The Entrepreneur Forum | Financial Freedom | Starting a Business | Motivation | Money | Success

The Entrepreneur's Forum for learning how to build wealth and financial freedom the Fastlane way!

Say "NO" to mediocre living rife with jobs, ascetic frugality, and suffocating savings rituals— learn how to build a Fastlane business that pays both freedom and lifestyle affluence. Join our forum with more than 70,000 entrepreneurs who are making it happen.
Join for FREE Today
Get the books
Remove ads? Join Fastlane INSIDERS
(Registration removes this block)

Dropshipping- opinion?

Idea threads

Amerstain

New Contributor
Nov 3, 2022
22
11
belgium, leuven
Mj metioned dropshipping very briefly in his book. That you don't want to be the dropshipper, but the one who offers it.

However, i have a question: i see a lot of people online achieving great results, great money (200,000$+) what do you guys think of this? Maybe I'm just being pulled to this, but i really have nothing of experience and seeing that this is practically free, i wanted to try it out. Am i being naive here? Would appreciate any help or advice, because i feel like this is one and if not my only option.
 
Don't like ads? Remove them while supporting the forum: Subscribe to Fastlane Insiders.

DavidePaco00

Bronze Contributor
FASTLANE INSIDER
Speedway Pass
Jul 27, 2022
172
196
Mj metioned dropshipping very briefly in his book. That you don't want to be the dropshipper, but the one who offers it.

However, i have a question: i see a lot of people online achieving great results, great money (200,000$+) what do you guys think of this? Maybe I'm just being pulled to this, but i really have nothing of experience and seeing that this is practically free, i wanted to try it out. Am i being naive here? Would appreciate any help or advice, because i feel like this is one and if not my only option.

I' doing it right now and as the comment above says , it's not a productocracy business.

The thing tho, is that You need to start somewhere anyway.

Dropshipping relies more and more on high quality content and videos, so you have to produce high qulity contents and do it fast to sell well.

Dropshipping is not easy, it' HARD. Don't go doing dropshipping with making millions in mind because you need to fail a laot of times before even scaling a single store.
 

fastlane_dad

8 Figure Fastlane Graduate
FASTLANE INSIDER
Read Rat-Race Escape!
Read Fastlane!
Read Unscripted!
Speedway Pass
Jun 20, 2017
360
1,925
40
Scottsdale, AZ
Is it possible? Absolutely.

I have came across numerous businesses recently, that with a product that offers enough margin to advertise, and with some profit left over can still be a lucrative business (think high-priced goods). As @DavidePaco00 mentioned you also have to have a very novel way of advertising, and put all of your efforts and genius into that.

Having said all that @NeoDialectic and I have avoided dropshipping, and have never done it. We wanted enough profit margin to be build in from the start to make it worthwhile (product has to be 10 - 30X wholesale price) and we always wanted to control what our product was, the acquisition of it, the unique value 'rub' we provided behind it and the brand we were building with no limitations on how we can promote it.

There are some pros to dropshipping, and you can always take a stab at it -- but know that you are climbing a very very uphill battle right from the start, while limiting the potential upside..
 
Don't like ads? Remove them while supporting the forum: Subscribe to Fastlane Insiders.

Xeon

All Cars Kneel Before Pagani.
Read Fastlane!
Read Unscripted!
Speedway Pass
Sep 3, 2017
2,136
4,146
Singapore

Mikkel

Silver Contributor
FASTLANE INSIDER
Read Rat-Race Escape!
Read Fastlane!
Read Unscripted!
Speedway Pass
Feb 25, 2016
533
808
28
New Hampshire
However, i have a question: i see a lot of people online achieving great results, great money (200,000$+) what do you guys think of this?
A lot is relative and $200,000 as "great money" is certainly subjective. If I was good enough to make $200,000 I would be kicking myself for not selling my own product and making way more money and actually establishing a brand. You would probably make better margins selling white label products, which would also teach you about sourcing.

Maybe I'm just being pulled to this, but i really have nothing of experience and seeing that this is practically free, i wanted to try it out. Am i being naive here?
Your time is not free, so don't assume this to be free either. However, as much as I am not a fan of dropshipping, I would MUCH prefer someone new to the world of entrepreneurship to start with dropshipping than to give up trying and go back to the 9-5 grind forever.

Manage your expectations on dropshipping. Recognize this is simply a learning process and not a business model that you should stick with long term.

If you get good at drop shipping, then you probably have been doing it for to long.

To MJ's point, you are making the dropshipping company far more money then they are paying you. You don't want to distort true entrepreneurship with drop shipping. Low risk usually means low reward.

Personally, I think there are far better options for new entrepreneurs than dropshipping. Dropshipping seems to be soul sucking, the ultimate race to the bottom on prices.

Whatever you choose, learn from the experience. If you fail, learn from that and come back stronger.
 

moemoneymachine

New Contributor
Nov 12, 2022
2
3
A lot is relative and $200,000 as "great money" is certainly subjective. If I was good enough to make $200,000 I would be kicking myself for not selling my own product and making way more money and actually establishing a brand. You would probably make better margins selling white label products, which would also teach you about sourcing.


Your time is not free, so don't assume this to be free either. However, as much as I am not a fan of dropshipping, I would MUCH prefer someone new to the world of entrepreneurship to start with dropshipping than to give up trying and go back to the 9-5 grind forever.

Manage your expectations on dropshipping. Recognize this is simply a learning process and not a business model that you should stick with long term.

If you get good at drop shipping, then you probably have been doing it for to long.

To MJ's point, you are making the dropshipping company far more money then they are paying you. You don't want to distort true entrepreneurship with drop shipping. Low risk usually means low reward.

Personally, I think there are far better options for new entrepreneurs than dropshipping. Dropshipping seems to be soul sucking, the ultimate race to the bottom on prices.

Whatever you choose, learn from the experience. If you fail, learn from that and come back stronger.
Hey I'm recently new to this forum so I guess this is also my way of saying hello. I am currently a junior in college and looking to start an online side hustle. After reading your reply I wanted to know what options would you recommend for beginner entrepreneur without much capital.
 

fl_architect

Contributor
FASTLANE INSIDER
Read Rat-Race Escape!
Read Fastlane!
Read Unscripted!
Speedway Pass
Nov 16, 2022
40
35
33
Austria
I think @MJ DeMarco hits the nail on the head when he writes in his books, that when your neighbor and your mother-in-law start to dropship the business model has reached its peak and is on the decline, and with Chinese factories as competition, it won't get better.
 

Johnny boy

Legendary Contributor
EPIC CONTRIBUTOR
Speedway Pass
May 9, 2017
2,229
11,225
26
Washington State
It’s like basketball

Some people make a shit ton of money

Most make nothing and are slightly net negative

The question is are you going to bust your a$$ and be the Lebron James of it, or some pathetic amateur?

Are you going to spend all your time working, adjusting, learning, being dedicated to being the best? Or some schmuck who “tries it out”?

It’s all the same. I could make money in dropshipping because if I decided to do it, I would be obsessed with it and expect it to be extraordinarily hard.
 
Don't like ads? Remove them while supporting the forum: Subscribe to Fastlane Insiders.

Amerstain

New Contributor
Nov 3, 2022
22
11
belgium, leuven
I' doing it right now and as the comment above says , it's not a productocracy business.

The thing tho, is that You need to start somewhere anyway.

Dropshipping relies more and more on high quality content and videos, so you have to produce high qulity contents and do it fast to sell well.

Dropshipping is not easy, it' HARD. Don't go doing dropshipping with making millions in mind because you need to fail a laot of times before even scaling a single store.
Thanks man that has given me some insight, good luck!
 

Amerstain

New Contributor
Nov 3, 2022
22
11
belgium, leuven
A lot is relative and $200,000 as "great money" is certainly subjective. If I was good enough to make $200,000 I would be kicking myself for not selling my own product and making way more money and actually establishing a brand. You would probably make better margins selling white label products, which would also teach you about sourcing.


Your time is not free, so don't assume this to be free either. However, as much as I am not a fan of dropshipping, I would MUCH prefer someone new to the world of entrepreneurship to start with dropshipping than to give up trying and go back to the 9-5 grind forever.

Manage your expectations on dropshipping. Recognize this is simply a learning process and not a business model that you should stick with long term.

If you get good at drop shipping, then you probably have been doing it for to long.

To MJ's point, you are making the dropshipping company far more money then they are paying you. You don't want to distort true entrepreneurship with drop shipping. Low risk usually means low reward.

Personally, I think there are far better options for new entrepreneurs than dropshipping. Dropshipping seems to be soul sucking, the ultimate race to the bottom on prices.

Whatever you choose, learn from the experience. If you fail, learn from that and come back stronger.
Thanks for the advice, that certainty helped. Could you tell me which things new entrepreneurs could give a better shot at in your opinion?
 

Amerstain

New Contributor
Nov 3, 2022
22
11
belgium, leuven
It’s like basketball

Some people make a shit ton of money

Most make nothing and are slightly net negative

The question is are you going to bust your a$$ and be the Lebron James of it, or some pathetic amateur?

Are you going to spend all your time working, adjusting, learning, being dedicated to being the best? Or some schmuck who “tries it out”?

It’s all the same. I could make money in dropshipping because if I decided to do it, I would be obsessed with it and expect it to be extraordinarily hard.
I see... Makes sense. Thanks for your time man!
 
Don't like ads? Remove them while supporting the forum: Subscribe to Fastlane Insiders.

Mikkel

Silver Contributor
FASTLANE INSIDER
Read Rat-Race Escape!
Read Fastlane!
Read Unscripted!
Speedway Pass
Feb 25, 2016
533
808
28
New Hampshire
Hey I'm recently new to this forum so I guess this is also my way of saying hello. I am currently a junior in college and looking to start an online side hustle. After reading your reply I wanted to know what options would you recommend for beginner entrepreneur without much capital.
Thanks for the advice, that certainty helped. Could you tell me which things new entrepreneurs could give a better shot at in your opinion?
The options are endless, whether it is on the internet or not. Inherently, some businesses are easier to start compared to others. The easier the business is to start, the higher the competition and the less money you will make.

Entrepreneurship is not meant to be easy, your goal is to solve a problem in the market. Once there is an easy solution, people will flood the market until there are so many people solving the problem, that it really isn't a problem anymore.

There are two paths that I would suggest someone take(now granted, I am not successful yet so take my opinion with a grain of salt, though I am currently in the process of building my business).

1. Start with a business that you can start within a week, a business where you can take immediate action and get wins under your belt in a short period of time. Think window washing, lawn mowing, retail arbitrage on Amazon, flipping items on Craigslist/FB marketplace/Ebay, etc. This will get you to learn the basics of entrepreneurship. If you are good, you might be very successful like some individuals on this forum including @Johnny boy who I believe is doing quite well with lawn care, if I am not mistaken.

2. The other option is to find a niche that you think will be highly lucrative in the long term if you become skilled. The people who are billions(generally) are not those who walk into a niche and in one year become giants in that space. Think of the logistics industry, biotech, import/export, coding to build a SAAS business, chemicals industry, pharmaceuticals, Big Ag, etc. These industries hold giants. Why waste your time in an industry that is small, you are just limiting your upside potential.

Personally, I am doing number two. I tried the first strategy where I did retail arbitrage on Amazon. I made some money, got to learn the basics, and realized I had no control and didn't want to waste more time on a business that would ultimately fail me due to the lack of control. I am currently working on importing/exporting, biotech, and logistics. Three massive fields. Currently, my main focus is on importing and distribution within the biotech industry. I've been working on this project for about 9 months. I have yet to bring any samples over at this time, but I am quite close. There is a lot of groundwork that has to be laid before I am able to make my first dollar. All I know is that these 9 months have allowed me to learn many aspects of importing and biotech. Even if I fail at this venture, though I don't see that being the case, I will continue down the path of importing and exporting. The knowledge will continue to compound and the networks that I grow will continue to expand until one of my businesses take off.

@moemoneymachine you asked, what type of business you can start with limited capital. The answer is that you can build virtually any business with limited capital. My biotechnology distribution start-up I presume will take a startup capital of about $2,000. Most of that money is for legal fees and starting an LLC. The only unknown at this time in terms of financials is the insurance which may bump up the starting capital needed. Obtaining expensive product doesn't need to take a lot of your own capital. If you are savvy and come up with win-win situations for both you and someone with the money or the product, then you don't have to spend much of your own money.

The win-win in my situation was simple, I get my supplier's product to the US market. He doesn't have to pay me anything. I will do literally everything. In exchange, he provides me with his products and exclusive distribution rights. I only pay him AFTER the product is sold.

So his risk is, maybe he gives me a small amount of product(to start off with) and I am a con artist and run away with his small amount of product(which I wouldn't do as we developed a mutually beneficial partnership). My downside is that I spent 9+ months trying to build a business that failed.

Win-Win.
 

Amerstain

New Contributor
Nov 3, 2022
22
11
belgium, leuven
The options are endless, whether it is on the internet or not. Inherently, some businesses are easier to start compared to others. The easier the business is to start, the higher the competition and the less money you will make.

Entrepreneurship is not meant to be easy, your goal is to solve a problem in the market. Once there is an easy solution, people will flood the market until there are so many people solving the problem, that it really isn't a problem anymore.

There are two paths that I would suggest someone take(now granted, I am not successful yet so take my opinion with a grain of salt, though I am currently in the process of building my business).

1. Start with a business that you can start within a week, a business where you can take immediate action and get wins under your belt in a short period of time. Think window washing, lawn mowing, retail arbitrage on Amazon, flipping items on Craigslist/FB marketplace/Ebay, etc. This will get you to learn the basics of entrepreneurship. If you are good, you might be very successful like some individuals on this forum including @Johnny boy who I believe is doing quite well with lawn care, if I am not mistaken.

2. The other option is to find a niche that you think will be highly lucrative in the long term if you become skilled. The people who are billions(generally) are not those who walk into a niche and in one year become giants in that space. Think of the logistics industry, biotech, import/export, coding to build a SAAS business, chemicals industry, pharmaceuticals, Big Ag, etc. These industries hold giants. Why waste your time in an industry that is small, you are just limiting your upside potential.

Personally, I am doing number two. I tried the first strategy where I did retail arbitrage on Amazon. I made some money, got to learn the basics, and realized I had no control and didn't want to waste more time on a business that would ultimately fail me due to the lack of control. I am currently working on importing/exporting, biotech, and logistics. Three massive fields. Currently, my main focus is on importing and distribution within the biotech industry. I've been working on this project for about 9 months. I have yet to bring any samples over at this time, but I am quite close. There is a lot of groundwork that has to be laid before I am able to make my first dollar. All I know is that these 9 months have allowed me to learn many aspects of importing and biotech. Even if I fail at this venture, though I don't see that being the case, I will continue down the path of importing and exporting. The knowledge will continue to compound and the networks that I grow will continue to expand until one of my businesses take off.

@moemoneymachine you asked, what type of business you can start with limited capital. The answer is that you can build virtually any business with limited capital. My biotechnology distribution start-up I presume will take a startup capital of about $2,000. Most of that money is for legal fees and starting an LLC. The only unknown at this time in terms of financials is the insurance which may bump up the starting capital needed. Obtaining expensive product doesn't need to take a lot of your own capital. If you are savvy and come up with win-win situations for both you and someone with the money or the product, then you don't have to spend much of your own money.

The win-win in my situation was simple, I get my supplier's product to the US market. He doesn't have to pay me anything. I will do literally everything. In exchange, he provides me with his products and exclusive distribution rights. I only pay him AFTER the product is sold.

So his risk is, maybe he gives me a small amount of product(to start off with) and I am a con artist and run away with his small amount of product(which I wouldn't do as we developed a mutually beneficial partnership). My downside is that I spent 9+ months trying to build a business that failed.

Win-Win.
Thank you very much for your time. I will keep this and reread it. It certainly has a lot of value to me because you aren't at "the endpoint" of the journey, so it's more relatable. Good luck with your venture!
 

Djioul

Bronze Contributor
FASTLANE INSIDER
Read Fastlane!
Read Unscripted!
Speedway Pass
Apr 12, 2021
101
116
35
France
We wanted enough profit margin to be build in from the start to make it worthwhile (product has to be 10 - 30X wholesale price)
Do I understand correctly ? You only focused on products on which you could decrease the buying price 10 to 30 times when ordering big quantities, right ?
For example: a product that you buy for 30 USD as a single unit, you can have it for 1-3 USD if you order 100k units. Is it correct ?
 
Don't like ads? Remove them while supporting the forum: Subscribe to Fastlane Insiders.

Amerstain

New Contributor
Nov 3, 2022
22
11
belgium, leuven
Do I understand correctly ? You only focused on products on which you could decrease the buying price 10 to 30 times when ordering big quantities, right ?
For example: a product that you buy for 30 USD as a single unit, you can have it for 1-3 USD if you order 100k units. Is it correct ?
Is being an INSIDERS worth it?
 

AppMan

Bronze Contributor
Read Unscripted!
Speedway Pass
May 25, 2019
270
180
Mj metioned dropshipping very briefly in his book. That you don't want to be the dropshipper, but the one who offers it.

However, i have a question: i see a lot of people online achieving great results, great money (200,000$+) what do you guys think of this? Maybe I'm just being pulled to this, but i really have nothing of experience and seeing that this is practically free, i wanted to try it out. Am i being naive here? Would appreciate any help or advice, because i feel like this is one and if not my only option.
Dropshipping is no longer considred profitable business model because of the huge competition that leaves no margin to most products.
You still can try it, but it is very hard to offer prices that beat the competition.
 

Mikkel

Silver Contributor
FASTLANE INSIDER
Read Rat-Race Escape!
Read Fastlane!
Read Unscripted!
Speedway Pass
Feb 25, 2016
533
808
28
New Hampshire
Is being an INSIDERS worth it?
I think so, but you should have the money to afford it first. There is a lot of free information that is made available to everyone. You will not magically become an entrepreneur just because you're an INSIDERS. You do have access to some good threads and can ask more in-depth questions related to your business since the whole internet is not privy to the inside.

To reiterate, you need to take action. No amount of knowledge can substitute taking meaning and consistent action over a long period of time. Figure out what niche you want to get into, and go for it. If you have enough money to afford the Inside, I definitely suggest it, but don't put your ability to start a business at risk to become an insiderd. When you make some money and can afford it, then become an INSIDERS.
 
Don't like ads? Remove them while supporting the forum: Subscribe to Fastlane Insiders.

inputchip

Gold Contributor
Read Fastlane!
Read Unscripted!
Summit Attendee
Speedway Pass
Mar 26, 2017
307
1,220
www.tmkings.com
Don't write off dropshipping as a business model. It only gets a bad rep because of the way most people think of it.

Most people think dropshipping = cheap Chinese products, no value-add, no brand building, no customer support, etc. When really, any physical products business could be a "dropshipping" business if it was arranged as such. Dropshipping simply means that you aren't holding stock yourself as a business, but rather it is shipped directly from the point of origin. This is typically to save on warehousing and shipping costs.

This might blow your mind, but there are many other countries outside of China that have world-class manufacturing. @Walter Hay has been preaching this for years. Vietnam, Taiwan, Japan, USA, Germany, Italy, France, etc. Look inside your own backyard, almost every major North American city has some sort of manufacturing. Most of these manufacturers don't sell directly to the end user.

For example, in my previous business venture, we sourced directly from manufacturers in Brazil, and they dropshipped the product directly to our customers since our products were heavy, large, and expensive ($2,000+), which saved hundreds on each product shipped. We worked with them to create new designs, functionality, performance, and of course our own branding.

There's no right or wrong way to go about it, at the end of the day you are just solving a problem. Figure out the most efficient way to solve that problem, and you will be profitable. If everyone else has easy access to the same products as you (via Aliexpress) the barrier for a competitor to crop up is non-existent. You will be fighting every week to come up with new product ideas because they get washed out with the competition.
 

NeoDialectic

Successfully Exited the Rat Race
FASTLANE INSIDER
Read Rat-Race Escape!
Read Fastlane!
Read Unscripted!
Speedway Pass
Feb 11, 2022
330
1,709
Phoenix, az
There are some pros to dropshipping, and you can always take a stab at it -- but know that you are climbing a very very uphill battle right from the start, while limiting the potential upside..
I think this sum's it up pretty nicely.

I also completely agree with @Johnny boy 's sentiment... But I don't think it's addressing the heart of the matter. With the right mindset you can become successful with anything. Which is 100% true.... But it doesn't change the fact that there are still routes that are more conducive to success and with less limits. You will always have more opportunity to be more successful selling your own things than you will drop shipping someone elses product.

It's not a terrible place to start learning entrepreneurship though if that's the only thing you want to do. My beginnings had affiliate marketing in it and while I don't consider it a great route to success, it taught me alot of things.
 
Don't like ads? Remove them while supporting the forum: Subscribe to Fastlane Insiders.

Amerstain

New Contributor
Nov 3, 2022
22
11
belgium, leuven
Don't write off dropshipping as a business model. It only gets a bad rep because of the way most people think of it.

Most people think dropshipping = cheap Chinese products, no value-add, no brand building, no customer support, etc. When really, any physical products business could be a "dropshipping" business if it was arranged as such. Dropshipping simply means that you aren't holding stock yourself as a business, but rather it is shipped directly from the point of origin. This is typically to save on warehousing and shipping costs.

This might blow your mind, but there are many other countries outside of China that have world-class manufacturing. @Walter Hay has been preaching this for years. Vietnam, Taiwan, Japan, USA, Germany, Italy, France, etc. Look inside your own backyard, almost every major North American city has some sort of manufacturing. Most of these manufacturers don't sell directly to the end user.

For example, in my previous business venture, we sourced directly from manufacturers in Brazil, and they dropshipped the product directly to our customers since our products were heavy, large, and expensive ($2,000+), which saved hundreds on each product shipped. We worked with them to create new designs, functionality, performance, and of course our own branding.

There's no right or wrong way to go about it, at the end of the day you are just solving a problem. Figure out the most efficient way to solve that problem, and you will be profitable. If everyone else has easy access to the same products as you (via Aliexpress) the barrier for a competitor to crop up is non-existent. You will be fighting every week to come up with new product ideas because they get washed out with the competition.
Thanks man, i will take this with me when starting. Surely took much value from this! I hope the best for you
 

Walter Hay

Legendary Contributor
EPIC CONTRIBUTOR
Speedway Pass
Sep 13, 2014
3,263
12,906
World citizen
Don't write off dropshipping as a business model. It only gets a bad rep because of the way most people think of it.

Most people think dropshipping = cheap Chinese products, no value-add, no brand building, no customer support, etc. When really, any physical products business could be a "dropshipping" business if it was arranged as such. Dropshipping simply means that you aren't holding stock yourself as a business, but rather it is shipped directly from the point of origin. This is typically to save on warehousing and shipping costs.

This might blow your mind, but there are many other countries outside of China that have world-class manufacturing. @Walter Hay has been preaching this for years. Vietnam, Taiwan, Japan, USA, Germany, Italy, France, etc. Look inside your own backyard, almost every major North American city has some sort of manufacturing. Most of these manufacturers don't sell directly to the end user.

For example, in my previous business venture, we sourced directly from manufacturers in Brazil, and they dropshipped the product directly to our customers since our products were heavy, large, and expensive ($2,000+), which saved hundreds on each product shipped. We worked with them to create new designs, functionality, performance, and of course our own branding.

There's no right or wrong way to go about it, at the end of the day you are just solving a problem. Figure out the most efficient way to solve that problem, and you will be profitable. If everyone else has easy access to the same products as you (via Aliexpress) the barrier for a competitor to crop up is non-existent. You will be fighting every week to come up with new product ideas because they get washed out with the competition.
What an excellent post. I agree that dropshipping can be a very lucrative business model provided it doesn't take the form of following all the sheep who can't do anything but follow the ones in front.

As for my recommendation to search beyond China, in the event you find something of high value that is quite unique, as an alternative to buying inventory from them, you can ask if the manufacturer will dropship for you.

In any case, finding products not on the market in your country can give you a big advantage over other sellers and you can obtain very big margins until copycats find the same product, which they might never do.

Finally I have also for years preached buying local. As @inputchip points out there are many manufacturers in the US. Take advantage of lower freight costs.

Walter
 

Goodfella999

My biggest regret is not starting sooner
FASTLANE INSIDER
Read Fastlane!
Read Unscripted!
Speedway Pass
Apr 29, 2022
55
57
South FL
@NeoDialectic @fastlane_dad If I found an underserved niche, created a website but didn't actually hold inventory myself and drop-shipped from a manufacturer in the US, do you think this would be viable in the current market? Ive read threads on here of people doing that 5+ years ago and having success or would you say you have to custom brand a product to take off nowadays?
 
Don't like ads? Remove them while supporting the forum: Subscribe to Fastlane Insiders.

fastlane_dad

8 Figure Fastlane Graduate
FASTLANE INSIDER
Read Rat-Race Escape!
Read Fastlane!
Read Unscripted!
Speedway Pass
Jun 20, 2017
360
1,925
40
Scottsdale, AZ
@NeoDialectic @fastlane_dad If I found an underserved niche, created a website but didn't actually hold inventory myself and drop-shipped from a manufacturer in the US, do you think this would be viable in the current market? Ive read threads on here of people doing that 5+ years ago and having success or would you say you have to custom brand a product to take off nowadays?
All depends on the market, niche and profits. Also depends what your advertising tactics will be. There is no one absolute ' don't go this route' -- if you seem to know and hold some competitive advantage, or a novel way to market in an underserved market by all means go ahead and try.

No one is out there to say that it wont work, depending on the work it takes for you to set this up -- you can always go out there and test.

Having said all that - you DO control more of your brand / process / fulfillment etc with custom product. Not to say that's a 'guaranteed' win in all wants, but adheres to CENTS, and is a better long-term play and strategy.

Dropshipping has it's pros and cons so proceed carefully - but know what some of the near and long term tradeoffs will be going this route.
 

NeoDialectic

Successfully Exited the Rat Race
FASTLANE INSIDER
Read Rat-Race Escape!
Read Fastlane!
Read Unscripted!
Speedway Pass
Feb 11, 2022
330
1,709
Phoenix, az
@NeoDialectic @fastlane_dad If I found an underserved niche, created a website but didn't actually hold inventory myself and drop-shipped from a manufacturer in the US, do you think this would be viable in the current market? Ive read threads on here of people doing that 5+ years ago and having success or would you say you have to custom brand a product to take off nowadays?
Your question kind of rolls into it the answer (begging the question fallacy).... If you found an UNDERSERVED niche, then dropshipping will work because your market is, by your definition, hungry and looking. But the difficult question is finding an underserved niche that has a drop shipping solution.

My Idea Thread flirts with dropshipping (or similar) for testing purposes. But at the end of the day, the goal of the framework is always to make something unique that adds more value than what a generic dropship product could. Theoretically, you could choose to never make the jump to a custom product from the testing product (like the sunscreen in my example), but it's really shooting yourself in the foot. While you may sell in the short term by taking advantage of the underserved niche, that will fade shortly when drop shippers catch on and you will be left with nothing. But if after the initial success you custom tailor a GREAT product, copy cat dropshippers can't just come in and steal all your sales by undercutting you. Your product will be leaps and bounds better and different. This way you didn't just make some short-term money during that low-competition period, but you also made a name for the brand with its unique and thought-through value proposition. That will pay off in dividends.
 
Last edited:

Amerstain

New Contributor
Nov 3, 2022
22
11
belgium, leuven
Your question kind of rolls into it the answer (begging the question fallacy).... If you found an UNDERSERVED niche, then dropshipping will work because your market is, by your definition, hungry and and looking. But the difficult question is finding an underserved niche that has a drop shipping solution.

My Idea Thread flirts with dropshipping (or similar) for testing purposes. But at the end of the day the goal of the framework is always to make something unqiue that adds more than just generic dropship products could. Theoretically you could never make the jump to a custom product from the testing product (like the sunscreen in the example), but it's really shooting yourself in the foot. While you may sell in the short term by taking advantage of the underserved niche, that will fade shortly when drop shippers catch on and you will be left with nothing. But if after the initial success you custom tailor a GREAT product, copy cat dropshippers can't just come in and steal all your sales by undercutting you. Your product will be leaps and bounds better and different. This way you didnt just make some short term money during that low-competition period, but you also made a name for brand with it's unique and thought through value proposition. Which will pay off in dividends.
Interesting. Thanks for this.
 
Don't like ads? Remove them while supporting the forum: Subscribe to Fastlane Insiders.

AnNvr

Contributor
Apr 5, 2021
88
98
Australia
Mj metioned dropshipping very briefly in his book. That you don't want to be the dropshipper, but the one who offers it.

However, i have a question: i see a lot of people online achieving great results, great money (200,000$+) what do you guys think of this? Maybe I'm just being pulled to this, but i really have nothing of experience and seeing that this is practically free, i wanted to try it out. Am i being naive here? Would appreciate any help or advice, because i feel like this is one and if not my only option.
Although some early birds made those numbers with dropshipping, the majority of the Youtubers or redditers mentioning 6 figures from dropshipping do not have any proof or evidence to demonstrate it. Same as day traders and / or bitcoiners. Usually are trash talkers who make money from traffic by creating media and talking about what they want you to believe they made. And they're good at it. Just my 2 cents.
 

theazizmoh_

New Contributor
Apr 29, 2022
17
13
Mj metioned dropshipping very briefly in his book. That you don't want to be the dropshipper, but the one who offers it.

However, i have a question: i see a lot of people online achieving great results, great money (200,000$+) what do you guys think of this? Maybe I'm just being pulled to this, but i really have nothing of experience and seeing that this is practically free, i wanted to try it out. Am i being naive here? Would appreciate any help or advice, because i feel like this is one and if not my only option.
Tbh i wouldn't do dropshipping, yes you can make "some money" from it.

It's a fake CENTS business, i would learn a skill and find problems that i can solve.

Maybe there's a problem that a dropshipper is facing you may create a solution for that.
 

Post New Topic

Please SEARCH before posting.
Please select the BEST category.

Post new topic

Guest post submissions offered HERE.

Must Read Books...

must read books
Download FREE and share!
Download
Explore books recommended by MJ DeMarco and other members of the Fastlane entrepreneurial community.
Fastlane Bookstore

New Topics

Fastlane Insiders

View the forum AD FREE.
Private, unindexed content
Detailed process/execution threads
Ideas needing execution, more!

Join Fastlane Insiders.

Top