opening statement I make in my sourcing and importing book dealing with this subject in the 6 + page Chapter 5. IMPORT/EXPORT BROKER BUSINESS COURSES.
The best business model is one in which you do not yourself buy any product that you will be selling. You should be acting as an agent whose role is as a broker. A broker doesn't take title to the product or service, and does not pay any costs other than normal business operating costs.

I suggest you and those considering your advice have a look at my AMA, because your Uncle is clearly flying by the seat of his pants, and has a lot to learn about Product Sourcing, Importing, and most importantly, acting as an importer/exporter.

See my AMA here: Sharing my lifetime experience in export/import. Product sourcing specialist. and regarding MOQ's, see Post #5.

Walter
P.S. Your uncle is also taking big risk buying inventory of product/s that he has not validated in the market and then hoping he can sell them.

After reading my comment above it really does not sound correct, I will try to update my original reply @Walter Hay to clarify my point.

Thanks for your criticism Walter - my post is bad advice.